Feed International - January/February 2010

While Wagyu simply denotes “Japanese beef cattle breed,” Wagyu beef from cattle raised in Japan fetches a higher premium in retail chains compared with Wagyu raised in other countries using the same breed genetics. Grading systems that offer consumers information on the different qualities and cuts will also become necessary in the niche meat market.

New game

Before the last decade, Asia was the producer looking for export markets. These were to be found mainly in Western Europe, North America and Japan. Today, the roles are reversed. Asia has become the buyer demanding more raw materials and supplies, while Western companies are looking for new markets as their own economies, offer limited opportunities.

As a result, many producers are aggressive in expanding in the downstream food sectors mainly via joint ventures or partner-

Asia drives global meat demand growth
Per capita meat consumption in Asia (2007)

140

120

Kg/capita/annum

100

Hong Kong
Australia
Taiwan
South Korea
China
Thailand
Indonesia
Japan
Philippines
India

Source: FABRI, Rabobank

Pork is one of the most important meats consumed in Asia, with the exception of Malaysia, Indonesia and India. China is the world’s largest producer of pork.

Beef and veal
Pork
Broiler
Lamb-mutton

ships. But the challenge lies in understanding the Asian consumer psyche.

For instance, US companies, which
were previously slow to understand the
intricacies of consumer markets like Japan,
are now beginning to see that last decade’s
trend of commoditising products — bulk
goods at lower cost but with few nutritional
benefits — does not sell in the region.