January 2002

A• B.S.E. impact worsens with the market harder hit than expected as delayed, vague and cosmetic announcements are released to the public.

• Safe and thorough disciplines start implementation in aboitoirs. This will prevent infected meat entering the food chain.

 

• Meat consumption continues to be depressed and with dairy cattle as the victims F1 or medium to low quality meat is the most impacted. This will eventually impact all meat imports regardless of country of origin.

 

• Meat substitution practices previously reasonably extensive are now under Government review and targeted for elimination.

  

• 2002 will be rough for Japan calf producers, meat restaurants and exporters to Japan.

 

B• Westholme adjust business strategies to cope with B.S.E. impact on Japan market 

• Boat shipment instead of air shipment means cost savings to be reflected in the price to customers.          

 

• Cost savings to Australian procedures reviewed without sacrificing quality objectives.

 

• Heifers retained in Australia to enlarge breeding herd and avoid reduced market price in Japan.

 

• Shipments delayed to increase weight from 250 to 300kg benefiting customers and moving shipments into market recovery period. 

C• March visit schedule by Japanese Associates and business partners to Westholme Tarana increases 

• Japan calf producer exits mean greater long term opportunities for quality Wagyu fullblood breeding in Australia.
• Long feeding in Australia of quality full blood Wagyu becomes a more realistic opportunity as the Japan market changes.