Sponsored By

Industry At A Glance: Japanese Stimulus Worries MarketersIndustry At A Glance: Japanese Stimulus Worries Marketers

Japan’s move to jumpstart its economy with a $1.4-trillion stimulus could raise the potential for retaliation by its trading partners.

Nevil Speer

April 9, 2013

2 Min Read
Industry At A Glance: Japanese Stimulus Worries Marketers

Monetary policy can often seem somewhat nebulous – both domestically and internationally. However, global trade has increased the importance of respective strategies – especially to those industries that are highly involved in international trade, of which beef is one.

The Bank of Japan (BoJ) has announced plans to rapidly engage a new, enormous government bond-buying program (~$1.4 trillion). Designed to lift the country’s inflation rate and boost its economy, the stimulus will ultimately serve to accelerate the weakening value of the yen and improve Japan’s position in the export markets. Most notably, it will comparatively weaken Japan’s currency, which will make products sourced from Japan less expensive. However, it also will make products coming from other countries into Japan more costly.


Following its initial BSE case in late 2003 that shut down all U.S. beef imports into Japan, the U.S. has worked hard to reestablish beef trade with Japan. In fact, last year’s U.S. beef exports to Japan surpassed $1 billion in value – nearly one-fifth of U.S. beef’s total exports in 2012.

The recovery during the past nine years has also been partially boosted by a relatively weak U.S. dollar. BoJ’s new stimulus may mean beef exports to Japan will perhaps slow over time.

Either way, last week’s BoJ quantitative easing program will likely possess some important implications. Most notably, there will be some fallout, with the possibility for trade retaliation given that the BoJ decision is in direct contrast to recent agreements among the G7 nations.

How might the decision influence international beef trade among Japan and its other trade partners such as Canada, Australia and the U.S.? How might the U.S. beef industry fare in all of this? Leave your thoughts in the comments section below.


You might also like:

Readers' Favorite Spring Calves Photos

Actor Ryan Gosling Slams Dehorning In PETA Campaign

Photos That Honor The Hardworking Cowboys On The Ranch

7 Common Fencing Mistakes


About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

Subscribe to Our Newsletters
BEEF Magazine is the source for beef production, management and market news.

You May Also Like