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Diplomacy Well Done: How Beef Exports Bring Japan and the Midwest Together

Japan

In recent years, Japan has grown to be a major consumer of American beef, topping over $1.8 billion in 2024. As tourism continues to grow in the country, so will Japan’s demand for high-quality American beef products, most of which come from the Midwest.

In 2024 alone, Japan ranked as the top consumer of American beef products, valued at around $1.87 billion, with exports growing by 3% in the last year and 10% over the last decade. On a macro level, the Indo-Pacific country has long been a major foreign market for American beef exporters as it remains the second-largest importer of American beef and a crucial partner for American beef exporters. Japan’s strong appetite for American beef reflects the even stronger partnership between the United States and Japan, as well as with the Midwestern states which supply a significant portion of American beef exports.

Japan did not consume much beef until the post-World War II era due to strict import regulations and it not being a part of the traditional Japanese diet. However, in 1976, the United States created the US Meat Export Federation (USMEF), a trade association dedicated to promoting US meat products abroad. The organization uniquely connected the US beef industry with the US Department of Agriculture (USDA)’s Foreign Agriculture Service (FAS). In 1977, the USMEF opened an overseas office in Tokyo due to its “good transportation links with other Asian countries and because of opportunities for meat sales in Japan itself.” In the decades since its inaugural opening, the USMEF was crucial in helping negotiate more lenient trade restrictions on US beef exporters and marketing US beef products for a Japanese audience by highlighting their taste, nutrition, and quality.

Thanks to the work of the USMEF and the USDA FAS, Japan has become one of the largest consumers of American beef in the world. Simultaneously with USMEF establishing its Tokyo office, imports of American beef into Japan skyrocketed to almost 850,000% over 33 years from 41 metric tons in 1968 to a high of 348,299 metric tons in 2000. Japan is a particularly popular market for beef exporters not only because of its consistent demand, but also because Japanese consumers enjoy variety meats not as popular in the US such as cow tongue, liver, and tripe. Aside from Japanese citizens, the influx of international tourists visiting Japan further drives demand since the Japanese restaurant, hotel, and food service industries rely on American beef to make popular Japanese beef dishes such as beef bowls or bento beef sets.

In 2021, US beef exports in Japan were so high that it led to the two countries needing to renegotiate a new trade agreement the following year. Under this new trade agreement, US beef producers would finally be able to export their products to meet Japanese demand without triggering any safeguard tariffs. This new deal, combined with Japan’s rebounding tourism rates, helped US beef exports surpass $2 billion for the second time in US history. In 2024, Japan was the leading importer of beef by volume, with total yearly exports valued at around $1.8 billion. Looking ahead, Midwestern beef producers, as well as their counterparts across the United States, hope that the return of tourists can further fuel more demand for American beef. “The number of tourists is now above the pre-COVID level since October [2023],” said USMEF-Japan Marketing Director Tom Kasatani. “The hotel rate has increased quite a lot due to the many guests staying, mainly tourists. So yes, we are hoping many tourists can come and eat U.S. beef and pork cuisine in Japan.”

Given the Midwest’s robust meat industry and Japan’s demand for such products due to limited domestic production, the two regions have developed strong business ties through the beef trade. Several Midwestern states rank among the top exporters of animal products, a significant portion of which are exported to Japan and other countries in the Indo-Pacific. In 2021, Nebraska—the nation’s leading beef exporter—exported over $405 million worth of beef to Japan or around 27% of its total beef exports. The country also accounted for over 56% of Nebraska’s total pork exports, making it one of the state’s top markets for red meat. In 2022, Iowa exported $551 million in beef products to Japan.

Building upon its historic work, the USMEF continues to identify and cultivate new market opportunities in Japan, connecting the US beef industry with Japanese businesses. The trade association promotes American beef at major Japanese food trade shows, coordinates trade visits to Japan, and assists states hosting Japanese delegations. Though the future Japanese beef market looks uncertain with a weak yen and high inflation, constant engagement leaves both American beef producers and Japanese entrepreneurs cautiously optimistic that American meat products will remain a fixture in the Japanese diet. By allowing American beef producers to understand Japanese consumer preference through in-person engagements and providing Japanese investors to observe how American beef cattle are raised increases mutual understanding and tangible collaboration. "We have to continue to tell that story about quality and how we're different, and I think having producers here in the marketplace, seeing the importance of that - that's worth the value of the [trips themselves]," said USMEF President and CEO Dan Halstrom.

Overall, the close partnership between the US beef industry and Japan spanning the past few decades is yet another facet of the multidimensional relationship between the two partners. Organizations like the USMEF have played a crucial role in ensuring that American beef, from both the Midwest and across the United States, continues to find itself way onto Japanese dinner tables. “I strive to be an advocate for our beef and cattle industries,” said Nebraska Beef Council Board Member Mark Goes. “The USMEF mission is ‘Putting US meat on the world’s table,’ and I wanted to help build confidence in our product.”

Lois Ramilo is a Spring Young Professional at the East West Center in Washington. She is a recent graduate from the University of California, San Diego where she majored in international relations.