Wholesale prices in Japan for Wagyu beef have fallen to their lowest since June 2020, as demand plummeted due to the COVID-19 pandemic.
Japanese beef
While prices have yet to recover, farmers are struggling amid rising costs. Demand for premium Wagyu beef has weakened sharply amid inflation, prompting some supermarkets to stop selling it altogether.
The average wholesale price of A5 grade Wagyu beef fell to 2,377 yen ($16.13) per kilogram on the Tokyo market in July 2024, down 7% from a year earlier, according to the Japan Meat Wholesalers Association.
The price has been falling for five straight months and is at a four-year low. Prices fell in 2020 due to weak demand (due to the pandemic) but have since rebounded thanks to improved exports to Asian and US markets and increased demand for premium food consumed at home.
However, there is a paradox that despite weak demand, Wagyu beef production is still increasing. The number of Wagyu cattle in Japan’s livestock rose to 41,679 in June 2024, up 3% from the previous year, according to the country’s Ministry of Agriculture, Forestry and Fisheries. This reflects farmers’ desire to increase production amid rising costs. Wagyu beef prices are determined by auctions and often do not match production costs.
Phuong Nga (According to Nikkei Asia Reivew)
Source: VNA