Wal-Mart-owned Seiyu to start selling U.S. beef in Japan

TOKYO (AP)--Seiyu Ltd., the supermarket chain owned by Wal-Mart, said March 26 some of its stores will start selling U.S. beef at a time when most major retailers here are still worried about possible health hazards.

Seiyu, which operates about 400 stores nationwide, said in a statement about 20 stores in the region near Tokyo will sell U.S. beef.

Japan banned American beef imports in December 2003 after the first case of Bovine Spongiform Encephalopathy in the U.S.

The ban was eased in December 2005 but tightened again the following month after prohibited spinal bones were found in a veal shipment--an error by U.S. plant workers and a government inspector who didn't realize veal cuts with backbone are considered at risk for BSE .

Japan eased the restrictions again in July last year. It now allows only boneless meat from cows aged 20 months or younger because infection from BSE is only known to occur in older cows. Tokyo also limits imports to beef that has been through stringent checks at selected U.S. meat processing plants.

The U.S. government repeatedly has said the beef is safe because of stringent checks. But such assurances have done little to allay Japanese fears about BSE , a degenerative nerve disease in cattle.

U.S. Ambassador to Japan, J. Thomas Schieffer, welcomed the news about Seiyu.

"We have worked very hard to make sure that safe U.S. beef is available once again to Japanese consumers," he said in a statement. "U.S. beef is not only safe but it tastes really good, and I think Seiyu's customers will find that it is a great buy."

Seiyu is 51 percent owned by Wal-Mart Stores Inc., based in Bentonville, Arkansas, the world's largest retailer.

U.S. beef chuck for steaks will cost 298 yen (US$2.53; euro1.90) for 100 grams (3.5 ounces) at Seiyu, according to the company. That's a bargain compared to Japanese beef, which sells for about 1,080 yen (US$9.15; euro6.87) for 100 grams (3.5 ounces) of sirloin steak, said Seiyu spokeswoman Haruko Toyama.

But Japanese appetite for American beef is rapidly shrinking. And stores selling U.S. beef is more of an exception than the rule.

The five Costco stores run by the Japan unit of U.S. warehouse retailer Costco Wholesale Corp., are selling U.S. beef, as are other smaller chains. U.S. beef is also being served in a popular beef bowl dish at fast-food chain Yoshinoya D&C Co.

The worries about the safety of American beef has grown worse after meat was found from a Nebraska processing plant that violated the 20-month or younger restriction on shipments.

Japan has suspended imports from that plant. Tyson Foods Inc., is however, still exporting beef from its six other U.S. beef processing plants and has promised to take further steps to ensure only qualified products are exported to Japan.

Seiyu said its beef buyer went to the U.S. to check on the inspection system and confirmed the products are safe. Only beef certified to originate from cattle 20 months or younger from a facility approved for export to Japan will be sold, it added.

B

11

4/9/07

4 Star NE

Date: 4/4/07


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