Pampered Canadian pigs feed Japan's hunger for pricey pork

ITOHAM YONEKYU HOLDINGS

16/11/2016 12:01

(Repeats for wider distribution) 
    * Japan pays premium over domestic buyers for chilled pork 
    * Pigs' reduced-stress lifestyle helps avoid dry meat 
    * Trendy Tokyo eatery features Canadian pulled pork salad 
 
    By Rod Nickel and Yuka Obayashi 
    WINNIPEG, Manitoba/TOKYO, Nov 16 (Reuters) - On select 
Canadian farms, thousands of pigs bound for Japan are getting 
five-star treatment. 
    Japan's growing appetite for pricey pork cuts is driving 
Canadian and U.S. fresh pork exports to record levels, spurring 
producers to use every advantage to gain market share. 
    While most of Canadian meatpacker Olymel L.P.'s pigs gobble 
pedestrian wheat and barley fare, others dine on rations spiced 
with mint and ginger on a Saskatchewan farm dedicated to 
fattening hogs bound for Japan, the world's second-biggest 
importer of the meat. 
    Some Canadian hogs are indulged with 12 times more rest 
before slaughter than pigs destined for other markets, to ensure 
stress does not turn the meat dry. Meanwhile, another hog 
producer has opened an eatery in a trendy Tokyo district to show 
off its pork. 
    "The Japanese consumer is probably the most powerful 
consumer of pork in the world, and they understand the 
difference in quality," said Claude Vielfaure, president of the 
hog-processing company HyLife. 
    Rich premiums paid by Japanese consumers have fueled intense 
competition and led to cross-Pacific partnerships between North 
American hog producer Smithfield Foods  SFII.UL  and Japanese 
trading house Sumitomo Corp  8053.T , as well as processor 
HyLife with trader Itochu Corp  8001.T .  
    Tyson Foods Inc  TSN.N  and Maple Leaf Foods Inc  MFI.TO  
also rank among North America's biggest pork suppliers, while 
processors NH Foods Ltd  2282.T  and Itoham Yonekyu Holdings 
 2296.T , and meat wholesaler Starzen Co Ltd  8043.T  import 
large volumes of North American chilled pork. 
    U.S. exporters shipped 147,000 tonnes of chilled pork to 
Japan from January through August, setting a record-brisk pace, 
according to the U.S. Meat Export Federation (USMEF). Canada 
sold C$679 million ($507 million) worth of pork to Japan for the 
period, its fastest pace in 11 years as measured by value. 
    The shipments show trade growth is possible based on 
consumer tastes and favorable prices, due partly to the yen's 
strength against the greenback and Canadian dollar, even as 
broad trade deals such as the Trans-Pacific Partnership suffer 
setbacks.  urn:newsml:reuters.com:*:nL1N1DA39G 
    Pork is the second-most consumed meat in Japan after fish, 
according to USMEF.  
     
    PAYING UP 
    Japanese buyers pay about C$1.20 per kilogram more than 
domestic buyers, factoring in the exporter's premium, freight 
and tariffs, said Ray Price, president of Alberta processor 
Sunterra Group. For a large high-quality loin, that works out to 
a bump of C$5.40 to the wholesale price. 
    In September, Manitoba-based HyLife opened a restaurant in a 
Tokyo business district to enhance its reputation, serving back 
ribs and pulled pork salad.     
    HyLife, which is 49 percent owned by Japan's Itochu, is 
spending up to C$125 million to expand processing and boost 
Asian sales.   
    At Lucyporc's Quebec plant, pigs rest in a quiet barn for 16 
to 24 hours before slaughter to reduce stress, compared with the 
industry standard of 2 to 5 hours. The result is juicier, 
better-tasting tenderloins, said general manager Denis 
Levasseur.  
    Olymel, which gives its pigs the ginger- and mint- 
infused feed, acknowledges the spices do not change the taste of 
the meat. But it gives the company a marketing edge, said 
Richard Davies, senior vice-president of sales and marketing.  
    In the United States, packers Rantoul Foods and Smithfield 
process hogs that are specially bred for Japan, distributed by 
Sumitomo and sold as Silky Pork brand. 
    
    AGING FARMERS, HIGHER COST 
    Japan produces just over half of the pork it consumes, 
limited by farmers' advancing age and the more than double 
production cost compared with North America, said Takashi Koiso, 
managing director of the Japan Pork Producers Association. Prime 
Minister Shinzo Abe's government aims to raise that to 58 
percent to satisfy Japan's appetite for dishes such as fried or 
gingered pork. 
    The United States and Canada, Japan's two largest offshore 
chilled pork suppliers, take advantage of shorter shipping times 
than European competitors, who sell mainly cheaper frozen pork, 
said Erin Borror, USMEF economist. 
    Japanese trading house Itoham has doubled chilled pork 
imports from Canada during the past five years and plans a 
further boost of 20 percent this year over last year, said 
spokeswoman Aiko Komeda. 
    To be sure, Japan is not within everyone's reach. 
    J.H. Routh Packing Company, a family-owned Ohio processor, 
sticks to serving U.S. buyers, avoiding the high cost of Japan's 
specifications. 
    "We found our niche," said sales manager Tony Stearns. 
"Trying to go and develop another market, (for which) we would 
have to buy equipment that costs millions - there's no real 
value in doing that." 
    While premiums can be lucrative, Japanese buyers often pay 
less than domestic buyers in spring, when prices rise, said Dave 
Bulgarelli, vice-president of sales at Rantoul. 
    "You have to make what they want, not what you want to 
sell," he said. 
 ($1 = 1.3389 Canadian dollars) 
 
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Graphic-Canada feeds Japanese hunger for fresh pork    http://tmsnrt.rs/2g2N78L 
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 (Editing by Matthew Lewis) 
 ((rod.nickel@thomsonreuters.com)(+ 1 204 230 6043)(Reuters 
Messaging: rod.nickel.thomsonreuters.com@reuters.netTwitter: 
@ReutersWinnipeg)) 
 
Keywords: PORK JAPAN/