The purpose of this paper was to examine the problems facing beef markets and production areas under the internationalization which was implemented in 1991 and carried out in 1995 pursuant to the conclusion of the Uruguay Round.
The results of the study can be summarized as follows:
(1) Four years have passed since Japan deregulated its beef trade and the amount of imported beef increased drastically until 1993, but the rate of increase decreased to moderate levels in 1994.
(2) Domestic beef production costs are very high, not only because the scale of Japanese beef production is smaller than Australia, the U.S. and other nations, but also because of the higher cost of labor, distribution, etc. For these reasons, Japan's beef self-sufficiency rate will continue to decrease rapidly.
(3) To cope with the shortage of labor in calf production areas, it is essential to establish regional centers for helping farmers do heavy farm works.
(4) After the beef import liberalization, returns on beef production have been low because of low prices and high production costs. As a result of these economic changes, small farmers are giving up livestock raising. Large-scale farmers, however, are raising much more livestock on small-scale farms to minimize production costs. Consequently, on large-scale farms, environmental pollution such as underground water pollution and foul smells has led to very serious social problems which tend to hinder sustainable agricultural development. To prevent criticisms concerning livestock environmental pollution, it is necessary for the regional governments to help livestock farmers by constructing recycling centers for the use of barnyard manure as fertilizer, which will encourage the recycling of organic substances in the same area, and to foster crop-growing farms nearby.
(5) Because the prices of Wagyu calves and carcass have been falling sharply since the beef import liberalizaion, it is necessary to improve the present calf and caracass price stabilization scheme.
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