Source:  Tom Johnston, MEATINGPLACE.COM, 4/7/10

U.S. pork industry officials touring Japan this week said intense competition for market share in that export market has led to a proliferation of branding efforts to suit local consumers' increasing penchant for product differentiation.

U.S. Meat Export Federation President and CEO Phil Seng said 20 countries currently are vying for market share in Japan, where consumers are looking for ways to distinguish one product from another based on more information than just the country of origin.

"This lends itself very well to the U.S. pork industry because we have a tremendous ability to brand our products and differentiate our products in many ways here in Japan," Seng said in a media briefing from Tokyo today.

Seng was joined on the call by Tim Bierman, president of the National Pork Board; Christopher Novak, CEO of the National Pork Board; Danita Rodibaugh, USMEF vice chair; and Joel Haggard, USMEF senior vice president for the Asia-Pacific region.

They are visiting Japan to commemorate the 50th anniversary of the 1959 Hog Lift, when Iowa farmers airlifted hogs and grain to Japan in response to a major typhoon. They are also there to assess market conditions and check in on current U.S. pork promotions in Tokyo.

The domestic consumer's sensitivity to marketing, Seng said, creates business opportunities for U.S. pork in Japan, where exporters are finding success simply by differentiating their brands based, for example, on breed or type of feed or geography.

"This is something they're willing to pay for," Seng said.

Strong hold

U.S. pork holds nearly 46 percent of the imported pork market share in Japan. Including domestic supply, 17 percent of all pork consumed in Japan is of U.S. origin. The U.S. also holds some 70 percent market share on chilled imported pork, which typically includes higher-value, never-frozen cuts bought at retail and used in higher-quality restaurants.

Some of the American mainstays include loins but also picnics, ground seasoned pork and bellies. Bierman said, however, the success of new lunch products in convenience stores and pork back ribs at retail outlets suggest that increasing U.S. pork in Japan will be driven by new products. He cited an example of a Japanese retailer ordering more than 154,000 pounds of pork back ribs just for one retail promotion.

Sales of U.S. pork in Japan in 2009 were valued at about $1.5 billion. USMEF expects a 4 percent increase in 2010.

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