Ontario Beef Market Development Update

Ontario Beef Sees Strong Growth in Important Japanese Market

By John Baker, Director of the Ontario Beef Market Development Program john@ontariobeef.com • www.ontariobeef.com

In 2015, the Ontario Corn Fed Beef program began Ontario’s first marketing efforts to brand Ontario beef outside of our provincial borders. The primary market identified was Japan.

Since that time, we have seen tremendous growth in the volume of Ontario beef exported to Japan, and more importantly the value received for branded Ontario beef in the Japanese market.

Japanese consumers love the taste of beef. They have tremendous respect for on-farm processes and protocols that ensure consistency and quality, and they demand the highest levels of food safety in the products they import from many nations around the world. Canada has a tremendous reputation with Japanese consumers; the image of Canada as a country of integrity and natural resources resonates very well with consumers.

The province of Alberta, through their office in Japan, has always been an active supporter of Alberta beef in the market, allowing them to create a unique identity for regional beef production. This approach provided an opportunity to focus on how the province of Ontario could also provide the market with a unique value proposition for highquality beef produced in Ontario. Our value proposition is cattle raised on registered family farms under a documented quality assurance program, using a consistent nutritionally balanced corn-based feed ration and animal welfare standards to produce consistently highquality beef.

Back in 2015, we began our marketing efforts with Kinsho stores, a 43-store retail chain based in Osaka, Japan. In January 2019, we were very honoured to have two senior management leaders from Kinsho stores travel to Ontario to attend the Ontario Beef Industry Convention in London. Mr. Hirohi Ueda, Vice President of Kinsho stores, spoke about the relationship developed between Ontario Corn Fed Beef and Kinsho stores. They both spoke about how Ontario Corn Fed Beef has provided them with a unique high-quality brand of Canadian beef that their consumers have grown to love.

“Ontario Corn Fed Beef, grown using high-quality corn, produces beef with an excellent aroma and flavour, and it can be sold to consumers with confidence,” shared Mr. Ueda during his address. “We promise to deliver the consistent commitment to quality to consumers on your behalf.”

The success of this relationship has led to tremendous growth in the market. Today, there are 17 retail chains from all across Japan representing over 590 stores marketing Ontario Corn Fed Beef, making it the most recognized brand of Canadian beef in Japan.

As of May 2021, we will have three more retail chains marketing a new brand of Ontario beef in Japan, as Ontario Heritage Angus Beef makes its way into the market.

Canfax Research Services reports that export markets generate over $900 to a fed carcass’ value.

Developing such strong relationships in an important export market like Japan takes time and effort. However, the return is long lasting and beneficial to the entire Ontario beef industry.

For the period between 2016 and 2020, Ontario beef exports increased by 183 per cent in volume and 212 per cent in value to over $74 million.

According to a report by the Japan Supermarket Association, the average growth rate of beef demand over 2020 was 6.9 per cent at all 8,024 member stores.

A survey of Ontario Corn Fed Beef retail partners reported increases of 15 to 20 per cent over the same period.

COVID-19 concerns caused a slowdown last fall in production, and ultimately the shutdown of the Cargill Guelph facility in late 2020 resulted in reduced volumes available for the last quarter of 2020 and early 2021. However, with strong brand partnerships and a return to full production, we expect to see volumes return to year-over-year increases. OB