Meat group sees more U.S. beef to Japan, Russia

By Missy Ryan and Bob Burgdorfer

CHICAGO (Reuters) - Sales of U.S. beef to Japan could double by August, while sales to Russia could start by year's end if inspections of U.S. beef plants go well, a meat industry group said on Wednesday.

Japanese inspectors are visiting U.S. beef plants this week and Russia inspectors are due in September, the U.S. Meat Export Federation (USMEF) said in a conference call on Wednesday.

The inspections are to assure the two countries that U.S. beef production methods protect against mad cow disease.

"Hopefully this will increase our exports. It is estimated that we could by August have a doubling of our exports," Phil Seng, USMEF chief executive, said of the Japanese market.

In the first three months of this year, Japan has bought 28.35 million lbs of U.S. beef and beef products. Mexico is No. 1 for that period with 134.36 million.

Japan's plant inspections are due to be completed on Friday, Seng said.

Japan, Russia, and many other countries banned U.S. beef in December 2003 when the United States reported its first case of mad cow disease. Japan resumed beef purchases on a restricted basis in 2006, while Russia has yet to buy.

The concern is that scientists believe humans can get a similar fatal brain disease if they eat tainted materials from beef cattle with mad cow disease.

Japan was the top overseas buyer of U.S. beef before December 2003, while Russia then had bought 65,000 metric tons of U.S. beef and beef products annually, USMEF said.

"We are optimistic that things could be moving again by the end of the year," said John Brook, who oversees Europe, Russia and the Middle East for the USMEF.

Last year, as part of a bilateral deal needed for its World Trade Organization entry, Russia agreed to resume most beef trade once it inspected U.S. beef plants. But the U.S. industry has grown impatient waiting for the inspections.

OIE RULING POSITIVE FOR U.S. BEEF

An upgrade this week for the United States' beef safety status by the World Organization for Animal Health (OIE) will likely be a boon for exports, but it will take months as different countries decide if they will pursue new trade regulations, USMEF officials said.

"It's going to be a huge catalyst in moving the whole process forward and it really strengthens the U.S. position vis-a-vis our trading partners," said Seng.

The USMEF develops overseas markets for U.S. beef, pork, and lamb.