In this instalment of our series “Meat the Supplier” we speak with Travis Brown and Kazu Mitsuhashi, who work for Meat and Livestock Australia’s (MLA) Japan division.
Read on to hear about Travis and Kazu’s work in supporting the uptake of Australian beef and lamb in Japanese markets.
Japanese diners enjoying lambmeat at the Sapporo Beer Garden.
What is your role with MLA?
Travis: I am the MLA’s Regional Manager for Japan and Korea, based in Japan, and I have been with MLA for just over 12 months. It’s my second stint in Japan, I was also here for almost five years from 2015 to 2019.
Kazu: I am the Senior Manager – Foodservice for MLA in Japan, and I started with the company in 2012.
What do day-to-day operations look like for you and your teams?
Travis: I work with my team of five in Japan and five in Korea, to achieve our overall objectives within MLA. From an international market point of view, this is very much around building the awareness and preference for Australian red meat in the markets that we operate. The reason for doing that is straightforward; we want long term and sustained success of the industry in Australia.
We do that through a number of different programs that we run; an example is country of origin branding, where we have an Aussie beef, lamb or goat logo displayed on the products. It’s a brand we invest in, and we want to build up the credentials of the brand. We focus on the fact that Australia produces clean, healthy and safe products, and that they are high-quality.
Another program we run is known as the Aussie Meat Academy, which provides educational and immersive experiences that are targeted more on the B2B side of things. We work with importers, wholesalers, food service staff, end users and retailers, and provide them with education around the Australian industry and why they should consider Australian lamb or Australian beef when they are making their purchasing decisions.
Outside of that, we do a lot of consumer work as well, using insights and data to target consumers across Japan and Korea.
Kazu: I focus on more of the local activities, with a focus on food service, and the execution of some of the programs that Travis spoke about. In my day-to-day, I work closely with our team of ‘Lambassadors’ and ‘Aussie Beef Mates’ who promote Australian meat in Japan.
A lot of my time is spent in educational programs; yesterday I ran a seminar about Aussie lamb for the western side of Japan, which is a bit of an untapped market for us as they’ve not typically consumed lamb. So, I am trying to develop the market over there.
Some regions of Japan are more accustomed to eating lamb than others; Hokkaido for example has been eating sheepmeat for a long time, 70 years or so. Then there are some areas where there is no historical eating habit of sheepmeat whatsoever, and we are trying to fix that.
Why is Hokkaido such a hot spot for the consumption of sheepmeat?
Kazu: After World War I, the Japanese Government initiated a project around sheep production, mainly for wool for soldiers clothing, and this was done in northern Japan, around Hokkaido. Then the natural next question was how should we eat all this mutton? It has since turned into an extremely popular Japanese cooking method, where meat is thinly sliced, and marinated using soy sauce, ginger, garlic and apples and cooked very quickly over coals.
It is known as ‘Genghis Khan’. No one really knows how it got the name, but apparently the special hot pot which it is cooked on looks a bit like the helmets of the Mongolian soldiers.
It was popularised even more because the Emperor had a flock of Suffolks and he would invite leaders from other countries to his home and would always serve lamb cooked this way.
Are there any other trends around sheepmeat consumption in Japan?
Travis: Around 60 per cent of sheepmeat in Japan is consumed in and around Hokkaido. For context, there are close to 150 million people in Japan, and just 5.5 million in that region, so it’s a significant swing.
We see where our opportunity is to build the lamb category in Japan. Genghis Khan, as Kazu mentioned, is a very well accepted and established way of eating sheepmeat in Hokkaido. People outside of Hokkaido and Japan are aware of it, and when they go to Hokkaido, they will eat it.
Kazu: There would be more than 300 Genghis Khan restaurants in Hokkaido, and probably only 100 in Tokyo.
Travis: We basically want to get people to eat Genghis Khan when they aren’t in Hokkaido or Sapporo. It is a way of eating which can be done at home; it is packaged up into little 300-gram packs, and is easy to open the marinated meat, throw it on the grill with a few vegetables, and 15 minutes later you have a nice family meal.
So, it can happen, we just have to figure out what some of the barriers are that are preventing people from doing it at the moment.
How has the market for Australian red meat grown in Japan over time?
Travis: MLA and Australian exporters have been very active in Japan for over 30 years. Historically, Japan has been Australia's largest export market for beef in particular, which is a significant amount of trade. With that in mind, Japan has received a lot of investment over the years.
But then what we have seen in more recent times is other markets starting to emerge and challenge Japan around that top position. The US, for example, is now Australia’s number one destination for beef, largely driven by the fact that they have a shortage of their own beef. China is also right up there now, challenging Japan for that second spot.
South Korea has also moved up into fourth position and is nipping at the heels of Japan from a beef point of view.
Who are the other key suppliers of red meat for Japan?
Travis: South America have some market access challenges into Japan, so our biggest competitor from a beef import point of view is the US, and dependant on supply cycles, Australia and the US will jockey for the position of number one importer of beef.
Australia is currently number one and will probably continue that way for the next few years. Aussie beef is currently sitting at about 43 per cent market share at the moment, which is a pretty strong position to be in.
Kazu: From a lamb perspective, recent data from 2023 shows that over 75 per cent of lamb in Japan is from Australia. It used to be lower, but it has recently increased. 21 per cent is from New Zealand, so nearly all imports are covered by Australia and New Zealand. Some lamb does come from France, Iceland, Wales, or the US, but very small amounts.
How many importers are involved in the lamb business?
Kazu: There are about 10 importers who bring lamb to Japan, and this goes to a mix of processing facilities, wholesalers and end users. Beef is much bigger. Approximately five or six Australian processors send lamb to Japan.
What is the main cut of lamb imported?
Kazu: Square cut lamb shoulder is the main cut. We are seeing more lamb racks and legs too. Rump cap is also getting more popular. The best cut for Genghis Khan is chuck roll or neck fillet.
What have been the biggest issues or risks within the supply chain from your perspective?
Travis: From a supply chain point of view, I don’t think there is too much risk. The biggest challenge that the market faces at the moment is just some of the macro-economic challenges going on in Japan, where cost of living is very topical now, as it is in many places around the world.
It’s particularly topical here because Japan has not experienced inflation for 30 years. All of a sudden costs are going up and people and businesses are struggling to get their heads around it. That’s also being exacerbated by a very weak Japanese Yen in the last 18 months or so. It has depreciated to the tune of 50 per cent against the US dollar. Not quite as bad against the Aussie dollar.
Historically, lamb has been seen as a cheaper red meat option, and now that is not necessarily the case. When you factor in increased costs within the supply chain, shipping, transport, fuel, all those things, plus the weak currency, both beef and lamb are quite expensive for the Japanese consumer.
It’s also fairly well documented that there is an aging and declining population in Japan. The way things are going, there are fewer consumers today than there were yesterday. This also brings labour challenges.
Tell us a little bit more about the MLA’s Lambassador program.
Kazu: I was one of the people who started the Lambassador program. We tried to do something a bit creative to raise the profile of lamb in Japan. Not only Australian lamb, but lamb overall.
We have 20 Lambassadors in Japan at the moment. The Japanese Lambassadors are our largest contingent around the world. Some are chefs, or personal cooking instructors. Some are influencers or mascots. So, all different professions, but all food professionals who are passionate about helping us promote lamb in Japan.
A Japanese "Lambassador" mascot
Travis: Feedback on the Lambassadors has been good. I met the team about 12 months ago, and they are an incredibly talented and diverse bunch and so passionate about lamb.
One of the events we hold in Tokyo is a festival in Nakano, run across two days, where the Lambassadors cook lamb in their own little stalls or tents, and they’ll cook lamb in their own styles and flavours. There are Chinese spiced skewers, Genghis Khan, lamb chops, and everything in between. I think we get between 10 and 12 thousand people attending each day.
There is also a Genghis Khan Grand Prix event which the Lambassadors are involved with, it is a judged competition for the best Genghis Khan recipes. Some of these marinade recipes from competitors have made it to grocery store shelves.
Governments back in Australia have also recognised the value of the Lambassadors so we run some joint activities and projects with them, bringing the Lambassadors out to Australia.
Finally, what are some interesting facts about the industry which growers may not know?
Travis: The Sapporo Beer Garden is home to the largest Genghis Khan restaurant in the world with over 1,000 seats. In total, the property contains five Genghis Khan restaurants with a total capacity of just over 2,000 people. The complex uses around 150 tonnes of sheepmeat per year, with Aussie lamb holding around 80 per cent share. We estimate that it is the largest single site restaurant for lamb consumption in the world.
Kazu: There are only about 18,000 sheep in Japan now! We import almost all our sheepmeat. 40 per cent of lamb is imported as chilled.
