The outbreak of BSE among Japan’s national stock has had some detrimental affect on Australia’s meat industry.

Demand for beef in Japan has fallen since October last year, as Japanese consumers have expressed concern over methods used to control the disease and its link to the deadly brain-wasting human condition vCJD.

In Australia, lower demand for beef has hit the industry. Beef prices plummeted by 7% between October and the end of last year, and experts expect Australian wholesale prices to reach A$3 (US$1.5) per kilogram by March this year.

The Australian reported that Australian beef producers, such as Consolidated Meat Group, have had to reduce production capacity.

Industry body Meat & Livestock Australia has predicted that the situation is unlikely to improve for several months.