Japanese to Vend San Diego Packer’s Beef

A joint venture between Japanese and U. S. meat dealers will offer beef imported from the United States in freezer-equipped vending machines, an official representing the Japanese company said.

“Our aim is to supply imported beef at a cheaper price to consumers by reducing the costs of distribution-related personnel required otherwise,” said Naoki Sakai, spokesman of Jackson Co., a Japanese meat dealer based in Japan’s western port city of Kobe.

Sakai said this is the first time in Japan that beef will be sold in vending machines.

Jackson Co., which has specialized in U. S. meat since 1978, and Hamilton Meat Co., a meat packer based in San Diego, set up the joint venture in Kobe last month, Sakai said Tuesday.

The new firm’s move followed Japan’s liberalization of imports of seasoned beef into Japan on Sunday, the first day of the country’s new fiscal year, he said. Under a 1988 bilateral agreement between Japan and the United States, Japan has been gradually liberalizing beef imports.

Under the venture, seasoned beef for steak and sukiyaki will be processed in the United States before being imported in frozen vacuum packages for sale in vending machines in Japan, Sakai said.

Vending machines will be set up at 1,000 locations, mainly near railway stations and convenience stores, he said, adding that the number of machines will be increased to a yet-unspecified figure in the future.

Sakai said the new joint company plans to sell a pack containing 17.5 ounces of beef for sukiyaki at about 1,800 yen, or $11.30, about half the retail price of similar but locally produced beef.

“We can sell at that price by introducing vending machines in place of the more costly work force,” Sakai said.

Each vending machine will be connected to a computer at the venture’s head office, which will monitor the temperature and manage inventories within each freezer, he said.

The company will install the vending machines starting next week, and is expecting 3 billion yen, or $18.8 million, in sales in its first year of operation, Sakai said.

Japan imported 128,000 tons of beef from the United States in the first 10 months leading up to January of fiscal 1989, which accounted for 41% of Japan’s total beef imports in that period, according to Japanese government figures.

Hamilton Meat Co. is a subsidiary of Omaha, Neb.-based Beef America, a U. S. meat packer.