Tokyo ? Japan marked a one-year ban Friday on U.S. beef imports over mad cow fears with little indication of repealing the measure, which has closed a billion-dollar market to American beef producers and ravaged Japanese restaurateurs.

Japan shut out U.S. beef imports last December after the discovery of the first U.S. case of the mad cow disease, or bovine spongiform encephalopathy — a brain-wasting illness that can be fatal to humans who eat contaminated beef.

The ban blocked American beef exporters from what was once their most lucrative overseas market, with sales exceeding $1.7 billion in 2003.

It also pummeled the local food industry, which depended on cheap, plentiful U.S. beef imports. Nationwide chains serving “gyudon” beef-bowls — a lunchtime favorite — were forced to take the dish off their menus, causing a public outcry.

‘Considering it’

Prime Minister Junichiro Koizumi was noncommittal Friday when asked about when trade might resume.

“Experts are considering it,” he told reporters. “Food safety is important. We will handle this issue with such a view.”

Japan checks all domestically bred cows entering the food chain, and initially demanded that the United States adopt similar blanket testing. Washington had resisted, dismissing such testing as costly and unreliable in detecting infections among young cows.

Age at issue

Amid high-stakes negotiations, the two sides struck a deal in October to resume limited imports of American beef into Japan. Officials said products from cows younger than 21 months old would resume within a matter of weeks, while imports of products from older animals could resume after July 2005.

But those plans have been delayed by a dispute over how to determine the age of cattle, and local media reports have predicted the ban is likely to stay in place until at least the spring.

With concern about mad cow disease still prevalent, Japan also has yet to relax its own domestic inspection system.

“We first need to review our own domestic approach to testing beef before a decision can be made on resuming U.S. imports,” said Health Ministry official Eiji Sakanashi.

Total domestic losses during the past year stemming from the U.S. beef ban are estimated at $2.64 billion, according to the UFJ Institute, a private research institute.

Of that, the food service industry was hit the hardest with losses of $1.24 billion, said Masahiko Ariji from the institute’s Research and Development department.

Consumer concerns

Meanwhile, many Japanese consumers appear wary about seeing American beef back on their plates.

A Kyodo News poll earlier this month found that almost three-quarters of Japanese would be unwilling to eat U.S. beef even if imports were restarted. Almost two-thirds also opposed Japan relaxing its blanket-testing regime for younger cows.

UFJ’s Ariji warned that, while Australian and Chinese beef imports have tried to fill the gap, they do not fulfill the same niche as U.S. beef, and a long-term ban could turn the Japanese off beef all together.

“There is a chance that the consumers here will eventually be turned off by beef as a whole,” Ariji said.

Even those who have benefited from the ban say they would welcome the re-entry of American beef.

The supply of Australian beef in Japan increased by 40 percent to more than 400,000 tons this year from the previous year, said Meat & Livestock Australia’s Regional Manager in Japan, Samantha Jamieson.

“There are sections of the market that require U.S. beef so Australia does support the return of U.S. beef,” Jamieson said.

Talks between U.S. and Japanese officials are set to resume in January.