THE devastating impact of foot-and-mouth disease in Japan should act as a wake-up call to Australia, according to the livestock industry.

National Farmers' Federation chief executive Ben Fargher said funding and policy reforms were vital to protect Australia's livestock and markets from a disease incursion.

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"Government has a responsibility for funding, processes and systems but industry has a responsibility too, to work with government at making sure these things happen but also to do more advocacy (in the community) to reiterate how clean and disease-free Australia is," Mr Fargher said.

All beef exports from Japan were banned soon after the disease outbreak two months ago and as of yesterday, 218 FMD outbreaks had been reported within the Miyazaki prefecture, in southern Japan.

More than 200,000 head of stock have been destroyed or are to be killed.

The lucrative Wagyu herd has been decimated in Japan, following the directive last week by the Japanese Government to slaughter 49 seed-Wagyu stud bulls, leaving only a few seed bulls remaining in the area.

However, the FMD outbreak may work in favour of Australian Wagyu producers.

David Blackmore, from Blackmore Wagyu, said his family company received 17 new inquiries, mainly from the US, for highly marbled beef the day after FMD broke out in Japan in April. He said they wanted to double their production to the US to 40 carcasses a month.

He has also been approached by the national Japanese TV broadcaster NHK to help film a story that would look at how Australia remained disease-free.

Australian Wagyu Association chief executive Michael Beattie said 90 per cent of the Wagyu produced in Australia was destined for the export market.

He said there were 5000 full-blood Wagyu cattle in Australia and 80,000 Wagyu-infused cattle, from F1 (first cross) to F4 (purebred).

Rangers Valley feedlot, at Glen Innes in northern NSW, last week advertised for feeder-weight Wagyu-cross cattle but livestock manager Richard Eldershaw said the timing of the advertisement had nothing to do with any extra demand for the product.

"Demand for Australian Wagyus is not huge, maybe 60,000 head per year, and it can easily become over-supplied," Mr Eldershaw said.

"That happened over recent years, and commercial Wagyu breeding was reduced through 2007 to 2009."

He was reluctant to speculate on whether Japan's disease outbreak - and the closed beef export market - would affect Australian Wagyu producers.

"We are not putting any extra Wagyus on feed in anticipation of that eventuality," he said.