AUSTRALIAN beef exporters face competition after Japan agreed to allow more beef from "mad cow disease" affected nations.

There had been trade restrictions on beef from the US, Canada, France and the Netherlands after outbreaks of bovine spongiform encephalopathy, commonly known as BSE.

The US and Canada were only able to export beef to Japan that was killed from animals under 21 months.

Japan had banned exports from the Netherlands and France.

Media reports say Japan is expected to open up beef exports from US and Canada to allow animals up to 30 months to be killed for the Japanese market.

The decision was based on better safety procedures, as well as a decrease in the number of reported cases worldwide of BSE, which had slipped from 2215 in 2001 to 12 in the first nine months of the year.

Cattle Council of Australia executive director David Inall said the US and Canada had been pushing for an easing of trade restrictions in Japan.

"North America has been saying for a long time that the Japanese should follow the science, and it seems like that is now happening," Mr Inall said.

"The council took the decision a couple of years ago that we would support trade that is based on science, so if that is the basis for the decision, then we accept that."

But he said that would be cold comfort for processors trying to compete for a shrinking beef market in Japan.

"If Japan lift the trade restrictions for US and Canadian beef to 30 months, then Australia will definitely experience tougher competition in the market," Mr Inall said.

"The Japanese economy has been under pressure for a number of years already.

"But this is also part of doing business.

"Australian processors have proved they are strong competitors in the Japanese beef market despite the dollar being above parity, so I don't see how we still can't compete."

Japan is Australia's largest beef market, accounting for 351,118 tonnes last year, split between shoulder and leg cuts, brisket, boneless loins and other boneless cuts.

Figures from Meat and Livestock Australia show before the BSE outbreaks, the US had been a major supplier to Japan.

It held 46 per cent of the market in 2003, only slightly less than Australia's share of 49 per cent.