organic food market in japan · 2012-08-05 · organic food market in japan a market overview...

Organic Food Market in Japan

A market overview written on behalf of Institute for Marketecology (IMO) and Nürnberg Global Fairs GmbH

Organic Services GmbH Contact: Udo Censkowsky Tel: +49 (0) 89 820759-02 Fax: -19 Email: [email protected] Web: http://www.organic-services.com

Organic Market Study Japan_14.11.2006

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Contents

Contents ................................................................................................................. ii

List of tables .......................................................................................................... iv

List of figures ......................................................................................................... v

List of graphs ......................................................................................................... v

List of abbreviations ............................................................................................. vi

Introduction ............................................................................................................ 7

1. Current trends in Japanese agribusiness .................................................... 7

2. Organic agriculture in Japan ......................................................................... 8

2.1 JAS certified organic farmers and organic production .................................... 8

2.2 Production regions ........................................................................................ 10

2.3 Trends in production ..................................................................................... 11

3. Domestic organic market ............................................................................. 12

3.1 Food consumption patterns .......................................................................... 12

3.2 Organic food distribution in the Japanese market ......................................... 16 3.2.1 Teikei-System ................................................................................... 24

3.3 Organic food processing and business opportunities ................................... 26

3.4 Food imports to Japan .................................................................................. 28 3.4.1 Swiss food export opportunities to Japan .............................................. 34

4. Company interviews ..................................................................................... 37

5. Market organization ...................................................................................... 38

5.1 National organic regulation (JAS) ................................................................. 38

5.2 National food import regulations ................................................................... 40

5.3 Tariffs on imported food ................................................................................ 41

6. Excursion: Markets for “sustainable non-food products” ........................ 42

6.1 Natural cosmetics and personal care products ............................................. 42

6.2 Natural textiles .............................................................................................. 44


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7. Appendices.................................................................................................... 46

Annex 1: Useful Links ......................................................................................... 46

Annex 2: Important organic food importers, wholesalers, processors, retailers, co-operatives ........................................................................................................... 46

Annex 3: Currency Exchange Rates ................................................................... 52

Annex 4: Further consumer attitudes & eating habits ......................................... 53

Annex 5: Fresh vegetable imports and origins ................................................... 55

Annex 6: Selection of imported organic consumer food ..................................... 57

8. References: ................................................................................................... 73


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List of tables

Table 1: Domestic production of agricultural goods and organic share (2002- 2004). Source: MAFF, 2006. ........................................................................................ 9

Table 2: Regions of certified organic farms (Dec 2005). Source: MAFF, JAS, 2006 ........................................................................................................................ 10

Table 3: Breakdown of monthly household expenditures in EURO (€). Exchange rate €/¥ as of 2005. Source: according to JETRO Japan, 2006 ...................... 13

Table 4: Products and services with a high intention to use in future- Top 10 Ranking. Source: JETRO, 2006 ...................................................................... 13

Table 5: Estimates of market size by the consumer survey (Daily food and sundry foods). Source: JETRO, 2006. ....................................................................... 14

Table 6: Export opportunities for foreign companies (Ref. 33) .............................. 18 Table 7: Organic premium (of imported products at retail level; exchange rate as of

2004). Source: IFOAM Japan. ........................................................................ 19 Table 8: Supermarket Value Chains of Imported Products. Source: according to

IFOAM Japan, 2004. ....................................................................................... 20 Table 9: Domestic and overseas certified organic processed foods (Tonnes). ..... 26 Table 10: Value of all exports and imports to Japan 2006 (Jan.-Jun.) (MoF Japan,

Ref. 18) ........................................................................................................... 28 Table 11: Import value agricultural, forestry and marine products (million €, %).

Source: Ministry of Finance, Ref. 2 ................................................................. 28 Table 12: Import value of farm products (million €, %). Source: Ministry of Finance,

trade statistics. (Ref 2) .................................................................................... 29 Table 13: Import value of farm products per primary countr/region (million €, %).

Source: Ministry of Finance, trade statistics 2005. .......................................... 29 Table 14: Domestic organic production and organic imports in tons. .................... 32 Table 15: Processed food and imports of some important items (t). ..................... 33 Table 16: Exports from Switzerland to Japan. ....................................................... 34 Table 17: Strengths and weaknesses for swiss companies importing to Japan .... 36 Table 18: Domestic and overseas products with JAS Organic Label. ................... 39 Table 19: Import of Cosmetics to Japan (million EUR and CHF). ......................... 42 Table 20: Production of cosmetics in Japan (in million EUR). ............................... 42 Table 21: Selected natural cosmetic products offered in Japan ............................ 43 Table 22: Organic cotton textile labels in Japan .................................................... 44 Table 23: Organic JAS certified importers. ............................................................ 46 Table 24: Wholesaler, Retailers and Co-operatives. BioFach Japan 2006

Catalogue. ...................................................................................................... 50 Table 25: Processors with interest in organic products. ........................................ 50 Table 26: Volumes of major frozen vegetables (2003) .......................................... 56 Table 27: Organic food brands from North- and South America. .......................... 57 Table 28: Import tariffs on some food products ..................................................... 67


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List of figures

Figure 1: Japanese distribution structure of domestically produced organic products. ......................................................................................................... 16

Figure 2: Japanese distribution structure of imported organic products. ............... 30

List of graphs

Graph 1: Monthly certified organic farmers in Japan ............................................... 8 Graph 2: Change in domestic organic agricultural goods from 2002 to 2004.

Source: according to MAFF, 2006. ................................................................... 9 Graph 3: Seiyu sales of “local &organic produce”. ................................................ 15 Graph 4: Market share of different retail categories in Japan (Ref. 33) ................. 17 Graph 5: Retail prices of certified organic and conventional vegetables. Source:

MAFF, 2006. ................................................................................................... 19 Graph 6: Monthly certified organic processors. Source: MAFF, 2006. .................. 26 Graph 7: Monthly certified organic food importers, overseas transport companies

and subcontractors. Source: according to MAFF, 2006. ................................. 31 Graph 8: Export value of food and stimulant categories (%). ................................ 34 Graph 9: Cheese market development in Japan. .................................................. 35 Graph 10: Assessment of business experience of overseas companies in the

Japanese market (n=13). ................................................................................ 37 Graph 11: Assessment of overseas companies with regard to own opportunities in

the Japanese market (n=13). .......................................................................... 37


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List of abbreviations

Abbreviation ExplanationJA Japan Agricultural Cooperatives RCO Registered Certification Organization RFCO Registered Foreign Certification Organizations YoY Year on Year SCCIJ Swiss Chamber of Commerce and Industry JETRO Japanese External Trade Organization bfai Bundesagentur für Außenwirtschaft, Germany IFOAM International Federation of Organic Agricultural Movements MAFF Ministry of Agriculture, Forestry and Fisheries in Japan MoF Ministry of Finance in Japan PPMD Production Process Management Director FY Fiscal year (1st April to 31st March) HS Harmonized System


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Introduction

With a consumer base of more than 120 million Japan is the 3rd largest economy in the world and thus attractive for export oriented business. The total food market is estimated to be over € 480 billion1, with annual import of agri-food products worth about € 56 billion. In this context the increasing dissemination of the LOHAS lifestyle concept (Lifestyles of Health and Sustainability) among Japanese consumers supports the development of the organic and natural product market in Japan. For the organic food sector the amendment (meat, dairy) and review of the JAS Organic Standards in 2006 will support this positive development. Organic Services has been asked to analyse the Japanese organic food market with particular attention given to sales opportunities for foreign companies. In this context background information has been collected from different sources like

other market briefs and studies, the official website of MAFF (Ministery of Agriculture, Forestry and Fisheries in

Japan) and interviews with 30 companies selling organic food in Japan.

A comprehensive picture of the Japanese organic food market has been drawn which allows for a better understanding of the particularities of the Japanese organic food market.

1. Current trends in Japanese agribusiness

Japan’s food self-sufficiency on a caloric basis remained at 40% for the last 7 years. The government began reforming agricultural policy in 1999 with the objective to increase self-sufficiency up to 45% by 2015, and put forward policies such as enhancing independent agricultural management and securing food safety and consumers’ trust. This encourages private companies to enter the market benefitting from an agricultural production worth about € 61.1 billion in 2004 (exchange rate average 2004). The Ministry’s 2004 Annual Report on Food, Agriculture and Rural Areas showed a severe structural change in the Japanese agriculture:

13% drop in the number of commercial farming households during the five-year period from 1998 to 2003, coupled with a 3.4% decrease in total agricultural acreage land.

Number of core agricultural workers (workers whose main job is in agriculture) fell by 6% during the same period, and workers of 65 years or older grew to 54%.

1 Currency indications in Yen have been transferred to EURO based on the exchange rates of Sept. 2006.


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Increasing acreage managed per commercial farming household (households

managing at least 12 hectares of farmland and with sales of agricultural produce totaling € 3,476 or more.

Revisions of the Agricultural Land Law in 2000 allow private corporations to lease agricultural land in specially deregulated zones from April 2003. The number of corporations running agricultural operations exceeds 100 already.

2. Organic agriculture in Japan

2.1 JAS certified organic farmers and organic production

According to the latest statistics of IFOAM and FiBL there are 29,151 ha under organic management which makes up 0.56 % of total agricultural land in Japan (IFOAM/FiBL, 2006). At the moment, there are around 4,539 organic farms certified2. In 2004 3,200 certified organic farms have been counted (with an organic farm acreage of 5,300 ha). A significant increase of land per organic farm can be observed: from about 1.7 ha per farm in 2004 to 6.4 ha in 2006. Nevertheless, the average organic farm still is very small. Most likely the certified organic acreage will increase furtheron in the coming years. The following graphics show the monthly certified domestic farmers from the time when JAS Organic Standard came into effect until end of 2005.

Monthly certified organic domestic farmers

0

50

100

150200

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350

Aug

Sep

Oct

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Domestic farmers

Graph 1: Monthly certified organic farmers in Japan. Source: MAFF (2006)

A wide range of agricultural products are produced organically in Japan, including rice, green tea, green vegetables, sweet potato, taro, pumpkin, potatoes, citrus and many other fruits (Ref. 1).

2 In 2001, FAO indicated a number of 3,500 organic producers in Japan managing a total area of about 1,000 ha with an average farm size of about 0,3 hectare (FAO, 2001).


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Table 1: Domestic production of agricultural goods and organic share (2002- 2004). Source: MAFF, 2006.

Tonnes 2002 2003 2004

Classification Total

produc-tion

Organic % Total

produc-tion

Organic % Total

produc-tion

Organic %

Vegetables 17373000 24545 0,14% 16727000 28125 0,17% 16179000 29674 0,18%

Fruit 3893000 1939 0,05% 3678000 2163 0,06% 3457000 2029 0,06%

Rice 8889000 12338 0,14% 7792000 10838 0,14% 8730000 10400 0,12%

Cereals 1046000 559 0,05% 1054000 858 0,08% 1059000 732 0,07%

Soy beans 270000 945 0,35% 232000 786 0,34% 163000 639 0,39%

Green tea 84200 1246 1,48% 91900 1487 1,62% 100700 1664 1,65%Other agricultural products 156000 2188 1,40% 137000 2351 1,72% 164000 2290 1,40%

Total 31711200 43759 0,14% 29711900 46609 0,16% 29852700 47428 0,16% Three categories are dominating the domestic offer of organic food: vegetables, cereals (above all rice), fruits and processed food (tea, soybean based products etc.). Graph 2: Change in domestic organic agricultural goods from 2002 to 2004. Source: according to MAFF, 2006.

Share of different food items by weight 2002

Fruit4%

Rice28%

Green tea3%

Soy beans2%

Cereals1%

Vegetable57%

Other agricultural products

5%

Share of different food items by weiht 2003

Fruit5% Rice

23%

Green tea3%

Soy beans2%

Cereals2%

Vegetable60%


5%

Share of different food items by weight 2004

Fruit4% Rice

22%


5%

Green tea4%

Cereals2%

Soy beans1%

Vegetable62%

The most important organic agricultural goods from domestic production are by far vegetables and rice, followed by small percentages of cereals, soy bean, green tea and others. Organic vegetables are gaining continuously importance in the domestic market. On the other hand, there was less rice certified organic after 2002.


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2.2 Production regions

Table 2: Regions of certified organic farms (Dec 2005). Source: MAFF, JAS, 2006

0 100 200 300 400

Okinawa

Kagoshima

M iyazaki

Kumamoto

Nagasaki

Saga

Oita

Fukuoka

Yamaguchi

Ehime

Kochi

Tokushima

Kagawa

Wakayama

Hiroshima

Osaka

Nara

Okayama

Shimane

Tottori

M ie

Hyogo

Kyoto

Aichi

Shizuoka

Shiga

Fukui

Kanagawa

Yamanashi

Tokyo

Gifu

Ishikawa

Chiba

Saitama

Nagano

Toyoma

Gumma

Ibaraki

Tochigi

Fukushima

Niigata

M iyagi

Yamagata

Iwate

Akita

Aomori

Hokkaido

In spite of the fact that organic farms are spread throughout the country some regions show significantly more organic farms like Hokkaido and Niigata prefectures. The southeast


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prefectures and the metropolitan region of Tokyo and Kanagawa show the lowest density of organic farms.

2.3 Trends in production

In general, further growth of the organic market in Japan is import driven as the importance of domestic organic production will decline in spite of the fact that the Japanese government has started to support organic farming more consequently. For 2007 MAFF will launch a funding programme to support research institutions as well as farmers co-operatives engaged in organic farming. It is expected that the stronger engagement of MAFF will support the organic sector development in general and might help to overcome the lack of consumer awareness for the overall benefits of organic agriculture (see also chapter on organic market). Similar initiatives can be seen in different prefectures where organic farming is supported by local governments as a countermeasure to slow down declining rural agriculture by creating value adding strategies for farmers. Due to the changed agricultural land Law over hundred corporations have entered into agriculture production and also into organic agriculture production like for instance the restaurant chain Watami (www.watami.co.jp):

Source: Watami The introduction of Organic JAS certification for animal and dairy products (became effective in autumn 2005) will stimulate domestic production and thus support the further growth of the organic market. But the new organic market segments will generate in particular additional international trade opportunities: organic meat and dairy products as well as organic feedstuff as Japan has only 16% self-sufficiency in animal feed production.


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3. Domestic organic market

In the year 2000 the organic food market was considered to be worth € 2.56 billion. After the introduction of the JAS Organic Standard in 2001 this number dropped to € 219 million as for the first time organic and other alternative farm products (chemical free etc.) had to be separated. However, the market of certified organic food products has shown a continuous growth development until today3. And, in nearly all publications screened for this report the market is seen to grow further on. Unfortunately, no official statistics are available but a number of different estimations (in Euro):

2003: the market volume has reached about € 378 million 2005: the market volume is estimated with more than € 400 million; 2006: as the overall market development shows positive signals € 450 to € 500

million turnover for 2006 is a conservative estimation (0.5% of the total food market).

Other estimations go up to over € 800 million (2005)4. All mentioned figures merely include the organic food retail market but not the food service and catering market. In addition it has to be pointed out that no organic dairy, meat or seafood products are part of these estimations5.

3.1 Food consumption patterns

The average Japanese consumer still prefer traditional menus and taste, but the shift to western style, Asian ethnic dishes, functional, nutritious and healthy food is going on. And, Japanese consumers are willing to pay for quality and brand name products (in particular quality images sell better) in spite of the fact that they are increasingly price sensitive (which explains the growing number of discount and/or so-called 100 Yen stores). In addition, consumer’s demand for convenience food is increasing. Prepared and/or pre-cooked food, specially designed food for the ageing population (easy to open products etc.) are on demand. All in all Japan stays to be a food importing country with good opportunities for foreign companies. A recent consumer research showed that 29% of the adult population belongs to the so-called LOHAS category (Lifestyle of Health and Sustainability). Consumers of this category prefer to buy organic food, healthy food, natural personal care products, natural food supplements and also other “sustainable products and services”. A breakdown of the adult population per age showed that the preference for “sustainable products” is quite similar in all age groups with a slightly higher percentage in the age group above 60 years6,7.

3 Different sources are available among others Ref. 8, Ref. 16, Ref. 41. 4 IFOAM Japan study, Ref.16. 5 JAS Organic Standards have been amended for meat and dairy products which entered into force in March 2006 6 Ref. 11 Jetro Consumer Survey 7 Lohas Consumer Survey, E-Square Inc. (5/2005)


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Consumers tend to buy food products on a daily basis, looking for the highest quality products at several outlets. For organic fresh products “freshness” (40%), “taste” (35%), “food safety” (32%) and “price” (26%) are important purchase criteria whereas for processed organic food “food additives (44%), food safety (41%), taste (36%) and “price” (21.8%) show a different picture8,9. Due to quality and food safety concerns consumers prefer to buy Japanese food products. In Table 3 the monthly household expenditures are shown. More than 21% of the disposal income is spent for food. Table 3: Breakdown of monthly household expenditures in EURO (€). Exchange rate €/¥ as of 2005. Source: according to JETRO Japan, 200610

Value € 2002 2003 2004 2005Disposable Income 3,305 3,217 3,250 2,991 Total living expenditures

2,415 2,380 2,416 2,366 (100%)

Housing 157 162 151 157 (6.6%) Light, heating & water 151 151 152 153 (6.5%) Medical care 318 325 344 344 (14.0%) Food 536 523 526 509 (21.5%) Others 1,253 1,219 1,243 1,203 (50.8%) In Table 4 the JETRO consumer survey found that also chemical-free food products as well as organic food products belong to the top 10 products in Japan. The same report indicated that 57% of consumers buy chemical free and organic food products with an average expenditure per person of more than 66.0 Euro (unfortunately, no differentiation has been made between organic and chemical free products; see Table 5). Table 4: Products and services with a high intention to use in future- Top 10 Ranking. Source: JETRO, 200611

Rank Products and Services (%) 1 Environmentally-friendly vehicles, such as hybrids etc. 65.8 2 Products that use solar heat such as solar panels etc. 61.4 3 Safety furniture that will not cause allergies 59.0 4 Heaters, cooking equipment, ant water heating devices with the Energy Saving Mark 57.5 5 Computers, printers, etc. with the Energy Saving Mark 57.4 6 Solar, wind and hydropower generation 52.8 7 Garbage disposal, compost bags 51.3 8 Highly thermoconductive cooking equipment 49.9 9 Agricultural chemical-free or organic coffee, tea, herbs, green tea, etc. 47.8 10 Processed food using agricultural-chemical-free or organic ingredients 46.9

8 IFOAM consumer survey, 2003, Ref. 16 9 See more food consumption patterns in annex 4. 10 Ref. 3 11 JETRO Consumer Survey, Ref. 6


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Table 5: Estimates of market size by the consumer survey (Daily food and sundry foods). Source: JETRO, 2006.

Products and services Current users rate

(%) Average

expenditure per person (€)

Estimated current market size (billion €)

Daily organic, agricultural chemical-free, additive-free, etc., cooking ingredients consumed at home

57.5% 66.31 3.84

Fair trade food, beverages, handmade craftwork, etc. 8.1% 12.28 0.10Note 1: The results of the FY2000 Population Census are used for the population (the population aged 20 years or older). Note 2: The figure for average expenditure per user has been adjusted to bring it closer to the composition of the actual parent population.

Japanese consumers are said to have a clear perception of conventional and non-conventional food. Non-conventional food means chemical free, functional, fair trade or also organic food. And, food has to be reliable and safe. In this context it is important to understand that organic food has not a unique market position and image as in other countries. The Japanese expression for non-conventional food (or specially cultivated food) is “tokubetsu saibai shokuhin” whereas the expression for organic food is “yuuki shokuhin”. Before the introduction of the JAS organic regulation both categories very often have been sold without differentiation and thus under the same label as well as with the same product claims for years. As a consequence consumers didn’t learn to differentiate. The example of the Japanese retail giant Jusco (Aeon group) might help to understand the situation: Under Jusco’s brand for high price products “Top Valu” a sub-category for non-conventional food products has been introduced in 2000. The sub-category “Top Valu Green Eye” is used for organic and chemical free food products without a clear separation. This example is only one out of hundreds of food companies (retailers and/or processors) developing sustainability marketing strategies using “green and ethical claims”12 with the consequence that consumers cannot really distinguish organic from other “alternative” food products. “Top Valu Green Eye” brand and “Green Eye” range of Jusco (Aeon Group):

12 The Japanese Association for Agricultural Cooperatives ZEN-NOH has developed also various certification schemes for “alternative” food products (www.zennoh.or.jp).


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In this context the supermarket chain Seiyu (www.seiyu.co.jp/english/report_e.shtml, subsidiary of Sumitomo Corp.) is another example: The English version of the 2005 sustainability report does not clearly differentiate between local & organic produce (“reduced pesticide to zero pesticide use”) and organic farm produce (“zero pesticide and mineral fertilizer use”). The report mentions that local&organic produce is sold in 235 stores whereas organic farm produce is sold in 13 stores.

Graph 3: Seiyu sales of “local &organic produce”.

Beside the difficult JAS registration procedure for organic import products, lack of consumer awareness for organic food is seen as the most important hindering factor for the further organic market development in Japan. As long as consumers do not specifically ask for organic food products the involved food industry will not increase its engagement for organic food. Mainly because procurement of organic ingredients is much more complicated, supply is fluctuant and last but not least organic ingredients are more expensive.


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3.2 Organic food distribution in the Japanese market

The distribution structure for organic food in Japan has evolved from a single channel (“farm to consumer” Teikei system see chapter 3.2.1) to a multifaceted system in the last 5-8 years. Today, all existing distribution channels for food in Japan have been opened for organic food.

Individual FarmerScale is decreasingQuantity isinsufficient for lots

Producer Cooperation/Association

Scale is expandingBecoming to assume thecore presence in thedomestic production

JA based productionScale is expanding butslightly, centeredaround JA´s withstrategies on organicproduction

Organic Consumer market: € 0.80 -0.88 billion (estimated)

Membership-based organicmarket

General organic market

Prod

uctio

nW

hole

sale

/ Dis

tribu

tion

Ret

ail/

Serv

ice

Distributorspecialized inWholesale

JACMother´sATJ, etc.

SupermarketAEONMaruetsuKinckuni-ya,etc.

Retail EnterpriseSpecialized in FreshProduce

The GardenQueen´s Chef, etc.

Wholesaler

Food ServiceIndustry

Retailer specializedin Organic Foods

Consumer CoopNatural HouseMiura-yaMother´s, etc.

Broker

FoodProcessor

Distributorspecialized inHome-delivery

Daichi w oMamoru KaiBio MarketRadish Bo-Ya

Figure 1: Japanese distribution structure of domestically produced organic products. Source: according to IFOAM Japan, 2004.

The most important one is the conventional retail trade with a market share of more than 60% which shows a difference to other contries (e.g. US or UK) with a significant higher percentage and a much lower market fragmentation. Usually Japanese retailers are categorized as follows:


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General Merchandise Stores: One-stop shopping centers for food and non-food products with 1/3 of turnover for food.

Supermarkets: Specialized in food and household products.

Convenience Stores: More than 10.000 small shops all over Japan offering lunch

boxes (40% of total sales) and other convenient products. 90% are in the hand of 5 top companies like 7-Eleven.

Department Stores: High price food and non-food products. Declining sales

through competition with other General Merchandise Stores. Only 5% of all food sales in Japan.

Local or speciality Stores: Most important sales channel in the past but loosing

more and more market importance in the conventional food sector. Served by smaller wholesale and distribution companies. Only specialized organic (or natural food) stores show a different development.

SM34%

Dept. Stores5%

CVS13%

Local, General& Specialty Stores

39%

GMS9%

Source: MITI Commercial Census (2004)13

Graph 4: Market share of different retail categories in Japan (Ref. 33)

According to an assessment done by the USDA Foreign Agricultural services the best opportunities for foreign companies to enter the Japanese retail market are to offer new products, established brands and/or quality products for competitive prices. Certified organic products from abroad have automatically an additional value (see Table 6). 13 Ref. 33


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Table 6: Export opportunities for foreign companies (Ref. 33)

Traditional Japanese food products, such as natto, tofu, soy sauce, miso and green tea are widely sold as well as konnyaku, roasted sesame seeds, peanuts, soymilk, rice vinegar and import bananas can be found in many retail chains. Also imported organic products like frozen vegetables and raisins are listed by retailers. However, jams, dried prune and pasta are available at fewer stores. Imported organic products that are pre-packaged for consumption, such as pasta, olive oil, wine, instant coffee and crackers, are limited to relatively high-end department stores. Also some convenient stores carry organic products (for example organic natto and konnyaku) on a regular basis. Consumer safety concerns as well as health concerns make the Japanese consumer to pay an organic premium between 20% and 40% over non-organic food products. A detailed comparison of organic and conventional prices for 64 products offered in conventional supermarkets has been done by MAFF showing that the average organic price premium is 37 %. However, most frequently bought organic products like for example Tofu tend to have a significantly lower organic premium (10-20%).


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Selling price of conventional and organic vegetables (Average Jan-Jun 2006)

0123456789

Japaneseradish

Carrots Spinach Cucumbers Potatoes Onions

€/kg

Conventional

Organic

Graph 5: Retail prices of certified organic and conventional vegetables. Source: MAFF, 2006. IFOAM Japan did an analysis of imported organic products from Central America in 2005. At retail level the study found that organic premiums are ranging from 16.2 % up to 58.0% over conventional prices. Table 7: Organic premium (of imported products at retail level; exchange rate as of 2004). Source: IFOAM Japan14. Product Imported Organic Retail

Price in €/kg Imported Conventional

Retail Price €/kg Premium

in (%) Banana 4.49 3.86 16.2 Roasted sesame 15.83 11.81 34.0 Roasted coffee 20.71 15.08 37.3 Fruit juice (apple, orange), 200ml 4.74 3.56 33.3

Lemon juice 10.09 6.38 58.0 Also a value chain analyses has been one part of the IFOAM study which found that supermarket chains calculate a gross margin between 25% and 40% of the final sales price (depending on the product category e.g. fresh or dried processed food). Product promotion is negotiated with the wholesaler (supplier) separately. Examples for gross margins of imported products are given in the following table:

14 Ref. 16


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Table 8: Supermarket Value Chains of Imported Products. Source: according to IFOAM Japan, 2004. Organic Conventional Fair-

trade Value chain

Price ratio

Price (€)

Organic Premium (Reference)

Retail price (€)

Price ratio

Value chain

Banana 1kg

Retail Wholesale Importer Producer

100.0 70.0 60.0

4.593.212.75

1.20 3.82 100.070.060.0

Retail Wholesale Importer Producer

Peanuts 100g

Retail Wholesale Processor

100.0 69.2 53.8

0.990.690.54

1.16 0.86 Retail Wholesale Processor

Cocoa 360g

Retail Wholesale Importer

100.0 70.0 50.0

4.284.283.67

2.40 1.84 100.070-75

80.0

Retail Wholesale Importer

Roasted coffee 1kg

Retail Wholesale Roaster

100.0 69.4 59.0

16.0611.149.86

1.30 12.23 100.070.060.0

Retail Wholesale Roaster Import Price Foreign Producer

100.075-80

50.015.010.0

Conventional supermarkets: Jusco and Daiei: Jusco supermarkets belong to AEON which is Japan's leading retail company group and achieved yen 2,900 billion (US$24.2 billion) in operating revenue in fiscal 2002. The group, centered on AEON Co., Ltd., operates large general retail stores like Jusco, supermarkets and drug store chains and consists of 142 companies both inside and outside Japan (www.aeon.info).

Daiei Inc. www.daiei.jp/sukoyaka, a company engaged in retail business, has introduced the private brand “Sukoyaka Sodachi (Healthy Growth)” and has opened a speciality retail store under the same name offering healthy and organic food as well as natural products.


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Kinokuniya (www.e-kinokuniya.com) offers not only a larger range of imported food products in about 8 shops in the metropolitan area of Tokyo but also increases the number of organic food and natural products.

Speciality retail stores focussing on natural and organic food: Speciality stores offer chemical free, natural and organic food product however, the number of organic food items is increasing. ANEW Stores www.anew.co.jp with more than 50 stores in major Japanese cities, an online shop and home delivery

Natural House www.naturalhouse.co.jp with 30 outlets, an online shop and home delivery


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Mother’s Store www.mothers-net.co.jp with 8 outlets

Examples of other speciality retail chains are Natural Lawson (www.natural-lawson.co.jp) and Natural Mart (www.naturalmart.jp). Natural Lawson belongs to Lawsons Japans second biggest convenience store chain after 7-eleven. Internet and online shops: In addition to the organic speciality retail chains a number of online shops are specialized in distribution of natural and organic food products15:

Tengu Natural Foods (www.alishan-organic-center.com/en/tengu/index.html)

Biomarche (www.biomarche.jp)

15 In most of the cases companies behind the online shops have other activities like import, distribution or retailing. Asahi Shokuhin for example is said to be the biggest organic consumer food importer.


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Green Market Moa (www.shop.moanet.co.jp

Rakuten, Natural Food Market (www.rakuten.co.jp)

Radish Boya (www.radishbo-ya.cp.jp)

Daichi-o-Mamoru-Kai (www.pal.or.jp/group)

Polan Organic Foods Delivery (www.polan.net)

Asahi Shokuhin http://asask-organic.com/

Food service and catering sector: The continuing rapid rise of the convenience stores is influencing the more traditional fast food sector. Today, convenience stores achieve a 40% share of total turnover with sales of lunch boxes. The market leader 7-Eleven is the largest single food retailer in Japan. The top 5 are 7-Eleven (10,826 outlets), Lawson 8,077 outlets), Family Mart (11,501 outlets), Sunkus (3,270 outlets) and Mini-Stop (1,563 outlets). The strength of convenience store chains lies in their financial backing from the larger Japanese companies mainly from the retail and food business: 7-Eleven (Ito-Yokado), Lawson (Mitsubishi), Family Mart (Itochu), Sunkus (Uny) and Mini-Stop (Aeon). Also restaurant chains like Watami, the increasing number of coffee shops or the GUSTO chain (www.skylark.co.jp) are increasingly interested in organic food products.


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3.2.1 Teikei-System

The Japanese organic market development has started with the Teikei system. Still today a larger part of the organic fresh products are sold through the Japanese Teikei System (whereas most of the imported fresh products are sold through the conventional retail trade). The Teikei System has a long tradition in Japan and is basically a kind of a co-operative system connecting Japanese farmers and consumers directly. Also part of the Teikei system is a strong focus on “sustainable agriculture” and “food safety”16. In this context the Teikei system is seen as an alternative to conventional food distribution and retail systems. More recently also international linkages between foreign farmers and Japanese consumers have been established (Kokusai Sanchoku) in particular with farmers in developing countries (fair trade approach). About 500 to 1.000 consumer groups are existing (between 10 families to more than 5.000) uptaking mainly fresh products from Japanese organic producers in their direct neighboorhoud. Examples of larger consumer groups are the Seikatsu Coop Club (www.seikatsuclub.coop/english) with 220.000 affiliated consumer members or the Green Coop Consumer’s Cooperative Union. Alter Trade Japan (www.altertrade.co.jp) founded in 1989 by consumer co-operatives has developed the “Kokusai Sanchoku” (or International Teikei) supporting direct relationships between Japanese consumers and producers in developing countries. It can be characterized as a fair-trade concept. Alter Trade offers among others coffee, shrimp, bananas, mascobado sugar, olive oil from own projects in developing countries. In the course of the Teikei movement in Japan a specific food distribution system has been developed. One example is Radish Boya (www.radishbo-ya.cp.jp) a pioneer with a nationwide home delivery network and an internet shop for organically grown produce.

Daichi-o-Mamoru-Kai (or Association to Preserve the Earth) is another example of an association which has started activities in food distribution through its company Daichi Co. Ltd. (www.daichi.or.jp). The latter is engaged in wholesale, distribution and retailing. All together the specialized distributors also supply natural food and fine food stores as well as restaurants directly.

16 Within the Teikei philosophy organic certification is not required as a “conditio sine qua non”.


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Excursion: Daichi-o-Mamoru-Kai is also engaged in increasing the Japanese food self-sufficiency assuming that in case of global food shortages Japan might suffer in particular. Therefore a food mileage campaign has been launched www.food-mileage.com.


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3.3 Organic food processing and business opportunities

With the growing organic market the organic food processing industry is developing continuously. Since 2000 the number of certified organic food processors is increasing. Today, the total number can be estimated with nearly 1.000 certified food processors. The development since the introduction of JAS Organic standard in 2000 is presented above:

Monthly certified organic processors (domestic and overseas)

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Graph 6: Monthly certified organic processors. Source: MAFF, 2006.

In the following Table 9, trade volumes of processed organic food from domestic and foreign sources are presented. The figures from 2004 show that organic import volumes are half of the domestic organic food production (not including figures for the important vegetable product range). However, in 2004 more than 65.000 tonnes of processed organic products have been imported. The lion’s share consists of sugar and sugar syrup, an indication that Japanese food processing companies are extending the organic product range. Table 9: Domestic and overseas certified organic processed foods (Tonnes). Source: MAFF, 2006.

Tonnes 2002 2003 2004

Classification Domestic Imports Domestic Imports Domestic Imports

Frozen vegetables 291 6,541 43 5,107

Canned vegetables 169 1,247 11 903

Other processed vegetables 2,501 2,112 3,327 8,413

Beverages and juice 5,285 1,376 7,283 2,388

Soy milk 11 0

Tofu 52,520 0 52,822 0 59,422 0

Natto 10,692 0 9,563 0 9,814 0

Miso 2,263 284 3,283 593 3,337 427

Shuuyu 1,037 124 892 83 4,725 0

Other processed soy products 9,285 3


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Dried noodles 121 1,068 131 565

See next page also ff. Tonnes 2002 2003 2004

Classification Domestic Imports Domestic Imports Domestic Imports

Green tea (processed) 880 178 1,032 154 1,296 390

Coffee beans 2,057 19

Nasshi processed products 1,549 2,527

Konnyaku 3,604 797

Beverages with tea 4,560 0

Plants oil 202 3,128

Sugar 0 17,686

Sugar syrup 0 31,660

Other processed foods 19,367 33,979 28,270 46,203 14,199 9,127

Total 95,126 46,909 106,657 64,409 114,061 65,764 Unlike the share for non-processed organic products (e.g. fresh organic vegetables) the Japanese organic food processing industry is still dominating the market for processed organic food. In 2004, 114,061 tonnes have been produced in Japan and 65,764 tonnes of processed organic food items have been imported (which is below 40%). This relation is on the way to change in the future: On the one hand because Japanese food processing companies relocate food processing to low cost countries like China. On the other hand more processed organic food is expected to enter the Japanese market. However, at the moment the Japanese organic food processors dominate the market for traditional organic food products like Tofu, Natto (fermented soybeans), Miso (thick paste from fermented rice, barley and/or soybeans used e.g. for soups), Green tea, Konnyaku (starchy corn from A. konjac), macrobiotic products etc.. Therefore, foreign organic ingredients will stay attractive in the years to come. As a consequence many global organic ingredients suppliers like Tradin Organic, Organic Ingredients Inc. are engaged in Japan. Organic tofu amounted for over 50% of the total processed organic food volume in the year 2004. Other products like processed vegetables (canned and frozen), sugar, plant oils, noodles etc. show high import volumes. Beside traditional food the organic beverage market is also in hand of major Japanese food processors17. The four main categories are fruit juices, milk drinks, tea drinks and coffee. In the Annex 6 a list of imported international organic brands offered in the Japanese market is presented. The list is by far not complete but aims at giving an overview

on companies targeting the organic food market in Japan, on types of products and some basic information on potential competitors also.

17 For example Mitsubishi Corp. in the fruit juice sector.


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3.4 Food imports to Japan

The food import business has to be seen in the general economic context of Japan’s global trade relations. Asia and North America are the two most important trade regions for the Japanese economy (in particular United States and China are by far the most important trade partners).

Table 10: Value of all exports and imports to Japan 2006 (Jan.-Jun.) (MoF Japan, Ref. 18)

Country Exports Imports Balance Value

(Millions of €) Change

(%) Value

(Millions of €)Change

(%) Value

(Millions of €) Change

(%) Grand total 248745 16.1 225111 22.9 23634 -24.0Asia 117722 14.0 97662 17.9 20060 -2.0Oceania 6087 10.2 12130 24.1 -6042 42.1North America 60345 16.4 30578 14.4 29767 18.6Middle & South America

11226 30.6 7522 32.5 3704 26.9

Middle East 7121 26.2 42874 52.8 -35752 59.4Africa 3665 19.8 5480 65.5 -1815 621.7Western Europe 37485 14.1 25706 7.5 11779 31.7Switzerland 938 11.8 1903 6.3 -966 1.4 As already mentioned Japan has to import about 60 percent of its total food demand (more than every 2nd Japanese consumer depends on food imports). A total of € 54.1 billion for agri-food products are imported which makes Japan the world's largest market for imported consumer food products. United States, China, Australia, Denmark and Canada are by far the largest suppliers of consumer oriented food products (all together over 50% of all imports to Japan). Table 11: Import value agricultural, forestry and marine products (million €, %). Source: Ministry of Finance, Ref. 2

Agricultural, forestry & marine products

Farm products Marine products Forestry products

2002 45,439 27,574 11,330 6,534 2003 47,976 30,176 10,867 6,857 2004 54,122 34,046 12,171 7,907 Year on Year 12.8 12.5 12.0 15.3 Exchange rate $/€ from 2005

Larger Japanese companies have set up farms and processing plants in foreign countries (above all in China, South Korea, Thailand but also in Latin America and Australia) in order to ensure food ingredient supply as well as to control quality production according to the strict Japanese requirements and consumer needs. Table 12 shows the import values of different agri-food imports whereas Table 13 gives an overview on agri-food product origins.


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Table 12: Import value of farm products (million €, %). Source: Ministry of Finance, trade statistics. (Ref 2)

2002 2003 2004 Year on YearAgricultural products 19517 21467 24572 14.5 Grains and their processed products 3926 4389 5214 18.8 Fruits and their processed products 1923 1982 2258 13.9 Vegetables and their processed products 2299 2418 2752 13.8 Sugars and their processed products 449 493 525 6.4 Coffee, cocoa, tea, spices 1183 1305 1443 10.5 Other foods and beverages 2643 2904 3232 11.3 Vegetable oil 2118 2587 3182 23.0 Tobacco 2055 2095 2303 9.9 Natural rubber 453 638 847 32.8 Cotton 212 222 238 7.2 Other agricultural products 2257 2434 2578 5.9 Livestock products 8018 8750 9440 7.9 Meat/poultry and their processed products 6292 7002 7457 6.5 Dairy products/ eggs 927 942 1121 19.0 Wool and other animal hair 319 294 319 8.8 Other livestock products 480 512 542 5.8 Silk yarn 39 35 35 0.0 Total value 27574 30253 34046 12.5

Table 13: Import value of farm products per primary countr/region (million €, %). Source: Ministry of Finance, trade statistics 2005.

Rank

Country 2002 2003 2004 2004

2003 2004 Year on Year

Composition ratio

1 1 USA 9851 10952 10769 1.7 31.8 2 2 China 3318 3543 4202 18.6 12.3 3 3 Australia 2130 2390 3475 45.4 10.2 4 4 Canada 1797 1834 2181 19.0 6.4 5 5 Thailand 1307 1693 1707 0.9 5.0 7 6 Denmark 1045 1034 1318 27.5 3.9 6 7 France 928 1078 1260 16.9 3.7 8 8 Brazil 770 780 1166 49.4 3.4 9 9 New

Zealand 599 638 839 31.5 2.5

10 10 The Philippines 467 496 580 17.0 1.7

Total of the top 10 countries

22372 24438 27496 12.5 80.8

World total 27574 24621 34046 12.5 100.0 Due to the low self-sufficiency in food supplies the Japanese organic market development is inevitable import driven. For foreign companies it is essential to be familiar with the importation and distribution system for organic food in Japan. The following Figure 2 gives an overview about the product flow chains for imported organic food products:


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Figure 2: Japanese distribution structure of imported organic products. Source: IFOAM Japan, 2004.

Unlike for natural cosmetics the importation of food is much more challenging as the import requirements for food in general are quite challenging. Therefore, it is recommended to identify a Japanese partner (importer, sales representative etc.) who is already familiar with the importation and distribution of organic food (or similar alternative food products like fair-trade, Kokusai Sanchoku/International Teikei System and other specially grown agricultural products) and for JAS Organic certification a foreign certification body registered under the JAS Organic Regulation.


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Graph 7: Monthly certified organic food importers, overseas transport companies and subcontractors. Source: according to MAFF, 2006.

Monthly certfied organic importers

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The Graph 7 shows that a continuous increase of Japanese importers of organic food products as well as of overseas companies engaged in organic food business with Japan (and therefore falling under the scope of JAS Organic Regulation). Japanese processors, manufacturers, supermarkets, convenience store chains and food service companies are all interested in price-competitive organic ingredients and value-added consumer food products from overseas. Health claims, food safety issues and tracebility systems are general requirements for achieving market entry. Longer experiences and know-how in selling organics might facilitate business development in Japan but above all it is important to determine the best market entry strategy (establishing Japanese branches, establishing joint companies, hiring agencies or building business co-operations) as well as the right consumer approach (for final consumer goods). Foreign organic product volumes have reached twice or more the quantity of domestic products. However, most foreign products are not competing with the domestic organic production (for example coffee, black tea, nuts, buckwheat which are categorized by MAFF as “other products”)18. Table 14: Domestic organic production and organic imports in tons. Source: MAFF, 2006 (Years refer to fiscal years)

Tonnes 2002 2003 2004 Classification Domestic Imports Domestic Imports Domestic Imports Vegetables 24,545 13,059 28,125 26,994 29,674 63,123 Fruits 1,939 10,555 2,163 18,736 2,029 11,233 Rice 12,338 2,031 10,838 2,604 10,400 4,581 Cereals 559 1,086 858 732 732 2,414 Soy 945 44,734 786 54,109 639 70,975 Green tea 1,246 1,224 1,487 964 1,664 1,848 Others 2,188 16,331 2,351 192,784 2,291 295,476 Total 43,759 89019 46,609 297,923 47,429 449,650 Unfortunately, the MAFF statistics present product categories without giving detailed information on single vegetables and/or their origins. For instance organic fresh vegetables and fruits are basically from Australia (carrots, asparagus, mangoes), New Zealand (kiwi, carrot, pumkin, corn), United States (broccoli, avocado and citrus), China (larger variety of vegetables), Colombia (bananas) and Philippines (bananas). Organic cereals for the processing industry is for instance organic wheat for the noodles industry (Australia), soy beans for tofu and other traditional products (United States, China, Brazil), frozen vegetables (China, United States, South Africa), dried fruits like dates, rasins etc. (United States, Turkey), plant oils (China, Argentina), sugar (Brazil), malt and hop (Germany), fruit pulps, purees, frozen fruits for the beverage industry (global sourcing). Examples of larger food processors importing organic ingredients are Kirin for fruit, vegetable and rice beverages (www.kirin-kit.co.jp/goods-e.html but also as a trading company), Nichirei Corp. for frozen vegetables, Okano Foods Bakery (for bakery products), 18 World Organic Agriculture, IFOAM/FiBL (Ref. 8); Ref. 32


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Table 15: Processed food and imports of some important items (t). Source: MAFF, 2006. Years refer to fiscal year.

Tonnes 2002 2003 2004 Classification Domestic Imports Domestic Imports Domestic Imports Frozen vegetables 291 6541 43 5107 Canned vegetables 169 1247 11 903 Other processed vegetables 2501 2112 3327 8413 Beverages 5285 1376 7283 2388 Soy milk 11 0Tofu 52520 0 52822 0 59422 0Natto 10692 0 9563 0 9814 0Miso 2263 284 3283 593 3337 427Shuuyu 1037 124 892 83 4725 0Other processed soy products 9285 3Dried noodles 121 1068 131 565 Green tea (processed) 880 178 1032 154 1296 390Coffe beans 2057 19Nasshi processed products 1549 2527Konnyaku 3604 797Beverages with tea 4560 0Plants oil 202 3128Sugar 0 17686Sugar syrup 0 31660Other processed foods 19367 33979 28270 46203 14199 9127Total 95127 46908 106656 64409 125881 87828 Large international company groups like Hain Celestial, the world’s biggest natural and organic food manufacturer, are also on the way to Japan. Hain Celestial has closed a joint-venture deal with Shin-Shin Food Company to market the groups Yves Veggie cuisine products.


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3.4.1 Swiss food export opportunities to Japan

Switzerland exports goods to Japan in a value of 3,685 Euro which make Japan one of the Top 10 trade partners for the Swiss export industry. However, exports of agricultural and forest products have reached only 42.8 Mio Euro in 2005. Table 16: Exports from Switzerland to Japan. Source: EVZ, 2005.

Export

Product commodity 2002 2003 2004 2005 +/-%

Agricultural and forest products (in Mio EURO) 37.7 39.7 41.9 42.8 2.2

Agricultural and forest products (in t) 6,076 5,622 6,686 6,217 -7.0

The best export opportunities for Swiss organic food exporters are seen in the following product categories

high quality organic food products (e.g. convenient products, vegetable preparations, organic jucies)

special organic food ingredients (e.g. for the bakery industry) food supplements in organic quality and Swiss food specialities in organic quality (cheese, chocolate, goodies).

The situation is comparable to the conventional food sector where Swiss food exporters have to focus on premium products due to higher production costs (and a strong currency). The Swiss chocolate and cheese manufacturers together hold a share of more than 25% of all food exports.

Tobacco15%

Cheese13%

Chocolate14%

Beverages7%

Sweets6%

Different foods41%

Bakery products4%

Graph 8: Export value of food and stimulant categories (%). Source: Eidgenössische Zollverwaltung (Ref 28).


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Pronatec AG with the own brand for Swiss Chocolates, Narimpex AG with the brand Nectaflor, Farfalla AG with natural personal care products, Bischoffszell AG with an organic Ice Tea range or Morga AG with soybean based spaghetti are examples of Swiss exporters with organic sales activities in Japan. Also, the organic chocolate brands Rapunzel and Vivani produced by Maestrani AG are sold in Japan. Excursion cheese market in Japan19 Japan is the second largest cheese importing country in the world (United States is the largest cheese importer). Japans tariffs on cheese range from 22 to 40 percent, and Japan does not use tariff-rate quotas (TRQs) to limit cheese imports. In 2004 a total import value of 630 Mio Euro has been reached (which is about 70% of the total dairy imports to Japan).

Graph 9: Cheese market development in Japan. Source: USDA/FAS

With the amendment of the JAS Organic Standards for dairy and meat products from March 2006 on, the market for organic dairy products is just at the beginning and for Swiss organic dairy companies good exportunities are seen. The positive image of Switzerland as a clean, safe and green country combined with the traditional competence in cheese manufacturing (and worldwide known types of cheese like Appenzeller) brings a clear advantage to Swiss organic dairy companies. In addition cheese production should be based on a professional food quality management and tracebility system which facilitates market entry.

19 (Ref 44)


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Table 17 summarizes some advantages and challenges that Swiss companies may face when developing business with Japan. Table 17: Strengths and weaknesses for swiss companies importing to Japan

Swiss Advantages Swiss Challenges

• Increased food safety awareness (BSE, etc.), increasing demands for food quality

• Food import regulations

• Positive images of Switzerland (green, clean, safe)

• High price products limit sales to selected retail channels

• Swiss high quality product image • High duties on many products

• Demand for organic and healthy products • Distance from Japan


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4. Company interviews

For this report the authors did a brief survey at the BioFach Japan which took place 21 to 23 September 2006 in Tokyo20. The results shall serve as additional information to asses the organic market situation in Japan. Interviews with foreign companies All in all, 13 companies have been interviewed. Almost all have concrete business experiences (ranging from 1 to 10 years) with Japanese buyers of organic food. The majority of interviewees state that they have made good experiences and/or see good sales opportunities for their organic products.

0 1 2 3 4 5 6 7

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Graph 10: Assessment of business experience of overseas companies in the Japanese market (n=13).

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Graph 11: Assessment of overseas companies with regard to own opportunities in the Japanese market (n=13).

20http://www.nuernbergglobalfairs.de/main/dnixekt5/e2hgzty9/page.html?referent=BioFach+Japansnid=e2hgzty9


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The product range of companies with very good market perspectives is as follows: honey, jams, bananas, fruit juices, frozen potatoe products, wines and Italian fine food specialties. Main challenges mentioned by overseas companies are

the cultural differences 4x communication 2x import regulations (organic and non-organic) 2x tariffs 2x weak image of organic products in Japan 2x

In addition to overseas companies, also 13 importers and distributors dealing with organic products have been interviewed. Products ranged from fruits (bananas, avocado) and fruit juice (4 items) to processed foods such as sausages, pies, dried mushrooms, animal food, wine, natural cosmetics and cotton toys. Products are imported from the USA, Australia, Mexico, Colombia, Paraguay, Turkey, Germany, Brazil and Italy. Asked for the distribution channels most of the Japanese companies said that they are selling to distributors and retailers. However, some are also selling to special distribution channels:

partly or exclusively selling through online shops 4x (juice, cosmetics, organic pet food and natural toys)

directly to hotels and restaurants 3x (bananas and juice)

directly to a department store (Isetan) 1x Most of them, however, are selling to distributors such as Kokubu, Kato, Kawada and Tanaka. The interviewed Japanese processors sell their products to distributors such as Kokubu, Masuki, Mitsubishi Shoji and Kokubu (list of distributors in Annex 2).

5. Market organization

5.1 National organic regulation (JAS)

The JAS Standard for Organic Agricultural Products and Organic Agricultural Processed Food, which has been set into force in 2001, clearly defines organic agricultural products and processed foods21. The JAS Organic Standard has been further developed with the additions of the JAS Standards for Organic Livestock Products, Organic Livestock Processed Foods, Organic Livestock Feedstuffs which took effect in November 2005. In addition, experiences after the implementation of JAS Organic Standards have lead to a revision of the first standard edition. Since March 2006 a revised JAS Organic Standard is in place.

21 Codex Alimentarius (FAO) Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods had been used as a basis for the JAS Organic Standard setting.


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On the MAFF website (http://www.maff.go.jp/soshiki/syokuhin/hinshitu/e_label/index.htm) information on JAS Organic Standards is available. Copies of key documents can be downloaded from this site. International companies interested to sell organic food products to Japan should contact one of the certification agencies registered (accredited) in Japan. The JAS Organic Standards differentiate between Registered Certification Organizations (RCO) and Registered Foreign Certification Organizations (RFCO). A list of accredited certification agencies can be found on the mentioned website also22. Certified organic agricultural products sold in Japan shall be labelled with the Organic JAS Label.

Table 18: Domestic and overseas products with JAS Organic Label. Foto: Heinz Kuhlmann.

Organic tea (Golden Temple, Netherlands)

Organic coffee (Ciaorganica, Brazil)

22 www.maff.go.jp/soshiki/syokuhin/hinshitu/e_label/index.htm


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Principally, two procedures are defined for the import and distribution of foreign organic food products to Japan:

Organic product is certified in a country which has been approved to have an equivalent organic guarantee system: JAS certified organic importer has to verify the organic transaction certificate after passing the customs clearance altogether with other required import documents. After that the JAS Organic label must be affixed and can be distributed throughout Japan. Countries with an approved equivalent system are: Australia, Austria, France, Germany, Italy, Switzerland, United States, United Kingdom and others (see a complete list on www.maff.go.jp/soshiki/syokuhin/hinshitu/e_label/index.htm

Country of origin is not approved to have an equivalent system: Organic producers and/or exporters must be inspected and certified against JAS Organic Standards by a JAS registered certification body (RCO or RFCO) first before export to Japan can start.

5.2 National food import regulations

Complicated food import regulations are described as one of the hindering factors for foreign food exporters when entering the Japanese market. As a consequence exporters have to investigate import requirements beforehand in order to avoid problems at the port of entry. However, as outlined in this market report in many cases Japan imports a plenty of conventional and organic food products which shows that one can overcome existing import barriers. Much background information is available in various exporter guides or manuals. In the following the authors have listed up some of these sources:

- JETRO website: www.jetro.go.jp/en/market/regulations: Here all relevant regulations can be found in an English version: a) Specifications, Standards and Testing Methods for Foodstuffs, Implements, Containers and Packaing, Toys, Detergents (145p.,610KB) Jun.2006 b) Food Sanitation Law (145p.,617KB) Apr.2006 c) Handbook for Consumer Products Import Regulations (364p.,1.5MB) Mar.2006 d) Handbook for Industrial Product Import Regulations (306p.,2.1MB) Mar.2006 e) Handbook for Agricultural and Fishery Products Import Regulations (175p.,524KB) Dec.2005 f) Specifications and Standards for Foods, Food Additives, etc. Under The Food Sanitation Law (255p.,1.2MB) Apr.2004 g) Guide to the JAS System for Agricultural and Forest Products (92p.,612KB) Mar.2004 h) Outline of Animal Quarantine in Japan (22p.,265KB) May.2003 i) The Overview of Plant Quarantine in Japan (47p.,2.2MB) Apr.2003


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- USDA/FAS GAIN Report, Number JA5040, “Japan: Food and Agricultural Import Regulations and Standards 2005” www.fas.usda.gov/gainfiles/200508/146130440.pdf) . This concise document, covering food laws, labeling, packaging, import procedures, and other key regulations, should be required reading for all food exporters. It not only explains the basics, but also provides specific contact information for all the relevant import agencies. It is updated annually.

As a general rule all relevant import requirements should be prepared and clarified with the Japanese partner (importer, agent etc.) who needs to get all detailed information on the product beforehand (list of all ingredients, processing adds etc.) in order to check acceptability. Also the registration under the JAS Organic Standard has to be done with the Japanese importer. At port of entry the product has to be cleared first. In this context requirements from port inspectors and interpretations of requirements might change from port to port. A complete and accurate documentation is of utmost importance (some recommend to send copies of documents in advance). Basic documents are:

Import Notification Health and Phytosanitary Certifications Results of Laboratory Analysis Manufacturer’s Certification showing materials, additives and manufacturing process Organic Certificate

As all agricultural products are subject to plant quarantine inspection, it is important that an organic shipment passes the plant quarantine without fumigation. A clarification that the organic product can enter without fumigation has to be verified beforehand. In order to get JAS Organic status it is important to show that the product/shipment has not been fumigated (with a certificate of no-fumigation issued by the plant quarantine inspectors, the import clearance certificate and/or the phytosanitary certificate issued in the country of origin).

5.3 Tariffs on imported food

Japan’s agriculture and food market is highly subsidized. Therefore, interested companies have to check the tariff and tax system. Goods imported to Japan are subject to customs duty and consumption tax. In addition to consumption tax, certain other internal taxes (liquor tax, tobacco tax, etc.) are also applicable to dutiable imported goods. Tariff rates are calculated on CIF basis in Japan. In general, Consumption tax is imposed at the rate of 5% on all goods imported into or manufactured in Japan. The amount of consumption tax payable on imported goods is calculated on the basis of the customs value of the goods plus customs duty payable and, where applicable, other excise taxes payable. Detailed and updated information on tariffs and customs duties can be found in the Table 28, Annex 7. www.customs.go.jp/index_e.htm and the link www.customs.go.jp/asem/partners_db/db_jp_tariff.htm#cp http://www.apectariff.org/tdb.cgi/ff3235/apeccgi.cgi?JP


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6. Excursion: Markets for “sustainable non-food products”

The Lifestyle for Helath and Sustainability (LOHAS) is not only related to food but also to non-food product categories. In this excursion to the non-food sector two product categories have been selected: natural cosmetics for its interesting growth dynamic and market relevance as well as natural textiles for its futural market potential.

6.1 Natural cosmetics and personal care products

First of all it is important to know that neither natural cosmetics (nor natural textiles) are within the scope of the JAS Organic Standard. Natural cosmetic processors’ experiences in Japan show that the import procedures for cosmetics are less challenging than for food and/or non-food products. In addition Japanese women (and increasingly also men) are addicted to buy cosmetic products. In 2003 about 50 Euro have been spent for personal care products per head in Japan whereas in Europe the averaged expenditure has been about 15 Euro. The total size of the market is estimated with about 11 billion Euros (2003). The cosmetic market is highly competitive and mature. Imports of cosmetic products are growing steadily. The leading suppliers are by far France (32.5%) and United States (29.4%). Table 19: Import of Cosmetics to Japan (million EUR and CHF). Source: Japan Exports and Imports/Japan Tariff Association

HSPos. Product 2002 2003 2002 2003 EUR CHF 33.03 Parfum 203 217 300 335 33.04 Skin care and

Make-Up 614 593 908 915 33.05 Hair care 109 144 161 222 3307.10 Shave products 8 6 12 9 .20 Deodorant 6 4 9 6 .30 Bath salt etc. 13 21 19 32 .90 Others 123 117 182 181 3401.11 Soap 43 37 64 57 .20-010 Others 5 4 8 7 Total 1,124 1,140 1,662 1,761 Table 20: Production of cosmetics in Japan (in million EUR). Source: METI “Preliminary Report on Chemical Industry”/bfai, 2006.

2002 2003 Change in % Parfum 58 41 -21 Hare care 3558 3018 -5 Skin care 4939 4702 7 Make-Up-Products 3041 2721 0 Other cosmetics 445 385 -3 Total 12040 10862 0,9


43

Currently, rejuventaion products, whiteners or cosmetic ranges for men are of particular interest. Also, multifunctional products (e.g. UV-protection, moisturizer) and a competent purchase advice are requested by Japanese buyers. However, before entering the Japanese market it is important to analyse the need and preferences of the Japanese consumers (e.g. different colours). The demand for natural cosmetics is on the rise globally. With increase of atopic allergies and the growing consumer awareness towards safe products, the market is rapidly expanding. In the last year it could be seen that many exhibitors at BioFach Japan offered natural cosmetics and personal care products. In 2006 more than 20 international companies have offered their natural cosmetic and personal care products (see a list in annex 7). A major part of the global market leaders in natural cosmetics and personal care products have started business in Japan. The majority work with Japanese distributors but have installed Japanese websites in order to promote their products (e.g. www.logona.jp or www.farfalla.co.jp or www.lavera.jp). Weleda Japan has opened Weleda natural care studios (about 10) all over Japan.

Table 21: Selected natural cosmetic products offered in Japan

Lavera Germany

Personal care products

Martina Gebhardt Germany

Personal care products

Logona Germany Personal care products


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Farfalla Switzerland Personal care products

Dr. Bronner’s Magic Soaps USA

Peppermint castile soap, Sal Suds

Natural Choices USA

Orange Cleaner, Oxyboost,

The organic make-up company Canada

Lip Gloss, Lipstick

6.2 Natural textiles

A major part of all clothing products and textiles sold in Japan are imported above all from China and other Asian countries. Currently, natural textiles have no market relevance. According to JOCA, Japan Organic Cotton Association (www.joca.gr.jp), about 300 to 450 tons of organic cotton have been used in 2001 for the production of natural textiles. Natural textiles are sold basically through mail-order, catalogue and internt business and are unbleached and uncoulored. JOCA has set up a certification and labelling scheme for natural textiles: Table 22: Organic cotton textile labels in Japan

"PURE" mark is labeled on products made of 100% organic cotton principally without dyeing and printing. Special exemptions are: (1) in order to make stretch fabrics, synthetic elastic yarn can be added less than 10%, and (2) in case of producing finer yarn of 40 counts or more for weaving fine fabrics, conventional ELS cotton can be added until 10%.


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"PURE dyed/printed"mark is labeled on products of same quality as "PURE" mark products that are dyed or printed conforming to the required conditions of the standards.

"BLEND"mark is labeled on products made of more than 60% organic cotton with less than 40% natural fibers like wool, linen, silk etc. or conventional cotton. Less than 10% of synthetic fibers are allowed. Same standards as "PURE dyed/printed" mark are applied for dyeing and printing of "BLEND" mark products.


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7. Appendices

Annex 1: Useful Links

Food Sanitation Law (JETRO) http://www.jetro.go.jp/en/market/regulations/pdf/food-e.pdf Handbook for Agricultural and Forest Products Import Regulations (JETRO) http://www.jetro.go.jp/en/market/regulations/pdf/agri-e.pdf Ministry of Agriculture, Forestry and Fisheries http://www.maff.go.jp/eindex.html Ministry of Health, Labor and Welfare http://www.mhlw.go.jp/english/index.html Japan Food Industry Center http://www.shokusan.or.jp (Japanese only) Japan Customs: Trade statistics webpage of MoF (Import procedures, trade statistics, tariffs etc.) http://www.customs.go.jp/index_e.htm Japanese Organic Agriculture Association www.joaa.net/ Japan Cosmetic Industry Association www.jcia.org Japan Organic Cotton Association www.joca.gr.jp

Annex 2: Important organic food importers, wholesalers, processors, retailers, co-operatives

Table 23: Organic JAS certified importers. Source: BioFach Japan 2006 Catalogue.

Company Address Phone / Fax Website/ e-mail

AIC Inc. Shinkawa East Bldg. 1-23-5, Shin-kawa, Chuo-Ku, Tokyo

Tel 03-5541-2158 Fax 03-5541-2140

[email protected] www.aicincjp.com/

Alishan Pty. Ltd. 185-2 Komahongo, Hidaka Shi, Saitama ken, Tel 0429-82-4811

[email protected] www.alishan-organic-center.com/jp/

Ban-yu Food Japan Co., Ltd. (not yet certified by MAFF)

589-1C, Dashin, Iida, Nagano 399-2561

Tel 0265-26-1270 Fax 0265-26-9791 [email protected]

Alter Trade Japan, Inc.

Sunrise Shinjuku Bldg. 3F, 2-4-15 Okubo, Shinjuku-ku, Tokyo Tel 03-5273-8163

[email protected] www.sbpark.com/atjhp/atjhp1.html

Bee Tree Market 5-3-11, Yakumo, Meguro-ku, Tokyo Tel 03-3724-7703 [email protected] www.beetree.co.jp/

Beixing Trading Co., Ltd.

NTA Nihombashi bldg. 6F, 3-1-2, Chuo-ku, Tokyo Tel 03-5204-2380

Brooks´s Co., Ltd., Japan

4-54-6, Utsukushigaoka, Aoba-ku, Sokohama-shi, Kanagawa, Japan Tel 045-902-3211 [email protected]

www.brooks.co.jp/index.php


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Buyou-shokuhin.co.ltd

Shin-Kokusai bldg. 3-4-1 Marunouchi, Chiyoda-ku, Tokyo Tel 03-3211-4831 www.buyou.co.jp/

Cargill Japan Limited

3-2-3 Marunouchi, Chiyoda-ku, Tokyo, Japan Tel 03-3285-0870 www.cargill.om

Century Trading Company

Hakuou bldg. 4F, 5-17-11, ShinJuku, ShinJuku-ku, Tokyo, Japan Tel 03-3208-5881

Cosmos Foods Company

5-14-22 Nishinakajima, Yodogawa-ku, Osaka, Japan Tel 06-6309-1141 [email protected]

www.cosmosfoods.co.jp/

Daabon Organic Japan Co., Ltd.

2F Nishi-Gotanda Sign Tower Bldg., 1-33-10 Nishi-Gotanda, Shinagawa-ku, Tokyo, 141-0031, Japan

Tel 03-5719-2733 Fax 03-3495-0344

[email protected] www.organicworld.co.co

Dai-ichi Doffe Co., Ltd.

3-10-1, Higashi-azabu Minatoku, Tokyo Tel 03-3583-4571

Daimaru Kogyo., Ltd.

3-6-1, Kita-kyuhojimachi, Chuo-ku, Osaka, Japan Tel 06-6244-6653 www.daimarukogyo.co.jp/

Daizu Yuryo Co., Ltd.

3-19-1,Honmachi, Hyogo-ku, Kobe, Japan Tel 078-671-1531 [email protected]

www.daiyu-kobe.jp/

DHC Corporation 1-5-7 Azabudai, Minato-ku, Tokyo, Japan

Tel 03-585-4681 Fax 03-3585-4684

[email protected] www.tod.dhc.co.jp

Earth & Life 1-15-14, Shintomicho, Chuo-ku,Tokyo, Japan Tel 03-3297-3456 www.earthandlife.co.jp/5.html

www.earthandlife.co.jp/ El Thank Japon Co., Ltd.

1-4-4, Momoi, Suginami-ku, Tokyo, Japan Tel 03-5382-7500 [email protected]

www.ans.co.jp/u/linas/index.htm

Fair Trade Company 2-6-29, Jiyugaoka, Meguro-ku, Tokyo, Japan Tel 03-5731-6671

[email protected] www.peopletree.co.jp/pages/company.html

Farmland Trading ltd.

Lex bldg. 6-16-8, Shimbashi, Minato-ku, Tokyo, Japan Tel 03-3431-4129

Gomeishoji Kaisha Ltd.

Gomei bldg. 1-11-6, Hacchoubori, Chuo-ku, Tokyo, Japan Tel 03-3553-5025

Hiro International Co. Ltd.

Kearny Place Shibuya 3F, 2-16-5 Shibuya, Shibuya-ku, Tokyo, Japan

Tel 03-3406-1091 Fax 03-3406-1880

www.nikkei.co.jp/events/shizen/detail10330 07481.html

Howa Shoji Co., Ltd. Hagoromo bldg. 6F, 1-5-2 Hacchoubori, Chuo-ku, Tokyo Tel 03-3297-0571

Hyper Plants Co., Ltd. 3-4-9-303, Mita, Minato-ku, Tokyo Tel 03-5789-2930 www.hyperplants.co.jp/

Interpac Corporation 1-23-6, Sekiguchi, Bunkyo-ku, Tokyo Tel 03-5228-6731

Ishida Foods Corporation

1459-7, Higashiakasaka, Yasuba, Mie, Japan Tel 0595-39-0946

ITOCHU Corporation.

2-5-1, Kita-Aoyama Minato-ku, Tokyo 107-8077, Japan

Tel 03-3497-6043 Fax 03-3497-6086 www.itochu.co.jp

J.C.Planning Inc. 1-23-21, Omori-kita, Ota-ku, Tokyo Tel 03-5493-0211 [email protected] www.org-jc.com/

KANEMATSU CORPORATION

1-2-1, Shibaura, Minato-ku, Tokyo, Japan

Tel 03-5440-8111 Fax 03-5440-6500 www.kanematsu.co.jp/

Kirin International Trading Inc.

6-26-1, Zinguumae, Shibuya-ku, Tokyo, Japan Tel 03-3407-0541 www.kirin.co.jp/company/news/

06/e/97082 8.html Kitano Sholi Co., Ltd.

11-8, 1-chome, Oyodo-Minami, Kita-ku, Osaka 531

Tel 06-6458-7801 Fax 06-6453-0212

[email protected] www.kitano-kk-.co.jp

Kokubu & Co., Ltd. 1-1-1, Nihonbashi, Chuo-ku, Tokyo Tel 03-3276-4000 [email protected] www.kokubu.co.jp/

Marubeni Corporation

1-4-2, Otemachi, Chiyoda-ku, Tokyo 100-8088

Tel 03-3282-7228 Fax 03-3282-7372 www.marubeni.co.jp/

Marugen FPJ, Co., Ltd 4-7-8, Tachibana, Sumida-ku, Tokyo Tel 03-3617-0121

[email protected] www.marugen.com/profile/p_04_01.html

Master Foods Ltd 1-403, Kosugi-cho, Nakahara-ku, Kawasaki-shi, Kanagawa, Japan Tel 044-712-1122 www.masterfoods.co.jp/index.ht

ml Mauna West Co., Ltd.

4-21-7, Shimokodanaka, Nakahara-ku, Kawasaki-shi, Kanagawa, Japan Tel 044-752-7075 [email protected]

www.maunanoni.com/


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Meiji Trading Corporation

3-1-1, Kyobashi, Chuo-ku, Tokyo, 104-0031 Japan

Tel 03-3273-0291 Fax 03-3274-0839

[email protected] www.meiji-trading.co.jp/index.html

Minato Shokai Co., Ltd.

1-5-30, Azabu-Juban, Minato-ku, Tokyo Tel 03-5413-2048

[email protected] www.blueflag.co.jp/minato_hp/minato_toia wase.htm

Mitoko Co., Ltd. 5-31-10 Shiba, Minato-ku, Tokyo, Japan

Tel 03-5444-6750 Fax 03-5444-6753

[email protected] www.mitoku.co.jp

Mitsubishi Corporation 2-16-3 Konan, Minato-ku, Tokyo, Tel 03-6405-6679

Fax 03-6405-8203 www.mitsubishicorp.com/jp/contact/index.h

Mitsui & Co., Ltd. 1-2-1, Ohtemachi, Chiyoda-ku, Tokyo, Japan

Tel 03-3285-5891 Fax 03-3285-9190

www.mitsui.co.jp/tkabz/contact/food.html www.mitsui.co.jp/

Monte Bussan K.K. Aoyama Oval Building, 5-52-2, Jingumae, Shibuya-ku, Tokyo Tel 03-5466-4509 [email protected]

o.jp www.montebussan.co.jp/

Muso Co., Ltd. 3-7-22, Nishi-Tenman, Kita-ku, Osaka, Japan

Tel 06-6316-601 Fax 06-6316-6016

[email protected] www.muso-intl.co.jp/

Naoki Corporation (not yet certified by MAFF)

3-5-12 Meguro, Meguro-ku, Tokyo 153-0063

Tel 03-3974-8801 Fax 03-3794-8804

Natural Way Co., Ltd. (not yet certified by MAFF)

Ebisu South Hill, 21-2 Ebisu-Minami 2-chome, Shibuya-ku, Tokyo 150-0022

Tel 03-5720-1913 Fax 03-5720-1912 www.naturalway.co.jp

N. A. Japan co., ltd. 4-13-3 Motomachidori, Chuo-ku, Koube-shi, Hyogo, Japan Tel 078-371-3220

Nichifutsu Boeki Corporation

DF Building, 2-2-8 Minami-Aoyama, Minato-ku, Tokyo, Japan

Tel 03-3403-03360 Fax 03-3404-4472

[email protected] www.nbkk.co.jp/

Nihon SiberHegner K.K.

SiberHegner Mita Bldg. 4-19, Mita 3-chome, Minato-ku, Tokyo [email protected]

www.nshkk.co.jp/index.htm Nihonseima Co., Ltd.

3-1-8 Agatusma-dori, Chuo-ku, Hyougo, Japan Tel 078-332-8251 www.nihonseima.co.jp/

Nichirei Corporation (not yet certifed by MAFF)

6-19-20 Tsukiji, Chuo-ku, Tokyo 104-8402

Tel 03-3248-2197 Fax 03-3248-2170 www.nichirei.co.jp

Nihon Siber Hegner K.K. 3-4-19 Mita, Minato-ku, Tokyo Tel 03-5441-4534

Fax [email protected] www.nshk.co.jp

Nippon Del Monte Corporation

4-13, Nihonbashi Koamicho, Chuo-Ku, Tokyo, Japan Tel 03-3669-2877 [email protected]

Nippon Olive Co., Ltd

3911-10, Ushimado, Oku-gun, , Okayama, Japan

Tel 0869-34-9111 Fax 0869-34-9152

[email protected] www.nippon-olive.co.jp/

Nippon Restaurant Enterprise Co., Ltd. (not yet certifed by MAFF)

19-13, Takanawa 2-chome, Minato-ku, Tokyo 108-0074

Tel 03-5798-8075 Fax 03-5798-8076

www.nre.co.jp

Nishimoto Trading Co., Ltd.

2-23-1 Nishishimbashi, Minato-ku, Tokyo

Tel 03-3438-5651 Fax 03-3438-5672

[email protected] www.ntcltd.com/ntc/index.html

Nisshin Shokai Co., Ltd.

43-92 Hira-Kogyo, Danchi, Utsunomiya-shi, Tochigi, Japan Tel 028-662-5231

Nisshin Trading Co., Ltd.

1-37-4, Nishi-azabu, Minato-ku, Tokyo Tel 03-5785-3920

Nissho Iwai Foods Corporation

17-16 Nihonbashi-Koamicho, Chuo-ku, Tokyo Tel 03-5641-4050

www.e-nif.co.jp/ftrade/mail/index.html www.e-nif.co.jp/nifco/index.html

Nisshoku Co., Ltd. 9-10, Nozaki-cho, Kita-ku, Osaka-shi, Osaka, Japan Tel 06-6313-1341 www.nisshoku-

foods.co.jp/index.html NN Chemical Corporation

1-3-7, Tosabori, Nishi-ku, Osaka-shi, Osaka, Japan Tel 06-6459-2200

Nova 3-3, Nakamaru, Kitamoto-shi, Saitama, Japan Tel 048-592-6491 www.nova-

organic.co.jp/novam.html

Okura Agri Co., Ltd. G-1 bldg. 3F, 1-3-3, Ginza, Chuo-ku, Tokyo Tel 03-5159-0100


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Oneness Co., Ltd. 1-1-1 Hotarugaoka Nankoku-City Kochi, Japan

Tel 81 88-880-8800

[email protected] server3.oneness-net.com/~onejp/open_contents/index.html

Oyama Company Limited

Dentsu Kobe bldg. 74, Chuo-ku, Kobe-shi, Hyogo, Japan Tel 078-331-9450 [email protected]

www.oyama-web.com/guide4/

Plus S Corporation Nishinihon-building 6F, 1-10-17, Tenjin, Chuo-ku, Fukuoka-shi, Fukuoka, Japan

Tel 092-731-8152 Fax 092-731-8155

Primero Japan k.k. 1-9-12, Irifune, Chuo-ku, Tokyo Tel 03-5117-2661

Ryokokushoji Co., Ltd.

5-7-5, Shoukou Center, Nishi-ku, Hiroshima-shi, Hiroshima Tel 082-277-6455

S. Ishimitsu & Co., Ltd.

4-40, Iwaya Minami-machi, Nada-ku, Kobe , Japan Tel 078-861-7791 www.ishimitsu.co.jp/

Sawai Trading Co., Ltd.

Higashi-Kayabacho Yuraku bldg. 4F, 1-17-25, Shinkawa, Chuo-ku, Tokyo Tel 03-5543-2461 [email protected]

www.saiwai-web.jp/ Sakurai Foods Co., Ltd.

343, Takanosu Kamono-cho, Mino-Kamo-shi, Gifu, Japan

Tel 0574-54-2251 Fax 0574-54-2253

[email protected] www.sakuraifoods.com/

Sansiro Corporation 3-7-7, Nihombashi, Chuo-ku, Tokyo Tel 03-3275-3232

Sanyo Food Products Co., Ltd

1-13-14, Matsushimachou, Takamatsu-shi, Kagawa, Japan [email protected]

www.so-food.co.jp/

SC Foods Co., Ltd. Sumishokurita bldg. 3-24-1, Kandanishikichou, Chiyoda-ku, Tokyo

Tel 03-5405-8001 [email protected] www.scfoods.co.jp/

S. Ishimitsu & Co. Ltd.

4-40 Iwaya-Minami-cho, Nada-ku, Kobe-shi, Gifu

Tel 078-861-7791 Fax 078-882-1007 www.ishimitsu.co.jp

Sojitz Corporation 4-1-23 Shiba Minato-ku, Tokyo Tel 03-5446-1215 Fax 03-5446-1236 www.sojitz.com/index.html

Sumifru Corporation Shinseikan bldg. 2F, 4-9-25, Hongou, Bunkyo-ku, Tokyo Tel 03-5805-0580 www.sumifru.co.jp/contact/index

.php www.sumifru.co.jp/ Sumitomo Corporation 1-8-11 Harumi, Chuo- ku, Tokyo, Tel 03-5166-5590

Fax 03-5166-6394 www.scgourmet.co.jp/sumitomoffd/index.html

Takanabe Shoji & Co., Ltd.

6-2-20, Ebie, Fukushima-ku, Osaka-shi, Osaka, Japan Tel 06-6451-7616

Tennensozai Co,. Ltd.

10834-60, Nishihama, Saeki-shi, Oita, Japan Tel 0972-22-4151

Toho Bussan Kaisha, Ltd.

2-4-1, Shibakouenn, Minato-ku, Tokyo Tel 03-3438-5711

Tokuoka Co., Ltd. 3-5-26, Minami-semba, Chuo-ku, Osaka-shi, Osaka, Japan Tel 06-6251-4560 [email protected]

www.tokuoka.co.jp/

Tomen Corporation 3-8-1, Marunouchi, Chiyoda-ku, Tokyo

Tel 03-5288-2111 Fax 03-5288-9100

[email protected] www.tomen.co.jp/index.html

Tominaga Boeki Kaisha, Ltd.

Tominaga bldg. 6F, 5-1-21, Miyuki-dori, Chuo-ku, Kobe-shi, Hyougo, Japan

Tel 078-232-8600 www.tominaga.co.jp/

Toshoku Ltd. 3-2-3, Marunouchi, Chiyoda-ku, Tokyo, Japan

Tel 03-5224-5600 Fax 03-5224-5930 www.toshoku.co.jp/

Toyota Tsusho Corporation

14-9, Nihonbashi 2-chome, Chuo-ku, Tokyo www.toyotsu.co.jp/toiawase.htm

l www.toyotsu.co.jp/

Votre Santé #902 Shin-nakanoeki Plaza, 4-48-17, Honchou, Nakano-ku, Tokyo Tel 03-3385-3271

[email protected] www.votre-sante.co.jp/index.html

Vox Trading Co., Ltd.

Matsumoto Bldg, 14-15, Nihombashi-Odemmacho, Chuo-Ku, Tokyo Tel 03-3665-6201 [email protected]

www.voxtrading.jp/ Wako Shokuryo Co., Ltd.

1-10-8, Uchi-Kanda, Chiyoda-ku, Tokyo Tel 03-3294-2201

Wilbur-Ellis Co., (Japan) Ltd.

Room 308, Sanshin bldg. 4-1, Yurakucho 1 choume, Chiyoda-ku, Tokyo

Tel 03-3591-3221 www.wilburellis.com/


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Wingace Corporation

SA bldg., 7-2-7, Ueno, Taitou-ku, Tokyo Tel 03-3847-3155

Yakuryo Kaihatsu Co., Ltd.

2-11-10-7F, Minami-Azabu, Minato-ku, Tokyo

Tel 03-5730-9321 Fax 03-5730-9321

www.e-organichouse.com/contact/index.php www.yakuryo.co.jp/

Yamaguchi Company

1-19-14, Shakujiidai, Nerima-ku, Tokyo Tel 03-3904-1231

Youki Trading Co., Ltd.

Sanshin Building 8th floor, 3-17-1, Shibuya, Shibuya-ku, Tokyo Tel 03-5466-8760 [email protected]

www.youkitrading.co.jp/ja/ Yutaka Trading Co., Ltd. 2-12-32, Kounan, Minato-ku, Tokyo Tel 03-5462-8311

Table 24: Wholesaler, Retailers and Co-operatives. BioFach Japan 2006 Catalogue.


Alishan pty 185-2, Koma-hongou, Hidaka-shi, Saitama, Japan Tel 0429-82-4812

www.alishan-organic-center.com/jp/ [email protected]

An-po Co. Ltd. 21-10 Yamahira, Neshiro, Hachinohe City, Aomori, Japan Tel 0178-27-5510 www.anpo.co.jp

Bio. Market Ltd. 1-8-2, Meishinguchi, Toyonaka-shi, Osaka, Japan Tel 06-6866-1438 www.biomarche.jp

[email protected] Consumers Cooperative Kobe

1-3, Sumiyoshi-honchou, Higashi-Nada-Ku, Kobe, Hyougo, Japan Tel 0120-44-3100 www.kobe.coop.or.jp/

Daichi wo Mamoru Kai

Daini Satsuki bldg, 6-8-1 Roppongi Minato-ku, Tokyo, Japan Tel 03-5447-8160 www.daichi.or.jp/cgi/

[email protected] Marushima Foods Co.

9-2, Higashi-onomichi, Onomichi-shi, Hiroshima, Japan Tel 0848-20-2506 www.junmaru.co.jp/

Mitoku Co., Ltd. Sunshine bldg., 5-3-10, Shiba, Minato-ku, Tokyo, Japan Tel 03-5444-6750

www.mitoku.co.jp/food/index.html [email protected]

MOA Daiichi bldg 9-1, Tawara-Honchou, Atami-shi, Shizuoka, Japan Tel 0557-84-2611 www.moanet.co.jp/

Muso Co. Ltd 2-2-7, Ohtechou, Chuou-Ku, Osaka, Japan Tel 06-6945-0511 www.muso.co.jp/company/comp

any.htm Mudo Trading co., ltd.

3-7-22, Nishi-temma, Kita-ku, Osaka-shi, Osaka, Japan Tel 06-6316-6011 www.muso-intl.co.jp/

[email protected]

Osawa Japan 424, Niizo, Toda-shi, Saitama, Japan Tel 048-447-8588 www.ohsawa-japan.co.jp/ [email protected]

Polan 1-14-8, Hikawa-chou, Toda-shi, Saitama, Japan Tel 048-434-4300 www.polan.net/polanz

[email protected] Radish Boya Co., Ltd.

Urban Shiba Kouen 5F, 3-1-13, Shibakouen, Minato-ku, Tokyo, Japan Tel 03-5777-8640 www.radishbo-ya.co.jp/

[email protected] Shizen & Organic Food Co. Ltd.

415-11, Tomisato Takamatsu, Imbanuma Gun, Chiba, Japan Tel 0476-94-0097 www.shizennoho.co.jp

[email protected]

Sokensha Co., Ltd. 724, Katakura-chou, Kanagawa-ku, Yokohama-shi, Kanagawa, Japan Tel 045-491-1441 www.sokensha.co.jp/

[email protected] National Federation of Agricultural Co-operative Associations (ZEN-HO)

1-8-3 Otemachi Chiyoda-ku, Tokyo 100-0004 (JA Building) Tel 03-3245-7126 www.zennoh.or.jp/

Table 25: Processors with interest in organic products. Source: FAO/ ITC/ CTA, 2001.



51

Muso Co Ltd 3-7-22 Nishitenma, Kita-ku, Osaka 5300047 06-6316-6104

Mitoku Co Ltd Room 257 Tokyo Building 2-7-3 Maranouchi, Chiyoda-ku, Tokyo

03-3201-6701 C.P.O Box 780 Tokyo, 100-91


52

Annex 3: Currency Exchange Rates

Currency exchange rates

119,00 120,00

110,12

115,75

133,28130,80

136,90

143,83

63,99

72,13

80,58

86,27 87,13 88,4391,91

125,39

121,53

107,10 119,12

99,54

108,84

60

70

80

90

100

110

120

130

140

150

2000 2001 2002 2003 2004 2005 until 13Sept 2006

Yen/

US$

, € a

nd C

HF

Yen/ US$Yen/ €Yen/ CHF

Anual average 2000 2001 2002 2003 2004 2005 until 13

Sept 2006Yen/ US$ 107,10 121,53 125,39 119,00 120,00 110,12 115,75Yen/ € 99,54 108,84 119,12 133,28 130,80 136,90 143,83Yen/ CHF 63,99 72,13 80,58 86,27 87,13 88,43 91,91


53

Annex 4: Further consumer attitudes & eating habits

(Agri-Food Consumer Profile, June 2006, Ref. 26)

Japanese consumers have a high educational level about food and are increasingly aware of food safety issues.

Consumers tend to "eat with their eyes," viewing food as art and are looking for aesthetically pleasing products when shopping.

"Harmony" and "Nature" are important concepts in regards to food consumption. Food must be in "harmony" with "nature" as well as the consumer and surrounding foods (side dishes).

Japanese feel the key to a long life is good health care and healthy eating. A typical Japanese breakfast includes rice, raw egg, salted salmon and/or fermented

soybeans and miso soup.The most common dinner foods are meats, fish, vegetables and rice. Traditional Japanese meals include a large bowl of rice, several side dishes (meat, fish, or vegetables) and a bowl of miso soup.

Lunch is typically the meal eaten outside the home; consuming prepared foods purchased at restaurants or convenience stores is not uncommon.

Japanese consumers prefer to eat dinner at home where fresh foods can be stored, however, cost and convenience lead many families and individuals to eat at restaurants for this meal.

Snacking throughout the day is not yet common; although, western influences are increasing snacking habits. Males are more likely to snack than women.

Men are more likely to eat outside the home than women. Single and working women tend to prefer eating out due to lack of desire to prepare

their own meals. Rural residents are more conservative and have not been as affected by outside

influences. Due to the proximity of retail outlets, rural consumers eat most meals at home and make fewer trips to purchase groceries.

Japanese soft drinks mostly consist of tea drinks, with growing popularity in sugar-free and ready made drink products.

Consumer confidence in food is tied heavily to trust in government. This trust was badly damaged in 2001 and had a huge impact on the consumption of beef products as well as frozen food products because of the governments handling of unrelated food scares (BSE).

Consumers with higher disposable incomes are willing to pay for new health products including organic foods, which come at a price premium.

Western influence coupled with a desire for convenience is increasing demand for fast foods and prepared meals. Convenience is a driving force in restaurant sector growth.

Packaged, frozen, preserved and processed food demand is increasing, and is primarily purchased from supermarkets and convenience stores.

Consumers are demanding larger quantities of fresh products. Tracking devices are used to prove freshness and increase consumer confidence.

Due to its high protein content, fresh meat consumption is increasing faster than vegetable consumption.

Sugar, carbohydrate, calorie and fat reduced food product demands are a result of health conscious consumers. Increased fibre, vitamin and mineral content are also important attributes for consumers.

Meal replacement product popularity is increasing, with sales expected to grow 13% between 2004 and 2009.

Alcohol consumption has increased in recent years. Beer accounts for 55% of the market, followed by Japan's traditional alcoholic beverage, sake.

Coffee consumption has increased almost 14% since 1998 due to a significant increase in the number of coffee shops in Japan.


54

Smaller, easily opened packages are in demand with small families and elderly consumers who lack storage space for large volumes of food products (small houses).

Bottled water is making gains in the Japanese market; however tap water is preferred for economical and religious reasons—water is seen as a "gift from nature" according to Japanese religious tradition, and as such, people are unwilling to pay for it.

An aging population is driving demand for healthy home delivered meals called "Foods for Ill Persons," which are nutritious meals are delivered to people who are unable to cook for themselves because of illness or disability. This niche market will continue to grow as the majority of the population ages in years to come.

Older men are an important target for the health industry. With more youthful older Japanese men, hipper and trendier health products are becoming popular. Likewise, new markets are opening up targeting the baby boomer-aged women.


55

Annex 5: Fresh vegetable imports and origins

HS Code Item Shipments (t) Imports (t) Import Percentage (%)

Major Exporters (%)

070190000 Potatoes 2,394,000 5 0.00% China (100)

070200000 Tomatoes 668,100 4,280 0.64% S. Korea (75.1), Canada (12.2), U.S. (12.0)

070310011

Onions 1,013,000

233,486

19.11%

China(57.1), U.S.(20.3), New Zealand (14.5)

070310012 2,736

China(47.3), Thailand (18.6), New Zealand (10.0)

070310013 3,205China(60.9), Thailand (13.0), Taiwan (10.9)

070320000 Garlic 11,400 27,639 70.80% China(99.8)070390010 Green onions 394,900 47,458 10.73% China(99.7)

070490010 Broccoli 91,200 68,009 42.72% U.S.(83.7), China(14.6)

070490090 Cabbage 1,182,00035,164 1.80% China(94.6) - Chinese

cabbage 728,200

070511000 Head lettuce 509,100

3,3690.84%

U.S.(84.9), Taiwan (14.1)

070519000 Other lettuce 971 U.S.(89.0), Taiwan (9.4)

070610000 Carrots 571,100

44,929 5.93% China(74.5), Netherlands (13.2), Australia (8.9)

- Turnips 140,600

070690010 Burdock 138,800 57,166 29.17% China(83.7), Taiwan (16.0)

070690090 Daikon 1,330,000 4,637 0.35% China(98)070700000 Cucumber 571,300 2,374 0.41% S. Korea (100)070810000 Green peas 18,400 12,225 39.92% China(99.7)

070920000 Asparagus 24,400 17,850 42.25% Australia (21.6), Philippines (20.3), Mexico (19.2)

070930000 Eggplant 292,300 1,026 0.35% S. Korea (100)

070960010 Green bell pepper

128,600

22,556

15.30%

S. Korea (63.1), Netherlands (24.1), New Zealand (12.5)

070960090 Other bell peppers 678

S. Korea (79.7), New Zealand (16.3)

070970000 Spinach 250,000 0 0.00% -

070990091 Pumpkins 172,100 139,822 44.83% New Zealand (62.6), Mexico (15.2), Tonga (15.1)

071490210 Taro 124,800 29,713 19.23% China(100)091010231 Ginger 22,600 49,428 68.62% China(96.5)

Note 1 The annual production period for carrots and turnips differs, so import volumes for these items are from April to March and based on "Import Percentages for Major Products (2002)" prepared by the Ministry of Agriculture, Forestry and Fisheries.

Note 2 Import volumes for daikon are from "Other root vegetables." Source: MAFF / Ministry of Finance (2003)


56

Major frozen vegetable imports in 2003 included potatoes (239,000 tons), green soybeans (60,000 tons), taro (49,000 tons), sweet corn (48,000 tons) and strawberries (29,000 tons). Kidney beans, mixed vegetables, broccoli, green peas, spinach and burdock were also imported in significant quantities. Table 26: Volumes of major frozen vegetables (2003) Source: Ministry of Finance, "Trade Statistics"

Item Imports (t)Potatoes 239,250Green soybeans 60,711Taro 49,071Sweet corn 47,799Strawberries 29,418Kidney beans, etc. 29,233Mixed frozen vegetables 28,756Broccoli 18,585Green peas 17,857Other beans 16,315Spinach, etc. 8,358Burdock 7,618Chinese yams, etc. 2,762Other frozen vegetables 153,547Total 709,280Note Categories from Major Vegetable

Import Trends (Agriculture & Livestock Industries Corporation).


57

Annex 6: Selection of imported organic consumer food

It is obvious that the majority of organic brand suppliers are from United States and Canada. Table 27: Organic food brands from North- and South America.

Company Country Product range Product example

El Ceibo Bolivia

Cocoa Powder

Solarius Brazil

Mushrooms

MN PROPOLIS - INDUSTRIA, COMERCIO E EXPORTACAO LTDA. Brazil

Organic Cassava Shochu, Organic Alcohol, Organic Propolis, Organic Honey, Organic Tea with Propolis

FRUIT D'OR Canada

CRANBERRY AND BLUEBERRY PRODUCTS, DRIED, FROZEN, JUICE.

PARK TAK INTERNATIONAL CORPORATION Canada

COOKIES, CANDIES, POPCORN, ORGANIC SNACKS, DRIED FRUITS, MAPLE SYRUPS, PASTAS, COFFEES & TEAS

Omega Nutrition Canada

Flaxseed Oil, Coconut Oil


58

PACIFIC WESTERN BREWING COMPANY AND NATURELAND PRODUCTS LTD. Canada

Beer, Sparkling Water

GRUPO DAABON Colombia

Organic Products as fresh bananas, coffee, sugar, cocoa, molasses, palm oil, margarines

OPAL INTERNATIONAL Israel, USA

Mediterranean foods, Private Label. Antipasti, Jam, Bruchetta, Pom Juice. JAS Organic

Amy’s Kitchen, Inc. USA

Organic frozen pizzas, frozen entrees & meals, canned soups, chili&beans, salsa, etc.Soup, Chowder

LUNDBERG FAMILY FARMS USA

Organic and gourmet rice, rice cakes, risotto mixes, rice pasta, rice milk, rice syrup, etc.

Alvarado St. Bakery USA

Whole wheat tortillas

Giusto vita-grain USA

W/W Bread flour, W/W Pastry flour, Unbleached White flour, Oat Bran, Wheat Bran, Gluten, soy flour

Flavorganics USA

Extracts (Vacilla, Almond, Peppermint, Orange, Lemon)


59

Jewel Date Company USA

Date Sugar, Deglet Noor Dates, Medjool Dates

Eden Foods USA

Flour, fruit juice and sauces, pasta, sauce, beans, soy milk, brown mustard, vinegar, soy & oat milk

Once Again Nut Butter USA

Tahini, Peanut Butter

Grain Millers USA

Rolled Oats

Arrowhead Mills USA

Grain products

Peace Cereal USA

Crisp

New England Natural Bakers USA

Muesli, Granola, Snacks

San Joaquin Figs USA

Figs (Black Mission, Calimyrna)

Taylor Brothers Farms USA

Prunes

Atwater Foods USA

Apples

Van Dyke Farms USA

Bartlett Pears, Bing cherries


60

Graceland Fruit USA

Blueberries, Cranberries

Capay Farm USA

Almonds

SunGold Foods, Inc. as subsidiary of Red River Commodities USA

Sunflower Seeds

Sunnyland Mills USA

Bulgur Wheat

Spectrum USA

Canola Oil

Nutrition Kitchen USA

Soybeans Angel Hair

Enrico’s USA

Pasta sauce

Earth’s Best Consumer Relations USA

Baby Food

Wolaver’s USA

Ale

Green Mountain USA

Breakfast Blend Decaf Beans/ Ground

Traditional Medicinals USA

Tea


61

Yogi Tea USA

Tea

Paul Newman’s Own USA

Pretzels

Organic Valley Family of Farms USA

Cheese

Organic brands from Europe and Near East:

Company Country Product range Product example

ANDERST AGRARHANDEL GMBH Austria

organic cauned vegetables, organic chocolate, organic potatoes chips, organic noodles, organic wine

LUTOSA (SA VAN DEN BROEKE-LUTOSA) Belgium

Frozen French Fries & Potato Specialities, Potato Flakes, Organic French Fries & Specialities

BRASSERIE DUPONT Belgium

Special Belgian Beers, Organic Beers

Beutelsbacher Schweizer Germany Juices, Sauerkraut


62

Mestemacher Germany Rye bread

Rapunzel Germany Golden Sultanas, chocolate etc

Zwergenwiese Naturkost GmbH Germany Spreads, mustards, bread

Vitagermine France Fruit juices and jams

BISCUTERIE DE L'ABBAYE France

Pure butter biscuits from Normandy (galettes, sables.) , organic and dietetic biscuit

NATURGIE France

Rice, Flour, Cereals, Jam, Marmalade, Spaghetti, Pasta, Salt, Pepper, Dressing, Sauce, Vineger, Spices, Mustard, Sugar, Cooking Oils and Fats (Animal), Cooking Oils and Fats (Vegetables), Snack Foods, Biscuits, Cookies, Cakes, Chocolates, Candies, Wine, Sparkling Wine, Soft Drinks, Coffee, Tea

PAUL BEAUDET France Beaujolais Wines

Felicetti Italy Organic pasta.


63

ALCANOVA, S. L. (EXTENDA-CAMARAS ANDALUCIA) Spain

Organic extra virgin olive oils JAS certified.

OLIVARERA LOS PEDROCHES, S. C. A. (EXTENDA-CAMARAS ANDALUCIA) Spain

Organic extra virgin olive oils, extra virgin olive oils

SIERRA RICA, S. L. (EXTENDA-CAMARAS ANDALUCIA) Spain

Organic chestnuts, organic soups and sauces and spreads, organic gourmet quince paste, olives, extra virgin olive oils, wine vinegar etc.

AL WATANIA AGRICULTURE COMPANY Saudi Arabia

Juice (Apple, Dates, etc), Jam (Apricot, Apple, etc), Olive Oil, Dried Dates, Pure Honey, etc.

Morga AG Switzerland

Soyavollkorn Spaghetti Vegetable bouillons, teas, pastas, coffee substitute, mueslis, dessert products

Bischofszell Food Ltd. Switzerland

Organic teas: ice tea, hemp tea, rooibos tea, alpine herb tea


64

Elite Naturel Icecek San. TIC. Ltd Turkey juice, baby juice

TARIS FIG & SULTANA RAISINS UNION Turkey

Dried figs and by products, sultanas, raisins and by produts, turnip juice, lemon sauce

Meridian UK Jam, Blackstrap Molasses, Tomato Ketchup

Vitamont Juice UK Juice Organic brands from Asia-Pacific

Knispel Bros Pty Ltd Australia Juices

Dalhousie Fine Foods Pty Ltd Australia Marmelades, fruit spreads


65

Loan Wines - Tanunda Creek Vineyards Pty. Ltd. Australia Organic wines

COFFEE BEANERY CO., LTD. Thailand

Exporter & Roaster of Coffee Beans / TARAMAYA, the quality of fine coffee and tea from Thailand

P. K. SIAM CO., LTD. Thailand

Vegetable & Fruit, Noodle, Retort, Agri & Sea Food, Soft Drink, Beer, Rum, Wine, Seasoning Spice

CLS TRADING COMPANY LIMITED Thailand

ginger products - Instant ginger powder, chysanthemum, Honey, Tea and Herbal Beverages


66


67

Annex 7: Tariffs Table 28: Import tariffs on some food products HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp 1006 Rice 100610 Rice in the husk (paddy or rough): QV (402 yen/kg) 100610 010 4 MT Imported by Japanese Government according to Article 30 of "The Law

for Stabilization of Supply-Demand and Price of Staple Food", imported to be purchased and sold by Japanese Government in response to a joint application by seller to and purchaser from Japanese Government according to Article 31 of the law, imported with certification of Minister of Agriculture, Forestry and Fishery according to the cabinet order provided by the cabinet order provided in column 3 of paragraph 1 of Article 34 of the law or imported as repayment to Japanese Government loan according to paragraph 1 of article 49 of the law and by provided by the cabinet order

(Free) Free

100610 090 6 MT Other *(341 yen/kg) 49 yen/kg

100620 Husked (brown) rice: QV (402 yen/kg) 100620 010 1 MT Imported by Japanese Government according to Article 30 of "The Law

for purchased and sold by Japanese Government in response to a joint application by Stabilization of Supply-Demand and Price of Staple Food", imported to be seller to and purchaser from Japanese Government according to Article 31 of the law, imported with certification of Minister of Agriculture, Forestry and Fishery according to the cabinet order provided by the cabinet order provided in column 3 of paragraph 1 of Article 34 of the law or imported as repayment to Japanese Government loan according to paragraph 1 of article 49 of the law and by provided by the cabinet order

(Free) Free

100620 090 & MT Other *(341 yen/kg) 49 yen/kg

100630 MT Semi-milled or wholly milled rice, whether or not polished or glazed: QV (402 yen/kg) 100630 010 5 MT Imported by Japanese Government according to Article 30 of "The Law

for Stabilization of Supply-Demand and Price of Staple Food", imported to be purchased and sold by Japanese Government in response to a joint application by seller to and purchaser from Japanese Government according to Article 31 of the law, imported with certification of Minister of Agriculture, Forestry and Fishery according to the cabinet order provided

(Free) Free


68

by the cabinet order provided in column 3 of paragraph 1 of Article 34 of the law or imported as repayment to Japanese Government loan according to paragraph 1 of article 49 of the law and by provided by the cabinet order


100640 Broken rice: QV (402 yen/kg) 100640 010 2 MT Imported by Japanese Government according to Article 30 of "The Law

for Stabilization of Supply-Demand and Price of Staple Food", imported to be purchased and sold by Japanese Government in response to a joint application by seller to and purchaser from Japanese Government according to Article 31 of the law, imported with certification of Minister of Agriculture, Forestry and Fishery according to the cabinet order provided by the cabinet order provided in column 3 of paragraph 1 of Article 34 of the law or imported as repayment to Japanese Government loan according to paragraph 1 of article 49 of the law and by provided by the cabinet order

(Free) Free


Notes 1. Plant Quarantine Law. Food Sanitation Law. The Law for Stabilization of Supply-Demand and Price of Staple Food

HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp 1201 Soya beans, whether or not broken: (See note 1) 120100 Soya beans, whether or not broken: (See note 1) Free (Free) 120100 010 2 MT Of yellowish white 120100 090 5 MT Other Notes 1. Plant Quarantine LawFood Sanitation Law HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp 0901 Coffee, whether or not roasted or decaffeinated; coffee husks and

skins; coffee substitutes containing coffee in any proportion: (See note 1)

0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion: (See note 1)

090111 Coffee, not roasted: 090111 000 0 KG Not decaffeinated Free (Free) 090112 000 6 KG Decaffeinated Free (Free) 090121 Coffee, roasted: 090121 000 4 KG Not decaffeinated 20% 12% 10% Free 090122 000 3 KG Decaffeinated 20% 12% 10% Free


69

090190 Other: 090190 100 0 KG 1 Coffee husks and skins Free (Free) 090190 200 2 KG 2 Coffee substitutes containing coffee 20% 12% Free Notes 1. Plant Quarantine Law. Food Sanitation Law HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp 1806 Chocolate and other food preparations containing cocoa: (See note

1)

1806 Chocolate and other food preparations containing cocoa: (See note 1) 180610 Cocoa powder, containing added sugar or other sweetening matter: 180610 100 6 KG 1 Containing added sugar 35% 29.8% 180610 200 1 2 Other 25% 15% 12.5% Free 180620 Other preparations in blocks, slabs or bars weighing more than 2kg or in

liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2kg:

180620 1 Food preparations of goods of heading 04.01 to 04.04, containing cocoa powder in a proportion by weight of less than 10%:

180620 (1) Containing not less than 30% of natural milk constituents by weight, calculated on the dry matter, excluding whipped cream in containers: VQ pressurized

28%+799 yen/kg

180620 311 4 KG For the pooled quota for other milk products (21%) 21% 180620 319 & KG Other 23.8%+679

yen/kg

180620 (2) Other: 180620 321 0 KG A Containing adds sugar 28% 23.8% 180620 322 1 KG B Other 25% 21.3% 180620 2 Other: 180620 (1) Containing added sugar: 180620 A Chewing gum and other sugar confectionery; preparations in blocks,

slabs bars and paste: 35% 29.8%

180620 111 0 KG Chewing gum and other sugar confectionery; foods, the largest single ingredient of which is sugar by weight

180620 119 1 KG Other 180620 190 2 B Other 28% (28%) 180620 (2) Other: 25% 21.3% 180620 210 0 KG For the quantity (quota) stipulated on food preparations containing cocoa

for manufacture of chocolate by a Cabinet Order, on the basis of the quantity of demand of powdered milk and such food preparations for manufacture of chocolate in the coming fiscal year (April-March), and also in consideration of other relevant conditions

$Free


70

180620 290 4 Other 12.5% Free 180631 Other, in blocks, slabs or bars: 180631 000 4 Filled 10% (10%) 180632 Not filled: 180632 100 5 KG 1 Chocolate confectionery 10% (10%) 180632 2 Other: 180632 (1) Containing added sugar: 35% 29.8% 180632 211 4 KG Chewing gum and other sugar confectionery; foods, the largest single

ingredient of which is sugar by weight

180632 219 5 KG Other 180632 220 6 KG (2) Other 25% 21.3% 12.5% Free 180690 Other: 180690 100 3 KG 1 Chocolate confectionery 10% (10%) 180690 2 Other: 180690 (1) Food preparations of goods of heading 04.01 to 04.04, containing

cocoa powder in a proportion by weight of less than 10%:

180690 A Containing not less than 30% of natural milk constituents by weight, calculated on the dry matter, excluding whipped cream in pressurized containers: VQ

28%+799 yen/kg

180690 311 4 KG For the pooled quota for other milk products (21%) 21% 180690 319 & Other 23.8%+679

yen/kg

180690 B Other: 180690 321 0 KG (a) Containing added sugar 28% 23.8% 180690 322 1 KG (b) Other 25% 21.3% 180690 (2) Other: 180690 A Containing added sugar: 35% 29.8% 180690 211 2 KG Chewing gum and other sugar confectionery; foods, the largest single

ingredient of which is sugar by weight

180690 219 3 KG Other 180690 220 4 B Other 25% 21.3% 12.5% Free Notes 1. Food Sanitation Law HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp 2007 Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut

pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter: (See note 1)

200710 Homogenised preparations: 200710 100 3 KG 1 Containing added sugar 40% 34% 200710 200 5 KG 2 Other 25% 21.3%


71

200791 Other: 200791 Citrus fruit: 200791 1 Jams fruit jellies and marmalades: 200791 (1) Containing added sugar: 28% 16.8% 200791 111 3 KG Jams 200791 119 4 KG Fruit jellies and marmalades 200791 (2) Other: 20% 12% 200791 121 6 KG Jams 200791 129 0 KG Fruit jellies and marmalades 200791 2 Fruit puree and fruit pastes: 200791 210 4 KG (1) Containing added sugar 40% 34% 200791 220 0 KG (2) Other 25% 21.3% 200799 Other: 200799 1 Jams and fruit jellies: 200799 (1) Containing added sugar: 28% 16.8% 200799 111 & KG Jams 200799 119 & KG Fruit jellies 200799 (2) Other: 20% 12% 200799 121 & KG Jams 200799 129 & KG Fruit jellies 200799 2 Other: 200799 (1) Containing added sugar: 40% 200799 211 & KG Fruit puree and fruit pastes 34% 200799 219 5 KG Other 200799 (2) Other: 25% 200799 221 & KG Fruit puree and fruit pastes 21.3% 200799 229 1 KG Other Notes 1. Food Sanitation Law HS-Code SS NACCS Unit Description General WTO 1 Preferential Temp Tariff heading Cheese and curd: (See note 1) 0406 Cheese and curd: (See note 1) 040610 Fresh (unripened or uncured) cheese, including whey cheese, and curd: 35% 040610 020 3 KG A dry matter content, by weight, not exceeding 48%, chopped not

exceeding 4 g per each, frozen, in immediate packings, of a content exceeding 5kg

22.4%

040610 Other: 29.8% 040610 010 0 KG Intended for use as materials for processed cheese (excluding those of

subheadings 0406.20 and 0406.30): for the quantity (quota) stipulated by a Cabinet Order, within the limits of the quantity of prospective domestic

$Free


72

demand in the coming fiscal year (April-March) with deduction of the quantity of prospective domestic production, and also in consideration of the quantity of prospective domestic production, international market situation and other relevant conditions (hereinafter in this heading referred to as "the Pooled Quota")

040610 090 3 KG Other 040620 Grated or powdered cheese, of all kinds: 040620 100 3 KG Of processed cheese 40% (40%) 040620 200 5 KG Other 35% 26.3% 040630 000 5 KG Processed cheese, not grated or powdered 40% (40%) 040640 Blue-veined cheese: 35% 29.8% 040640 010 5 KG Intended for use as materials for processed cheese, for "the Pooled

Quota" $Free

040640 090 1 KG Other 040690 Other cheese: 35% 29.8% 040690 010 4 KG Intended for use as materials for processed cheese, for "the Pooled

Quota" $Free

040690 090 0 KG Other Notes 1. Food Sanitation Law


73

8. References:

1. FAO/ITC/CTA (2001): World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products http://www.fao.org/DOCREP/004/Y1669E/y1669e00.htm#Contents

2. Japan Economic Report March-April 2006: http://www.jetro.go.jp/en/market/trend/jem/0604_jeme.pdf

3. Japanese Economy in 2005 and Beyond: Beginning of a Sustained Growth Cycle http://www.jetro.go.jp/en/market/trend/jem/0601_jeme.pdf

4. http://www.jetro.go.jp/en/market/trend/topic/2004_07_healthfood.html 5. Handbook for Agricultural and Fishery Products Import Regulations

(December 2005) 6. Environment and Health-Conscious Consumers and the Market for

Environment and Health-Friendly Products and Services (March 2006) http://www.jetro.go.jp/en/market/reports/jmr/078.pdf

7. AgroTrade Handbook 2005 http://www.jetro.go.jp/en/stats/survey/surveys/agrotrade_2005.pdf

8. The World of Organic Agriculture. Statistics and Emerging Trends 2006. Helga Willer and Minou Yussefi. IFOAM, Bonn Germany & Research Institute of Organic Agriculture FiBL, Frick, Switzerland

9. OSEC Business network Switzerland: Swiss Business Hub Japan: http://www.osec.ch/rootcollection;internal&action=buildframes.action

10. Guide to JAS http://www.jetro.go.jp/en/market/regulations/index.html/pdf/jas2004mar-e.pdf

11. http://www.jetro.go.jp/en/market/trend/topic/2005_03_vegetables.html 12. Austrade http://www.austrade.gov.au/australia/layout/0,,0_s2-

1_CLNTXID0019-2_-3_PWB110766747-4_-5_-6_-7_,00.html (06/08/14) 13. Austrade http://www.austrade.gov.au/australia/layout/0,,0_S2-

1_CLNTXID0019-2_-3_PWB110766973-4_-5_-6_-7_,00.html (06/08/14) 14. Austrade http://www.austrade.gov.au/australia/layout/0,,0_S2-1_-2_-

3_PWB1106308-4_-5_-6_-7_,00.html (06/08/14) 15. Austrade http://www.austrade.gov.au/australia/layout/0,,0_S2-

1_CLNTXID0019-2_-3_PWB1106308-4_countconsid-5_-6_-7_,00.html (06/08/14)

16. The Japanese Market for Environmentally and Socially Certified Agricultural Products from Central America. IFOAM Japan. 2004

17. Organic Trade Association http://www.ota.com/organic/mt/export_chapter4.html

18. MoF. Trade Statistics Jan-Juni 2006. http://www.customs.go.jp/toukei/shinbun/trade-st_e/2006/200625de.pdf

19. Claire Hope Cummings (2003) http://www.newfarm.org/international/features/0803/jp_org_retail.shtml


74

20. Overview of the revised JAS law http://www.maff.go.jp/soshiki/syokuhin/hinshitu/e_label/file/Law/overview_jas_low.pdf

21. Japan Organic Agriculture Association (JOAA). "TEIKEI"system, the producer-consumer co-partnership and the Movement of the Japan Organic Agriculture Association”. Country Report for the First IFOAM Asian Conference 19-22. Aug. 1993 in Hanno, Saitama, Japan. http://www.joaa.net/English/teikei.htm#ch2 (06/08/17)

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28. Nahrungs- und Genußmittelindustrie. Eidgenössische Zollverwaltung http://www.ezv.admin.ch/themen/00504/01530/01541/01641/01675/index.html?lang=de (06/08/18)

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Food Systems. University of California. Santa Cruz. http://www.certifiedorganic.bc.ca/rcbtoa/services/corporate-ownership.html (06/08/22)

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http://www.bfai.de/DE/Content/__SharedDocs/Links-Einzeldokumente-Datenbanken/fachdokument.html?fIdent=MKT20060329104359&suche=%3Csuche%3E%3Cland%3E%3C_%3E92%3C%2F_%3E%3C%2Fland%3E%3Csort%3Edat%3C%2Fsort%3E%3Cber%3E781%3C%2Fber%3E%3CfachDb%3Ematrixsuche%3C%2FfachDb%3E%3Ckat%3E-Eua%3C%2Fkat%3E%3Csicht%3Esuche%3C%2Fsicht%3E%3C%2Fsuche%3E (06/09/01)

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41. ITCan (2005): Market Brief The Organic Food Market in Japan 42. ICS Japan FAQ on JAS Organic Certification Program 43. http://www.zmag.org/Japan/Politics/Radish1.html (06/10/05) 44. Kakuyu Obara, John Dyck, and Jim Stout (2005): What protects Japan´s

dairy industry?/ Dairy Policies in Japan LDPM- 134-01, USDA, Economic Research Service, August 2005, available at: www.ers.usda.gov/publications/ldp/aug05/ldpm13401/

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