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Report No.240201
Vol.24 No.2 October 2006


NEWS

- Domestic -

MAFF Helps Commercial Production of Highly Functional Goods 

The Ministry of Agriculture, Forestry and Fisheries (MAFF) decided to undertake to expand the market for high-level functional goods from the next fiscal year. These functional goods are made of ingredients derived from agricultural products which contain health enhancing elements. The target is to expand the size of market by 2010 to more than three times what it is today. For this purpose, MAFF plans to support development of such new commodities as have great added values by linking research institutes, private business companies and agricultural producers. The intention are to dig out new demands for agricultural products and pave the way for enhancing incomes of farmers and for building growing centers.

High-level functional goods had a market of 20 billion in 2005. MAFF, in its 'New 2006 Policy on Agricultural Policies Administration for the 21 Century,' put up a target to realize a more than three times larger market of some 70 billion within 5-year period, and the government decided to promote it in April.

MAFF's new project geared towards achieving this target will make wide publicity of the results of research conducted by government-affiliated research institutes on functions of agricultural products, and will present proposals to business concerns and agricultural producers regarding their applicability for and potential as commercial products. The idea behind is to establish a 'New Demand Creation Council' for respective products composed of research institutes, business concerns and producers, and to facilitate product commercialization based on a consolidated system of collaboration embracing from raw materials production and development to distribution and marketing.

Support measures will include assistance in introducing machines and facilities which are necessary for harvesting or processing of raw material agricultural products. A loss compensation system will also be instituted to guard against weather-related poor harvest or short supply of functional elements in raw materials. Required project budget will be enlisted in the outline budget request for FY2007.

Functional foods are already on the market and they enjoy favorable reception. Examples include 'Benifuhki' tea, a variety with effect on mitigating symptoms of hay fever, and giant size milled rice with embryo that contains a lot of Gaba (Gamma-Amino Butyric Acid) which is good in keeping blood pressure from rising. New materials are also put to practical uses such as silk threads that cut ultraviolet, ceramide (a humidity retention ingredient for cosmetics) extracted from rice bran or sugar beet.

MAFF lists examples which require further development such as 'high amylose rice' meant for patients of diabetes, 'peptide containing rice' effective in keeping blood pressure down, silk cocoon and domesticated animals for making medicines and new materials.

The potential size of market for these high-level functional goods is said to be about 500 billion to 600 billion. However, higher cost and more works required in R&D and in procurement of raw materials have kept private business concerns away, and this is how the government decided to come for support.

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