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Report No.240706
Vol.24 No.7 March 2007


NEWS

- Food Marketing and Distribution -

FY2006 Agricultural Export Grows 10%

The Ministry of Agriculture, Forestry and Fisheries (MAFF) publicized on February 9 the commodity-wise trend of agricultural export during FY2006. Items that show large growth rates include green tea (which registered growth rate of 45% year on year), Chinese yam (44%) and rice (38%, not including rice shipped for food aid). Countries to which there was a big increase of export include Singapore, Republic of Korea and the United States. Implication of this is that there is an increasing demand for agricultural products grown in Japan.

Total sum of exports of products from agriculture, forestry and fisheries was 374.1 billion, and it represents an increase of 13% from the previous year. Export of agricultural products was 194.7 billion, which was an increase of 10% from the previous year.

Green tea and Chinese yam are favorably accepted in overseas markets thanks to the image of their strong association with health. Green tea export, riding on the Japanese food boom, has been back supported by "expanding demand in the United States etc. due to its positive image arising from low calorie," and shipment to the U.S. doubled. Chinese yam also has attracted greater attention as ingredient of Chinese medicinal cuisine in the U.S. and Taiwan.

Exports of rice (other than for aid shipment) and strawberry are not big in terms of value as yet, but MAFF sees "the strengthening of the willingness to export in producing areas "(Export Promotion Office). MAFF hopes to see a large increase in rice export this year as China's ban on Japanese rice import will be lifted.

On the other hand, exports of fruits declined reflecting poor harvest in Japan due to adverse weather conditions like, for example, "Unshu" Mandarins and Japanese pears (both which ended up in 30% drop in production), persimmons and peaches (10%).

Asia and the United States account for 96% of agricultural export of Japan.

MAFF sees "Export drive for agricultural products has been enhanced stimulated by more than 10% annual growth for two years in row." However, export will have to grow by another 600 billion in the remaining 7 years in order to achieve the one trillion yen target set for 2013. The role of effective export strategy will become more and more importance.

The Agricultural, Forestry and Fisheries Products and Foods Export Promotion Headquarters of MAFF temporarily put together a general strategy for export in January which incorporates the improving of export environment through acceleration of inter-governmental consultation on quarantine issues, reinforced PR for Japanese foods and food materials as well as assistance to export businesses. MAFF plans to give a push for agricultural export with 2.3 billion 2007 budget for 'Export Promotion Measures,' which is two time the scale of the previous year.

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