MAFF Set to Pay Direct Subsidies in Respect of 83% of Less-Favored Farmland [Return]

According to the results of a survey by the Ministry of Agriculture, Forestry and Fisheries (MAFF), published on February 17, the area of farmland (cropland and grassland) in less-favored (e.g. hilly or mountainous) areas, in respect of which the Ministry expects to pay subsidies under the "direct payment system", is set to increase by some 23,000 hectares by the end of FY 2002 (up 3.6% on FY 2001).  The area of land in respect of which MAFF expects to pay subsidies accounts for some 83% of all land qualifying for direct subsidies (which totals 785,000 ha).

 
The number of municipalities with cropland and grassland in respect of which MAFF expects actually to pay subsidies is set to rise by 35 (up 1.8% on FY 2001), to 1,948, or approximately 90% of all municipalities with land qualifying for subsidies.

 
In FY 2002, 1,340 more villages signed agreements on resolving the problem of cropland lying idle and on water resource management on which the payment of direct subsidies is conditional, bringing the number of such agreements to 32,802.

 
Introduced in FY 2000, the "direct payment system" is designed to support agricultural production activity in areas where conditions are less favorable, such as hilly or mountainous areas where much farmland is on steep slopes.  Depending on the degree to which the land slopes and on the type of farmland, payments range from Yen 300 to Yen 21,000 for every ten ares.  MAFF paid out a total of Yen 41.9 billion in FY 2000 and Yen 51.4 billion in FY 2001.  Subsidies for FY 2002 will be paid to farmers by the end of March.

 MAFF, MHLW Agree to Unify "Use-by Date" Wording on Food Products [Return]

 Representatives of the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Health, Labour and Welfare (MHLW) held a joint meeting on February 18 to discuss the labeling of food products.  It was agreed that the wording of inscriptions specifying the date by which processed food products should be eaten to taste their best (of which there are currently two versions in Japan, used in the same way:  shomi kigen ["tastes best limit date"], as specified under the JAS Law, and hinshitsu hoji kigen ["quality preservation limit date"], as specified under the Food Sanitation Law), to shomi kigen.  The decision is to be formalized in FY 2003.

The meeting considered three options — (i) shomi kigen, MAFF's preferred wording, (ii) hinshitsu hoji kigen, MHLW's preferred wording, and (iii) an entirely new wording.  The meeting was initially divided but eventually agreed on shomi kigen, the more familiar wording to consumers, on the basis of a recognition that it was vital to unify the wording to avoid confusion among consumers.

Once the decision is formalized, processed food manufacturers will be granted a transition period of approximately two years.  In practice, it is likely to be "two to three years" (MAFF) before the unification process is completed.

More  Consumers Feel Japan Should be Self-Sufficient in Food [Return]

 According to the results of the latest Survey of Food, Agriculture and the Image of JA, published by JA Zenchu on February 20, consumer demand for domestic production of food is growing, due to concern over Japan's low food self-sufficiency ratio and over food safety.  More than 89% of respondents said they were "concerned about Japan's future food supply".

The survey, targeting 1,200 men and women in the Tokyo area, was carried out in November 2002.  The previous survey was in 1997.

Some 56% of respondents (6 points up on the previous survey) felt that "Foods that can be produced in Japan should be produced domestically, rather than relying on imports".  This view was particularly widespread among female respondents, being expressed by 61%, a ratio 11 points higher than among male respondents.  The ratio of respondents who felt that "It is better to import foods of which imports are cheaper" was 7%.

As many as 71% of respondents felt that Japan's food self-sufficiency ratio (40% on a calorie basis), was "Low".  Respondents who felt that the appropriate self-sufficiency ratio was "50-60%" were the largest group, at 32%, which means that almost 90% of respondents feel that Japan's food self-sufficiency ratio should be at least 50%.

There is also a great deal of concern about food safety.  A total of 76% of respondents said they were "Very concerned" or "Moderately concerned" about food safety.  The most common causes for concern were residual agricultural chemicals (cited by 86% of respondents), food additives (82%), and genetically modified foods (65%).

Some 89% of respondents were "Very concerned" or "Slightly concerned" about Japan's future food supply, up 2 points on the last survey.

MAFF Decides FY 2003 Administrative Prices for Agricultural Products [Return]

 On March 13, the Ministry of Agriculture, Forestry and Fisheries (MAFF) decided the FY 2003 "administrative prices" for livestock farming products, and related measures.  The unit price for grants to producers of milk for processing (*1) has been reduced by Yen 0.26/kg to Yen 10.74/kg, and the "volume limit" has been reduced by 100,000 tons to 2.1 million tons.  The stabilization prices for pork and beef ("designated meats"), as well as the guaranteed standard price and rationalization target price for beef calves, among other items, remain unchanged.

The unit price for grants to producers of milk for processing has been cut to reflect the recovery in the prices of beef calves and aged cattle, which crashed in the wake of the BSE (bovine spongiform encephalopathy) outbreak.  However, MAFF limited the extent of the cut in view of the rise in production costs due to higher feed prices.

Keyword

WTO Informal Ministerial Meeting Fails to Find Common Ground on Agriculture [Return]

 The informal ministerial meeting of the WTO (World Trade Organization), which began in Tokyo on February 14, spent its second day (February 15) discussing the key area of agriculture.  The meeting was divided on the positioning of the first draft of the "modalities", which sets out substantial tariff cuts, and failed to find common ground between the basic national positions, underlining the difficult nature of the agricultural negotiations.

The EU, Japan and other countries which favor a gentle liberalization process took the position that the Chairman's first draft fails to strike a fair balance between net importers and exporters, and is insufficiently flexible on individual items.  Japan's Minister of Agriculture, Forestry and Fisheries Tadamori Oshima commented, "Modalities that would not allow the survival of agriculture in every country even if reform were taken to the limit, are simply unacceptable," adding that "taken as a whole, we cannot accept [the first draft]."

Meanwhile, the developing countries and Australia, representing the Cairns Group (agricultural exporting countries not operating export subsidies), which are pressing for liberalization, indicated a wish to pursue the negotiation process using the first draft as a starting point.  They also indicated their intention of pressing for further reduction of protective measures than is provided for in the first draft.

Japan's Minister for Foreign Affairs Yoriko Kawaguchi, who acted as chairperson of the Tokyo Meeting as a whole, described the first draft as a "catalyst" to the agricultural negotiations, which are seeking to establish modalities by the end of March.

At a press conference on February 16, after the conclusion of the Tokyo Meeting, Agriculture Minister Tadamori Oshima told reporters, "We stressed that the first draft is unacceptable.  We will continue to work with the EU and other countries, not only to oppose the United States and the Cairns Group countries, which are pressing for a substantial, uniform reduction of protective measures, but also to ensure that [the negotiations] take proper account of the concerns of developing countries.  We will be doing everything in our power to ensure the establishment of balanced and realistic modalities by the end of March.  Rather than discussing the figures set out in the first draft, we should be looking once more at the basic rules.  To allow the coexistence of a wide variety of agricultural models in different countries, we will be pressing for the Japanese proposal, which is characterized by a balanced approach, to be reflected in the second draft."

JA Zenchu and JIAC Host Seminar on WTO Agricultural Negotiations [Return]

 On February 16, representatives of foreign farmers' organizations, who had attended the International Rally for Fair and Equitable Agricultural Trade Rules, held a "Seminar on the WTO Agricultural Negotiations", hosted, in Tokyo, by JA Zenchu and the Japan International Agricultural Council (JIAC), at which they drew up a joint statement and discussed their future approach to the agricultural negotiations.  Many of those present expressed opposition to the first draft of the modalities, and the participants agreed to step up their cooperative efforts to ensure that the final draft of the modalities allows the survival of family farms and the coexistence of a wide variety of agricultural models.

The seminar was attended by representatives of farmers' organizations from the EU, the United States, Canada, France, Indonesia, Korea, the Philippines, and Sri Lanka, as well as JA Zenchu and JIAC.

The French delegate observed that the first draft of the modalities, which was the focus of discussion at the WTO (World Trade Organization) Tokyo Meeting, was "most damaging to the EU countries", and expressed strong objections to this proposal, which fails to take proper account of the multi-functionality of agriculture.  The Indonesian delegate felt that "[the first draft] does not pay sufficient regard to the problems of the developing countries," and that the modalities should take account of both the opening up of markets in the developed nations and the needs of developing countries.

The Canadian delegate warned that "zeal to open up the market should not be taken so far as to destroy a country's agricultural system" and put forward a proposal that high tariffs on key items should be maintained while minimum access is applied to guarantee a certain level of import opportunities.

The participants agreed to work together to ensure that the modalities reflected each country's concerns, to maintain their cooperative efforts in preparation for the WTO ministerial meeting to be held at Cancun, Mexico, in September, and to press for the establishment of fair and equitable trade rules.

EAOC Calls for WTO Trade Rules to Protect Family Farms [Return]

 The East-Asia Agricultural Organization Council (EAOC), a body made up of farmers' organizations from the four countries/regions of Japan, Korea, Taiwan, and Mongolia, held a top-level meeting in Tokyo, on March 12, at which it was agreed that the members of the Council would step up their cooperative efforts to ensure that the WTO (World Trade Organization) agricultural negotiations lead to the establishment of rules that protect family farms in Asia.  Delegates criticized the content of the first draft of the modalities (standards for the reduction of protection measures) as "unacceptable to Asian countries that are net importers of agricultural products", and issued a joint statement strongly requesting that the modalities take account of non-trade concerns.

The top-level meeting was attended by Mr. Isamu Miyata, Chairman of JA Zenchu, Dr. Gwan-il Jo, Executive Vice President of Korea's National Agricultural Cooperative Federation (NACF), Mr. Ku Yuan-Chun, Chairman of the Taiwan Provincial Farmers’ Association (TPFA), and Mr. N. Bayartsaikhan, President of the National Association of Mongolian Agricultural Cooperatives (NAMAC).  The discussion centered on an exchange of views on the Council's approach to the WTO agricultural negotiations, which are due to reach a critical point in late March.

Mr. Miyata expressed the misgivings of Japanese farmers, who feel that "the first draft negates the very existence of agriculture in countries that are net importers of agricultural products," and called on farmers organizations in Japan, Korea, Taiwan, and Mongolia to press for the establishment of rules that will allow the coexistence of a wide variety of agricultural models around the world.

The Korean delegate expressed the view that "the negotiations should not result in rules that sacrifice family farming", the Taiwanese delegate that "every country that is a member of the WTO should have the right to take such measures as are necessary to ensure the sustainable development of its agricultural sector", and the four organizations confirmed that they would be working together for the survival of family farms around the world.

Steady Progress in the Creation of a "Family Register" for Cattle [Return]

 Staff at the Individual Livestock Data Control Center in Fukushima Prefecture are busy entering data to ensure the traceability of cattle into a powerful computer.  The center receives 25,000 communications a day from farmers all over Japan, listing data on births, transfers, deaths, etc., of which some 15,000 by fax.

The Center has overall responsibility for the "family register" of all cattle in Japan.  The Law Relating to Special BSE Countermeasures, which came into force in July 2002, requires livestock farmers to fit cattle with ear tags showing an ID number.  Farmers send the data for each animal, including its ID number, breed, sex, and history of raising, e.g. date of birth, to the Center.

There are currently 4.5 million cattle being raised in Japan.  Some 1.5 million cattle are born each year (more than 4,100 each day), and roughly the same number die or are sold for their meat over the same period.  Given that approximately 1 million transfers between farms, including shipments of calves, are made each year, an average of approximately 2,700 transfers take place each day.  Recording such movement of cattle is part of the Center's work.  Data on cattle can be submitted via an automatic telephone answering service, or over the Internet, but most farmers send them in by fax.  The Center's warehouse is stuffed with report cards.

Rice Retailers' Association Approves 2,261 "Rice Masters" [Return]

 On March 12, the Japan Federation of Rice Retailers' Associations (JFRRA) announced that it has recently certified 2,261 people under its new "Rice Master Certification System", applicable to retailers who have passed a special examination on their knowledge of rice.  The pass rate at this first session was 82%.

The intention is that successful candidates should be able to promote themselves to consumers as "your local rice expert", boosting their sales potential.

The Rice Master Certification System was launched with the aid of the Food Agency last year.  Rice retailers are facing ever greater competition and many are withdrawing from the business.  The JFRRA hopes that the certification system will boost the sales potential of rice shops in general, bolster the face-to-face sales expertise which is the strength of specialist rice shops and to draw consumers back to their "neighborhood rice shop".  This new "qualification" is awarded to rice retailers who have passed a test of general knowledge on rice, such as variety characteristics, and technical skills such as rice polishing.

The system has two levels — the "3-Star Master" certificate and the more advanced "5-Star Master" certificate.  All candidates certified on this occasion are 3-Star Masters.  3-Star Masters are entitled to sit the examination for the 5-Star Master certificate.

Food Recycling Begins at Government Ministries and Agencies [Return]

 A campaign to recycle the food waste from staff canteens, to make fertilizer, is under way at the Ministry of Agriculture, Forestry and Fisheries (MAFF), the Ministry of Health, Labour and Welfare (MHLW) and other central government ministries and agencies based in the Kasumigaseki district of Tokyo.  To ensure that the new Food Recycling Law, which requires all food-related businesses to reduce their food waste output, takes root, the government itself is setting an example.  By the end of FY 2003, recycling is set to begin at almost all government ministries and agencies.

MAFF, within whose jurisdiction the new law falls, installed two machines capable of processing 100 kg of food waste a day in December 2001.  MAFF's seven canteens serve some 2,800 meals a day.  Over a period of 24 hours, leftovers and kitchen refuse are fermented and dried to reduce their volume before being shipped to a private-sector recycling firm in Chiba Prefecture, where they are turned into compost in the space of six months.

The compost is sold to local farmers, who have been shipping the daikon [giant white radish], cabbages and other vegetables grown using the compost to markets in Chiba Prefecture since January 2003.  The project manager at MAFF happily announces, "The recycling cycle is finally complete."

Identical machines have been acquired for the building that is to be shared by MHLW and the Ministry of the Environment.  With the exception of the Ministry of Foreign Affairs, whose new building is still under construction, almost all ministries and agencies will have recycling systems in place by the end of FY  2003.

The Food Recycling Law, which came into effect in May 2001, requires all food-related businesses, including manufacturers, supermarkets and restaurants to reduce their food waste output by 20% within five years.  Businesses with an annual food waste output in excess of 100 tons will be cautioned by MAFF if they fail to achieve this target.  Businesses that fail to comply when cautioned or commit other serious infringements will be subject to fines and may have their names published.

In a survey of 2,300 food-related businesses conducted by MAFF last fiscal year, half of the respondents said they "were taking measures to recycle [food waste]".  However, whether they will be able to meet their target depends on their efforts from now on.  A MAFF spokesman enthusiastically declares, "Government ministries will take the lead and ensure [that this initiative is a] success."

NARO Achieves In Vitro Pig Embryo Transfer Without Abdominal Section [Return]

 The National Agricultural Research Organization's National Institute of Animal Health, at Tsukuba in Ibaraki Prefecture, announced on March 4 that it had become the first facility anywhere in the world to succeed in raising piglets from embryos fertilized in vitro and transferred to the surrogate mother without abdominal section.  The technique has already been developed to a practical level for cattle, but the suitability of the in vitro culture technology for pigs had not been established, and as the configuration of the uterus to which the fertilized eggs must be transferred is highly complex, there had, as yet, been no successful attempts.  The new technique has the advantage of being less of a strain on the mother than that involving abdominal section.  As it is also cheaper and helps to protect the sow from infection, it promises to be useful in breed improvement.

French Wine Accounts for 40% of Japan's Imports [Return]

 Although the volume has fallen since the peak of the unprecedented boom of 1998, Japan still imports some 170,000 kiloliters of wine every year, more than twice what it did a decade ago.

Imported wine is classified under a number of different titles, including "sparkling wines", flavored "vermouths", "wine in containers holding less than 2 liters", and "wine in containers holding 150 liters or more", all of which are subject to different rates of duty.

The largest single share of all imports (80%) is accounted for by "wine in containers holding less than 2 liters", so-called "bottled table wines".

A breakdown of imports in 2002 by country of origin puts France in the lead with 40% of the total, followed by Italy (20%) and the United States (10%).  Owing to the growing popularity of Italian food in Japan, the volume of imports from Italy is growing year by year.

Meanwhile, according to the Japan Wines and Spirits Importers’ Association, imports of German wines, which have a predominantly sweet and white image, and wines from Australian and Argentina, which at one time achieved rapid import growth thanks to their low prices, are "declining".

The volume of shipments of Japanese wine has remained fairly steady in recent years, at around 100,000 kiloliters a year.

MAFF Monitor Survey Finds 30% of Consumers are Eating More Vegetables [Return]

 According to the results of the latest Monitor Survey of Food Product Consumption released by the Ministry of Agriculture, Forestry and Fisheries (MAFF) on February 17, some 30% of consumers are eating more vegetables.  Only 10% are eating fewer vegetables than before, and the ratio of respondents who eat fruit "every day" has risen to 60%.

MAFF conducted the survey, among 1,021 of its consumption monitors, in August 2002.

The ratio of consumers who have stepped up their consumption of vegetables is 29% among those in their 20s and 25% among those in their 30s, but as high as 46% among those aged 60 or over, suggesting that vegetable consumption tends to be greater in the higher age bands.

The most commonly cited type of information to which consumers would like to have access when buying vegetables in the store (multiple responses allowed) is "date harvested" (60% of respondents), followed by "method of cultivation" and "name of farmer".  The most commonly cited points for which consumers watched when purchasing vegetables are "freshness" (80% of respondents), followed by "price" (as high as 50%), and "whether grown in Japan or overseas" (only 30%).

More than 80% of respondents said they believe it is desirable to eat fruit every day.  However, there is a considerable gap between the ideal and reality, as only 60% of respondents actually eat fruit on a daily basis.

 Free Trade Agreements:  Taking Due Account of Agriculture [Return]

 Japan is actively pursuing the formation of free trade agreements (FTAs), which promote trade between two countries or within a region.  Last year, an agreement was signed with Singapore, and more, with Mexico and Korea, among other countries, are under preparation.  Separately from the WTO (World Trade Organization) agricultural negotiations, FTAs will have a major impact on Japanese agriculture.  Japan should take care that FTAs do not hinder the assurance of food safety or the structural reform of its agricultural sector.

FTAs are being formed at a rapid pace, all over the world.  In 1990, there were thirty such agreements;  by 2002 their numbers had increased to 172.  On reason is that while the direction of the WTO negotiations is uncertain and it is taking a long time to reach an agreement, the negotiation of an FTA takes a relatively short time.

Japan's traditional stance on trade has emphasized trade relationships established through multilateral negotiations.  However, in view of trends among other countries, it has begun to take a positive stance on the establishment of FTAs, positioning them as "complementary" to the multilateral system of the WTO.  The FTA with Singapore was concluded in January 2002 and came into effect on November 30.  Japan has already established government-level joint working committees with Mexico, Thailand and the Philippines.  It has also agreed to establish a joint working committee with Malaysia.  At last autumn's summit meeting, Japan and the ASEAN countries agreed to draw up a framework for comprehensive economic cooperation.  Japan has also begun negotiations with Australia, Chile and Taiwan.

Negotiations with Mexico are under way, with a view to the conclusion of an agreement by October this year.  Turning to Korea, a joint study group made up of representatives of government, industry and academia has been deliberating since July 2002 and is due to present its report by June 2004.  However, the positive stance shown by Korea's new President Roh Moo-hyun may speed the process.

FTAs are based on the assumption in Article XXIV of the GATT 1994 agreement, that substantially all duties and other restrictive regulations of commerce shall, as a rule, be abolished within ten years.  However, no clear international standard exists by which to define "substantially all".  For this reason, many FTAs exclude agricultural, forestry and fisheries products that would have a significant impact on the domestic industry.  Under the NAFTA (North American Free Trade Agreement), the United States specifies exceptions for dairy products, peanuts, sugar and cotton from Canada.  Canada and Mexico mutually specify exceptions for dairy products, eggs, sugar, and other items.  Many agricultural products are excepted from the agreement between the EU and Mexico.  Under the agreement between Korea and Chile, Korea specifies exceptions for rice, apples and Asian pears.

Thus, many FTAs specify exceptions with regard to certain agricultural products.  In negotiating FTAs, due consideration should be given to these examples.  Japan is the world's largest net importer of agricultural products.  Its market is already sufficiently open.  The average rate of duty on imports of agricultural products into Japan is 12%, lower than in the EU (20%) or Korea (62%).  To open the market up any further would be risking serious problems in connection with the assurance of food self-sufficiency and food safety.

Japan is pursuing the structural reform of its agricultural sector, including its rice policies.  FTAs must not be allowed to hinder this process.  Japan should carefully explain its position to the country with which an FTA is being considered, and seek its understanding.  Even within Japan, the attitude that agriculture can be sacrificed for the sake of growth in exports of industrial products, should be shunned.

 (from an editorial in the March 12, 2003 issue of the Nihon Nogyo Shimbun) [Return]