NEWS

First Group of Special Zones for Structural Reform Includes Agricultural Projects

On April 21, the government gave its official approval to 57 projects making up
Japan's first group of "special zones for structural reform" and issued confirmation of approval to the local authorities in question.  Eleven of the projects are agriculture-related, and include schemes to allow ordinary business enterprises to lease agricultural land from municipal governments and enter the farming business, and to allow individual farmers to establish and let allotment gardens.

Eight projects to allow ordinary companies to lease agricultural land were approved on this occasion.  The Ministry of Agriculture, Forestry and Fisheries (MAFF) Management Improvement Bureau expects the projects to be of benefit and commented, "There is a shortage of able and motivated farmers in areas prone to landslip, and in some areas, urgent action is needed to preserve farmland.  We believe these new systems will be effective in such areas."
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Annual Report on Food, Agriculture and Rural Areas Stresses Need for Reform of Food Safety Administration, Importance of Food Education

Promoting food education will be of growing importance for the assurance of food safety and peace of mind--one of the conclusions of the Fiscal 2002 Annual Report on Food, Agriculture and Rural Areas, published by the Ministry of Agriculture, Forestry and Fisheries (MAFF) on April 23, which positions the fostering of "core farmers" and the assurance of food safety as key issues.  The Report states that MAFF plans to undertake a fundamental reform of food safety administration, learning from its mistakes in the handling of the BSE (bovine spongiform encephalopathy) crisis.  It calls on producers to make themselves more "visible" to the consumer through initiatives such as the Slow Food movement and promoting the consumption of local products.

The Report is divided into three chapters, "Establishing a Stable Food Supply System", "Achieving Sustainable Agricultural Development Through Structural Reform" and "Beauty and Vitality in Rural Areas and the Actualization of a Recycling-Oriented Society", mirroring the content of the Plan for the Regeneration of Food and Farming.

In connection with the issue of assuring food safety, the Report refers to the proposed Basic Law on Food Safety, currently under discussion by the Diet.  The Report emphasizes the importance of exchanging information and opinions with the general public on the risk to health presented by foods (risk communication) under the new approach to food safety administration based on this law, and calls for active participation by both producers and consumers.

With respect to food education, in particular, in addition to the implementation of dietary guidelines as to date, the Report emphasizes the importance of involving households, schools and local communities in the work of promoting knowledge of sensible dietary habits, food safety and regional food culture.

The Report identifies a medium-to-long term risk that production conditions overseas will lead to a fall in the supply of food, cause for concern to Japan, which is the world's largest net importer of food.  On the subject of the WTO talks, which are making slow progress, the Report calls for support of the Japanese proposal that trade rules should allow for the coexistence of a wide variety of agricultural models.
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MAFF Expands Statistics Posted at Website

As of April 1, the Ministry of Agriculture, Forestry and Fisheries (MAFF) has expanded the range and volume of statistical data posted at its website and made the information easier to use.  The statistics have been entered into a database, making it easy to view data for past years, download data directly to a personal computer and compile graphs and tables.  The search function has also been made easier to use.

Until now, only the latest statistics have been posted at the MAFF website, but the enhanced service gives access to back data for several decades.  For instance, the database includes the Agricultural Production Income Statistics for the past 46 years.

A total of 40 types of data, including the results of the Census of Agriculture and Forestry, have been posted at the MAFF website since the beginning of April.  All can be downloaded to a personal computer, to save labor on data entry.

The search function has also been improved, allowing users to look up the statistical tables they require by entering a key word or phrase such as "number of farmers" or "rice".  MAFF comments, "We believe the enhanced service will make it easy for those who are not familiar with the agriculture, forestry or fisheries industries, and school children or university students who use the information for study purposes, to find the information they require."
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Number of Beef Farmers Falling;  Scale of Livestock Farms Growing

The latest Statistics on Livestock published by the Ministry of Agriculture, Forestry and Fisheries (MAFF) on April 30 reveal that the number of dairy farmers in Japan has fallen below the watershed figure of 30,000.  The number of beef farmers has fallen below 100,000 and the number of pig farmers has fallen below 10,000.  However, the number of animals per farm has risen in all sectors, and the scale of individual livestock farming operations is growing at a steady pace.

As of February 1, 2003, the number of dairy farmers was down 3.9% year-on-year, to 29,800.  The total number of animals was level with 2002 at 1,719,000.  The number of animals per farm was 58, two more than in 2002.  By region, the number of animals in Hokkaido, which accounts for approximately half of all dairy cattle in Japan, was up slightly.

The number of beef farmers was down 5.9% on 2002, at 98,100, while the number of animals was down 1.2% to 2,804,000.  The number of beef breed animals was level with 2002 at 1,705,000, while the number of dairy breed animals was down 2.4% at 1,100,000.  The number of animals per farm was 29, up two on 2002.

The number of pig farms was down 5.7% at 9,430.  The total number of pigs was up 1.2% at 9,725,000.  The number of animals per farm was 1,031, topping 1,000 for the first time.  The number of egg farmers was down 4.2% at 4,340.  The number of laying hens per farm was up 1,200 at 31,600.
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MAFF Launches Review of Plant Quarantine Systems

On May 7, the Ministry of Agriculture, Forestry and Fisheries (MAFF) convened the first meeting of the Plant Quarantine Study Group, launching a review of quarantine systems in response to the growth of plant imports to Japan. The members of the Study Group voiced a number of concerns at the meeting, including whether or not the number of quarantine officers is adequate, given that more than 700,000 plant quarantine inspections are made each year, and how diseases and insect pests entering Japan along with animal feeds and other goods imported in bulk should be dealt with, and urged that Japan should learn from past failures in keeping out diseases and insect pests.

MAFF points out the danger that the growth of imports of fruit, cut flowers, lumber, etc. and the diversification of countries of origin, increases the risk of diseases and insect pests entering the country.

Since the amendment of the Law on Plant Protection in 1996, there have been calls for the establishment of watertight plant quarantine measures, for action to assure food safety and peace of mind, for measures to speed up quarantine procedures, for the Plant Protection Station to function on a 24-hour basis, and for the harmonization of procedures with international standards.

The Study Group will meet roughly once a month.  The Study Group aims to identify specific issues for discussion at its next meeting and publish a report by the end of September.
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Japan and EU Confirm Intention to Cooperate in WTO Negotiations

On April 30, Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei, currently visiting Europe, and EU Commissioner for Agriculture, Rural Development and Fisheries Franz Fischler met for talks in Brussels (Belgium), at which they confirmed that Japan and the EU will continue to cooperate in the WTO agriculture negotiations, and will continue to press for concessions from net exporters of agricultural products, such as the United States in connection with the "modalities" (standards for the reduction of protection measures) that are to be established ahead of the WTO ministerial meeting at Cancun (Mexico), in September.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) published a summary account of the talks on May 1.  Mr. Kamei emphasized, "Japan has already conceded as much as its can in its proposal.  It is the turn of the exporting countries, which are making excessive demands, to make concessions."  He also emphasized the need for the "modalities" to be realistic and reflect the opinion of the importing countries that will bear the burden.

Mr. Fischler, referring to the approach to tariff reduction aiming to assure "flexibility among commodities" that is advocated by both Japan and the EU, added, "It is a mistake for the United States to insist on "harmonization", when the majority of WTO member countries support [the Japan/EU approach], and we must be resolute in our opposition."

Before his meeting with Mr. Fischler, Mr. Kamei also had talks with EU Commissioner for Trade Pascal Lamy, which confirmed that Japan and the EU would continue to take the same approach to the WTO agriculture negotiations.  Mr. Lamy said it was important that the agriculture negotiations should take full account of non-trade concerns, including the multi-functionality of agriculture and should result in a settlement that does not damage agriculture in Japan, the EU or developing countries.  He also criticized the draft "modalities" proposed by Stuart Harbinson, Chairman of the Special Session of the WTO Committee on Agriculture, saying that the reason for the lack of progress in the agriculture negotiations was that Mr. Harbinson's proposals are "too ambitious".
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Minister Seeks Understanding of WTO Director General and Chairman of Special Session on Agriculture for Japan's Proposal on "Modalities"

On May 2, Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei met Supachai Panitchpakdi, Director-General of the WTO and Stuart Harbinson, Chairman of the Special Session of the WTO Committee on Agriculture for talks at the headquarters of the WTO in Geneva (Switzerland).

Mr. Kamei explained Japan's position on the negotiations to Dr. Supachai and Mr. Harbinson as follows:

The central issues under discussion can only be resolved by negotiation between the member countries of the WTO, and if agreement is to be reached, it is essential for countries that are making excessive demands to be more realistic.  At present, progress in the agriculture negotiations is being obstructed by the adherence of the United States and the Cairns Group to unrealistic ambitions.

Japan has made it clear that it is ready to reduce domestic support and protection measures, and is actively taking account of the needs of developing countries.  The majority of member countries are in favor of the Uruguay Round formula for tariff reduction.  Japan has already made a moderate, realistic and specific proposal, and it is a moderate proposal of this kind that should serve as a basis for the negotiation of the central issues.

Japan wishes to make a positive contribution to the preparations for the ministerial meeting at Cancun, and to this end feels that it is important for the discussion to take proper account of the opinions of the importing countries, which will bear the actual burden.

Dr. Supachai answered Mr. Kamei as follows:

The OECD ministerial conference and WTO informal ministerial meeting in Paris were productive.  The ministers who attended them made a commitment to the success of the present round, and agriculture is a key to that success.  By the time of the ministerial meeting at Cancun, at the latest, the WTO must agree on modalities for all market access areas.

To achieve progress in the agriculture negotiations and ensure the success of the ministerial meeting at Cancun, it is essential that every member should show the greatest possible degree of flexibility.  In particular, it should be remembered that achieving significant market access in the field of agriculture is a key objective for many developing countries, and that there are other areas in which Japan has an interest.

Japan's position is understandable, but Japan plays a leading role in the world trade system, and holds the key to progress in the agriculture negotiations.  If Japan moves forward, it can lend momentum to the negotiations, and it is to be hoped that Japan will use its leading position to good effect.

Mr. Kamei countered by re-emphasizing Japan's position, citing the problem of food security, the fact that Japan imports agricultural products in large volumes, and the problems facing domestic agriculture.

With regard to forestry and fisheries, Mr. Kamei said that, if only to promote the sustainable use of limited natural resources that forestry and fisheries represent, the formula for tariff reduction should be an average tariff reduction formula providing for flexibility among commodities.  He added that to abolish tariffs on forestry and fisheries products at a time when the world's forests and fisheries resources are shrinking would be to risk a further decline in resources in the medium-to-long term, and emphasized that tariff reduction within forestry and fisheries products would be difficult.
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Japan Suspends Imports of Poultry and Poultry Products from China

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced, on May 12, that Animal Quarantine Service inspectors had detected avian influenza (fowl plague) in duck meat originating in China, and that it was imposing a temporary ban on poultry and poultry products from that country.  The ban is intended to prevent the avian influenza virus from entering JapanJapan imports approximately 260,000 tons of poultry and poultry products (mainly broiler chickens and duck meat) from China every year, accounting for approximately 40% of all poultry imports by volume.

The duck meat in question originated in Shangdong Province.  MAFF lifted an earlier ban on imports of duck meat from China on January 10 this year.
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GM Rice Could Replace Injections for Diabetes Patients

Nippon Paper Industries Co., Ltd., the National Institute of Agrobiological Sciences and Sanwa Kagaku Kenkyusyo Co., Ltd. announced on May 12 that they had jointly developed a genetically modified (GM) rice that has the property of adjusting blood sugar level.  The rice is to be developed on a commercial basis for use by those suffering from diabetes mellitus, by 2006.  The developers claim that one helping of the rice will provide the same effect as an injection of insulin, and plan to market it at a price similar to that of ordinary varieties.

Japan is thought to have approximately 16 million people suffering from diabetes or a pre-diabetic condition.  Around 90% of these people have a reduced capacity to secrete insulin, the hormone that reduces the level of sugar in the blood, owing to their lifestyle habits.  Many are obliged to supplement their own insulin with injections, etc., but if the same effect can be achieved with a single helping of rice, which is the staple food in Japan, their quality of life will improve.

Genetic recombination technology was used to create rice containing a hormone that promotes the secretion of insulin after a meal.  The developers claim that, because this hormone promotes the secretion of insulin only when the blood sugar level is high, there is no danger of the blood sugar falling too low.

Development work on genetic recombination techniques will continue with a view to increasing the hormone content of the rice to 300% or more.  At this level, a single serving of rice would contain approximately 500 mg of the hormone, and insulin injections would no longer be necessary.  The developers will verify the safety of the rice over the next 2-3 years by means of animal trials, etc.
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MAFF to Elucidate Key Genetic Functions of Rice

Following on from the completion of the decoding of the base sequence of the rice genome, the Ministry of Agriculture, Forestry and Fisheries (MAFF) is to begin work, this fiscal year, on elucidating the functions of the genes that hold the key to the development of useful varieties such as "high-quality" rice and rice that is resistant to diseases and insect pests.  Last year, MAFF invited the scientific community to suggest themes for research, and selected 36 themes on the basis of the suggestions received.

The decoding of the base sequence of the rice genome was completed in December 2002, but the actual meaning of each part of the sequence is still "encrypted".  The work of identifying which sections actually contain the genetic information will begin in earnest this year.

MAFF will be focusing on the discovery of genes responsible for five key functions (i) producing a rice that is "high-quality", (ii) producing functional materials, (iii) boosting photosynthesis, (iv) increasing resistance to diseases and insect pests, and (v) improving performance under adverse conditions.  MAFF has appropriated a budget of  720 million yen for the fiscal year, and plans to start research that will pave the way for the development of specific varieties.

MAFF maintains that the successful pursuit of this research work will require a concerted effort by the scientific community in Japan, and for this reason invited the scientific community to suggest research themes that would pave the way to the elucidation of these five key functions.  A total of 133 suggestions were submitted, from which MAFF selected 32.  The four remaining themes were decided by MAFF itself.
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Deflation in Prices of Agricultural Products Accelerating

Deflation in the prices of agricultural products is accelerating.  A survey by the Ministry of Agriculture, Forestry and Fisheries (MAFF) reveals that the general price index of agricultural products, which reflects the price of rice and vegetables etc. shipped by farmers, fell to 78.9% in 2002 (1991 = 100), down for the fourth year in succession.  MAFF will be incorporating its analysis of the movements of the index into the Fiscal 2002 Annual Report on Food, Agriculture and Rural Areas, due to be published in late May.

The draft Report shows that farmers' shipping prices have fallen by more than 20% since 1991.  Between 1998 and 2001, in particular, prices fell by around 15%.  The principal cause of price deflation among agricultural products has been the release onto the market of rice other than for government-planned distribution, whose sale has been permitted since 1995, causing the price of rice, which has a relatively high weight in the index, to fall by around 30%.

In the past, the government controlled the price of rice, but the volume of direct sales by producers to consumers and sales on the open market has risen.  Competition with imports has also caused the price of vegetables to fall by more than 20% over the last ten years.

By contrast, food retail prices have remained virtually unchanged.  This is thought to be due to costs incurred in the processing and distribution processes, which mean that the benefits of the fall in the price of agricultural products are not being passed on to the consumers.
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MAFF to Harness JAS Mark as Means of Ensuring Beef Traceability

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on April 29 that it has decided to harness the JAS mark as a means of ensuring the traceability of beef and beef products.  Permission to use the JAS mark will be conditional on the recording and disclosure of information such as the names of feeds given to cattle and the establishment of systems that allow consumers to verify the content of this information.  The labels on beef qualifying for the JAS mark will bear the words seisan joho kohyo gyuniku ["production information disclosed beef"].

The decision will be formalized at a General Meeting of the Research Committee for the Japanese Standard of Agricultural and Forestry Products (JAS) to be held this autumn, and the system is likely to be implemented in FY 2004.

The Diet is currently debating a draft Beef Traceability Law that would require producers to allow consumers to access production information over the Internet.  Under the new JAS standard, farmers must record, store and disclose information such as the names of feeds and pharmaceuticals given to cattle, which they are not required to do under the Beef Traceability Law.  The producer's telephone number and website address must be displayed on packaging and POP panels in stores, to allow consumers to obtain information on demand.

In addition to the name of the cut, the packaging of beef that meets these requirements will bear the words seisan joho kohyo gyuniku ["production information disclosed beef"].  The creation of a special JAS mark for beef is being considered.  As with other JAS mark foods, would-be users will have to apply to a government-registered certifying organization, and will only receive permission to use the mark once it has been confirmed that they meet the requirements.

MAFF recognizes that the JAS standard may have to be modified to some extent, depending on the content of the Law, once it is passed, and of the associated government and ministerial ordinances.
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COMMENT

Symbiosis and Exchange:  The Need for Popular Action

The phrase kyosei to tairyu ["symbiosis and exchange"] is very much in evidence, these days.  It has become the slogan of a popular movement, involving both government and non-government organizations, that seeks to promote exchange between urban areas (cities) and rural areas (farming, mountain and fishing communities), with a view to the revitalization of both.  There is much to hope for from a movement that seeks to encourage primary industry and regenerate not only urban areas, but the entire Japanese archipelago, including rural areas.  For this reason, government organizations and NGOs should work together to rouse popular interest.

The word "exchange", as used in this sense, made its first appearance in a government policy document with the title "Structural Reform of the Japanese Economy:  Basic Policies for Macroeconomic Management", popularly known as the hone-buto no hoshin ["strong bones policy"] document, published two years ago.  "Symbiosis and exchange between rural and urban areas" is a key element of the program for the promotion of regional autonomy and revitalization outlined in this document.  Since its publication, government ministries have used the word "exchange" in the wording of policies relating to the actualization of the "strong bones policy".

The word "exchange" is an extension of the concept of "symbiosis", which in this context means producers and consumers, farming villages and cities, etc. not sticking rigidly to their own viewpoints but recognizing the validity of each other's position.  The Association of Organizations Promoting Symbiosis and Exchange between Urban and Rural Areas, whose purpose is to promote "exchange" as a popular movement, defines the concept as follows:  "Encouraging the movement of people, products and information leads to new forms of exchange between urban and rural areas and makes it possible to build a common basis for growth and development".

Encouraging more city people to settle in (rural) areas where the permanent population is shrinking and aging due to a falling birthrate and rural depopulation seems like a logical approach to the revitalization of those areas.  Clearly, the intention is that people from urban and rural areas should not simply accept each other's point of view, but that the mutual stimulus provided should contribute to growth and development of Japan's economy and society.

Early this year, a drive to promote "exchange" started to take shape.  In March, a project team made up of senior vice-ministers from eight government ministries and agencies involved in the implementation of the "strong bones policy", including the Ministry of Agriculture, Forestry and Fisheries (MAFF), proposed the establishment of an organization for the promotion of "exchange" as a popular movement.  A meeting of the promoters of the Association of Organizations Promoting Symbiosis and Exchange between Urban and Rural Areas, an NGO whose membership includes business enterprises, municipal governments and individuals, is to launch an organization for the promotion of "exchange" as a popular movement by June.  The Liberal Democratic Party has likewise established a "Study Group on the Promotion of Symbiosis and Exchange between Urban and Rural Areas", which will be looking at measures to "encourage the people of Japan to enjoy the life and culture of both urban and rural areas".

Since the adoption of the "strong bones policy", government ministries and agencies have touted a range of measures designed to promote "exchange".  Besides the policies introduced by MAFF, the importance assigned to "exchange" may be seen in programs for the support of community development (Ministry of Public Management, Home Affairs, Posts and Telecommunications), the promotion of employment in farming, fishing and forestry (Ministry of Health, Labour & Welfare), the expansion of sales channels for local industry (Ministry of Economy, Trade and Industry), and the construction of good quality housing in country areas (Ministry of Land, Infrastructure and Transport).  Although each ministry emphasizes that its own measures will promote "exchange", there is no evidence that the government as a whole is taking a systematic approach to the task.

"Exchange" is an excellent idea, but the measures advocated under the "strong bones policy" and proposed by Council on Economic and Fiscal Policy are not enough to rouse popular interest.  Although "exchange" is held up as the star attraction of Prime Minister Junichiro Koizumi's economic and fiscal reform program, economic conditions in the regions show no sign of improving.  Structural reform and public works spending cuts have sapped the vitality of agriculture and local industry and local government authorities themselves are in financial difficulties.  Given that the concept of "exchange" was surely intended to resolve problems of this nature, the government should review the measures devised by the individual ministries and set about promoting "exchange" as a popular movement.

(from an editorial in the May 13, 2003 issue of the Nihon NogyoShimbun)
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