FY 2004 MAFF Budget Request is 13.2% Up on FY 2003
Key Elements of MAFFfs FY 2004 Outline Budget Request (Units: billion yen)
Within the rice policy reform-related budget, MAFF will be requesting 253.4 billion yen to support production adjustments, 20.0 billion yen for the reduction of government rice inventories, and 40.5 billion yen to fund measures relating to new projects. Among measures applicable to "core" farmers, MAFF will be emphasizing the structural reform of paddy-field farming. Among model projects, MAFF will be requesting a budget of 2.2 billion yen for the promotion of the use of "bio-degradable plastics" derived from biomass. The eventual aim is to build Japanfs first full-scale factory capable of producing these plastics at low cost, using unique domestically developed technology. Under the title of promoting symbiosis and exchange between urban and rural areas, the budget request is to include new projects for the promotion of rural economic development based on tourism (budget requested 0.25 billion yen) which seeks to support efforts to attract foreign visitors, in conjunction with the "green tourism" initiative, and a rural nature conservation initiative (1.0 billion yen). MAFF also plans to step up its efforts to promote exports of agriculture, forestry and fisheries products and encourage brand development, and will be requesting a total budget of 0.8 billion yen to this end. Under the title of assuring food safety and
peace of mind,
MAFF will be requesting budgets of 8.8 billion
yen for the promotion of food
education activities, 2.5 billion yen for
the promotion of the introduction of
traceability systems, and 6.7 billion yen
for the expansion and improvement of
wholesale market facilities. Worst Rice Harvest in 10 Years, Especially in Areas on Pacific Ocean Side On August 27, the Ministry of Agriculture, Forestry and Fisheries (MAFF) released its assessment of crop quantity and growth status as of August 15, for rice grown in 2003. Crop quantity is expected to be "very poor" in 4 prefectures and "below average" or "poor" in 14 prefectures. After four years of bumper harvests, this autumn is likely to bring the worst harvest since 1993. The price of some famous brands of rice is already starting to rise. The assessments of crop quantity and growth status divide rice-producing areas into three groups: "early earing areas", "late earing areas" and "early harvesting areas". Prospective crop quantity was assessed in the early earing areas, covering a total of 19 prefectures, mostly in eastern Japan. The situation was worst in prefectures on the Pacific Ocean side of Japan, with crop quantity "very poor" in Hokkaido, Aomori, Iwate and Miyagi Prefectures, "poor" in Fukushima and Mie Prefectures, "below normal" in Yamagata and Niigata Prefectures, major rice-producing prefectures, and "normal" only in Akita prefecture. Growth status was assessed in the late earing areas, covering a total of 27 prefectures, mostly in western Japan. Growth status was "normal" only in Kagawa Prefecture, and were "below normal" elsewhere. In the early harvesting areas, crop quantity in Okinawa Prefecture, where the harvest of the first crop is over, was "normal". The crop index for all Japan will be confirmed around November, but given that crop quantity is unlikely to improve, is expected to be "poor" or "very poor". By the end of October, government and private sector rice stocks are expected to be around 1.5 million tons, 7 times greater than they were in the autumn of 1993. Given that this yearfs harvest is expected to be at least 8 million tons, annual demand (approximately 8.7 million tons) should be satisfied but, as the perception in the market is that supply is low, the price of this yearfs new rice is rising. In transactions of voluntarily distributed rice carried out by tender this month, the price of koshihikari variety rice grown in Miyazaki Prefecture was 20-50% higher than at the same time last year. For this reason, MAFF, rice distributors and rice wholesalers have together established a Liaison Committee for the Stable Supply of Rice and tightened market surveillance with a view to preventing cornering and the opportunistic raising of prices. Keyword: Rice crop index The index represents the quantity of the rice crop expressed as the ratio of the average annual yield per 10 ares to forecast yield. Crop quantity is expressed as one of six levels: "good" (representing a crop index of 106 or higher), "above normal" (102-105), "normal (99-101), "below normal" (95-98), "poor" (91-94), or "very poor" (90 or lower). Growth status is expressed as one of five levels, based on the same scores, ranging from "good" to "poor". [Return] On August 29, the Ministry of Agriculture, Forestry and Fisheries (MAFF) revealed that it plans a radical review of the Basic Plan for Food, Agriculture and Rural Areas, which includes goals such as raising Japanfs food self-sufficiency ratio to 45% by 2010. The decision was prompted by recent drastic changes in the circumstances facing agricultural administration, including changes in trade conditions and the sudden emergence of the food safety problem in the wake of the BSE (bovine spongiform encephalopathy) outbreak. MAFF launched the review process the same day and plans to present a new Basic Plan, after approval by the Council of Food, Agriculture and Rural Area Policies, in FY 2005. Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei instructed MAFF officials to give serious consideration to a range of measures relating to the review of the Basic Plan, including (i) switching to a policy of providing cross-product category support to "core" farmers in each area, possibly including direct payments, (ii) reforming the "core farmer" and agricultural land systems, and (iii) further promotion of measures for the protection of the natural environment and measures for the protection of local resources, including agricultural land and water supplies. Referring to the target food self-sufficiency ratio, which is a political issue, a senior MAFF official said that MAFF was "prepared to review [the target] without prejudice", hinting at the possibility that the 45% target figure could be further adjusted in the future. The Basic Plan sets out a concrete program of measures for the enhancement of food self-sufficiency, the structural reform of agriculture and the development of rural communities, in line with the objectives of the Basic Law on Food, Agriculture and Rural Areas. The Basic Plan was approved by the Cabinet in March 2000 and is reviewed once every five years. It serves as the basis for MAFF policy measures. However, the scale of paddy-field farming businesses has been slow to increase, and MAFF is likely to have difficulty in achieving its structural reform objective of concentrating agricultural production in the hands of 400,000 farming businesses. Population aging and the depopulation of rural areas are advancing, and a rise in the area of agricultural land standing idle is making it more difficult to maintain the 4.7 million hectares required. With imports of agricultural and livestock farming products rising, there has been no significant improvement in national dietary habits. Japanfs food self-sufficiency ratio is stuck at around 40% and some have expressed doubt that the target ratio can be achieved. For these reasons, and in view of the forthcoming
reform of
rice policy, aiming to restructure paddy-field
farming, and the growing
importance that consumers place on food safety
and peace of mind, MAFF has
decided to undertake a full-scale review
of the Basic Plan. The change in
foreign trade conditions in conjunction with
the WTO agriculture negotiations
is another factor behind the decision. MHLW to Ban Sale and Use of Beef on the Bone from BSE-Affected Countries On September 12, the Cabinet Office Food Safety Commission, which has been investigating the risk of BSE (bovine spongiform encephalopathy) infection from the dorsal root ganglia in and around cattle spines, announced it had reached the conclusion that consuming the ganglia presents the same level of risk as consuming spinal cord, already listed as a "specified risk part". Following this announcement, the Ministry of Health, Labour and Welfare (MHLW) said it intends to ban the sale of beef on the bone from all BSE-affected countries, including Japan, and the use of cattle spines as a raw material in the manufacture of processed foods and food additives. MHLW already lists the brain, eyes, spinal cord, and parts of the small intestine as presenting a risk of BSE infection and requires the meat industry to remove and incinerate these parts when cattle are slaughtered. At present, however, producers are allowed to distribute cattle spines, and cuts of meat that include bones from the spine, e.g. T-bone steaks, are still sold. Spines removed at abattoirs and butcher shops are used to produce beef extract and bone oil. MHLW has been discussing how cattle spines should be handled since last year, when the Office International des Epizooties revised the international regulations on animal hygiene and added spines to the list of cattle parts "unsuitable for human consumption". MHLW will make its final decision on how to regulate beef extract and other beef-based additives used in the manufacture of processed foods after conducting a survey of their distribution among abattoirs and processed food manufacturers. Keyword: dorsal root ganglion Organ housing a collection of sensory nerve
cells and
located in or close to the spine. WTO Ministerial Conference Ends in Rift; Agreement on Agriculture Delayed On September 14, the final day of the WTO 5th Ministerial Conference at Cancún, Mexico (September 10-14), developed and developing member countries remained divided on whether or not to start negotiations in a number of new areas, including investment and government procurement, and the conference closed without the adoption of a ministerial declaration. In the key area of agriculture, too, member countries failed to resolve the conflict of interests relating to the reduction of export subsidies and the setting of tariff ceilings and were unable to reach any specific agreement. It now seems inevitable that the schedule of the present round of multilateral trade negotiations, which originally aimed to reach an agreement by January 1, 2005, will be seriously delayed. The Conference did, however, issue a ministerial statement to the effect that the negotiations will continue. The statement also states that a meeting of the WTO General Council including Senior Officials is to be held by December 15, to discuss how negotiations should be pursued in future, among other issues. The Course of the WTO Agriculture Negotiations
Agriculture Minister's Comments on WTO Ministerial Conference at Cancun At a press conference held after the close of the WTO 5th Ministerial Conference at Cancún, Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei made the following comments: In the spirit of the Ministerial Declaration issued at Doha in November the year before last (2001), Japan has been an eager participant in the WTO negotiations, and has done everything in its power to promote the establishment of new trade rules with a view to the further development of multilateral trade systems. At the Cancún Conference, too, the three Japanese ministers have labored as one to further the negotiations, and it is truly regrettable that the Conference closed without resolving the differences between developed and developing countries on the handling of the eSingapore issuesf. As regards the agriculture negotiations, we remain committed to the Ministerial Declaration at Doha, and our approach has reflected the Japanese proposal, whose basic philosophy is that [trade rules should allow for] "the coexistence of a wide variety of agricultural models" and should take due account of non-trade concerns. Throughout these negotiations, Japan has presented its position in collaboration with the Group of 10 and other countries that share our concerns. The revised draft of the Ministerial Declaration presented at this Conference, too, contains text that incorporates our demands. We have also argued the need for trade rules to take account of the need to ensure sustainable use of limited natural resources with regard to forestry and aquatic products. Japan will
continue to make a positive contribution
to the negotiations, and strive to
assure the establishment of new trade rules
in accordance with its basic
philosophy. Japan and Mexico at Stalemate Over Items to be Excluded from FTA Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei and Mexican Minister for Agriculture Javier Usabiaga met at Cancún, Mexico, on September 9, to exchange views on the proposed free trade agreement (FTA) between their two countries. The Mexican Minister told Mr. Kamei that the number of items on which Japan proposes to abolish tariffs is low in comparison with the number of items in which Mexico has expressed an interest, and indicated that Mexico feels Japanfs proposal for the abolition of tariffs on agricultural and livestock farming products does not go far enough. In particular, Mr. Usabiaga expressed dissatisfaction at the fact that the Japanese proposal does not include pork. He also told Mr. Kamei that United Mexican States President Vicente Fox intends not to allow any extension of the time limit allocated for the negotiation of the FTA. Last week, Japan
presented Mexico with a
list of just over 250 agricultural and livestock
farming products, excluding
pork among other items, on which it proposes
to abolish tariffs. Mr. Kamei
emphasized that Japanfs pig
farmers are working hard to restructure,
explaining that pork was not included
because it is an important product sector
for domestic agriculture, and
countered that the number of items in which
Mexico
has expressed an interest is excessive. Japan Declines to Lift Import Ban on Canadian Beef Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei and Canadian Minister of Agriculture and Agri-Food Lyle Vanclief met for talks in Cancún, Mexico, on September 11. Mr. Vanclief requested that Japan lift the ban on imports of Canadian beef imposed after Canadaf s recent outbreak of BSE (bovine spongiform encephalopathy). Mr. Kamei replied that Japan could not agree to lift the ban at so early a date. Mr. Vanclief pointed out that many other
countries
had started importing Canadian beef again,
and urged that Japan
do the same. Mr. Kamei countered that Canada
has yet to offer a clear explanation of what
concrete measures it has taken to
assure the safety of its beef, and told the
Canadian Minister that Japan
could not agree to an early lifting of the
import ban while no convincing,
scientific explanation was forthcoming. Japan Lifts Ban on Imports of Chicken Meat from China; Ban on Duck Imports Remains in Place The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced, on August 19, that it had lifted the temporary ban on imports of chicken meat from China, imposed after an outbreak of a highly pathogenic strain of avian influenza (fowl plague). MAFF has been able to confirm that no fresh outbreaks of avian influenza have occurred in China for at least 90 days and that appropriate sanitary measures have been taken. However, the ban on imports of duck and duck products, in which the same virus was detected, will remain in place. The Japanese government imposed a temporary ban on imports of poultry meat such as chicken and duck, and their products, on May 12, after avian influenza was identified in duck meat originating in China. Having confirmed that China has taken steps to prevent the outbreak
from spreading, MAFF has lifted the temporary
ban on imports of chicken meat derived from chickens slaughtered on or
after August 17, 2003. However, MAFF has postponed
the lifting of the ban on imports of poultry
other than chicken (ducks, etc.),
in which the same virus was identified in
May, having judged that sanitary
conditions need improvement. Population Aged 65 or Over Reaches Record High of 24.31 Million According to estimates released by the Ministry of Public Management, Home Affairs, Posts and Telecommunications to mark "Respect for the Aged Day", September 15, the number of people in Japan aged 65 or over is 24.31 million, 710,000 more than last year. The number has also risen as a ratio of the total population to 19.0%, up 0.5 points on last year. Both the number and the ratio are the highest on record. The number of men over 65 has risen to 12.16 million, topping 10 million for the first time. Women aged 65 or over outnumber men in the same age band by 3.79 million, and now account for 21.5% of the total female population. Only 16.5% of men are 65 or over. The numbers of both men and women aged 65 or over continue to rise as a ratio of the total population of each sex. An international comparison of the ratio
of the population
aged 65 or over reveals that population aging
is most advanced in Japan, outstripping Italy (18.2%) and Germany (17.1%). According to
estimates by the National Institute of Population
and Social Security Research,
Japanfs population is set to age faster
than that of other countries, and by
2015, one in every four Japanese will be
aged 65 or over. Hay Fever-Relieving GM Rice Could be Commercially Grown from FY 2007 The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on September 2, that commercial cultivation of a genetically modified (GM) variety of rice effective in the treatment of hay fever triggered by sugi [Japan cedar] pollen could be possible as early as FY 2007. If the project is successful, the rice will be the first GM crop for table consumption to be cultivated in Japan on a commercial basis. The commercial cultivation of GM rice would also be a world first, but fears have been raised over the safety of GM crops, and the project is likely to cause controversy. The "hay fever-relieving rice" was jointly developed by the National Institute of Agrobiological Sciences (NIAS), an independent administrative institution, Nippon Paper Industries Co., Ltd. and the National Federation of Agricultural Co-operative Associations (JA Zen-Noh). MAFFfs budget request for FY 2004 includes an allocation of 4.58 billion yen to support the commercialization of this rice and other GM crops. The developers plan to start cultivating the rice on an experimental basis in FY 2004 and, after verifying its safety by clinical trials, to go on to commercial production. Hay fever occurs when the body identifies the protein that causes the allergic reaction as a harmful substance, leading to an over-reaction in the form of mucus and tears. One therapy involves injecting the protein in question in small doses over a long period of time, to build up the patientfs resistance, and the genetic modification of the rice is based on this principle. A human gene that synthesizes the protein was recombined into the rice. The protein accumulates in the ricefs albumen and eating the rice reduces the likelihood of the patient having an allergic reaction. NIAS claims to have confirmed the effect in the laboratory, using mice, and suggests that the same effect could be obtained in human subjects eating 180 cc of the rice a day over a period of weeks. The development of the hay-fever relieving rice began in 2000. At present, it is being cultivated on an experimental basis in a glasshouse at NIASf research center in Tsukuba, Ibaraki Prefecture. The developers plan to conduct further cultivation tests on agricultural land in Tsukuba, at a site isolated from other farmland. MAFF will begin discussing safety issues
and cultivation and
distribution systems from FY 2004. MAFF plans
to submit the rice to Ministry of
Health, Labour and Welfare food safety tests
and, if it is approved, will
market it as a "food for specified health
use", the labeling of which is
permitted to claim health effects. Three Research Centers to Analyze Functions of Base Sequences of Rice Genome The National Institute of Agrobiological Sciences (NIAS; Tsukuba, Ibaraki Prefecture), the Institute of Physical and Chemical Research (RIKEN; Wako, Saitama Prefecture) and the Research Institute for Biological Sciences, Okayama (RIBS; Kayo-cho, Okayama Prefecture) announced, on August 19, that they have agreed to collaborate in analyzing the functions of the base sequences of the rice genome decoded to date. The work will be conducted using technologies developed independently by each of the three organizations, and is expected to speed the functional analysis of the rice genome. The functions of 32,000 full-length cDNAs
sequenced by a
team led by NIAS will be analyzed using technology
developed by RIKEN. RIBS has
a strong track record in the analysis of
the genetic functions of model plants. JA Zenchu to Offer Access to Production History of All Agricultural Products by End of 2006 By the end of 2006, JA Zenchu (the Central Union of Agricultural Cooperatives) plans to assign ID numbers to all of the agricultural products (meat, vegetables, etc.) shipped via JA cooperatives nationwide and establish a system that allows consumers to check records of producerfs name, agricultural chemicals used, etc. over the Internet. The decision by the JA cooperative group, which handles 60% of all agricultural products in Japan, to disclose production history is likely to encourage other retailers to disclose production data and stimulate competition between production areas. JA Zenchu supervises approximately 1,000 agricultural cooperatives nationwide and, through these, controls approximately 4.5 million farmers who belong to the JA Group. The JA Groupfs sales network includes some 2,000 direct sales branches, and approximately 1,200 "A-Coop" supermarkets operated by the JA Group. JA Zenchu recently instructed its member farmers, through the JA cooperatives, to make arrangements for recording the production history of all agricultural products, including cereals, vegetables, fruit, meat, and dairy products. Among other data, farmers are required to record the name of the producer, location of the farm, the names of any agricultural chemicals and fertilizers used, and the dates on which products are harvested and shipped. The JA cooperatives will collect the data and manage them via a production/distribution reference database. Barcodes are the most likely method of data management to be used. JA Zenchu and the JA cooperatives will set up a website that allows consumers to look up these data. Consumers will be able to check production history data over the Internet by entering an ID number via their PC. ID numbers will be displayed by retailers at the point of sale and on the packaging of agricultural products. JA Zenchu plans to make provision for consumers without access to a PC to be able to obtain the same information by giving the productfs ID number to a sales assistant. To check that distribution history data, etc. are correctly displayed, JA Zenchu will also establish a third-party organization made up of academic and business experts. The right to use an approval mark will be granted where information is accurately displayed. Widespread concern over food safety was triggered by the outbreak of BSE (bovine spongiform encephalopathy) in September 2001, and by the discovery of the falsification of the provenance of rice and meat by a number of retailers and the presence of residual agricultural chemicals in vegetables. The Ministry of Agriculture, Forestry and Fisheries will require all beef products to bear an ID number from December 2004 onwards, but no such regulations apply to other agricultural products. A survey conducted by JA Zenchu last year found that more than 80% of consumers would like to see production and distribution history data displayed. Until recently, the JA Group has taken a negative stance on the display of production and distribution history data on the grounds that it would raise costs and could lead to intensified competition between production areas, but has changed its policy, judging that consumers are likely to desert the JA cooperatives if the cooperatives cannot win consumer trust in the safety of their products. Major Items of Production Data to be Disclosed by JA Cooperatives (for vegetables)
[Return] Sales Contracts for 2003 Government Rice Set to Reach 400,000 Tons On September 7, the Ministry of Agriculture, Forestry and Fisheries (MAFF) released figures on sales contracts for government inventory rice over the six-month period to September. The volume of wholesale sales contracts for the for the first half of September was approximately 70,000 tons, bringing the cumulative sales contract volume for the 2003 rice year (November 2002-October 2003) to more than 300,000 tons. The increase is due to growth in the demand for government rice caused by delays in shipping this yearfs new rice and fears of a poor harvest, and, counting the 90,000 tons that the government decided to release last week, the total volume of sales contracts is likely to reach around 400,000 tons by the end of the month, its highest level in four years. MAFF plans to encourage the sale of blended rice and tighten its monitoring of the labelling of milled rice with a view to preventing misrepresentation. MAFF accepts applications from rice wholesalers twice a month (1st half and 2nd half). The actual volume of sales of government rice was only 70,000 tons as of the end of July this year, but fears of a poor harvest caused sales contract volume to surge, running up another 160,000 tons in August. Demand for government rice has remained strong in September, to date. Sales Volume of Domestically Grown Government Inventory Rice, by Rice Year
[Return]
"Green Tourism": the Need for a Higher Grade of "Exchange" The summer vacation is the peak season for "green tourism", holidays spent in the green and pleasant rural surroundings, experiencing agricultural work and life in a farming community. For children, the experience of life in a farming village is unforgettable. It is also extremely valuable in terms of understanding nature and farming communities. Some communities in Japan are taking advantage of their beautiful scenery and opportunities to experience farm work to develop green tourism as a new industry. Green tourism should be further developed and improved as a means of promoting exchange between urban and rural areas. A survey of attitudes to green tourism among city dwellers conducted by the Ministry of Agriculture, Forestry and Fisheries (MAFF) found that awareness was high, with half of the respondents saying they recognized the words "green tourism". Some 30% of respondents claimed experience of green tourism. The specific content of their experience ranged from "buying local products at direct sales outlets" to "experience of farm work, e.g. rice planting and harvesting, harvesting potatoes, etc.", "taking part in festivals and traditional public entertainments", "exploring famous places and historic sites or visiting local museums", "enjoying rural and natural scenery", and "hiking and sawa-nobori [walking up small rivers]". Of those respondents who had engaged in green tourism in the past twelve months, 70% had taken a "day trip". In Europe, long stays account for the vast majority of visits, it being common for the whole family to spend several weeks in a farming village. As a result, the facilities for receiving tourists are well established, with a synergy between bed-and-breakfast accommodation, farm restaurants and direct sales of agricultural products. In Japan, by contrast, short stays, including day trips, are the rule. For this reason, the arrangements required are different from those found in Europe. Facilities for experiencing agricultural work, with an emphasis on human contact between city dwellers and local inhabitants are being set up all over the country. According to the same MAFF survey, 50% of those who visited farming villages in the past year did so with "close family and/or other relatives". Another 15% went "with "husband/wife only", and 11% with "friends or work colleagues". The ratios varied according to age, but the vast majority of respondents in their 30s and 40s went with their family. The experience of staying in a farming village and contact with small animals contributes to the emotional development of children, and seeing stars in the night sky and hearing the babble of small streams will surely heighten their interest in nature. Some 80% of respondents said they "would like to experience" green tourism. The main reasons cited were "to enjoy the scenic beauty of farming and mountain villages and their natural surroundings", "to encourage my children to take an interest in food, nature and farming" and "for the peace and tranquility". The types of green tourism that parents most wanted their children to experience included "rice planting and harvesting, potato harvesting, fruit picking, gathering mountain vegetables and herbs, mushroom picking, etc.", "horse riding, milking and cheese making on farms" and "insect collecting, bird watching and nature watching". As many as 80% of respondents felt that green tourism helped to increase their interest in food. The reasons cited included "experiencing the joy of the harvest", "seeing how much hard work producers have to put in" and "understanding the importance of food". It is clear that green tourism is making an important contribution to popular understanding of food and agriculture. Green tourism must satisfy the needs of both city dwellers and village people. It cannot be built on the basis of a one-way sacrificial relationship. A more flexible approach is required if it is to be developed further. (from an editorial in the August 17, 2003 issue of the Nihon Nogyo Shimbun) |