NEWS

 

 

New Vice-Minister of Agriculture, Forestry and Fisheries Appointed


On November 20, Prime Minister Junichiro Koizumi appointed Mr. Eikou Kaneta Senior Vice-Minister of Agriculture, Forestry and Fisheries. Mr. Kaneta, a member of the Liberal Democratic Party (LDP), was elected from Hokkaido under the proportional representation system and is serving his fourth term as a member of the House of Representatives. He replaces Mr. Hirohisa Kurihara, also of the LDP.
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Policy Headquarters to Speed Agricultural Reform; Calls for Support Measures to Focus on "Professional Farmers"

 

On November 21, the government convened a meeting of the Headquarters for the Promotion of Policies on Food, Agriculture and Rural Areas, at the Prime Minister's official residence. The Headquarters, whose membership includes all Cabinet Ministers, agreed that in line with the policy of the Koizumi Administration, which is championing structural reform, the government should unite in pursuing reform in the field of agriculture. The Headquarters is to set out directions for reform that will center on a concentration of policy measures and resources on the fostering of "professional farmers" who will play a central role in agriculture in Japan, a review of systems relating to core farmers and farmland with a view to encouraging a wide range of entities, including ordinary limited liability companies, to participate in agriculture, and the establishment of environmental protection measures.

 

Prime Minister Junichiro Koizumi, who leads the Headquarters, told the meeting that the government must unite in the pursuit of agricultural policies that emphasized consumer interests, saying, "We must support capable and motivated farmers and protect the interests of consumers by ensuring that food is safe and trustworthy."

 

Mr. Koizumi also told the meeting that, with a view to promoting the success of the WTO (World Trade Organization) agricultural negotiations and the conclusion of FTAs (free trade agreements), Japan's agricultural sector should be weaned of its excessive reliance on border measures as soon as possible, and said he would work to strengthen the competitiveness of Japanese agriculture to allow it to withstand further liberalization of trade in agricultural products.

 

At the meeting, agricultural policy to date was positioned as "sailing in convoy policy", and it was agreed that Japan should switch to a more "targeted policy" with a view to increasing the number of professional farmers running competitive farming businesses.

 

For this reason, the Headquarters will consider replacing the system of commodity-based support measures for individual crops such as rice, wheat and barley with across-the-board measures to support the entire farming business of "core" farmers involved in paddy-field farming and large-scale dry-field farming. It will also aim to establish environmental protection measures that make it possible to maintain the multi-functionality of agriculture over an entire area.

 

On the basis of the Headquarters' reforms, the government is to review the Basic Plan for Food, Agriculture and Rural Areas, which sets targets for food self-sufficiency. The government ministries and agencies concerned will also collaborate in the pursuit of deregulation and the devolution of administrative authority to local governments, and in the promotion of exchange between urban and rural areas, food awareness education and environmental protection.

 

The new Basic Plan is to be drawn up by March 2005, but reforms that can be implemented even before that date will be addressed in turn.

 

The Headquarters' mission is to facilitate collaboration between government ministries and agencies, in the pursuit of deregulation and the devolution of administrative authority to local governments (including the reduction of central government subsidies) and the promotion of exchange between urban and rural areas, food awareness education and environmental protection, on the basis of a review by MAFF of the Basic Plan for Food, Agriculture and Rural Areas. The Headquarters was established in April 2000 under the Obuchi Administration. The November 21 meeting was its second meeting.

 

Key Points in the Reform of Agricultural Administration

(i) Support measures focusing on "professional farmers"

(ii) A review of the agricultural land system

(iii) Establishment of environmental protection measures

(iv) Promotion of food awareness education

(v) Greater promotion of exchange between cities and farming, mountain and fishing villages

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Government Rice Inventories Set to Fall to 850,000 Tons by October 2004

 

On November 27, the Ministry of Agriculture, Forestry and Fisheries (MAFF) released its rice supply forecast for rice years 2003-2005. Owing to the very poor harvest in 2003 when the rice crop index fell to 90, among other factors, it is estimated that government rice inventories will fall to 850,000 tons, below the level of 1 million tons that is considered appropriate. A spokesman for the MAFF Staple Food Department said, "If 2004 brings an average crop, there will be no fear of a shortage."

 

According to the forecast, production volume for rice grown in 2003 was 7.63 million tons, less than the 7.834 million tons recorded in 1993, when the crop suffered record damage from the cool summer. Demand for rice is falling year-by-year, and by rice year 2005 is set to fall to 8.57 million tons, some 210,000 tons down on rice year 2003. Due to the poor crop in 2003, government inventories have fallen sharply. Carried-over inventory, which stood at 1.44 million tons at the end of October 2003, is set to fall as low as 850,000 tons by the same point in 2004 and 2005.

 

At the end of October 1993, government inventories were down to 230,000 tons, and Japan was forced to make do by importing 2.59 million tons, including rice for processing purposes.

 

Forecast of the Total Rice Supply and Demand for Rice Years (RY) 2003-2005
(Units: thousand tons)

 

 

Total supply

Of which government rice

Carried-over inventory at end October 2002 (A)

2,010

1,550

RY 2003

Production volume 2002 (B)

8,690

140

 

Total supply volume (C = A + B)

10,700

1,690

 

Demand volume (D)

8,780

380

 

Growth of inventory in distribution, etc. (E)

480

 

 

Carried-over inventory at end October 2003 (F = C - D - E)

1,440

1,310

RY 2004

Production volume 2003 (G)

7,630

100

 

Growth of inventory in distribution, etc. (H)

480

 

 

Total supply volume (I = F + G+ H)

9,550

1,410

 

Demand volume (J)

8,700

560

 

Carried-over inventory at end October 2004 (K = I - J)

850

850

 

Target area for production adjustments

1.06 million hectares

RY 2005

Production volume 2004 (L)

8,570

400

 

Total supply volume (M = K + L)

9,420

1,250

 

Demand volume (N)

8,570

400

 

Carried-over inventory at end October 2005 (O = M - N)

850

850


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Proposed MAFF Regulations Effectively Treat Cattle Spines as Waste

 

On December 2, following the Ministry of Health, Labour and Welfare's designation of the spinal columns of cattle as "unsuitable for human consumption" as a countermeasure against BSE (bovine spongiform encephalopathy), the Ministry of Agriculture, Forestry and Fisheries (MAFF) published a regulatory policy proposal, under which the use of meat-and-bone meal and fats derived from cattle spines in fertilizers and feeds is to be prohibited. Cattle spines, which rendering companies have up to now accepted, for a fee, along with "ordinary" cattle bones are effectively treated as waste and meat packers will be forced to find their own means of disposal.

 

MAFF already requires meat packers and wholesalers to keep cattle spines and "ordinary" bones strictly separate during storage and transportation, e.g. by using containers of different colors. Under the proposed regulations, the work and cost of processing after sorting will also fall on the person or organization generating the waste.

 

MAFF is inviting members of the public to submit their opinions over the Internet, up to December 16. MAFF will then revise the relevant ministerial ordinances and may implement new regulations as early as February 2004.
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Japanese, Norwegian Ministers Confirm Intention to Cooperate in WTO Agriculture Talks

 

On December 1, Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei, currently in Italy for the FAO (United Nations Food and Agriculture Organization) Conference, met Norwegian Minister of Agriculture Lars Sponheim for talks at which it was confirmed that Japan and Norway would cooperate in the WTO (World Trade Organization) agriculture negotiations. The ministers agreed to cooperate in campaigning against the setting of an upper limit on tariffs, which could lead to substantial tariff reductions on items important to agriculture in their own countries.

 

At another meeting with EU Commissioner for Agriculture, Rural Development and Fisheries Franz Fischler, during a discussion of the WTO agriculture negotiations, Mr. Kamei said that although the clauses relating to the setting of an upper limit on tariffs in the "3rd draft of the ministerial declaration" needed revising, the "3rd draft" did show a degree of consideration [for items important to individual countries] and could be used as a basis for further discussion.
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Agriculture Minister Stresses Need for Flexible Trade Rules at FAO Conference

 

On December 2, Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei attended a ministerial round table on "Developments in the WTO Negotiations and Implications for Food Security" held at the headquarters of the FAO (United Nations Food and Agriculture Organization) in Rome. Mr. Kamei stressed the need for flexible trade rules that take account of the multi-functionality of agriculture, telling those present at the meeting, "The way forward in the negotiations is for member countries to seek the establishment of flexible trade rules that take due account of non-trade concerns."

 

Mr. Kamei said that trade alone could not provide a full solution to food issues and the problems of hunger and poverty. He stressed the importance of building up infrastructure in developing nations to ensure that the multi-functionality of agriculture is sustained and explained Japan's approach to aid, based on the Official Development Aid (ODA) program, etc. He also urged the FAO to assist developing nations in developing the ability to assure their own food security.

 

In a meeting after the round table, Canadian Minister of Agriculture and Agri-Food Lyle Vanclief told Mr. Kamei that the discovery of young cattle infected with BSE in Japan had raised the level of concern over BSE worldwide, and said member countries of the Office International des Epizooties (OIE/World Organization for Animal Health), including Japan, should make available as much information and gather as many scientific opinions as possible, for use in the review of the OIE guidelines on the disease.

 

Mr. Kamei said the recent identification of two cases of BSE in young cattle showed that the disease had yet to be fully explained in scientific terms. He told Mr. Vanclief that Japanese experts were studying the disease and that the Japanese government would continue to cooperate with the OIE. Mr. Kamei added that it was thanks to Japan's decision to test all slaughtered cattle for BSE that the two cases had been discovered and that consumers in Japan were highly approving of the decision to test all cattle.

 

Mr. Vanclief also mentioned that the Canadian government had decided to lift the ban on imports of nashi [oriental pears] from Japan.
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Agriculture Minister Meets OIE Director General for Talks on BSE

 

Minister of Agriculture, Forestry and Fisheries Yoshiyuki Kamei, currently visiting Europe, met Dr. Bernard Vallat, Director General of the Office International des Epizooties (OIE/World Organization for Animal Health) in Paris on December 3, for talks on BSE (bovine spongiform encephalopathy).

 

In connection with the revision of international standards on the handling of BSE, Mr. Kamei told Dr. Vallat that, amidst a high degree of consumer concern, Japan had decided to test all cattle for BSE at the slaughterhouse and had identified two young animals (aged 23 and 21 months respectively) infected with an atypical form of the disease. In addition to providing scientific information of this kind, Mr. Kamei said Japan intended to take an active part in the OIE discussions.

 

Mr. Kamei observed that BSE was a disease of which many aspects had yet to be explained in scientific terms. With regard to the OIE proposal for the revision of international standards on the handling of BSE, Mr. Kamei said he believed it was important that the standards assure the safety of beef and restore consumer trust in beef, in Japan and around the world.

 

Dr. Vallat replied that the OIE regarded the identification of atypical forms of BSE and the discovery of young cattle infected with BSE in Japan and Italy as an important issue and for this reason would be holding a reference laboratory meeting on December 4, to which it had invited specialists from Japan as well as Switzerland and the United Kingdom.

 

Dr. Vallat said the OIE would be seeking the views of member countries regarding the review of international standards on the handling of BSE and that, in this connection, intended to provide an opportunity for Japanese specialists to explain Japan's point of view.
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Ban on Beef, Pork and Lamb Imports from Korea Partially Lifted Following End of FMD Epidemic

 

On December 3, the Ministry of Agriculture, Forestry and Fisheries decided to partially lift measures banning the importation of artiodactyla, including cattle, swine and sheep, and their meat from Korea, on the grounds that an outbreak of foot-and-mouth disease (FMD) in that country has been eradicated. Owing to an outbreak of swine cholera, the ban on imports of pork remains in place, except for meat from animals raised on Cheju Island, which has had no reported cases of the disease and has effective arrangements for preventing an epidemic.

 

The Korean outbreak of FMD began in March 2000, and MAFF responded by banning imports of artiodactyla, including swine and cattle, and their meat. In April 2002, the ban was lifted after Korea declared itself free from FMD, but was reinstated when the disease flared up once more in May 2002. The last case was reported in June 2002, and MAFF has been able to confirm that Korea has taken adequate preventive measures.

 

In 1999, prior to the FMD outbreak, Japan imported approximately 81,000 tons of pork, 570 tons of beef and 2,300 tons of lamb from Korea.
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Government Plans to Maintain Beef Safeguards in Fiscal 2004

 

The government revealed, on December 8, that it intends to maintain the system of safeguards (which provide for tariffs to be raised in case of a sharp rise in imports of beef) next fiscal year, and that its content would remain largely the same. The food service industry has been calling for modifications so that special circumstances such as an outbreak of BSE (bovine spongiform encephalopathy) would be taken into account when deciding whether or not safeguards should be activated, but the government has decided simply to extend the existing system. The official decision to extend the system will be made by the end of the month, at a meeting of the Council on Customs, Tariff, Foreign Exchange, and Other Transactions (an advisory body to the Ministry of Finance) and a bill proposing a revision of the Temporary Tariff Measures Law to extend the system will be submitted to the ordinary session of the Diet in 2004.

 

Under the safeguard system, if cumulative growth of quarterly import volume for the past four quarters exceeds 17% on the previous four quarters, the tariff on beef, which has provisionally been lowered to 38.5%, is automatically returned to 50%.
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Japan and 3 ASEAN Countries Agree to Start FTA Negotiations in 2004

 

On December 11, Prime Minister Junichiro Koizumi had separate meetings, at the Prime Minister's Official Residence, with the prime ministers of Thailand, Malaysia and the Philippines (in Japan to attend the Japan-ASEAN Commemorative Summit), at which it was agreed to begin government-level negotiations with a view to the conclusion of free trade agreements (FTAs). The negotiations with the earliest country are due to begin in January 2004.

 

In conjunction with the start of negotiations, the premiers agreed that items important to each country should be handled in a flexible manner. Mr. Thaksin Shinawatra, Prime Minister of the Kingdom of Thailand, which is a net exporter of agricultural products, said there were difficult problems to be overcome, but the important thing was to start the negotiations.

 

During the meetings, the premiers received reports on the preparatory talks held to date, including the activities of the joint industry-academic-government study groups. These reports will be used as reference documents for the government-level negotiations. The report for Thailand proposes that a separate group be established to handle intensive discussions on the field of agriculture, and it is thought that the government-level negotiations will be conducted on this basis.

 

Japanese government sources said that negotiations would start in January and February 2004 and that the government planned to hold talks with two countries per month. Dates for the conclusion of the FTAs were not set during the premier talks, but the next ASEAN summit, to be held in November 2004, is said to be a provisional target.

 

Japan intends to press for the FTAs with the three countries in question to abolish tariffs on industrial products such as automobiles. At the same time, Japan is likely to come under pressure to open up its agricultural market to products such as rice, chicken, sugar, starch and tropical produce, and its labor market to workers in professions such as nursing.

 

From Japan's point of view, the conclusion of FTAs with these three countries would open up a huge free trade market with a population of approximately 165 million and a GDP of more than \30 trillion.
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Consumer Prices Rise for First Time in Five Years

 

The Consumer Price Index report for October (base year 2000), published by the Ministry of Public Management, Home Affairs, Posts, and Telecommunications (MPM) on November 28, revealed that the overall index (excluding fresh foods, whose prices are subject to sharp fluctuation) rose 0.1 percentage points on the same month in 2002, to 98.3, moving upwards for the first time since April 1998, some five and a half years ago. In addition to the raising of the proportion of medical fees to be paid by the patient in April and of the rate of tax on cigarettes in July, temporary factors such as rice whose price was inflated by a poor harvest due to this year's cold summer coming onto the market in October. The government believes it will take several years for Japan to overcome deflation completely, but the rate of deflation has been slowing since the beginning of 2003, which suggests light at the end of what has been a long tunnel.

 

The MPM Statistics Bureau takes the view that the rise in the overall index is temporary, attributing it to the fact that the rise in the price of rice coincided with a number of systemic factors (the rise in the proportion of medical fees to be borne by the patient, the tax increase on cigarettes, etc.). However, as the MPM also points out, it is a fact the rate of deflation is steadily slowing.
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Japanese Researchers Identify First New Species of Whale in 90 Years

 

It has been confirmed that a whale stranded in shallow waters off the island of Tsunoshima, part of Hohoku-cho in Yamaguchi Prefecture, in 1998 was a hitherto unknown species. Researchers at the Fisheries Research Agency in Yokohama have named the new species the Tsunoshima whale, after the place it was stranded. The results of the scientists' research will be published in the next issue of the British science journal Nature, which goes on sale on November 20. The last new species of large whale to be discovered was Bryde's whale, in 1913, some 90 years ago.

 

The stranded whale, which measured approximately 11 meters in length, was found dead in shallow waters off Tsunoshima in September 1998. According to the Fisheries Research Agency, the shape of the whale's jaw was unique, as was a segment of its DNA base arrays. From these findings, the researchers determined that the animal belonged to a new species related to the fin whale. The Tsunoshima whale is thought to inhabit the Pacific Ocean, ranging from waters near Japan to the South Pacific, and the Indian Ocean.
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Northern Japan Suffers Cold Summer Every 5 Years; Following Summer is Often Hot

 

Research by the National Agriculture and BIO-oriented Research Organization (NARO) has revealed that, since the 1980s, the summer climate of northern Japan has followed a five-year cycle, linked to current activity in the tropical regions of the Pacific Ocean. Since 1983, cold weather damage to crops and cold summers, including that of 2003, have consistently occurred at five-year intervals, and a cold summer is often followed by a hot summer.

 

NARO's National Agriculture Research Center (NARCT) for the Tohoku Region in Morioka (Iwate Prefecture) published these findings on November 20. Scientists at the NARCT noticed that the Okhotsk Sea summer anticyclone, which is responsible for cold weather damage in northern Japan, tends to grow largest when there is a large pressure difference between Wakkanai in Hokkaido and Sendai in Miyagi Prefecture. The NARCT team found that, since the 1980s, the pressure difference has tended to grow on a five-year cycle.

 

On the basis of its surveys of sea surface temperature relating to current activity in the tropical Pacific and the fact that the five cold summers since the 1980s have all occurred after the end of the El Niño cycle, the NARCT believes it is highly likely that the five-year cycle of fluctuation in the summer climate of northern Japan is a phenomenon that originates in the tropics and is related to the El Niño phenomenon".
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COMMENT

  

The FAO Hunger Report: Why We Should Concern Ourselves with World Problems

 

The number of people suffering from undernourishment worldwide has begun to rise once more, is the warning carried in The State of Food Insecurity in the World 2003, the annual hunger report of the Food and Agriculture Organization (FAO) of the United Nations, published this week. In the first half of the 1990s we were winning the war against world hunger, so how is it that conditions are deteriorating now? This is a serious issue that concerns all humanity, and one that Japan, as one of the world's largest importers of food,cannot afford to ignore.

 

The hunger report begins with a piece of good news, reporting that conditions are improving not only in large countries such as Brazil and China but also in Chad, Namibia, Sri Lanka and other smaller countries.

 

Unfortunately, most of the report is devoted to bad news. In 1999-2001, the number of undernourished people in the world rose to 842 million, up 18 million on 1995-1997.

 

In the first half of the 1990s, the world succeeded in reducing the number of undernourished people by 37 million. On paper, around half of these people have become undernourished once more.

 

The World Food Summit of 1996 set a goal of halving the number of undernourished people worldwide by 2015. In 2000, the United Nations as a whole adopted a set of Millennium Development Goals, which included halving poverty and hunger and improving the availability of education by 2015. The world came together to tackle the hunger problem. And yet, conditions have deteriorated.

 

With a view to identifying the causes of this failure, the report begins with an analysis of countries that have been successful in dealing with hunger. In Brazil and China, rapid overall economic growth has led to significant growth of agriculture in particular. Both countries have made an effort to control population growth and develop human resources, and have relatively low rates of HIV infection.

 

Brazil's current president promised to achieve "zero hunger" within his four-year term of office. At a recent meeting, a large number of African heads of state decided to raise the proportion of their overall national budget allocated to agriculture to at least 10% within five years.

 

In spite of these efforts, the number of undernourished people has grown. Drought, civil war and growing numbers of AIDS patients have led to stagnation in agricultural production. In the developing countries, agricultural production has been expanded to an unreasonable level to support population growth, leading to environmental problems. HIV/AIDS has robbed many developing countries of valuable labor, leading to poverty and hunger. A vicious circle has arisen in which, as poverty and hunger spread, people turn to prostitution to make a living, causing HIV/AIDS to spread further.

 

It is important that the world use this reversal in the war against hunger to relaunch the drive to attain the Millennium Development Goals. In addition to self-help efforts on the part of developing countries, there is a need for still greater support from the developed nations.

 

In value terms, Japan is the world's largest net importer of agricultural products. Can this be right? Besides contributing to the fight against hunger, it is time for not only the government but also the people of Japan to come together to consider how Japan can increase its food self-sufficiency.

(from an editorial in the November 28, 2003 issue of the Nihon Nogyo Shimbun)
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