Japan News Update #31 (27 Jun - 4 Jul, 2022)

New food-consuming behaviour in Japan

Japanese retailers are expanding loyalty point programs to encourage customers to reduce their climate impact through everyday decisions. The initiative is part of a wide-ranging government program to support those retailers, including Rakuten Group Inc., the Japanese e-commerce giant, and Aeon Mall Co., a major Japanese shopping mall operator.
Source:  Consumers are racking up rewards in Japan by buying green

In the wake of a series of natural disasters and the pandemic, emergency food/stockpiles have become more diverse. With the increase in self-restraint in going out, the practice of storing more of one’s usual food and buying more as it is consumed (“rolling stock” in Japanglish) has spread among consumers. Food manufacturers also respond to the changing needs by improving their standard products for long-term storage and accommodating food allergies.
Source: Popularisation of emergency foods

 Japan’s dependence on foreign foods and imports

Soaring feed grain prices and difficulties procuring fertiliser ingredients pose significant risks to Japan's food supply. Japan depends heavily on imported grains for animal feed and fertiliser material, and their supply has become unstable too. Agriculture minister Kaneko Genjiro said these problems need to be resolved right away.
Source: Grain prices and fertiliser sourcing post major risks to Japan's food supply, ministry says; Japan's agriculture ministry says Ukraine conflict is top food security risk 

Agricultural imports from four nations—the United States, Canada, Australia, and Brazil—account for 48% of Japan’s daily caloric intake per person, according to estimates from the Ministry of Agriculture, Forestry and Fisheries (MAFF). Japan depends on those four nations, particularly for products with low self-sufficiency rates, such as wheat and soybeans. MAFF noted risks of supply reduction in beef and pork, mainly imported from the US, due to a shortage of workers at slaughter and processing facilities. It also states the need to steadily replace imports with domestic products while maintaining relationships with importers.
Source: Half of Japan’s food depends on four countries in calorie-based estimation

Japanese firms’ entry into the European and US market

Japanese frozen food manufacturers are developing products for the US and European markets for Asian foods such as Gyoza dumplings. Ajinomoto Co. plans to increase sales of dumplings, fried rice, and other products in North America and France. As a production base, the company will expand those products by utilising Ajinomoto Foods North America Inc., a US frozen foods company. Nichirei Foods also expands sales of fried rice and other products through its US subsidiary, InnovAsian Cuisine Enterprises, Inc. In addition, Maruha Nichiro will enter the North American cold food market through its US subsidiary Waffle Waffle LLC.
Source: Developing Asian frozen food products in European and US markets

The Japan External Trade Organization (JETRO), a Japanese government-backed trade group, will expand its online service that matches small domestic enterprises with overseas buyers. It aspires to assist small firms that struggle with language barriers and a lack of international contacts. JETRO is planning to provide interpreters for online business discussions.
Source: JETRO to bolster matchmaking website for small exporters 

Meiji Holdings Co., Japan's largest baby formula maker, plans to enter the US baby formula market to supply powdered milk to ease a nationwide shortage. Meiji has applied to the Food and Drug Administration for authorisation to export to the US. Meiji has focused on expanding sales in Asia.
Source: Japan’s Top Baby-Formula Maker Joins Race to Feed American Kids

Japanese food-related firms’ movements

Meiji, Itoham Yonekyu Holdings, a Japanese processed food manufacturer, and Maruha Nichiro have established a protein intake promotion association. They will also collaborate with local governments to conduct two initiatives; nutrition education classes at elementary schools and nutrition education events that invite nutritionists. In addition, they intend to improve people's overall health by emphasising the importance of protein intake.
Source: Protein intake promotion by Meiji, Itoham Yonekyu, and Maruhanichiro 

Mitsubishi Co., Japan's giant trading company, and Maruha Nichiro Co., Japan’s largest seafood company, will establish a joint venture company, ATLAND Corporation. ATLAND will go into the land-based salmon farming business in Japan. Mitsubishi already owns Cermaq, one of Norway’s largest salmon farming businesses.
Source: Mitsubishi to build salmon land farm in Japan, Press Release

Sojitz Co., a Japanese trading company, has established Sojitz Nogyo Co, a domestic agricultural firm. Through Sojitz Nogyo, Sojitz aims to develop a system that will enable the year-round supply of GAP-certified farm products nationwide. In addition, Sojitz Nogyo will support producers in obtaining GAP cerfication (JGAP, ASIAGAP, GLOBALGAP) and provide facilities for joint production.
Source: Sojitz established domestic agricultural company, Press Release

Food-tech startups trend in Japan

There are four primary patterns of food tech startups in Japan:

1. Startups that have put their core business on a growth trajectory (e.g., Basefood Inc., a nutritionally balanced staple food initiative)
2. Startups with an eye on the changing environment (e.g., DayBreak Co., a freezing technology with AI)
3. Startups that have created a category (e.g., greenace Inc., a pulverisation technology to solve vegetable waste)
4. Startups that envisioned the technology (e.g., PLANTX Co., an indoor vertical farming initiative)
   Source: Rapid FoodTech innovations in Japan