Japan News Update #41 (16 - 28 Nov, 2022)

Domestic transportation issues and entries into the international market

According to the Ministry of Land, Infrastructure (MLIT), Transport and Tourism, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Agriculture, Forestry and Fisheries (MAFF), there will be a 32.5% shortfall of transport capacity for agricultural, forestry, and fisheries goods in FY2024. The projection was based on the effects of the change of truck driver working hour restrictions, which is set to take effect in FY2024. Therefore, there is an urgent need to rehabilitate agricultural product transportation systems, such as intermediate haulage.
Source: Regulatory revisions will result in insufficient transportation capacity for agricultural products

Fruit growers in the Tohoku area are looking for new markets and strategies to increase their international sales channels. In March of this year, India opened its market to Japanese apples. Aomori Prefecture, which produces the most apples in Japan, has begun testing its product in the Indian market. In addition, Yamagata Prefecture, one of the world's leading producers of La France pears, is attempting to increase exports to East Asia.
Source: Tohoku fruit producers look to overseas markets for growth

MAFF’s policy towards sustainable food systems

MAFF released a technology catalogue to achieve the Strategy for Sustainable Food Systems. The inventory includes 81 solutions for reducing the use of chemical pesticides and fertilizers, reducing greenhouse gas emissions and improving labour efficiency. Farmers can learn about potential technologies while they are still developed by the Japanese National Research Institute, National Agriculture and Food Research Organization (NARO), and regional research institutes.
Source: MAFF published the catalogue of promising technologies for achieving Strategy for Sustainable Food Systems; Technology catalogue on MAFF

Changes surrounding the livestock and feed industry

Dairy producers in Japan are facing an imbalance in domestic milk production and potential oversupply due to increased prices from growing production costs and a decline in school demand for the New Year's break. Therefore, MAFF will reimburse additional storage costs for skimmed milk powder and other goods incurred by dairy farmer associations as a result of pricing increases this month.
Source: Dairy farmers fear milk glut over New Year’s holiday season

With 18 outbreaks of highly pathogenic avian influenza, or bird flu, reported this season through the end of November at poultry farms in 12 of the country's 47 prefectures, the disease is spreading in Japan at an unusually rapid rate. Following general trends, it is anticipated that number will increase even further. Concerns regarding the cost of chicken eggs have been raised in light of the avian flu developments.
Source: Bird flu sweeps through Japan, spreading at unusual pac

Domestic farmers are increasingly abandoning rice cultivation in favour of grains for livestock feed following a spike in the price of imported grains due to Russia's invasion of Ukraine. For the second year in a row, more corn and rice were planted for feed in the 2022 crop year. The total planted area grew by 37,000 hectares to 549,000 hectares. Efforts to replace rice paddies with wheat, vegetable, and fruit farms are also accelerating quickly.
Source: Japan farmers shift from rice to feed crops as price of imported grain surges

The Wagyu Olympics, Japan’s largest wagyu contest, established a new category focusing on "fat quality," which is the secret to flavour and softness. The development of the new category represented a change in the cattle industry's emphasis from fat quantity to fat quality and away from fat marbling.
Source: Prized marbled wagyu at crossroads as industry shifts focus to fat quality

Current retail price trends

Japanese food manufacturers are expanding low-cost food amid soaring food prices. Some instant noodle firms and meat processors have introduced new products that are 10 to 40% less expensive than the originals, reviewing the ingredients and volume per unit. They aim to attract saving-minded consumers while hiking prices on core item.
Source: Low-cost foods targeted at savings-minded consumers

Veganism and plant-based foods in Japan

Japan is seeing a modest increase in veganism. Previous research shows that the social component of veganism appears to be the most significant challenge for vegans and vegetarians in Japan. Vegan NPOs are active, and there are increasing vegan and vegetarian events. The current objective seems to be to accommodate veganism in Japanese society.
Source: Veganism in Japan: How “soft” activism is changing minds in a meat-eating nation

The Japanese market for plant-based food is expanding yearly, with a market size of JPY 24.6 billion ($246 million) in 2020. Miyoshi oil & fat Co., a Japanese company manufacturing and selling edible oil, has launched a series of plant-based edible oil products. The company developed the taste of the products, solving the lack of flavour and plant-derived grassy smell. In addition, Yamagata University's research team has succeeded in producing alternative meat made from rice bran, in which Japan can be self-sufficient. The group aims to start a business in two years and commercialize it.
Source: Japanese oil manufacturer launches a new plant-based food brand; Yamagata university creates alternative meats from rice bran