Fruit and vegetables to Japan
(Last updated: 15 Aug 2013)
Trends and opportunities
The market
The Japanese market for fresh fruit and vegetables has traditionally been supplied locally, with imports limited to a narrow range of products. However, due to decreasing competitiveness in the domestic farm sector, global climate change, natural disasters, and the opening up of the import market, Japan has steadily increased import volumes in order to secure sufficient supply to meet the country’s demand. Self-sufficiency of food production in Japan remains relatively low - the rate on a calorific basis in 2012 was 39 per cent. According to Ministry of Agriculture, Forestry, and Fisheries (MAFF), total supply on a calorific value per capita per day in 2012 was 73kcal (domestic supply, 55kcal) for vegetables and 63kcal (domestic supply, 21kcal) for fruit.
The Great East Japan Earthquake and subsequent tsunami of 11 March 2011 caused production and supply shortages of fresh vegetables in the Tohoku area, and due to rising food safety concerns and possible longer-term radiation threats to food production, this increased the need for food imports. Production capacity in the Tohoku area has recently improved through reconstruction efforts, but high prices and a negative perception of fruit and vegetables grown in the Tohoku area remain.
Overall, the price of domestic fresh produce remains higher than imported produce, as Japanese farming efficiency is lower than other countries due to small production yields and high labour costs. Japanese demand for imported produce remains high, although there is still a niche market where consumers are willing to pay a higher price to support the domestic industry. Additionally, some Japanese consumers consider domestic produce to be safer and of a higher quality. Quality produce that is fresh and safe is absolutely essential to Japanese consumers.
Japanese growers have spent considerable time and energy in consistently improving their products based on taste and appearance. However, Australia is well positioned to deliver alternative products at a much lower price and supply out-of-season fresh produce.
The total volume of fresh vegetables (excluding only fresh fruit items within HS code 08) imported into Japan in 2012 was JPY98.1 billion – an increase of 11 per cent compared to the previous year. The main imported fresh vegetables were onions, pumpkins, carrots, leeks, broccoli and burdock - these are also grown in Japan. China and the USA were the top two countries exporting fresh vegetables to Japan, accounting for about 50 per cent of Japan’s total fresh vegetable imports.
The total volume of imported fresh fruit (HS code 08) in 2012 was 1,685,573 tons, valued at JPY162 billion. This was a decrease of approximately 6 per cent in both volume and value compared with the previous year. The main fresh fruit imports were bananas, grapefruits, pineapples, oranges, kiwifruit and lemons. While these types of fruit are grown in Japan, supply does not equal demand. 90 per cent of pineapples and bananas imported by Japan are from the Philippines; 95 per cent of kiwifruit from New Zealand; over 96 per cent of grapefruit is from the USA and South Africa; and 90 per cent of oranges from the USA and Australia. Fresh fruit imports to Japan are predominantly supplied by only a few countries.
Trade statistics for Japan in terms of imports and exports are available from the Japanese Customs website.
Opportunities
Japanese consumers are interested in high quality, fresh, clean, safe, value-for-money produce from overseas. Potential opportunities for Australian fresh fruit and vegetables are:
Fresh Vegetables
- onion
- carrot
- pumpkin (from Tasmania only)
- asparagus
- broccoli
- mushroom
- leek
- lettuce
- cabbage
- cauliflower
- kale
- leguminous vegetables
- sweet corn
- truffle
- chestnut
- varieties of nuts
Fresh Fruit
- mango
- lemon
- navel and valencia oranges
- marcot
- grapefruit
- rambutan
- apricot
- fig
- cherries (from Tasmania only)
- apples (from Tasmania only)
Australia has a number of competitive advantages when exporting fresh fruit and vegetables to the Japanese market:
- Australia’s diverse climate and soil varieties enable the harvesting of a wide variety of produce and production with low levels of chemical fertilisers
- Consumer awareness of Australia’s clean, green environment and low chemical usage adds to Australia’s appeal as a supplier of safe foods
- Less shipping time compared to other countries in the southern hemisphere leads to the supply of fresh products with superior quality
- Improved domestic infrastructure for delivery of imported products into Japan
- The deregulation of Japanese plant quarantine laws is easing restrictions and opening up markets for new products
Australia’s total value of fresh vegetable exports (under HS code ‘Commodity -07, Edible Vegetables and Certain Roots and Tubers’) was valued at A$1.25 billion in 2012 - a 23 per cent increase compared to the previous year. Japan is the ninth largest destination for Australia’s fresh vegetable exports with a value of A$26 million in 2012. Onions, carrots and leguminous vegetables were the top three vegetable products exported from Australia to Japan, accounting for 84 per cent of the total volume of fresh vegetable exports to Japan (16,591 tons in 2012). Other fresh vegetables were exported but at a lesser volume.
Australia’s total value of fresh fruit exports (under HS code ‘Commodity: 08, Edible Fruit and Nuts; Peel of Citrus Fruit or Melons’) was A$673 million in 2012 - a 21 per cent increase compared to the previous year. Japan is the second largest destination for Australia’s fresh fruit exports after Hong Kong, with a value of A$60 million - approximately 9 per cent of the total export figure.
Citrus products made up a large portion of fresh fruits imports in 2012, with a value of A$38 million (37.5 per cent of total export of fresh fruits) and 32,155 tons (95.4 per cent of total exports of fresh fruits) in value and volume respectively. Nuts were the second largest product exported, followed by figs, apricot and cherries, but these export volumes are considerably smaller compared to citrus products.
Competitive environment
For imported horticultural products, the US is the traditional market leader. The US also remains the top exporter to Japan for some products in the fresh vegetable and fruit sectors. However, China and other Asian and southern hemisphere countries have also become major suppliers, increasing both the range and volume of fresh fruit and vegetables imported into Japan.
China is recognised as one of the lowest-cost suppliers of vegetables to Japan – other overseas producers are unable to compete with China on price. However, there have been cases of Chinese produce being restricted or banned from being imported into Japan due to levels of chemical residue above Japanese limits.
Australia is also facing stronger competition from Chilean and South African producers due to their location in the southern hemisphere. They too, are taking advantage of counter seasonality by supplying similar types of products at more competitive price points.
Tariffs, regulations and customs
Australia is a member country of the World Trade Organization (WTO). Australian companies exporting to Japan should refer to the tariff rate column applicable to WTO countries. The latest version of the Japan tariff schedule as of 1 April 2013 can be found on the Japanese Customs website.
Exporters are advised to look closely at tariff rates before exporting to Japan. Please note: some fresh fruits and vegetables will attract a seasonal tariff – higher than the ordinary rate – depending on the time at which they are imported.
Industry standards
Plant Protection
The Japanese Government prohibits importers of fresh fruit and vegetables where soil is evident and plants have soil attached, or produce contains evidence of pests and pathogens.
Under the Plant Protection Act’s designated quarantine procedures, fresh vegetables and fruit are checked by the Ministry of Agriculture, Forestry and Fisheries’ (MAFF) Plant Protection Station. This includes a plytosanitary inspection which screens for contamination by any pests or harmful plants. For details of the quarantine procedures, please refer to the Plant Protection Station website.
Chemical Residue
On 29 May 2006, the Ministry of Health, Labour and Welfare (MHLW) introduced a list system for agricultural chemicals found in foods. This list prohibits the distribution of foods containing agricultural chemicals above a certain level of Maximum Residue Limits (MRLs). Agricultural chemicals include pesticides, feed additives and veterinary drugs.
This system is based on the Law to Partially Revise the Food Sanitation Law (Law No. 55, 2003), which required MHLW to adopt these measures within three years following the publication of the revised Food Sanitation Law (30 May 2003).
More information about the positive list system is available from the Ministry of Health, Labour and Welfare website:
Marketing your products and services
Market entry
Market entry strategies will vary according to products and segments. To successfully market your products in Japan:
- Promote Australia’s competitive advantages in counter seasonal, climate, soil variation and ‘clean, green and safe’ image
- Secure local representation where possible
- Emphasise shared time zones which allow for rapid business communications
- Offer various options for shipment routes – direct or trans-shipment
- Provide regular information about climate, growing conditions, harvest conditions, and traceability including use of chemicals
- Provide details of produce condition before shipment and obtain feedback from importers after landing
- Obtain agreement for supply contracts throughout the growing season
- Offer produce grown in different locations to maintain consistency of supply
- Price, quality and meeting product specifications such as packaging
- Agree to a trial shipment - a positive step towards securing long term supply contracts
- Frequent visits to the market and follow-up with customers regularly
- Awareness of customer preferences and needs through research and communication
The use of e-technology to support operations in importing fresh fruit and vegetables is increasing, although direct online trading is not yet an option. Many importers use email and the internet to check produce quality by digital photo before shipping and on arrival. Face-to-face contact and the building of personal relationships still heavily influence buying decisions.
Distribution channels
Distribution channels and importers vary according to the nature of the product and end user. Typical distribution channels begin with the growers, then the packers and/or exporters, fruit and vegetable importers and finally, the Japanese trading companies. From that point onwards, produce will go to either wholesale market operators, food processing companies, retailers and/or restaurants.
Other distribution options can bypass wholesalers and go directly to retailers, particularly large supermarket chain stores, food processing companies or restaurant chain outlets.
An increasing trend is for grouped supermarkets with a large number of stores that have considerable buying power to import directly from growers and packers. However, this channel is only suitable for produce that can be imported directly, with minimal handling and storage requirements.
Links and industry contacts
Government, business and trade resources for Japan
Japan Customs – www.customs.go.jp/english/index.htm
Ministry of Agriculture, Forestry and Fishery – www.maff.go.jp/e/index.html
Ministry of Health, Labour and Welfare – www.mhlw.go.jp/english/topics/foodsafety/
Ministry of Finance – www.mof.go.jp/english/index.htm
Japan External Trade Organization – www.jetro.go.jp/australia
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.