Fruit and vegetables to Japan

(Last updated: 26 September 2008)

Trends and opportunities

The market

The Japanese market for fresh fruit and vegetables has traditionally been supplied from local produce, with imports limited to a narrow range of products. However, due to reducing competitiveness in the domestic farm sector and the opening of the import market, Japan has steadily increased import volumes. This is forecast to continue in the years to come as domestic agricultural production falls.

Market size (total volume/tonnes)

	2002	2003	2004	2005	2006	2007
Vegetables	12851.3	12836.1	13003.4	13076	13151.3	13319.2
Fruit	6158.2	6293.3	6734.4	6993.4	7188.3	7163.1

(Source: Euromonitor)

Local supply conditions and fluctuations in the exchange rate influence imports of fresh fruit and vegetables to Japan in any given year.

Imports of bananas, pineapple, papaya, mangoes and avocados have been increasing due to consumer awareness of their health benefits.

The volume and varieties of imported fresh fruit and vegetables have been steadily increasing into Japan, presenting opportunity for Australian exporters. Three factors have influenced prospects:

• The opportunity to supply out of season produce
• Improved domestic infrastructure for delivery of imported product
• Deregulation of Japanese plant quarantine laws is easing restrictions and opening up market to new products

Trends, characteristics, and the latest agricultural census in Japan, are available from The Ministry of Agriculture, Forestry and Fishery.

Opportunities

Opportunity exists in contract growing, where Japanese exporters supply seeds and growing instructions for a variety of Japanese vegetables that are produced and harvested in Australia before exporting back to Japan. Diversification of distribution channels and importers is also occurring, which provides opportunity for direct importing from big supermarkets.

Australia has a brief window of opportunity for exporting to Japan because of the seasonal difference between the northern and southern hemispheres. Opportunities exist in a range of fresh fruit and vegetables and is aided by the following positive factors:

• Australia’s diverse climate and soil varieties enabling the harvesting of a wide variety of produce and production with low levels of chemical fertilisers.
• Consumer awareness of Australia’s clean environment and low chemical usage adding to
• Australia’s appeal as a supplier of safe foods.

Opportunities exist for a range of produce from Australia including:

• Fresh vegetables:
  • onions
  • pumpkins (from Tasmania only)
  • carrots
  • asparagus
  • broccoli
  • mushroom
  • corn
  
  
• Fresh fruits:
  • blueberries
  • mango
  • apples, fuji apples (from Tasmania only)
  • lemons
  • oranges and other easy peel citrus
  • rambutans
  • cherries (from Tasmania only)

Competitive environment

For imported horticultural products, the USA is the traditional market leader but recently China has also become a major supplier, increasing both the range and volume of fresh vegetables imported into Japan. China is recognised as one of the foremost low-cost suppliers to Japan. Other overseas producers will be challenged to supply high quality fresh fruits and vegetables at low competitive prices.

Tariffs, regulations and customs

The Japanese Government prohibits imports of fresh fruit and vegetables where soil is evident and plants have soil attached, or produce contains evidence of pests and pathogens.

Taxes payable on imported fresh fruit and vegetables are:

• Lemons – zero
• Onions – zero to 8.5 per cent  depending on price per kilogram
• Pumpkin, asparagus, broccoli and carrots – 3 per cent
• Mango – 3 per cent
• Mushrooms – 4.3 per cent
• Rambutans – 5 per cent
• Berries – 5 per cent 
• Cherries – 8.5 per cent
• Oranges supplied between June and November – 16 per cent
• Apples – 17 per cent 
• Oranges supplied between December and May – 32 per cent

Industry standards

Industry standards apply and restrictions exist with the Japanese government prohibiting imports of some fresh fruit and vegetables due to risk of pest and disease.

Information on specific standards and labelling requirements is available from the Ministry of Agriculture, Forestry and Fishery.

Chemical residue

On May 29, 2006 the Ministry of Health, Labour and Welfare (MHLW) introduced the positive list system for agricultural chemicals remaining in foods. The system to prohibit the distribution of foods that contain agricultural chemicals above a certain level if maximum residue limits (MRLs) have not been established. The agricultural chemicals include pesticides, feed additives and veterinary drugs.

This activity has been based on the Law to Partially Revise the Food Sanitation Law (Law No. 55, 2003). The Law No. 55 has required the MHLW to take the following measures within three years after the publication of the revised Food Sanitation Law (May 30, 2003).

More information is available from the Ministry of Health, Labour and Welfare.

Marketing your products and services

Market entry

Market entry strategies will vary according to products and segments being targeted. Use Australia’s unique advantages to start business and win contacts, and promoting things such as counter seasonal advantages and Australia’s diverse climate and soil variation.

There are a number of beneficial strategies that will improve your dealings with Japanese customers:

• Secure local representation
• Utilising the fact that Australia has the same time zones for doing business with Japan
• Using the favourable currency exchange rate to your advantage
• Providing regular information about climate, growing conditions, harvest conditions and timing to your customers
• Providing details of the condition of the produce before shipping and obtain feedback from importers after landing
• Frequently visit the market and follow up customers at every occasion; staying on top of their preferences and needs through research and communication

The use of e-technology to support operations in fresh fruit and vegetable importing is increasing although direct online trading is not an option yet. Many importers use email and the Internet to check produce quality by digital photo examination before shipping and on arrival, however, face-to-face contact with personal relationships and trust still heavily influence buying decisions.

Distribution channels

Diversification of distribution channels and importers vary according to market, product and segment. Typical distribution patterns start with growers, then packers and or exporters, then to Japanese trading companies. From that point, product can go to either wholesale market retailers, food processing companies or retailers and restaurants.

Other distribution options bypass trading companies and go directly to retailers, particularly large supermarket chain stores or food processing companies and restaurant chain outlets.

There is also an increasing trend for the big supermarkets who have considerable buying power to import directly from the grower.

Links and industry contacts

Fruit and vegetables–related resources

Market Agriculture.com –  www.agribusinessonline.com

Government, business and trade resources for Japan

Ministry of Agriculture, Forestry and Fishery – www.maff.go.jp/eindex.html
Ministry of Finance – www.mof.go.jp

Australian resources

Japan External Trade Organization (JETRO) Sydney - www.jetro.go.jp/australia 
Level 25, Gold Fields House
1 Alfred Street
Sydney NSW 2000
Tel: +61 2 9276 0100

Japan External Trade Organisation (JETRO) Melbourne - www.jetro.go.jp/australia/melbourne/index.html
Level 21, 101 Collins Street
Melbourne VIC 3000
Tel: (03) 9654 4949
Fax: (03) 9654 2962