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JAPANESE FOOD MARKET

AND THEJETRO ZONE

AT

Mio KAWADADirector in Charge of International Trade Fairs in Japan

JETRO Tokyo

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ABOUT JETRO

JETRO: Japan External Trade Organization

1.Our mission:

- To Promote trade and investment

between Japan and the rest of the world

2.Our activities- Promoting cross-border business tie-ups in high-tech

and other key industry sectors

- Facilitating economic growth in developing countries

through trade promotion

- Assisting Japans small and medium-sized enterprises(SMEs) to develop markets overseas

- Helping Japanese firms expand overseas and aiding

in protecting their intellectual property

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Our Overseas Offices: 73 offices in 55countries

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Cairo

Nairobi

Johannesburg

Lagos

Abidjan

Our Offices in Africa

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CHAPTER 1

OVERVIEW OF THE

JAPANESE FOOD

MARKET

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020

4060

80100120140

160180200

220240260

2005 2006 2007 2008 2009

Alcoholic Drinks

Non-Alcoholic Beverages

Sugar and confectionery

Milk, Cheese and Eggs

Fish and Sea food

Meat

Wine, Spirits, Beer

Coffee, tea, cocoa, mineral waters, soft drinks, fruit,

vegetable juices

Cane, jams, marmalades, compotes, jellies, fruit purees and

pastes, honey, maple syrup, chocolate, chewing gums, etc

Animals and poultry purchased live for consumption as food. Excludes:

land and sea snails, lard and fats, soups, broths and stocks containing

meat.

Milk, cream and yoghurt containing sugar, cocoa, fruit or flavourings,

dairy products not based on milk such as soya milk.

Fish and seafood purchased live for consumption as food, Excludes:

soups, broths and stocks containing fish and seafood.

1. OVERVIEW of Japans Food

Market

Japanese Food Market size for 2009

: About 492 Billion USD

Source: World Consumer Income and Expenditure Patterns 2011 , Euromonitor International

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1. OVERVIEW of Japans Food

Market

Japans food self-sufficiency ratio (based on calories): 40% 60% of food supply depends on import.

Import Value of food from

South Africa for 2009:Approx. 190million USD

=Ranked as 30th

Major food imports from South Africa

1) Crude Sugar: About 55 Million USD

2) Grapefruit: About 47 Million USD3) Canned Peaches: About 12 Million USD

SourceMinistry of Agriculture,Forestry and Fisheries

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CHAPTER 2

JAPANESE LIFESTYLE

AND

TRENDS IN THE FOOD

BUSINESS

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Japanese people have a strong interest in

eating

2-1. KEYWORD NO. 1:

DIVERSITY

Cuisines from all over the world can be found inJapan: not only Japanese food

Team Foodex in an

African restaurant.

Cooking international

cuisines at home

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The Japanese consumers are continuously

searching for new products

Looking out for new and different tastes

2-1. KEYWORD NO. 2:

NOVELTY

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The number of working women is increasing,

resulting in less time in the kitchen.

Long life expectancy.

Trend toward nuclear families.

Microwave cooking is very popular.

2-1. KEYWORD NO. 3:

EASY COOKING & EASY EATING

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Convenience stores operating 24 hours a day

are the driver of easy eating.

2-1. KEYWORD NO. 3:

EASY COOKING & EASY EATING

Food for busy people-More than 20% of Japanese men in their 20s and 30s rarely have breakfast.

People expect added value (healthy, safe, high

quality, etc) with easy cooking products.

-easy + healthy = retort pouch with lower calories

-easy + safe = rice in a sterile package

-easy + high quality = pre-seasoned sauce

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2-1. KEYWORD NO. 4:

HEALTH & BEAUTY

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Food businesses are developing functional

foods.

2-1. KEYWORD NO. 4:

HEALTH & BEAUTY

Conventional foodstuff is also attracting newattention.

-Sesames

-Cocoas

-Chocolates

-Variety of teas

Low cholesterol, low calories, organic

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Various problems in the past made Japanese

people sensitive to food safety.

Traceability, no additives, no preservatives.

Strict guidelines for labeling.

2-1. KEYWORD NO. 5:

SAFETY

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Rise of the Private Brands, or Private Labels

2-1. KEYWORD NO. 6:

LOW PRICE AND GOOD QUALITY

*Private brand products: Developed byspecific chain stores

-Seven-Eleven

-Aeon

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2-1. KEYWORD NO. 7:

ECO FOOD

The recycling boxes for plastic trays, pet bottles

and milk packages

The logo expressing eco-friendly

Thin bottles produced with less

plastic

Eco-bananas

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The price of raw materials is rising in Japan, in

line with the global price level increase.

Source: Ministry of Agriculture, Forestry and Fisheries(Wheat)

IMF Primary Commodity Prices(Sugar)

Unite: USD/ ton(Wheat) /

pound(Sugar)

2-1. KEYWORD NO. 8:

RAW MATERIALS PRICE RISE

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2-1. KEYWORDS FOR

PACKAGING

Eco-friendlyIndividual

ConsumptionConvenience

Less trashRefillable

Individual cookingSmall quantities

Braille

Re-sealable

Gathered in 100g

each

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-15,506 dead

-7,297 missing

-5,386 injured-112,405 evacuated

-209,839 buildings are completely / half destroyed

-400,440 buildings are partly damaged / destroyed

Magnitude 9.0

Source : Cabinet Office, Government of Japan

Situation of the damage *the figures are as of June 28th, 2011

2-1. KEYWORD NO. 9:

AFTER THE GREAT EARTHQUAKE

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TOKYO

Fukushima Dai-ichi

Nuclear Power Plant

accident area

Area damaged by

Tsunami

It is 220km away

from Tokyo

Area

damaged by

Earthquake

2-1. KEYWORD NO. 9:


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2-1. KEYWORD NO. 9:


Reconstruction and recovery following the earthquake.

2 1 KEYWORD NO 9

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2-1. KEYWORD NO. 9:


2 1 KEYWORD NO 9

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TOKYO

Fukushima Dai-ichi

Nuclear Power Plant

accident area

Area damaged by Tsunami

Area damaged by

Earthquake

2-1. KEYWORD NO. 9:


2 1 KEYWORD NO 9

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From the website of Ministry of Economy, Trade and Industry, Japan

Electric power supply is expected to be tight this summer.

2-1. KEYWORD NO. 9:


2 1 KEYWORD NO 9

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The degree of economic slowdown is expected to be much lessthan after the Lehman Brothers Shock.

2-1. KEYWORD NO. 9:


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CHAPTER 3

REGULATIONS ON

FOOD IMPORTS

3 1 OUTLINE OF JAPANESE

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3-1. OUTLINE OF JAPANESE

REGULATIONS ON FOOD IMPORTS

Food Sanitation Act

http://www.japaneselawtranslation.go.jp/law/detail_main?vm=&id=12

Plant Protection Acthttp://www.cas.go.jp/jp/seisaku/hourei/data/ppa.pdf

Act on Domestic Animal Infectious Diseases Control

http://www.cas.go.jp/jp/seisaku/hourei/data/adaidc_2.pdf

Important laws regulating food imports

Food imports are monitored by the quarantine stations of

the Ministry of Health, Labour and Welfare at the point of

entry to Japan.

3 1 OUTLINE OF JAPANESE

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3-1. OUTLINE OF JAPANESE

REGULATIONS ON FOOD IMPORTS

Related Laws and Procedures

Fruits andVegetables

Meats andMeat

Products

FishProducts

OtherProcessed

Foods

Food Sanitation ActFood Sanitation

Inspection

Plant Protection ActPlant

Quarantine

Act on Domestic

Animal InfectiousDiseases Control

AnimalQuarantine

Customs Tariff Law

etc.

CustomsInspection

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3-2. FOOD SANITATION ACT

Fundamental law to ensure food safety

Sets the specifications and standards for food(ex. food additives, microbes, remaining

agricultural chemicals, packages etc.)

In line with this law all the foods imported areinspected at quarantine stations.

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3-3. PLANT PROTECTION ACT (1)

To prevent the entry and spread of insects & pests

harmful to plants

Fresh fruits, vegetables and nuts

Frozen or dried fruits and vegetables

Cereal grains and flour

LegumesFlavorings and spices (coffee beans and spices)

Raw materials for plant originated herbal medicine

Grapeseed, sesame, etc. for raw materials of fat and oil

Items subject to plant quarantine

Plants

Primary

agriculturalproducts

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3-3. PLANT PROTECTION ACT (2)

1) Whether an item consists of an import- prohibited plant?

2) Which part of the plant?

3) Whether a phytosanitary certificate is appended?

4) Whether any soil is attached?

5) Whether any diseased organisms, insects, pests, orparasites are present?

6) Whether the fruit is from a specific place from where Japan

cannot import

Check Points

3-4 ACT ON DOMESTIC ANIMAL

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3-4. ACT ON DOMESTIC ANIMAL

INFECTIOUS DISEASES CONTROL (1)

To prevent the spread of infectious livestock diseases.

Egg (hen, duck, turkey, etc)

Bone (unprocessed bone, crushed bone, etc)

Meat (fresh, frozen, chilled, salted, etc)

Fat (fresh, frozen, chilled, salted, etc)

Internal organs (fresh, frozen, chilled, salted, billed in casing)

Raw milk

Ham, sausage, bacon (all kinds)

Items subject to animal quarantine

3-4 ACT ON DOMESTIC ANIMAL

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1) Whether an item consists of an import-

prohibited item?

2) Whether a Health Certificate is appended?

3) Whether there is any abnormality in the

cargo?

4) Whether an inspection or sterilization is

required?

Check Points

3-4. ACT ON DOMESTIC ANIMAL

INFECTIOUS DISEASES CONTROL (2)

3-5 PHARMACEUTICAL AFFAIRS

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3-5. PHARMACEUTICAL AFFAIRS

ACT (1)

Basic regulation for products/items classified as

medicine.

The following products are to be subject to this act.

Medical ProductsQuasi-Drugs

Cosmetics

Medical Devices

If your products are classified as medicine, only importers with specific licenses

can import them.

The customs clearance procedures are very complicated and time-consuming.

3-5 PHARMACEUTICAL AFFAIRS

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3-5. PHARMACEUTICAL AFFAIRS

ACT (2)

Check whether your products are classified as a

medicine.

If your products meet one of the conditions listed

below, they are classified as medicine and regulated by the act.

1) Listed on the Japanese Pharmacopoeia.

http://jpdb.nihs.go.jp/jp15e/

2) Use ingredients enumerated on the medical

ingredients list.

3) Specify medical effects of a product

on the package, flyer or brochure etc.

eg. cure gastric cancer, restore youth, purify blood etc.
http://jpdb.nihs.go.jp/jp15e/

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3-6. POSITIVE LIST SYSTEM (1)

Sets the maximum limits of agricultural chemical

residues that can be found in foods.

Agricultural chemicals: pesticides, feed additives

and veterinary drugs.

Chemicals not mentioned on the list can be used

at a maximum of 0.01ppm.

Foods exceeding the amount of chemicalsare not allowed to be sold in the Japanese market.

http://www.mhlw.go.jp/english/topics/foodsafety/positivelist060228/index.html

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3-6. POSITIVE LIST SYSTEM (2)

Maximum Residue Limits (MRLs) : 799 substances

For the individual limit of each substance,

please check MRLs Data Base

Uniform Limit: 0.01ppm

Applicable for agricultural chemicals without MRLs

(same as that of European Union)

Exempted Substances: 65 substances

Not subject to the positive list system

http://www.m5.ws001.squarestart.ne.jp/foundation/search.html

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/pages/MRLs-p-ES

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3-7. FOOD ADDITIVES (1)

Food Additives

Preservatives, Sweeteners, Colorings, flavorings etc.

Food Sanitation Act lists food additives that can be

used in foods.

Foods containing food additives that do not appear

on the list are prohibited from being imported into

Japan.

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Permitted food additives are classified

into 4 categories as follows:

1) Designated additives (413 substances)eg: Benzoic acid, calcium carbonate, citric acid etc.

2) Existing additives (365 substances)eg: Orange colour, palm oil caroten, pectin etc.

3) Natural flavoring (about 600 substances)

eg: Aloe, durian, honey etc.

4) General food additives (about 100 substances)eg: Strawberry juice, green tea etc.

( )

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Attention must be paid to the usage standards of

food additives:

(maximum quantity limits, purpose condition etc.)

Some food additives are not permitted to be used

in foods, even though they may be legal in your

country.

http://www.ffcr.or.jp/zaidan/FFCRHOME.nsf/pages/e-foodadditives

3 8 WASHINGTON CONVENTION (1)

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3-8. WASHINGTON CONVENTION (1)

CITES = Washington Convention

Convention on International Trade in Endangered Species of Wild Fauna and Flora

Regulates an excess of commercial trade of

endangered wild animals and plants in order toensure their survival.

3-8. WASHINGTON

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CONVENTION (2)

All endangered species are classified into 3categories according to the level of endangerment:

1) Appendix I (species in danger of extinction)Trade of these species are permitted only for academic

purposes. eg. African Elephant, Certain species of Aloe, etc

. 2) Appendix II (species of which trade must be controlled) An export permit issued by the authority of the country of export

is required. eg. Cactus, Orchids (including wild vanilla), African manatee, etc.

3) Appendix III (species that are protected in at least one country)

An export permit issued by the authority of the country thatincluded the species concerned in the Appendix III is required.

eg. Anteater from Botswana, Pink Pigeon from Mauritius

3 9 QUALITY LABELING SYSTEM (1)

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3-9. QUALITY LABELING SYSTEM (1)

Imported foods as well as domestic products in

Japan, must display the appropriate food labels

when sold in Japan.

1) Fresh produce

Product name Country of origin

2) Processed food

Product name List of ingredients Net contents

Best-before date Preservation method Country of origin

Importers name and address

Items that have to be listed on food labels


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When sold in Japan, all ingredients must belisted on the labels of the product in

Japanese.

Ingredients should cover all the items used in theproduct.

Ingredients (including food additives) must be

listed in order from highest to lowest, according to

their specific weighting in the product.An exporter will prepare the label with an importer.

The exporter has to provide accurate information of ingredients

(including additives) so that an importer can make correct labels.

3 9 QUALITY LABELING SYSTEM (3

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3-9. QUALITY LABELING SYSTEM (3

Ingredients known as allergens must be

listed on package labels.

* Number of people who suffer from food allergies is

increasing.

Labeling

Mandatory

Shrimp/Prawn, Crabs, Wheat, Buckwheat, Eggs,

Milk, Peanuts

Labeling

Recommended

Abalone, Squid, Salmon, Salmon roe, Bananas,

Mackerel, Beef, Pork, Chicken, Oranges,

Peaches, Kiwi fruit, Apples, Walnuts, Soybeans,

Yams, Gelatin, Matsutake mushroom

Eg: Emulsifiers (derived from soybeans)

Vegetable fats and oils (containing soybean oil)


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3 9. QUALITY LABELING SYSTEM (4)

Product Name

Ingredients

Net Contents

Best-beforeDate

Importer NameCountry of Origin

Preservation

Method

Description of a food additive:

Emulsifier (derived from soybeans)

Nutritional Ingredients and Calories


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The JAS (Japanese Agricultural Standard) Law sets

the specifications and standards for organic

agricultural products.

Registered certifying bodies check whether

products comply with JAS standards.

Only certified foods can display the JAS markand the phrase Organic.

Labeling for organic agricultural products in Japan

Detailed Information:

http://www.maff.go.jp/e/jas/specific/organic.html


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How can imported foods be organic in theJapanese market?

CASE 1: Producers attach the JAS mark.

Ministry of Agriculture, Forestry and Fisheries

Registered Overseas Certifying Bodies

(1) application(2) accreditation

Producers,

Manufacturers,

Farmers

(3) certification

Attach the JASmark and export

Importers


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3 9. QUALITY LABELING SYSTEM (7)

CASE 2: Importers attach the JAS mark.

Ministry of Agriculture, Forestry and Fisheries

Registered Japanese

Certifying Bodies

(1) application(2) accreditation

Producers,

Manufacturers,

Farmers

(3) certification

Attach

the JAS

mark

Importers Overseas

certifying body

Overseas

government

(1) certification(2) Issuanceof certificate

Scheme of a country of export

ATTENTIONCASE 2 is only applicable to countries

(27 EU countries, Australia, U.S.A., Argentina, New Zealand and Switzerland)

whose organic rules and standards are approved as equivalent to Japanese ones.

3-10. FOOD IMPORT PROCEDURES (1)

Fl Ch t

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Flow Chart

Processed Foods

Seafood

Fruits

Vegetables

Meats

Processed meats

Plant

Quarantine

Shipper

Animal

Quarantine

Food Sanitation Inspection

Declaration with

Notification Form for Importation of FoodsDeclaration with Form Display Only

Customs Inspection

3-10. REQUIRED DOCUMENTS (2)

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FOOD IMPORT PROCEDURES

Notification Paper of Food Import- The official documents to declare at the quarantine stations

Exporter must prepare

Importer will prepare

List of Ingredients for each item

Manufacturing Process Chart for each item

Invoice

Packing List*Please discuss with your customs clearance agent

Phytosanitary Certificate

Certificate of Analysis

Certificate of Origin

Only when required

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CHAPTER 4

JAPANESE BUSINESS

PRACTICE

4-1 JAPANESE BUSINESS PRACTICE

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4-1. JAPANESE BUSINESS PRACTICE

1) Be patient:Business may not proceed as quickly as

you may expect

Intensive inspection of products quality Japanese companies have to respond to the

growing demand for food safety from consumers.

Mutual understanding must be established. It may take some time to get orders from

Japanese companies.


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2) Consider the shelf life of products

It is desirable that your products have a shelf life

of more than 1 year.

Japanese importer is conscious of shelf life. Japanese consumer will not choose products

with upcoming expiration dates

Shipping & Customs Clearance

1.5 2 months


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3) Develop buyers confidence in you!

Meet deadlines.

Supply products stably.

Do not change the price frequently.

Respond quickly to inquiries from the importer.

If you fail to comply with your importers requests, the

importer runs the risk of loosing confidence in the marketIn this case, you will also lose your importers confidence

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CHAPTER 5

FOODEX JAPAN 2012

AND THE JETRO ZONE

5-1. OUTLINE OF THE EXHIBITION

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One of the largest food andbeverage exhibitions in Asia and

the Pacific region!

80,000 visitors are expected

Over2,500 exhibitorsfrom 63 countries and regions


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FOODEX JAPAN 2012

*DATE: March 6 (Tue.) 9 (Fri.), 2012

*TIME: 10:00-17:00 (-16:30 on last day)

*VENUE: Makuhari-Messe, Chiba, JAPAN

*URL: http://www3.jma.or.jp/foodex/en/index.html


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74% of exhibitors rate the show in general asexcellent or very good.

85% of exhibitors are satisfied with thequality of visitors.

24.7%

24.6%22.4%

14.5%

9.0%

3.9% 0.9%

Visitors by industry sector (2011)

Distribution & Wholesale

Food Service

manufacturing

Retail

Government & Association

Hotel, Banquet & Leisure

Press

5-2. ADVANTAGES OF PARTICIPATING

IN THE JETRO ZONE

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IN THE JETRO ZONE

Participation Fee: USD 1,025* About 86% discount compared with the normal

participation fee7,300USD

Exhibition Scale: 66 booths

Support provided by JETRO:1) Packaged booth includes basic equipment and decorations.

2) Transportation fee of exhibits is borne by JETRO. (special support for

exhibitors from Africa)

3) Shared-basis interpreters for business negotiations will be prepared.

4) Individual consultation by experts of Japanese food industry will be

available.5) Free access to the business center and kitchen.

6) Promotion of the JETRO Zone to potential Japanese buyers will be

done by JETRO.

5-3. SHOW RESULTS OF THE JETRO ZONE

AT FOODEX JAPAN 2011

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AT FOODEX JAPAN 2011

52 companies from 22 countries

exhibited at the JETRO Zone.

2,314 business negotiations

1,057 contracts (including prospective

ones) worth USD6,235,700

Exhibitor satisfaction: 100% of top

two grades (on a 4-point scale)

5-4. SUCCESS STORIES

FROM THE JETRO ZONE

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FROM THE JETRO ZONE

CASE 1: Fruits Jams from Madagascar (2008)

Refined

packaging

Organically

grown fruits

New flavor in the

Japanese market

Well-knowncertification:

HACCP

Sold at luxurious

department store

in Paris


FROM THE JETRO ZONE

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CASE 1: Fruits Jams from Madagascar (2008)

A contract with a Japanese importer.

More than 2,500 pods of jams imported intoJapan.

Now sold at high-end bakery shops and on

the internet.

http://www.s-at-t.com/

FROM THE JETRO ZONE


FROM THE JETRO ZONE

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CASE 2: Nougat from South Africa (2008)

Very soft:

distinguishable from

other nougats

No additives

Coated with high-

quality Belgianchocolate

Refined European

packaging

FROM THE JETRO ZONE


FROM THE JETRO ZONE

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CASE 2: Nougat from South Africa (2008)

A contract with a Japanese importer.

Shipped 110,000 nougats on September 2008.

Now sold in high-end supermarkets.

FROM THE JETRO ZONE


FROM THE JETRO ZONE

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CASE 3: Cashew nuts from Kenya (2011)

Cashew nuts had a

huge demand in the

Japanese market

Provided needed

information on

transportation

Good quality

Vacuum packed

FROM THE JETRO ZONE

Developed a

mutual- trust relationship


FROM THE JETRO ZONE

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CASE 3: Cashew nuts from Kenya (2011)

Two contracts with Japanese nuts products

makers.

The exhibitor shipped a container of cashew nuts

to each company. Contract of 120,000USD each.

Raw cashew nuts, shelled and sized, will be used

as a table snack. Crumbs will be a condiment atcurry shops.

FROM THE JETRO ZONE

5-5. HOW TO APPLY FOR PARTICIPATION

IN JETRO ZONE AT FOODEX 2012

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You will be able to get the information on the

application from JETROs website!

http://www.jetro.go.jp/en/foodex2012

Step 1: Click on Red Exhibitors page

button on the left of page

Step 2: ID: foodex2012

Password: jetroapplicationStep 3: Follow the How to apply

steps

5-5. HOW TO APPLY FOR PARTICIPATION

http://www.jetro.go.jp/en/foodex2012http://www.jetro.go.jp/en/foodex2012

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APPLICATION DEADLINE

(Form 1A & Form 1B)

September 9, 2011


We are waiting foryourapplication!

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g y pp

THANK YOU

Documents

Foodex1111jp