JAPANESE FOOD MARKET AT...3) Appendix III(species that are protected in at least one country) → An export permit issued by the authority of the country that included the species

JAPANESE FOOD MARKET

AND THE“JETRO ZONE”

AT

Mio KAWADADirector in Charge of International Trade Fairs in Japan

JETRO Tokyo

ABOUT JETROJETRO: 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 Japan’s small and medium-sized enterprises (SME’s) to develop markets overseas

- Helping Japanese firms expand overseas and aiding in protecting their intellectual property

Our Overseas Offices: 73 offices in 55countries

Cairo

Nairobi

Johannesburg

Lagos

Abidjan

Our Offices in Africa

CHAPTER 1

OVERVIEW OF THE

JAPANESE FOOD

MARKET

020406080100120140160180200220240260

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 Japan’s Food Market

Japanese Food Market size for 2009: About 492 Billion USD

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

1. OVERVIEW of Japan’s Food Market

∙ Japan’s 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 Africa1) Crude Sugar: About 55 Million USD2) Grapefruit: About 47 Million USD3) Canned Peaches: About 12 Million USD

Source：Ministry of Agriculture,Forestry and Fisheries

CHAPTER 2

JAPANESE LIFESTYLE

AND

TRENDS IN THE FOOD

BUSINESS

Japanese people have a strong interest in “eating”

2-1. KEYWORD NO. 1: DIVERSITY

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

Team Foodex in an African restaurant. →

Cooking international cuisines at home

The Japanese consumers are continuously searching for new products

Looking out for new and different tastes

2-1. KEYWORD NO. 2: NOVELTY

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

“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

2-1. KEYWORD NO. 4: HEALTH & BEAUTY

Food businesses are developing functional foods.

2-1. KEYWORD NO. 4: HEALTH & BEAUTY

Conventional foodstuff is also attracting new attention.

-Sesames-Cocoas-Chocolates-Variety of teas

“Low cholesterol”, “low calories”, “organic”

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

Rise of the Private Brands, or Private Labels

2-1. KEYWORD NO. 6: LOW PRICE AND GOOD QUALITY

*Private brand products: Developed by specific chain stores

-Seven-Eleven-Aeon

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

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

2-1. KEYWORDS FOR PACKAGING

Eco-friendlyIndividual

ConsumptionConvenience

Less trashRefillable

Individual cookingSmall quantities

BrailleRe-sealableGathered in 100g

each

-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…

TOKYO

Fukushima Dai-ichiNuclear Power Plant accident area

Area damaged by Tsunami

It is 220km away from Tokyo

Area damaged by Earthquake



Reconstruction and recovery following the earthquake.


TOKYO

Fukushima Dai-ichi Nuclear Power Plant accident area

Area damaged by Tsunami

Area damaged by Earthquake


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

Electric power supply is expected to be tight this summer.


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


CHAPTER 3

REGULATIONS ON

FOOD IMPORTS

3-1. OUTLINE OF JAPANESE REGULATIONS ON FOOD IMPORTS

Food Sanitation Acthttp://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 Controlhttp://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 REGULATIONS ON FOOD IMPORTS

Related Laws and Procedures

Fruits and Vegetables

Meats and Meat

Products

Fish Products

Other Processed

Foods

Food Sanitation ActFood Sanitation

Inspection○ ○ ○ ○

Plant Protection ActPlant

Quarantine○

Act on Domestic Animal Infectious Diseases Control

Animal Quarantine

○

Customs Tariff Law etc.

Customs Inspection

○ ○ ○ ○

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 are inspected at quarantine stations.

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

Legumes

Flavorings 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 agricultural

products

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 Japancannot import

Check Points

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

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 ACT (1)

Basic regulation for products/items classified as medicine. → The following products are to be subject to this act.

Medical ProductsQuasi-DrugsCosmeticsMedical 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 ACT (2)

Check whether your products are classified as amedicine.

→ 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 producton the package, flyer or brochure etc.

eg. “cure gastric cancer”, “restore youth”, “purify blood” etc.

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

3-6. POSITIVE LIST SYSTEM (1)

Sets the maximum limits of agricultural chemicalresidues 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.

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

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

3-7. FOOD ADDITIVES (1)

Food AdditivesPreservatives, 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.


Permitted food additives are classifiedinto 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.


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.

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

3-8. WASHINGTON CONVENTION (1)

CITES = Washington ConventionConvention 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 to ensure their survival.

3-8. WASHINGTON CONVENTION (2)

All endangered species are classified into 3 categories 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 that

included the species concerned in the Appendix III is required.eg. Anteater from Botswana, Pink Pigeon from Mauritius

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・Importer’s name and address

Items that have to be listed on food labels


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.


Ingredients known as allergens must belisted 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)


Product Name

Ingredients

Net Contents

Best-beforeDate

Importer NameCountry of Origin

PreservationMethod

Description of a food additive:Emulsifier (derived from soybeans)

Nutritional Ingredients and Calories


The JAS (Japanese Agricultural Standard) Law setsthe specifications and standards for organic agricultural products.

→Registered certifying bodies check whether products comply with JAS standards.

→Only certified foods can display the “JAS mark” and the phrase “Organic”.

Labeling for organic agricultural products in Japan

Detailed Information:

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


How can imported foods be “organic” in the Japanese 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) certificationAttach the JAS

mark and export

Importers


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) Issuance

of certificate

Scheme of a country of export

▲ATTENTION▲CASE 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)Flow Chart

Processed FoodsSeafood

FruitsVegetables

MeatsProcessed meats

PlantQuarantine

Shipper

AnimalQuarantine

Food Sanitation Inspection

Declaration with “Notification Form for Importation of Foods”

Declaration with “Form Display Only”

Customs Inspection

3-10. REQUIRED DOCUMENTS (2)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）

InvoicePacking List

*Please discuss with your customs clearance agent

Phytosanitary CertificateCertificate of AnalysisCertificate of Origin

Only when required…

CHAPTER 4

JAPANESE BUSINESS

PRACTICE

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.


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


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 importer’s requests, the importer runs the risk of loosing confidence in the market. In this case, you will also lose your importer’s confidence.

CHAPTER 5

FOODEX JAPAN 2012

AND THE JETRO ZONE

5-1. OUTLINE OF THE EXHIBITION


One of the largest food and beverage exhibitions in Asia and

the Pacific region!

✔ 80,000 visitors are expected

✔ Over 2,500 exhibitors from 63 countries and regions


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


∙ 74% of exhibitors rate the show in general as “excellent” or “very good”.

∙ 85% of exhibitors are satisfied with the quality 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 PARTICIPATINGIN THE JETRO ZONE

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

participation fee（7,300USD）

∙ 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 ZONEAT “FOODEX JAPAN 2011”

✔ 52 companies from 22 countriesexhibited 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

CASE 1: Fruits Jams from Madagascar (2008)

Refined packaging

Organically grown fruits

New flavor in the Japanese market

Well-known certification:

HACCP

Sold at luxurious department store

in Paris

CASE 1: Fruits Jams from Madagascar (2008)

∙ A contract with a Japanese importer.

∙ More than 2,500 pods of jams imported into Japan.

∙ Now sold at high-end bakery shops and on the internet.http://www.s-at-t.com/


CASE 2: Nougat from South Africa (2008)

Very soft: distinguishable from

other nougats

No additives

Coated with high-quality Belgian

chocolate

Refined European packaging


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.


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


Developed a mutual- trust relationship

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 at curry shops.


You will be able to get the information on the application from JETRO’s website!http://www.jetro.go.jp/en/foodex2012

Step 1: Click on Red Exhibitors’ page button on the left of page

Step 2: ID: foodex2012Password: jetroapplication

Step 3: Follow the “How to apply steps”

5-5. HOW TO APPLY FOR PARTICIPATION

IN JETRO ZONE AT FOODEX 2012

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

APPLICATION DEADLINE (Form 1A & Form 1B)

September 9, 2011

5-5. HOW TO APPLY FOR PARTICIPATIONIN JETRO ZONE AT FOODEX 2012

We are waiting for your application!

THANK YOU

Documents

JAPANESE FOOD MARKET AT...3) Appendix III(species that are protected in at least one country) → An export permit issued by the authority of the country that included the species