Study says “Japan is ready for organic”

Japan can look back on a certain tradition both in organic agriculture and organic marketing. The organic logo (JAS) and corresponding standards based on EU organic guidelines were introduced in 2001, although organic agriculture and marketing reaches back to much earlier. However, demand for organics has not developed with the kind of dynamism found in the west. The study estimates the organic market to be worth the equivalent of 1.3 billion US dollars, which is roughly 1 % of the total food market in Japan. Nevertheless, apart from China, Japan constitutes the biggest organic market in Asia. An important role in marketing in both Japan and China is played by “green food” from integrated production (lower level of pesticides and agrochemicals). This market is about four times as big and its value is estimated to be approximately 5.2 billion US dollars. Many consumers do not have a detailed knowledge of the difference between organic and green food. (Picture: Vegetables on sales at Crayonhouse)

The limited selection and availability of organic products together with higher prices are seen by experts as the main obstacles to stronger growth of the organic market. With few exceptions, imported goods and Japanese products are 2-3 times more expensive than comparable conventional products. In the opinion of the professionals, the situation will only change if the food manufacturers and retail chains concentrate more on organics and make a wider range of products available to consumers. Market watchers are seeing the first indications that the current situation is changing for the better. The main reason for this and the driving force behind developments are the growing anxiety about health, food safety and trustworthy sources of raw materials. (Picture: Organics on sales at Natural Lawson in Tokyo)

Marketing is already undergoing change. As well as organic products being sold in mostly small specialist shops, these days you find a selection of organics in supermarkets, food chain stores and luxury outlets (picture). For example, you find more than 200 Japanese and imported organic items in the high-end Kinokuniya stores. Also, you can now buy organics well beyond the busy city centres in the suburbs and residential areas where the majority of housewives do their shopping (read our article on MIE).

Another constraint on development is, however, production itself. Organic agriculture in Japan is severely limited, with only 0.18 % (ca. 5,000) of all farms (2.84 million) being managed organically. What’s more, people are still not familiar with the JAS logo despite the fact that a number of departments in the Ministry of Agriculture and Fisheries (MAFF) are responsible for the organic sector. Even though there has been a law in place since 2006 to promote the organic sector, action plans are in some cases still in preparation. However, last year the ministry did launch a three-year project to speed up the development of the organic sector. The priority aim is to create better links between producers, processors, the food trade and consumers. It was in the context of this programme that the study of Japan’s organic market was financed. As well as depicting the current situation for interested parties and those already operating in the market, the aim of the study is to highlight measures to improve and expand the market. (Picture: No standards for organic wine)

It goes without saying that organic farms in Japan were also affected by the catastrophes in the spring of this year. Japan’s self-sufficiency rate has dropped to 40 % and the country now relies much more than before on imported food. As well as receiving help from the government and abroad, IFOAM Japan has initiated various aid packages for farmers hit by the disaster. An example is the project Fukushima Goro that has experts and volunteers helping farmers to rebuild. Moreover, manufacturers and the trade are helping to strengthen cooperation with farms and they are aiming to create a new organic brand Fukushima Goro. (Picture: Between tradition and modernity)

Info on the latest Japan study:

Study “Japanese Organic Market 2010-2011”, 170 pages, many graphics. The detailed analyses of production and all distribution stages, a consumer survey and a description of the framework conditions stipulated by the authorities provide a comprehensive picture of the market situation today. The English translation is of the original version in Japanese but it is supplemented by various articles that examine the current situation after the disasters earlier in the year.

Price: 580 euros, 10 % reduction if ordered by 31.7.2011.

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(Picture on right: Natural Lawson in Tokyo)




(Pictures from left to right: Restaurant-shop in Crayonhouse, Restaurant Crayonhouse, Japan – number one importing country)