The agriculture sector is a very significant sector in Japan. Agriculture sector exists in every part of country, but is especially essential on the northern island of Hokkaido that accounts for approximately 10% of national production. Modern methods such as commercial fertilizers, hybrid seeds, insecticides, and machinery, have been used so efficiently in farming. Japan is the second major agricultural product importer in the world (after the U.S.). Almost all soybeans, feedstuffs and wheat are imported to the country. Beside this, Japan is also a leading agriculture product exporter in world. Popular products include strawberries, beef, eggs, sweet potatoes, and apples, which are largely exported to other Asian countries like Hong Kong and China and also the United States.
According to study, “Japan Agriculture Market Trends, Statistics, Growth, and Forecasts” the key companies operating in the Japan agriculture market are involved in various growth and expansion strategies to gain the competitive advantage. Key companies are also developing the data & software solutions for improving the food & agriculture productivity.
Based on crop type, Japan agriculture market is segmented as barley, wheat, soybeans, rice and large variety of fruits & vegetables. Rice and vegetables hold major share in country’s agriculture production. The Japanese people strongly prefer to eat the native Japonica or sticky rice. A small amount of rice from China, California, Taiwan and other areas is imported each year. Apart from this, agriculture sector in country also pays more for inputs for instance chemicals, fertilizers and seed, which are generally procured from the other countries. For example, in rice production the price of these inputs are generally four times higher than the prices in China and the U.S.
The Japan agriculture market is driven by growth in rice production, followed by unique & complex food import and distribution network, increase in the number of corporation farms, rise in consumption of fruit & vegetables and increase in government support to farmers. The government has provided support for Japanese farmers' efforts including export of agricultural products, farmland concentration & intensification, and the primary producers’ diversification into processing & distribution. At the same time, it is also required for the government to develop an environment where farmers can take free business actions as well as solve structural problems that are unable to be solved by themselves. However, surge in adoption of western food, growth in urbanization and increase in aging population may impact the market. Moreover, growth in innovative Artificial Intelligence (AI), Internet-of-Things (IoT), robot technologies and increase in involvement of corporation farms are key opportunities for market. IoT technology enables farmers to track the data of the water levels & water temperatures of paddy fields collected by sensor on their tablet device.
The agriculture market of Japan is a very flexible, which are able to rebuild quickly despite country’s volatile climate bringing earthquakes & hurricanes, as well as continually striving for better quality & new innovations despite challenges. It is expected that future of the Japan agriculture market will be optimistic on account of rise in demand for quality produces both domestically and internationally during the forecast period.
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Ankur Gupta, Head Marketing & Communications