Lena Masri
Dr. Pierre David
International Market Research
April 30,2014
Organic Food in Japan
Introduction:
Organic food in Japan is an undeveloped process. The organic food sector
makes up a small portion of Japan’s food consumption. As government
organizations create regulations and create consumer awareness trends for
continuous market growth arise. According to Japan’s government, organic food is
approved through the organization, JAS (Japan Agricultural Standards). The Ministry
of Agriculture, Forestry and Fisheries established this organization, which decides
what can be labeled and sold as organic. Once this organization approves the
product as organic it is distributed through channels that will be discussed later in
the report.
Due to this sector being nascent in Japan, the JAS approves or declines private
labeled and imported brands that are unknown in this report. What can be found are
the top distribution companies who own supermarkets, convenience stores,
department stores, and provide online services. Establishing the exact organic food
sales from these companies and the brands that are available to purchased are not
found.
The following report includes a section of pertinent background information
about Japan, how organic food pertains to the country, and the overall market share
in Japan.
Country overview:
This section will include relevant background information, which will give
the general overview of Japan. This overview includes a general synopsis, geography,
demographics and population, economy, and government and foreign policy.
General Synopsis:
“Japan opened its ports after signing the Treaty of Kanagawa with the US in
1854 and began to intensively modernize and industrialize” (CIA). The country
attacked US forces in 1941, enabling America to enter into World War II. After the
war, Japan grew to become a major economic power and allied with the U.S. (CIA). In
March 2011, the northeast region of Honshu island of Japan experienced one of the
strongest earthquakes, followed by a tsunami. This natural disaster killed thousands
of people and damaged several nuclear power plants, which tested Japan’s ability to
deal with humanitarian disasters (CIA).
Geography:
Japan is a shimaguni (island country) located in Eastern Asia. Consisting of
four main islands (Japanese archipelago): Honshû, Shikoku, Kyûshû and Hokkaidô
and several small ones. “This chain is between the North Pacific Ocean and the Sea of
Japan, east of Korean Peninsula” (CIA). “The Sea of Japan separates the Asian
continent from the Japanese archipelago” (japan-guide). “The total land space of the
Japanese islands is about 142,000 miles” (afe.easia.columbia.edu). Compared to the
world, Japan ranks 62, consisting a total area of 377,915 sq km, 364,485 sq km of
land and 13,430 sq km of water (CIA). The country’s area can be compared to either
Germany or California.
“The country’s terrain is mostly rugged and mountainous, in fact more than
50% is mountainous and covered by forests” (CIA, japan-guide). Due to its location,
Japan’s climate varies in different regions. In the southern regions the weather is
more tropical; northern regions have cooler temperatures; eastern regions consist of
rainfall and heavy winds (japan-guide). However, major cities like Tokyo experiences
all four seasons. Based off Japan’s terrain and climate, the land use for ‘arable land is
about 11.26%, permanent crops 0.81%, and other 87.93%’ (CIA).
Demographics and Population:
Japan is currently the world’s oldest country. (worldpopulationreview.com)
As of 2013, the country’s estimated population is 127,103,388, with a steady decline
growth rate of .1%, ranking 11th compared to the world (CIA). The four main islands
make up 97% of its population. Due to its terrain the majority of people live in
urbanized areas (91.3%) compared to rural areas (CIA). Tokyo, an urban city and
Japan’s capital, consists of about 36.507 million (CIA). The country’s population
appears homogenous, as 98.5% are Japanese, with 0.5% Koreans, 0.4% Chinese, and
0.6% other (CIA). The prominent language spoken is Japanese.
Although there are some minority groups in Japan, the country is known to
be “one race, one civilization, one language and one culture”
(worldpoplationreview.com). The population of people is predominantly Shintoism
(83.9%) and Buddhism (71.4%). Other religions present are Christianity (2%), and
other (7.8%), which totals more than 100% because many people belong to both
Shintoism and Buddhism” (CIA).
“The median age of the total population is 45.8 years (male: 44.4 years,
female: 47.2) and life expectancy is 84.19 (male: 80.85, female: 87.71)” (CIA).
Economy:
“Japan’s economic freedom score is 72.4, making its economy the 25th freest
in the European region” (heritage.org). Although Japan‘s economic freedom score
increased .6 from last year, over the last two decades the country’s regression has
listed it as the third worst amongst advanced economies (heritage.org). The lack of
pursuing and implementing critical reform, public debt growing preventing dynamic
growth, and not pursuing free trade agreements are all factors that caused this
decline (heritage.org).
From this, Japan has fallen into recession three times since 2008 (CIA). In
2008, Japan experienced a recession due to a downturn in business investments and
global demand for the country’s exports (CIA). The following two years, the country
tried to overcome this recession, and then in 2011 Japan experienced a massive
earthquake and tsunami destroying several manufacturing plants.
Based off of the purchasing power parity in 2012, the country’s economy
stands as the fourth-largest economy in the world (CIA). The GDP (purchasing
power parity) in 2012 was $4.704 trillion, the exchange rate was $5.964 trillion, and
the GDP per capita (PPP) was $36,900 (CIA). The household consumption was the
greatest (60.9%) compared to government consumption (20.5%) and investment in
fixed capital (21.2%) (CIA).
The GDP sector in origins consists of 1.1% in agriculture, 26.3% in industry,
and 72.5% in services (CIA). The majority of the labor force is in services (69.8%),
which mainly include working for technology firms. Approximately 26.2% work in
industry and 3.9% in agriculture (CIA). Japan’s industries are amongst the “largest
and technologically advanced producers of motor vehicles, electronic equipment,
machine tools, steel and nonferrous, ships, chemicals, textiles, and processed foods”
in the world (CIA).
The country’s overall debt has been decreasing, but still a prime focus. The
country ranks number one with 214.3% of GDP in public debt (CIA). Based off this,
the country’s exports have decreased from 2011 ($789.9 billion) to 2012 ($773.9
billion) (CIA). Due to this decrease, Japan’s new government is also focusing on
driving export growth. Japan’s main export partners are China, US, South Korea,
Thailand, and Hong Kong. The country mainly exports motor vehicles and auto
parts, iron and steal products, plastic materials, and power generating machinery
(CIA).
Japan seemingly has a strong labor force with only 4.4% as its unemployment
rate (CIA). However, about 16% (2010) of the population is below the poverty line.
The main work force of the population is 25-54 making up 80.5%, and 55-64 with
65.4% (OECD). The ideal retirement age is 65 for both male and females. The
literacy rate for Japanese is 99% for both sexes over the age of 15.
Japanese children enter primary school from age 6. Most parents send their
children to juku (90.8%), which is a family-run school, or cram school (65.2%)
(education-in-japan.info). 98% of 15-year-olds graduate middle school and go on to
high schools or private specialist institutions depending on their parents wealth.
Even though a high-school diploma is considered the minimum requirement for a
basic job, better career opportunities are presented to those who further education
to universities and colleges.
Government and Foreign Policy:
“Japan has a parliamentary government with a constitutional monarchy”
(CIA). The country gained its Independence on May 3, 1947 (CIA). Also, one must be
20 years of age to vote (CIA).
The legal system is based on the German model and reflects Japanese
traditions (CIA). The current Chief of State is Emperor AKIHITO, Head of
Government is Prime Minster Shinzo ABE and Deputy Prime Minister Taro ASO
(CIA).
The executive branch consists of the Chief of State, Head of Government, and
the Cabinet (CIA). The Diet, the bicameral legislature, appoints the prime minister
(CIA). “The constitution requires that the prime minister commands parliamentary
majority; following legislative elections, the leader of majority party in the House of
Representatives usually becomes the prime minister; the monarchy is hereditary”
(CIA). Also, “the Prime Minister has the power to dissolve the House of
Representatives at any time with the concurrence of the cabinet” (CIA).
Next, the legislative branch consists of the House of Councilors and the House
of Representatives. The House of Councilors consists of 242 seats in which each
member is elected for a six-year term (CIA). The House of Representatives make up
480 seats in which each member is elected for a four-year term maximum.
