Background

Canadian agri-food exports to Japan were $1.62 billion in 1994, corresponding to 5.4 percent of total Japanese agri-food imports. Bulk commodities used as raw materials in Japanese processing plants comprise the majority of Canadian exports. High value-added foods and beverages account for a relatively small proportion of Canadian exports. Further details on Japanese-Canadian agri-food trade are given in Figure 2.

The environmental legislation of most importance to agri-food exporters to Japan is the Food Packaging Materials Recycling Law of 1995, which is further discussed in the section on packaging. Food safety, quality and labelling are regulated under the Food Sanitation Law and the Japanese Agricultural Standards Law. Some collateral environmental benefits are derived from the strict approach taken in the Food Sanitation Law to food additives, which permits only a limited number of substances to be added to food. For example, post-harvest fumigation of crops with methyl bromide, an ozone depleter, is not permitted. Standards for pesticide residues in foods have had the effect of changing pesticide use in the producing countries.

Japanese consumers are reported to be very concerned about the safety and quality of foreign food while at the same time being receptive to new food products and adapting to an increasingly international diet. Very little information on the activity of Japanese consumer and environment groups with regard to food issues was obtained.

Packaging

The Food Packaging Materials Recycling Law was enacted in 1995. It requires manufacturers, importers and retailers of food and beverages and manufacturers of containers to establish an organisation to accept and recycle containers which have been collected and sorted by municipalities. Municipalities must submit plans to the government for the collection and sorting of recyclable waste packaging. The collection and recycling system must be in place by April 1, 1997 for three materials: glass bottles, cans, and PET (polyethylene terphthalate). Inclusion of paper and plastic in the recycling program will be delayed until April 1, 2000. Targets for recovery and recycling will be set for each type of waste by the end of 1996. Costs will be allocated by material type between manufacturing and distribution levels in a manner yet to be determined.

There is no indication that foreign producers and exporters will participate directly in funding the collection and recycling scheme, but food importers will be required to contribute. Costs of all packaged agri-food products, including imports, will rise to cover the additional costs of waste management. Different costs for material types may encourage food processors to switch their packaging to lower cost materials or to the materials that are temporarily exempt from the collection and recycling scheme.

Industry Activity

Grocery retailers and the food service industry have begun to implement packaging waste reduction programs. For example, one major grocery chain is phasing in reusable transportation containers for fresh produce and eliminating some in-store packaging, reducing wastes and costs and preparing for implementation of the food packaging recycling law in April 1997. Some of these waste reduction initiatives are a sharp reversal in agri-food industry practice, where consumer expectations of high food quality are reflected by processors in the use of high quality food packaging to achieve an impressive presentation. Packaging design will change as a result of new legislation, but it is probable that the appearance of quality in packaging will continue to be necessary for successful marketing of processed food at the retail level.

Implications

Canadian producers and exporters should monitor packaging legislation developments in 1996, as Japanese municipalities pass legislation to fulfil their requirements and as recovery and recycling targets for different packaging materials is set. Also important will be monitoring of voluntary agreements by industry such as the restriction on PET beverage bottles which was in effect until recently.

Organic Food Production

The Ministry of Agriculture, Forestry and Fisheries introduced guidelines in 1993 for the labelling of organic agricultural products. Six classes of products may be labelled, according to the cultivation method used, ranging from reduced use of chemical fertilizers or chemically-synthesized pesticides to cultivation in soil which has not been treated for more than three years with such fertilizers or pesticides. These guidelines apply only to products grown in Japan; foreign-grown produce cannot qualify. Certification programs for organic foods from Europe and the USA are recognized in Japan, and the quality of certified foreign organic food is regarded favourably; however, the large number of American (and presumably Canadian) certification programs has resulted in consumer confusion and skepticism. This situation may be alleviated by the development of an international standard for organic food production and labelling under Codex Alimentarius, work that is ongoing now.

Market

The Japanese market for organic food was worth US $500 million in 1994. Imports were about US $5 million, or 1 percent of the total. It is estimated that demand for organic produce has grown at an annual rate of 20 percent since the mid 1980's. The Japanese government estimates domestic production of organic vegetables at about 1 percent of all vegetable production and the number of farming households using organic methods also at 1 percent. About 90 percent of retailers stock some organic produce, but difficulties are cited in using standard channels for distribution. Consumer co-ops and consumer groups are together the largest distributors of organic agricultural products in Japan. They tend to be allied with domestic producers and have contracts directly with Japanese growers, bypassing the regular distribution system.

Interest in organic food is increasing among retailers, restaurant operators, food processors and consumers. While concern for food safety is given by Japanese consumers as the most important reason for buying organic foods, there is also an element of environmental awareness in the organic food consumer, particularly about the use of agricultural chemicals and sustainability of Japanese agriculture (Your Market in Japan - Organic Vegetables, JETRO, 1994).

There is a strongly growing demand in Japan for health-oriented and physiologically-functional food and drink, which is expected to continue as the population ages and the dietary emphasis on health and food safety continues. While this trend does not have a basis in environmental conservation, it may represent an excellent opportunity for Canadian organic producers in the Japanese market, if organic foods from Canada are marketed as consistently superior in safety, quality, and nutritional value.

Animal Welfare in Food Production

Labelling for Environmental Attributes

Details are not available now, but it is expected that a marking system will be required for all food and beverage packaging to facilitate sorting and recycling of waste containers under the new packaging recycling law.

The MAFF guidelines for organic agricultural product guidelines provide for labelling of six classes of products, each with wording to describe the attribute of the class. This labelling is voluntary and it applies only to domestically-grown produce.

The Japanese Eco-Mark environmental labelling program is a voluntary scheme for promotion of environmentally-superior consumer goods. This program has standards for eight categories of food and beverage products.

Environmental and Quality Management Standards

Adherence to formal quality management standards such as ISO 9000 is not a usual requirement for suppliers to the Japanese agri-food industry. In a recently conducted survey of Japanese manufacturing companies, one quarter of respondents expressed an intention to register for ISO 14000 Environmental Management Standards. The potential impact on agri-food imports is not known.

Recommended for Further Information

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