Broccoli to Japan Desktop Research

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Japanese Broccoli Market
Japan’s Domestic Industry
Market Size
In 2012 Japan produced 122,500 tonnes of broccoli. Figure
1 shows the main production areas are Hokkaido, producing
17%, Aichi 12%, and Saitama producing 11%. The domestic
season in Japan runs throughout winter from October to
March. According to 2012 figures, the cultivation area is
approximately 13,600 hectares.
The total market for broccoli (fresh and frozen) in Japan is
shown in Figure 2. The Japanese produce on average around
120,000 tonnes of broccoli annually (quantity of shipped as
opposed to harvested), which represents approximately 65% of
their total market. The remaining 35% of the Japanese market
consists of imports that equate to around 67,000 tonnes on
average per annum. The imports of fresh broccoli averaged
approximately 38,000 tonnes from 2009 to 2012, while frozen
broccoli equates to an average of 29,000 tonnes annually
for the same period. However, data from 2012 indicates a
significant increase of fresh imports into Japan rising to 50,000
tonnes. This could be attributed to the natural disaster and
associated impacts in 2011 (Fukushima).
Breakdown of Japanese Broccoli Market
2009-2012 (tonnes)
250,000
Tonnes
200,000
150,000
100,000
50,000
0
2009
2010
Japan Domestic (MAFF) - Shipped
Figure 1: Broccoli and cauliflower growing regions in Japan
(vegetable.alic.go.jp)
2011
Imports Frozen Broccoli
2012
Imports Fresh Broccoli
Figure 2: Breakdown of the Japanese market for broccoli
comparing total imports with total domestic production
(Japan Ministry of Agriculture Fisheries & Forestry)
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1 | Japanese Broccoli Market
Import Market – Fresh Broccoli
Value of Imported Fresh Broccoli
by Japan (1,000 Yen)
In 2009 Japan imported 29,531 tonnes of fresh broccoli valued
at ¥4.8 billion. At this point in time, only the United States was
supplying Japan. During the last 5 years, Japan’s imports have
increased to 36,114 tonnes in 2013, valued at ¥7.2 billion. As
previously commented upon, there was a spike in imports in 2012.
The quantity of fresh broccoli imported has grown by 22 percent in
terms of volume, and 50 percent in terms of value, over the period
from 2009 to 2013. However Figure 5 indicates that the long term
trend is declining US exports of broccoli to Japan. The following
graphs focus on the top three countries exporting to Japan.
8,000,000
7,000,000
1,000 Yen
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Quantity of Imported Fresh Broccoli
by Japan (tonnes)
0
2009
2010
50,000
2011
United States
2012
China
2013
Mexico
45,000
Figure 4: Value of fresh broccoli imported by Japan by country
(www.customs.go.jp)
40,000
Tonnes
35,000
30,000
As indicated by Figure 3 and 4 the import market for broccoli
in Japan is dominated by the United States, with both China
and Mexico beginning to expand their market share from 2010
onwards. By 2013 the US held 88% (¥6.5 billion) market share,
followed by China with 11% (¥593 million), and Mexico with 1%
(¥55 million).
25,000
20,000
15,000
10,000
5,000
2009
2010
United States
2011
2012
China
Figure 3: Quantity of
fresh broccoli imported
by Japan by country
(www.customs.go.jp)
2013
Mexico
Japan Domestic Production vs US Imports
of Broccoli by Japan (tonnes): 1994-2012
Japan
US
160,000
Broccoli (tonnes)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
Figure 5: Comparing Japanese annual domestic production
with annual US imports of fresh broccoli from 1994 to 2012
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2 | Japanese Broccoli Market
Figure 5 indicates that the decline in the imports of broccoli
by Japan from the United States is paralleled by an
associated increase in the domestic production of broccoli.
Additionally, while the US exports of broccoli have declined
by approximately 40,000 tonnes over the observed period,
domestic production has increased by 60,000 tonnes.
Value of Imported Frozen Broccoli
by Japan (1,000 Yen)
4,000,000
3,500,000
3,000,000
In 2009 Japan imported 23,011 tonnes of frozen broccoli
valued at ¥3.5 billion. During the last 5 years imports by Japan
have increased to 34,409 tonnes in 2013, valued at ¥7.2 billion.
Again, there was a spike in imports of frozen broccoli in 2012.
The quantity of frozen broccoli imported has grown by 50
percent in terms of volume and value over the period from
2009 to 2013. Figures 6 and 7 focus on the top four countries
exporting to Japan.
Quantity of Imported Frozen Broccoli
by Japan (tonnes)
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2009
2010
China
2011
Mexico
2012
Guatemala
2013
Ecuador
Figure 7: Value of frozen broccoli imported into Japan by
country (www.customs.go.jp)
25,000
As indicated by Figure 6 and 7 the import market for frozen
broccoli by Japan is dominated by China and Ecuador, with
Mexico and Guatemala remaining relatively small players in the
market. As at 2013 China held 61% (¥3.3 billion) market share,
followed by Ecuador with 34% (¥2.4 billion).
20,000
Tonnes
1,000 Yen
Import Market – Frozen Broccoli
15,000
10,000
5,000
0
2009
2010
China
2011
Mexico
Guatemala
2012
2013
Ecuador
Figure 6: Quantity of frozen broccoli imported into Japan by
country (www.customs.go.jp)
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3 | Japanese Broccoli Market
Import Prices Fresh and Frozen
Seasonality of US Exports to Japan
The United States is commanding a price
premium over its competitors of between
AUD$0.28 and AUD$0.64 per kilogram. As
outlined in Table 1 and 2, Mexico is receiving
a higher price for its frozen broccoli exports
(AUD$2.10) than for fresh (AUD$1.94).
Figure 8 shows that while the US exports to Japan all year round, it dominates
the fresh broccoli market from April through September. This activity captures
the market window during the Japanese summer, following on from the
Japanese domestic production season from October through March. Both
China and Mexico are exporting to Japan during the peak domestic season.
Country of
Origin
Yen per Kg
AUD per Kg
US
¥207.17
$2.22
China
¥147.98
$1.58
Mexico
¥181.50
$1.94
*Figures derived using import statistics
(www.customs.go.jp)
The data in Figure 8 indicates that in May (2009 to 2014) the US exported
37% (1.37) more fresh broccoli above its average monthly figure for exports to
Japan for the observed period.
Seasonality US Imports
Seasonal Factor
Average
1.60
1.40
1.20
1.00
Table 1: 2013 estimates of Yen and AUD per kg
of fresh broccoli imported by Japan (CIF)
$2.21
December
¥204.54
November
Ecuador
October
$2.18
September
¥201.44
August
Guatemala
July
$2.10
June
$1.74
¥194.58
May
¥160.73
Mexico
Figure 3: Fresh broccoli imports by USA – 5 year import trend
0.00
April
China
0.20
March
AUD per Kg
0.40
February
Yen per Kg
0.60
January
Country of
Origin
0.80
Figure 8: Graphical representation of the seasonality of US exports
of fresh broccoli to Japan
*Figures derived using import statistics
(www.customs.go.jp)
Table 2: 2013 estimates of Yen and AUD per kg
of frozen broccoli imported by Japan (CIF)
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4 | Japanese Broccoli Market
Australia’s export history to Japan
Australia has a history of exporting fresh broccoli to Japan during our winter production, taking
advantage of the market window during the Japanese summer. However, the export of broccoli
to Japan ceased in 2007 with the exception of a few small shipments in the late 2000’s. Figures
9 and 10 show Australia’s export of fresh broccoli to Japan from 1994 to 2014.
Imports of Broccoli by Japan from Australia (kg)
8,000,000
Figure 9: Imports of fresh
broccoli by Japan from
Australia 1994 to 2014
(www.customs.go.jp)
7,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Jun 2014
Jan 2014
Aug 2013
Mar 2013
Oct 2012
May 2012
Dec 2011
Jul 2011
Feb 2011
Sep 2010
Apr 2010
Nov 2009
Jun 2009
Jan 2009
Aug 2008
Mar 2008
Oct 2007
May 2007
Dec 2006
Jul 2006
Feb 2006
Sep 2005
Apr 2005
Nov 2004
Jun 2004
Jan 2004
Aug 2003
Mar 2003
Oct 2002
May 2002
Dec 2001
Jul 2001
Feb 2001
Sep 2000
Apr 2000
Nov 1999
Jan 1999
Aug 1998
Mar 1998
Oct 1997
May 1997
Dec 1996
Jul 1996
Feb 1996
Sep 1995
Apr 1995
Nov 1994
Jun 1994
Jan 1994
$AUD (Real) per Kilogram of Broccoli from Japan (CIF)
$12
Real $AUD per kilogram
Broccoli (Kilograms)
6,000,000
$10
$8
Figure 10: CIF price per kg of
imports of fresh broccoli in to
Japan by Australia 1994 to 2014
(www.customs.go.jp)
$6
$4
$2
Jun 2014
Jan 2014
Aug 2013
Mar 2013
Oct 2012
May 2012
Dec 2011
Jul 2011
Feb 2011
Sep 2010
Apr 2010
Nov 2009
Jun 2009
Jan 2009
Aug 2008
Mar 2008
Oct 2007
May 2007
Dec 2006
Jul 2006
Feb 2006
Sep 2005
Apr 2005
Nov 2004
Jun 2004
Jan 2004
Aug 2003
Mar 2003
Oct 2002
May 2002
Dec 2001
Jul 2001
Feb 2001
Sep 2000
Apr 2000
Nov 1999
Jan 1999
Aug 1998
Mar 1998
Oct 1997
May 1997
Dec 1996
Jul 1996
Feb 1996
Sep 1995
Apr 1995
Nov 1994
Jun 1994
Jan 1994
$0
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5 | Japanese Broccoli Market
One obvious point to note is the volume of broccoli being exported. During
peak export periods for Australia volumes ranged between 100 and 300 tonnes
per month, with the exception of some extraordinary peaks. In comparison the
US exports averaged around 6,000 tonnes per month in the 1990’s and in more
recent years averages around 3,000 tonnes per month. However, Figure 11
provides some explanation of the decline in exports from Australia.
AUS vs US Weighted Price per Kg (converted to
AUD Real) - Fresh Broccoli to Japan
AUS Weighted Average Price
US Weighted Average Price
$6.50
$5.50
$4.50
$3.50
$2.50
$1.50
$0.50
0
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
Figure 11: Average and weighted average price per kg (real) of fresh broccoli
exported to Japan.
88%
Figure 11 indicates real prices for fresh broccoli exported to Japan declined
significantly from 2000 to 2006. Prices decline from between $4.00 and $6.00
per kilogram to around $2.20 per kilogram by the end of 2006. Given that
exports of broccoli to Japan all but ceased in 2006, it suggests that price was
a contributing factor in the cessation of exports.
Looking at prices over the past two decades between the US and Australia,
it shows that Australia had maintained a price premium over the US through
the 1990s. As volumes declined throughout the early 2000s the price premium
that had been realised in the 1990s disappeared until the ultimate cessation of
Australian exports in 2006.
This project has been funded by HAL using the vegetable levy and matched
funds from the Australian Government.
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6 | Japanese Broccoli Market