With Trans-Pacific Partnership (TPP) trade agreement negotiations making headlines, Japan is becoming a major focus for international trading opportunities. So what does this mean for Canadian food processors and direct farm marketers wishing to sell their products in Japan? What are the opportunities and how do I find my way in?
Those and other questions were the focus of a July 14 webinar held by Alberta Agriculture and Forestry featuring Mary Beth Takao, Agriculture Commercial Officer in the Alberta Japan Office in Tokyo. Here are some of the takeaway messages from the presentation.
They buy a lot of food and are willing to pay a premium for quality. At $37,500 US, Japan is home to a high per capita income. The Japanese spend 25 per cent of their income on food compared to 15 per cent in North America. Japan is also the second largest packaged food market in the world after the U.S., estimated at $198.3 billion in 2013.
They are also willing to pay a bit more for quality food, says Takao. “Historically they have been willing to pay a premium price for high quality products. This is slowly changing to lower priced products but without compromising quality or safety.”
Like much of the western world, Japan is home to an aging population. With that comes more demand for health and wellness and convenience foods, says Takao. “This is an opportunity for those exporting herbs and some of the flaxseeds.”
They like Canada. The Japanese have a positive perception of Canadian products, said Takao. However, don’t take it for granted. “When we think of Canada we think of the Rockies, beautiful clean water, beautiful clean air –it’s all right there in Alberta. Don’t underestimate that perception but don’t mess it up. When you come here we want your products to be irreproachable.”
Although the Japanese have a slight bias towards domestically-produced food, by necessity they are a large food importer, bringing in 60 percent of their food from the outside world. “This dependence may increase as 60 percent of farmers in Japan in 2014 were 65 years old or older.”
If it’s organic here, it’s organic there. Thanks to the Japan-Canada Organic Equivalency Arrangement, the two countries have the same organic standards. “That’s exciting and I think you can . . . have some real opportunity,” said Takao.
Be prepared to explain your process. Japanese consumers are “obsessed” with food safety and traceability, she says. “Your process and all ingredients will be revealed between you, the importer and the government of Japan. This has alarmed some people in the past; ‘Wait a minute – this is my top secret information.”
However, they’re not out to steal your secret recipe, says Takao, but are rather looking for specific ingredients they want to keep out. “For example you can have vanilla in your product but not wild vanilla.”
Don’t neglect packaging. Picture a box of strawberries with a perfectly molded slot for each berry and you can get an idea how much Japanese consumers value presentation. When they say they want quality goods they mean in terms of taste, freshness, appearance and packaging.
The little things count. When doing business with the Japanese, keep promises both large and small. “Be on time; 10 minutes early is on time in Japan,” says Takao. “Business card exchange is very important. Don’t sit on them, don’t tuck them into your pocket. Present it with both hands. Come here with more business cards than you think you need. Don’t have them wrapped in a rubber band. These are your identities – have them looking as sharp as they want them to think about you.”
That kind of respect will be reciprocated. “They’re very much long term focused. They’re interested in building long term relationships. They have an understanding through the tough times. If you’re a proven resource and have shown your due diligence . . . and you have a year where something goes awry they’re not going to throw you out into the street and (go) on to the next person.”
There’s help available. The Alberta Japan Office can help those interested in entering the Japan market. “More than anything we can provide introductions and help with developing contacts. You can Google all day long but we can have on the ground insight and key contacts,” says Takao. More information is available at www.albertacanada.com/japan.
Those and other questions were the focus of a July 14 webinar held by Alberta Agriculture and Forestry featuring Mary Beth Takao, Agriculture Commercial Officer in the Alberta Japan Office in Tokyo. Here are some of the takeaway messages from the presentation.
They buy a lot of food and are willing to pay a premium for quality. At $37,500 US, Japan is home to a high per capita income. The Japanese spend 25 per cent of their income on food compared to 15 per cent in North America. Japan is also the second largest packaged food market in the world after the U.S., estimated at $198.3 billion in 2013.
They are also willing to pay a bit more for quality food, says Takao. “Historically they have been willing to pay a premium price for high quality products. This is slowly changing to lower priced products but without compromising quality or safety.”
Like much of the western world, Japan is home to an aging population. With that comes more demand for health and wellness and convenience foods, says Takao. “This is an opportunity for those exporting herbs and some of the flaxseeds.”
They like Canada. The Japanese have a positive perception of Canadian products, said Takao. However, don’t take it for granted. “When we think of Canada we think of the Rockies, beautiful clean water, beautiful clean air –it’s all right there in Alberta. Don’t underestimate that perception but don’t mess it up. When you come here we want your products to be irreproachable.”
Although the Japanese have a slight bias towards domestically-produced food, by necessity they are a large food importer, bringing in 60 percent of their food from the outside world. “This dependence may increase as 60 percent of farmers in Japan in 2014 were 65 years old or older.”
If it’s organic here, it’s organic there. Thanks to the Japan-Canada Organic Equivalency Arrangement, the two countries have the same organic standards. “That’s exciting and I think you can . . . have some real opportunity,” said Takao.
Be prepared to explain your process. Japanese consumers are “obsessed” with food safety and traceability, she says. “Your process and all ingredients will be revealed between you, the importer and the government of Japan. This has alarmed some people in the past; ‘Wait a minute – this is my top secret information.”
However, they’re not out to steal your secret recipe, says Takao, but are rather looking for specific ingredients they want to keep out. “For example you can have vanilla in your product but not wild vanilla.”
Don’t neglect packaging. Picture a box of strawberries with a perfectly molded slot for each berry and you can get an idea how much Japanese consumers value presentation. When they say they want quality goods they mean in terms of taste, freshness, appearance and packaging.
The little things count. When doing business with the Japanese, keep promises both large and small. “Be on time; 10 minutes early is on time in Japan,” says Takao. “Business card exchange is very important. Don’t sit on them, don’t tuck them into your pocket. Present it with both hands. Come here with more business cards than you think you need. Don’t have them wrapped in a rubber band. These are your identities – have them looking as sharp as they want them to think about you.”
That kind of respect will be reciprocated. “They’re very much long term focused. They’re interested in building long term relationships. They have an understanding through the tough times. If you’re a proven resource and have shown your due diligence . . . and you have a year where something goes awry they’re not going to throw you out into the street and (go) on to the next person.”
There’s help available. The Alberta Japan Office can help those interested in entering the Japan market. “More than anything we can provide introductions and help with developing contacts. You can Google all day long but we can have on the ground insight and key contacts,” says Takao. More information is available at www.albertacanada.com/japan.