Tokyo, May 7 - Japanese Prime Minister Yasuo Fukuda and Chinese President Hu Jintao announced Wednesday that China has agreed to fully open its market to Japanese rice, a development that could significantly boost Japan's agricultural exports, The Nikkei reported in its Thursday morning edition.
The full deregulation of Japanese rice imports by China could reduce the food trade imbalance between the two countries. China, which halted all rice imports from Japan in 2003, resumed rice imports last year on a provisional basis.
Chinese food imports to Japan totaled roughly Y920 billion in 2007, roughly 20 times the value of Japanese food products imported by China.
China imported 124 tons of Japanese rice in 2007. Of that, early shipments totaling around 24 tons sold out quickly because Japanese rice was a novelty. But much of the rest is said to remain unsold because Japanese rice is around 20 times more expensive than Chinese rice.
As the domestic market continues to shrink due to declining rice consumption, boosting exports is a high priority for Japanese rice farmers. While Japan's annual rice consumption totals roughly 8 million tons, its commercial rice exports in 2007 reached a mere 940 tons.
The Chinese rice market is estimated to be more than 20 times larger than Japan's. But because of the high price, Japanese rice has only secured a niche as a high-priced gift product. To boost exports to China, it is crucial for Japanese rice farmers to enhance their productivity and lower costs, while also working toward establishing a positive brand image for Japanese rice.