Market Information
Asia Pacific

THE FOOD SERVICES MARKET IN JAPAN

November 2000

Prepared by the Market Research Centre and the Canadian Trade Commissioner Service

© Department of Foreign Affairs and International Trade
(FaxLink no. 34022)

The Market Research Centre produces a wide range of market reports by region and sector for Canadian exporters. For further information please contact:

Market Support Division (TCM)
Department of Foreign Affairs
and International Trade
E-mail: mrc@dfait-maeci.gc.ca
- FaxLink Domestic service (613-944-4500);
- DFAIT Internet site: http://www.dfait-maeci.gc.ca

Trade Evaluation and Analysis Division (TEAD)
Agriculture and Agri-Food Canada
Contact: Jim Lowe
Telephone: (613) 759-7652
Fax: (613) 759-7505
E-mail: lowej@agr.gc.ca
Agri-Food Trade Service:  http://ats.agr.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter.

EXECUTIVE SUMMARY

The food services industry has experienced many changes in recent years, including a changing consumer demographic, the Asian economic crisis, several food safety scares, demands for healthier foods, and growing interest in international foods. While consumers have become more cost conscious, the growth of supermarkets and hypermarkets has also significantly affected the restaurant sector.

The Japanese population of 126 million people relies on imports for over half its food requirements and is the largest net importer of agri-food products in the world. The food services industry in Japan was valued at $329 billion⁽¹⁾ in 1998⁽²⁾, and has been growing steadily for several years. This is a function of several changes, including smaller households, an ageing population, an increasing number of women entering the work force, and a relatively stable household income, although challenged by a slightly weakened currency. Working couples or single-person households are eating home-cooked meals less frequently, while the ageing population is putting a greater demand on hospitals and health-care services. As a result, the market demand for quick and convenient nutritious meals is on the rise.

The growth of the supermarket and convenience store sectors in Japan has developed competition for restaurants and fast-food outlets. The retail sector is increasingly offering fresh sandwiches, salads, bento-style lunch boxes, and other quick meals that can be less expensive and quicker than those offered through restaurants. Some stores have even gone so far as to offer home delivery, to compete with the pizza subsector. Despite the increased competition from other sectors, however, the fast-food sector continues to boom.

As in many areas of the world, there is a continuing debate over genetically engineered foods in Japan, and potential exporters should thoroughly research this issue before commencing exporting.

Canada exports frozen seafood and frozen vegetable products to Japan; however, these goods are frequently exported in bulk and are used for further processing by Japanese manufacturers. Demand for seafood and vegetables will remain high, but opportunities for Canadian food service providers also exist in ready-to-heat foods, especially Western-style foods. Ready-to-heat foods may cater to either restaurants aiming to decrease preparation time, or individuals purchasing quick meals to eat at home.

For more information concerning this market, further analysis is available in The Japan Food Service Sector report. Please contact the Canadian Embassy in Japan, or Agriculture and Agri-Food Canada, to request a copy.⁽³⁾

TABLE OF CONTENTS

MARKET OVERVIEW

Demographics
Restaurants
Fast-Food Restaurants
Business and Industry
Schools
Hospitals and Health Care Services
Hotels
Home Meal Replacement
Convenience Stores
Key Factors Shaping Market Growth
Opportunities
Actual and Planned Projects

COMPETITIVE ENVIRONMENT

Local Capabilities
International Competition
Canadian Position
Competitive Advantage through Canadian Government Policies and Initiatives

MARKET LOGISTICS

Agents and Sales Representatives
Distributors and Wholesalers
Market Entry Considerations
Product Adaptation
Suggested Business Practices
Import Regulations
Local Standards, Certificates or Registrations
Authentication of Documents
Export Credit Risks, Restrictions on Letters of Credit, Currency Controls

PROMOTIONAL EVENTS

KEY CONTACTS AND SUPPORT SERVICES

BIBLIOGRAPHY

OTHER REFERENCE MATERIAL

Internet Sites

MARKET OVERVIEW

Japan is the world's largest net importer of agri-food, fish and beverage products. However, the recent economic recession in Japan has resulted in decreased consumer spending on food, while consumer demands for quality have escalated. Overall food consumption has not been significantly affected, and food expenditures continue to account for approximately 20% of total household expenditures.

Although it has developed a large and sophisticated agricultural processing industry to serve its domestic market, Japan relies on imports for over half its food requirements and is the largest net importer of agri-food products in the world. The conversion of all import bans into tariffs (with the exception of rice), under the Uruguay Round Agreement on Agriculture, and the binding and reduction of all tariffs over the 1995-2000 period have allowed for the development of the market for international foods. With the explosion of demand for international food products and the limitations of domestic food producers, many consumer demands can be met only by international suppliers.

The food services industry in Japan was valued at $329 billion in 1998, which is 78% of the value of the $418-billion U.S. food services industry, for a population half that of the United States. The industry has experienced many changes in recent years, in shifting consumer demographics, the Asian economic crisis, several food safety scares, demands for healthier foods, and growing interest in international foods. Consumers have become more cost conscious, and the growth of supermarkets and hypermarkets has also significantly affected the restaurant sector. The additional success of the fast-food sector has further affected sales at other restaurants.

Annual expenditures on food products per household reached $11 785 in 1997, second only to housing as a percentage of household expenditures. Household food expenditures have been declining since the collapse of Japan's "bubble economy" in 1991 and an increase in the national sales tax from 3% to 5% in 1996. These factors resulted in more discriminating consumers, a tendency to shop at less expensive stores and restaurants, and declining consumer prices.

With the trend in Japan toward increasing numbers of working couples or single-person households, and fewer nuclear families, the number of home-cooked meals is falling. The frequency with which Japanese consumers ate out at restaurants also fell due to a decline in consumer spending confidence during the economic recession. On a per capita basis, Japanese consumers spent $1760 eating out in 1998. Instead of proper sit-down restaurant meals, demand focussed on less expensive fast-food restaurants and home meal replacement options.

The food services industry is defined as all meals not prepared at home, including restaurants, take out, home delivery, and institutional meals, regardless of where the meal is consumed. Institutional meals include those consumed in schools, hospitals, places of business and hotels, as well as in the travel catering sector. Home meal replacement (HMR), which is any dish completely cooked in a store or restaurant but eaten at home, has grown significantly in popularity in recent years. The growth of the sector shows no signs of slowing down, which has led many in the food services industry to adapt their businesses either to cater to this trend or to lure consumers to their own business.

Demographics

Japan has a population of 126 million, with an average annual growth rate of 0.24%. However, the growth rate is declining annually, and a negative population growth rate is expected by 2010. Nearly 70% of the population is between the ages of 15 and 64, but with a low birthrate and high life expectancy (77.2 for men; 83.8 for women), the "greying" of Japan will continue. It is projected that by 2005, Japan will have 25 million citizens over the age of 65, representing 20% of the population.

The Japanese demographic is undergoing several changes, including smaller households, an ageing population, an increasing number of women entering the workforce, and a relatively stable household income, although this is challenged by a slightly weakened currency. As a result, the demand for quick and convenient nutritious meals is on the rise.

Young adults are moving out of the family home in increasing numbers upon commencing their careers, and are waiting longer to get married. From 1990 to 1995, the number of married couples with no children increased 21%, while the number of married couples with children living at home fell 0.9%. Divorce rates have risen, and the number of one-person households has increased toward 25% of the total. In addition, there are now over three million single-parent households in Japan. All of these factors have an effect upon the eating habits and food demands of the population.

Women now comprise over 40% of the employed population of Japan. With a growing number of women in the workplace, and those women having less time to purchase groceries or prepare meals for themselves or their family, women's demands on the food services industry are being heeded more attentively than in the past. Quick, convenient, high-quality, reasonably priced food items and increased attention to food nutrition are mandatory considerations for restaurants, prepared meal producers and other industry sectors hoping to appeal to the female demographic.

As Japanese tastes and lifestyles have shifted to include more Western foods and greater numbers of meals not prepared in the home, fat intake has increased, pushing up the average weight of the population. This trend and a concern that the country not be overwhelmed by the social security demands of its ageing population have fostered an interest among Japanese in maintaining a more healthy diet. As a result of this growing health consciousness, the number of health clubs has increased, as has knowledge of nutrition and dietary requirements among the populace.

Restaurants

The restaurant sector in general has experienced declining sales in each of the past four years, with sales at existing restaurants falling 4.1% in 1998 and new restaurants enjoying 2.4% growth. Sales have suffered due to a struggling economy and several food safety scares.⁽⁴⁾ To contend with the effects of the recession, restaurants offering all types of food and dining experience were forced to develop new marketing strategies to attract consumers.

Fine-dining restaurants were hit particularly hard, as many Japanese could no longer afford the expensive dining option. Some restaurants responded by offering fixed-price menus including choices of appetizer, entree and dessert to attract price-sensitive customers. However, many fine-dining restaurants also were forced to reduce costs by importing less expensive foods and beverages from different sources.

Japanese consumers have recently developed a taste for foreign cuisine, which has led to several trends that have been called faddish. Several years ago, Japan's restaurant sector thrived on the popularity of Korean and Mexican hot and spicy dishes, but these were soon surpassed by the appeal of French cuisine. The recent Italian food boom that has swept across Japan has dramatically increased sales of all related foods, boosting Italian restaurant sales 5% in 1997 to $2.3 million. Marketed as a healthy dietary option, Italian food appeals to the demands of many consumers for affordable, healthy eating. The sudden popularity of Italian food has also supported smaller booms in both cheese and wine consumption. Other restaurants that are growing in popularity are those offering Indian, Thai and Vietnamese menus.

Even restaurants serving sushi, the dish most closely associated with traditional Japanese cuisine, are facing stiff competition from fast-food outlets, supermarkets and convenience stores. Growth in sales at these lower-priced, alternative outlets has restricted growth in restaurant sales. Production, storage and transportation advances allow sushi to be sold by retailers in fresh condition, however many Japanese still prefer to eat sushi at restaurants, where it is prepared in front of them.

Source: Canadian Embassy in Tokyo, Japan, 1999.

All-you-can-eat restaurants offering all types of food began appearing in Japan in the past two years. There were over 176 all-you-can-eat restaurants in Tokyo alone in 1998, providing options from seafood and other entree items to desserts to alcohol. To further appeal to consumers looking for bargain dining, some of the all-you-can-eat restaurants charge by the minute, usually at rates around 40¢ per minute. The current popularity of these restaurants, combined with the high turnover of clientele, has not only ensured that these businesses endured the recession, but also requires large, steady quantities of food supplies.

There is also a trend toward large, single-theme restaurants with specialty menus. For example, a Japanese-style beef restaurant now offers a menu with over 30 different kinds of beef preparations. In fact, Japanese consumers consumed 20% more beef in 1998 than in the previous year.

Fast-Food Restaurants

Total fast-food sales are predicted to recover from the reduced levels experienced in the past two years as a result of the economic recession. In constant 1998 dollars, total sales rose during the 1995-1998 period, increasing by 11.7%.

In 1998, the hamburgers subsector accounted for 31.8% of total fast-food sales. While both international and domestic companies compete in this subsector, all burger outlets have a strong Western image. By the end of 1999, it is expected that there will be over 50 000 hamburger outlets in Japan. The fast-food sector leader, McDonald's Co. (Japan) Ltd., which operated over 3260 restaurants in Japan as of March 2000, is targeting expansion to 10 000 restaurants by 2006. McDonald's posted record sales of $5.2 billion in 1999, up 4.4% from the previous year. Although the company's profits are reaching record levels, the danger of new outlets cannibalizing sales at existing stores remains a concern.

* Note: Values are in 1998 dollars.
Source: Canadian Embassy in Tokyo, Japan, 1999.

Traditional Japanese fast food, encompassing bento (boxed lunches consisting of vegetables, sushi, rice, etc., each in separate compartments) and kaitenzushi restaurants, accounted for almost half of all fast-food outlets in 1997, with 10 375 stores throughout Japan. Sales of bento boxes and sushi through retail outlets have forced outlets in this subsector to maintain low prices to remain competitive. The menus at Japanese fast-food outlets concentrate on Japanese food; however, in an effort to attract a wider consumer base, many of these outlets have recently expanded their menus to include popular international foods.

Source: The Nihon Keizai Shimbun.

MOS Burger, the Japanese burger chain, has experienced success with its own version of burger. In the 1500 stores it operates in Japan, MOS serves buns made of compacted rice, instead of bread, with either shrimp cakes or Japanese-style teriyaki beef in them. This modification of burgers to fit local tastes has positioned MOS among the most popular fast-food restaurants in the country.

Business and Industry

Sales in the business and industry food services market remained relatively stable over the four-year period from 1995 to 1998, as shown in Table 4. This segment represented approximately 7.5% of the total food services market in Japan in 1998, with total sales reaching nearly $25 million.

N/A = not available.
Source: Canadian Embassy in Tokyo, Japan, 1999; Food Service Industry Research Center, Data Book 1999.

Schools

The market for school lunches has been shrinking in recent years, despite the existence of more food services outlets. Sales slipped from $5.76 million in 1995 to $5.57 million in 1998, while the number of locations increased by 1800 outlets, to 43 482 in 1997. The decrease in sales could be partly explained by two factors: (1) the economic recession resulted in reduced consumer spending, just as in the rest of the food services market; and (2) an increase in the number of less expensive fast-food outlets at schools and universities hurt sales at traditional campus outlets.

N/A = not available.
Source: Canadian Embassy in Tokyo, Japan, 1999; Food Service Industry Research Center, Data Book 1999.

The Japanese government controls the school lunch program, and any decision made regarding school lunches cause a ripple effect across overall food industry sales. For this reason, Canadian exporters to the Japanese food services market would be well-advised to monitor industry news wires, or contact Canadian trade officers⁽⁵⁾, for any government decision relating to school lunches, for example, relating to the issue of genetically engineered foods.

Hospitals and Health Care Services

The health care catering market was valued at $18.1 billion in 1998. Although the present outsourced catering market is $2.4 billion, or just 22% of the market in terms of beds, it is estimated that the market could reach $12.5 billion if all services provided by caterers and internal health care facilities were outsourced. Hospitals and health care service providers are likely to contend with increasing pressure to rationalize services due to budget constraints. It can be expected that these constraints, exacerbated by growing service demands from an ageing populace, will lead to an increase in the proportion of hospitals and health care facilities outsourcing catering contracts.

Note: Columns may not add to the totals shown due to rounding.
Source: Japan Medical Catering Association; Nomura Research Institute Europe Ltd., June 1999.

As Table 6 indicates, the outsourcing of medical catering has steadily increased in the past five years. This growth is expected to continue. During the 1994 to 1998 period, each of the four health care providers shown in Table 6 increased outsourced catering numbers not only in absolute terms, but also as a percentage of total beds. Hospitals outsourced catering for 21.5% of all beds in 1998, up from 14.2% in 1994, while elderly health care facilities increased outsourced catering from 20.3% in 1994 to 38.6% in 1998. A total of 9.1% of surgery beds and 17.9% of special-care residential homes were served by outsourced caterers in 1998, for an average of 21% of beds across the four component health care providers.

Note: Values are in 1998 dollars.
Source: Canadian Embassy in Tokyo, Japan, 1999.

Hotels

The hotel catering sector was hit hard by the effects of the Asian economic crisis, when consumers decreased spending on meals at hotels, and corporate spending budgets were also reduced. Traditionally, Japanese consumers have chosen to eat at hotel restaurants to mark special occasions, when they are prepared to spend large sums for high-quality food, service and surroundings. However, this changed during the recession, and hotels were forced to offer special discount packages to groups and families to lure consumers back.

These restaurants increasingly added to their menus authentic foreign foods prepared by foreign chefs in an effort to attract consumers. Some hotels also began offering low-priced buffet-style lunches.

Hotel restaurants contribute roughly 22% of the total value of the food services market, but this percentage is largely due to their high prices. On a volume basis, hotel restaurants account for just over 7% of the market.

Home Meal Replacement

In 1997, total HMR sales reached $72.5 billion, 7% higher than the previous year. Consumer demand for better quality, taste, nutrition and food safety standards in the HMR sector have led to dramatic changes in the kinds of foods produced and packaged. To be successful, food producers need to convey the image that the meal is moving fresh "from farm to fork." With the development of higher-quality foods that require little or no preparation (e.g. ready-to-heat foods) and that conform to the standards demanded by consumers, the HMR market has developed very successfully.

The sudden popularity of Italian food has given rise to the inclusion of Italian items on menus and the development of a sizeable pizza delivery sector. The number of pizza delivery outlets increased by 24% from 1995 to 1999, climbing to 2250. Although that is just 2.5% of all home delivery food outlets in Japan, pizza delivery is growing and is projected to account for 9% of subsector sales in 1999.

Note: Values are in 1998 dollars.
Source: Canadian Embassy in Tokyo, Japan, 1999.

Convenience Stores

Convenience store chains in Japan are becoming major outlets for HMR and are providing significant competition to the restaurant and fast-food sectors. Each of the top three convenience store chains, 7-Eleven, Family Mart and Lawson, has become a substantial HMR supplier. Sales of HMR at convenience stores totalled $1.1 billion in 1997. That same year, total fast-food sales at 7-Eleven's 7314 stores amounted to $6.55 billion, surpassing those of McDonald's by over $2 billion. Offering fresh sandwiches, salads, bento-style lunch boxes, rice cakes, Japanese dumplings, noodle salads, sushi and ready-to-heat meals, convenience stores are significant competitors in the food services market. Some stores have also begun to challenge the pizza subsector, even going so far as to offer home delivery. Because the market has proven lucrative to proprietors and appealing to consumers, convenience stores are expected to move toward providing more high-quality "complete meals," as demand for HMR continues to rise.

Source: Nihon Keizai Shimbun.

While the market for HMR sales through convenience stores continues to increase, the convenience store market itself is approaching saturation. A rapid increase in the number of outlets, bringing about excessive competition in a time of stagnant consumer spending, has resulted in thinning profit margins and, in some cases, decreased sales. The Ministry of International Trade and Industry reported that there were 36 586 convenience store outlets in Japan in 1997. Each of the three largest chains, recognizing the approaching market saturation, have reduced the number of new stores opening each year and have taken to closing unprofitable outlets.

Key Factors Shaping Market Growth

The demand for convenient, quick meals -- whether at fast-food restaurants, for take out or with minimal preparation at home -- has increased significantly in recent years. The restaurant sector also experienced a boom in business through the late 1980s and early 1990s; however, the economic crisis in Japan in 1997 and 1998 decreased demand, forcing the sector to undergo many changes to rebuild its consumer base.

Until recently, most consumers shopped using public transportation or bicycles, which limited them to small quantities of goods purchased relatively close to home. With deregulation and consumer demand for lower prices, and with the construction of new, larger and more efficient stores and shopping centres with parking facilities, shopping habits are changing. Now consumers can shop on weekends by car and purchase larger quantities of lower-priced products. Supermarkets and hypermarts, which are "mega-discount supermarkets" that are sparsely decorated and staffed to minimize operating costs, are likely to increase their shares of the retail food services market as they offer greater ranges of prepared meals.

According to Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF), eating home-cooked meals will decrease in popularity, while carry-out and restaurant expenditures will re-achieve double-digit growth. Among the factors to be taken into consideration are gross domestic product, total household food expenditure, demographic changes, cost of living, and so on. In effect, MAFF notes the inverse relationship between gross domestic product (GDP) growth and the consumption of home-cooked meals: as GDP increases, expenditures on foods outside the home are expected to increase.

An April 1998 decision to relax the Large-scale Retail Store Law (LRSL) will change the complexion of the retail sector in Japan. The LRSL, designed in part to protect smaller merchants from large retail competition, limited the establishment, expansion and business operations of large stores in Japan. In 2000, a new law will be passed, designed to limit store establishment or expansion on the basis of environmental impacts only, rather than the protection of small business. As a result, development of larger retail outlets is expected, and food services at these stores will increasingly rely on foreign food suppliers for the wide range of products Japanese consumers will demand.

Several health and food safety threats in recent years have also resulted in increased demand from consumers for better packaging, better food sourcing, higher-quality products and higher food safety standards. One of these food safety threats occurred during the summer of 1996, when an outbreak of O-157 bacteria in fresh and raw produce shattered consumer confidence in these products. The bacteria also contaminated approximately 20% to 30% of the raw fish available in Kansai supermarkets. Sushi restaurants particularly suffered from the resulting decline in consumer confidence and have yet to fully recover from the impact on sales. Attention to food hygiene standards in both bento and sushi outlets consequently increased dramatically.

Biofood labelling and genetically engineered foods (which contain genetically modified organisms, or GMOs) are gaining higher exposure and being viewed with increasing suspicion in Japan. GMOs are produced when new genes, sometimes from other species, are introduced into a plant or animal to produce "desirable" traits, such as resistance to cold, pests, disease, spoilage or a particular form of herbicide. While the United States is pushing for acceptance of genetically engineered foods according to international standards, the Japanese Ministry of Health is not yet moving to create legislation. The Japanese government has been actively promoting biotechnology as a vital technology for the coming century; however, it has considered labelling bioengineered food to give consumers information to make their own decisions. In August 1999, Japan announced that it would subject 30 food products, including soybeans, corn, potatoes and products manufactured using these goods, to mandatory labelling for GMO content. Japan, believed to be the world's largest importer of GMO foods, relies heavily on imports from nations such as Canada to meet food requirements.

In a country with a tradition of eating food raw or as close to its natural state as possible, genetically engineered foods are unappetizing and are increasingly being viewed with distrust. In 1998, 28 of the 180 co-operatives operating in the Japanese food industry began promoting biofood-free products, and they are trying to screen out or label genetically engineered foods. The City of Fujisawa, near Tokyo, has banned all genetically engineered foods from its school lunches. The effects of labelling requirements could be dramatic. Labels for foods with trace amounts of GMOs could be required, or expensive GMO testing which could increase prices of GMO-free food products by as much as 30%.

In the meantime, debate over the abundance of "organic" foods available in Japan has led the Japan Foodservice Association, a national organization of restaurant businesses, to create its own organic produce certification standard in an effort to control the number of food displays claiming organic status. This standard is not related to those created by the Ministry of Agriculture, Forestry and Fisheries, which were designed to conform to international standards. Approximately 99% of total vegetable production in Japan is still not organic, but this measure should help limit the marketing of organic products and lend credibility to the label.

Opportunities

The Japanese food services industry is expected to increase its dependence on imported foods in the short term, due to a number of factors. Japan's agricultural production is expected to fall as the average age of farmers increases and the size of the agricultural population continues to shrink. From 1980 to 1995, the percentage of Japanese employed in agriculture and fisheries declined by half, to 5.9% of the population. Domestic producers are able to satisfy niche markets well, but large chain restaurants and the growing retail market are having to turn more to international suppliers for the large volumes of products they require.

The recovery of the Japanese economy will reopen opportunities for the growth of the restaurant sector, particularly in the fine-dining and international cuisine subsectors. Growth in the popularity of Western-style meals will increase the demand for products such as beef, pork, chicken, pizza toppings, vegetables, wine and seafood. Further development of high-quality HMR products to suit the Japanese consumer is also expected, as consumers will be able to afford the expenses related to producing better food. The developing movement for responsible food production, through the use of non-genetically engineered food products and accurate organic food labelling, is also likely to provide good opportunities for providers of organic food products. As the Japanese population continues to age, demand for foods catering specifically to the dietary needs and budgetary restrictions of older consumers will also increase.

The fast-food market is expected to provide the most dynamic volume and value growth in the food services industry, as it is the least mature market sector and has considerable room for growth. While the sector continues to grow, consumer demand will require that the fast-food market adapt to the health-conscious trend sweeping the Japanese food industry. As city centres become saturated with fast-food outlets, these companies will increasingly move to develop suburban locations, such as shopping centres or joint ventures with gas stations.

Japan's role as co-host for the World Cup of soccer in June and July 2002 will not only revitalize the economy, but also will place heavy demands on every aspect of the food services industry. From the event's official food service providers, to hotel restaurants, to retail bento outlets, demand for products to meet consumer

Actual and Planned Projects

In early 1999, the Tokyo-based Nihon Menshoku Gijutsu Center (Japanese Noodle Technology Center) announced the production of a spaghetti requiring only 50 seconds' boiling time. As Japan's fascination with Italian cuisine continues, there has been increased demand for frozen spaghetti products for the catering market, but problems attaining the desired noodle firmness prevented the demand from being met. With the development of this new product, frozen products might now be introduced into special Italian food outlets. The product could even lead to the development of small "stand and eat" spaghetti outlets or street vendors along the lines of existing Japanese noodle outlets.

COMPETITIVE ENVIRONMENT

Local Capabilities

Domestic food manufacturers hold several advantages over foreign competition because of their vast distribution networks and the established brand awareness of their products. Domestic manufacturers appreciate the importance of quality packaging in marketing their products to the consumer, and food manufacturers in Japan also have a deep cultural understanding of consumer needs. The willingness and ability to respond in a timely manner to trends could also give domestic manufacturers a significant advantage.

The largest supplier to the pizza subsector is JC Foods, with a market share of 55% of the refrigerated segment and almost 70% of the frozen segment. The company has six plants throughout Japan that produce pizzas and pre-fried fish products. Since 1988, JC Foods has supplied Domino's Pizza Japan for its home delivery market, through a subsidiary.

International Competition

Imports supply meat and seafood products to the food services sector, as well as the majority of frozen vegetables used in the sector. However, products are frequently imported in bulk and then re-packaged, resulting in low consumer awareness concerning the origin of products, as well as difficulty in tracking product origin.

Canadian Position

Encouraged by the 1995 lowering of the import duty on pizza, McCain's began exporting frozen pizza to Japan for sale through its Japanese subsidiary, under the name Kantan Pizza. Annual imports currently total approximately 20 tonnes, but the exporter is confident that the popularity of pizza will continue to grow in Japan. Its products are priced to sell at around 20% below the retail price of equivalent Japanese products.

Many imports from Canada used in the food services sector, such as seafood products and vegetables, suffer from the same lack of identification experienced by other imported international food products. However, Canadian meats and frozen French fries enjoy moderate levels of consumer awareness.

Competitive Advantage through Canadian Government Policies and Initiatives

The Canadian Agriculture and Food International (CAFI) Program

The Canadian Agriculture and Food International (CAFI) Program is a key element of Canada's international strategy. It is designed to support Canada's agriculture and food industry by helping to build long-term international strategies that will help ensure the industry is well-positioned to succeed in key markets, and to respond to increasing consumer demands and global competition.

The CAFI Program matches industry funds dollar for dollar to support activities that enhance and promote Canada's reputation as the world leader in supplying safe, high-quality agriculture, agri-food, beverage, and seafood products that meet the changing demands of world markets.

In this way, the Canadian agriculture and food industry will enjoy improved access to global markets, and will strengthen its ability to increase international sales.
http://www.agr.gc.ca/int/cafi-picaa/index_e.php?page=intro

Export Development Corporation

Export Development Corporation (EDC) offers export financing and insurance to Canadian exporters. Additionally, insurance can be provided for larger transactions that are subject to the terms and conditions established by the buyer. EDC prefers to work through letters of credit, bank credits or bank guarantees. Approval for financing is considered on a case-by-case basis.

Canadian Commercial Corporation

The Canadian Commercial Corporation (CCC) gives Canadian companies access to financing and better payment terms under the Progress Payment Program (PPP). The PPP concept was developed as a partnership between major Canadian financial institutions and the CCC. It enables the exporter's bank to open a project line of credit for the exporter's benefit, based on CCC approval of the project and the exporter's ability to perform. The CCC will also act as a prime contractor on behalf of Canadian small and medium-sized enterprises, giving those businesses increased credibility and competitive advantage.

Program for Export Market Development

The Program for Export Market Development (PEMD) helps Canadian companies enter new markets by sharing the costs of activities that companies normally could not or would not undertake alone, thereby reducing risks involved in entering a foreign market. Eligible costs and activities include market visits, trade fairs, incoming buyers, product testing for market certification, legal fees for international marketing agreements, transportation costs of offshore company trainees, product demonstration costs, promotional materials, and other costs necessary to execute a market development plan. Activity costs are shared on a pre-approved, 50/50 basis.

The PEMD refundable contribution ranges from $5000 to a maximum of $50 000. Preference is given to companies with fewer than 100 employees for a firm in the manufacturing sector and 50 in the service industry, or with annual sales between $250 000 and $10 million. Other components of the program include international bid preparation (Capital Project Bidding) and, for trade associations, developing international marketing activities for their membership. For additional information visit http://www.infoexport.gc.ca/pemd-e.asp or call 1-888-811-1119.

WIN Exports

WIN Exports, a database of Canadian exporters and their capabilities, is used by trade commissioners around the world and by Team Canada Inc partners in Canada to match Canadian suppliers with foreign business leads, and to share information on trade events. To register your company in WIN Exports or for more information, visit http://www.infoexport.gc.ca/winexports/menu-e.asp or call 1-888-811-1119.

MARKET LOGISTICS

Agents and Sales Representatives

If Canadian exporters are not pursuing a joint venture with a Japanese company, hiring the services of a Japanese agent is considered an essential step toward achieving successful marketing and distribution. However, Canadian companies should be discriminating in choosing a Japanese business partner. While necessary, this process is often arduous, involving both credit checks and close study of the Japanese company's industry standing and existing relations with Japanese competitors. The agent's willingness and ability to abide by contract terms are critical.

A significant part of the difficulty in selecting a Japanese agent is ensuring that they will devote serious attention to expanding the market share of the Canadian product. Canadian companies should look for agents that:

• are interested in distributing/marketing a wide-array of products, not just high-priced or niche items;
• are not compromised by strong ties to a particular industry group (keiretsu);
• are prepared to compete directly with established Japanese products; and
• are willing to pursue volume sales for the Canadian exporter.

To attract a suitable Japanese business partner, Canadian exporters need to convey an image of dependability, superior quality, competitiveness and commitment to the Japanese market, and must be prepared to build personal relationships over extended periods of time. Canadian companies need to demonstrate that they are competitive in their domestic industries, and that they are prepared to meet cultural requirements such as supplying high-quality Japanese brochures on the company and its products. Frequent communication with the Japanese agent is considered imperative, as are regular visits to Japan.

Establishing a joint-venture partnership is another avenue Canadian exporters may wish to consider. The advantages of establishing a joint venture in Japan are greater ease in identifying and hiring local personnel, and immediate access to a distribution system and customers. However, entering the market in this way requires Canadian companies to share profits and control with their Japanese partner. As with selecting agents and distributors, trust, communication and common interests are crucial.

Canadian companies can arrange a joint venture in Japan in the following ways:

• an unincorporated, contractual joint venture;
• acquiring stock through the consent of an existing corporation; or
• the incorporation, either in Canada or more commonly in Japan, of a new company in which the Japanese and Canadian corporations reach consensus on management control and on the roles and responsibilities of each party.

The Ministry of Finance (through the Bank of Japan) must be notified. If the joint venture is intended to last more than one year, the joint venture agreement must be submitted to the Japanese Fair Trade Commission for review within 30 days of its execution.

Distributors and Wholesalers

Many large retailers (including national supermarkets, larger regional supermarkets, and convenience stores) have their own central and regional distribution centres to which manufacturers and wholesalers deliver products. From these centres, a wide variety of products are distributed to each outlet.

In many respects, the nature of Japanese distribution for foreign-made processed-food products is changing. Due to the streamlining of the distribution system, large retailers are seeking a more direct relationship with manufacturers. As a result, various wholesalers have merged, voluntarily liquidated or declared bankruptcy, which has led to a steady decline in their numbers.

Previously, foreign manufacturers of consumer-ready products had difficulty in building strong wholesaler networks to match those of Japanese manufacturers. However, now that supermarkets are taking responsibility for unsold goods, foreign suppliers are actively developing their own products overseas before shipping them to Japan. Consequently, there has been a dramatic increase in imports of food products.

Like supermarkets and discount stores, wholesalers are also procuring products directly from overseas. Although wholesalers are decreasing in number, they still perform services vital to the distribution process, including money collection, delivery services and inventory control, on behalf of manufacturers and retailers.

In selecting a local distributor, there are a number of factors Canadian exporters need to bear in mind. While Canadian companies are often expected to commit exclusively to one Japanese distributor, Canadian companies should not be pressured into allowing the distributor to assume control of the entire market if there is any doubt as to the distributor's ability or willingness to expand sales of the product. Regional exclusivity, a limited term of representation, minimum sales or qualitative indicators of sales efforts may be advisable in exclusive contracts.

Market Entry Considerations

Access to the Japanese market for agri-food, fish and beverage products may be subject to high import tariffs and stringent non-tariff measures. Although many of Japan's technical food regulations can be frustrating for Canadian exporters, progress continues to be made every year in further reducing the impact of these regulatory measures.

While tariffs on agricultural commodities are generally low or zero, average import tariffs on consumer products remain very high. There is significant tariff escalation as products proceed from raw or fresh to processed forms. Canada will seek substantial reductions in these tariffs during the WTO Agriculture negotiations, which started in March 2000.

In general, successful participation in the Japanese market also requires a great deal of patience and commitment, and often considerable expense. Japanese companies operate quite differently from their North American counterparts and often put a premium on:

• long-term commitment to a business relationship;
• quality consciousness;
• prompt delivery;
• after-sales service capabilities;
• marketing support;
• training for sales people;
• constant communication; and
• user-friendly and labour-saving qualities.

In addition, Japanese businesses often wish to understand the background, personalities and business aspirations of their prospective business contacts and their companies. These personal links between companies and individuals can make the difference between coming to an agreement or not; and once established, business ties are typically solid and long-lasting.

Product Adaptation

The adaptation of Canadian agri-food and seafood products to Japanese tastes and the integration of various Canadian agri-food and seafood ingredients into Japanese cuisine are recognized as important elements of a Canadian strategy vis-à-vis the Japanese food market. There have been many examples of close collaboration between Japanese technical experts and Canadian suppliers in order to ensure that Canadian products met the exacting requirements of the marketplace. The ability to take full advantage of market opportunities in Japan in a very competitive environment requires continued service-oriented co-operation of this kind.

Exporters can obtain advice and assistance regarding product adaptation or new product development from federal and provincial government institutions, such as the International Trade Centres. Export preparedness programs and seminars targeted at this aspect of client service in the Japanese market are also a component of Canada's Action Plan for Japan.⁽⁶⁾

Suggested Business Practices

The importance of cultural conventions and formalities in Japanese culture cannot be overstated. In fact, the emphasis on etiquette remains so strong that what someone does may be less important than how they do it. Clearly, for the foreign businessperson with little or no understanding of Japanese behaviour, it is crucial to become familiar with the Japanese language and culture before going to Japan to do business.

Business meetings, especially ones with large companies, need to be scheduled weeks in advance. In setting up a first meeting, it is also important to make attempts to meet those executives who are at appropriate levels to make important decisions. Numerous personal visits to potential associates in Japan are mandatory in order to form trusting business relationships before any tangible results are realized.

The Japanese place tremendous value on personal relationships in their business ventures. In fact, virtually no distinction is made between personal and business associations. Foreigners often fail to establish adequate long-term ties in Japan, as they do not invest enough time and effort in learning the nuances of Japanese culture or earning the respect of their business counterparts. Indeed, exporters should be patient and avoid rushing the process of cultivating personal relationships and fostering trust. Such behaviour is likely to be interpreted as a lack of commitment by Japanese business associates.

To become better acquainted with the Japanese business culture, exporters are encouraged to consult Japan Business: The Portable Encyclopaedia for Doing Business with Japan, and Passport Japan (see Bibliography).

Import Regulations

Imported food products require certification from the Japanese Ministry of Health and Welfare (MHW) before they can be sold in the Japanese market. Certificates are valid for six months and are very product-specific: different varieties of the same product must be certified individually. Canadian exporters can have their products certified by an MHW-approved laboratory in Canada before shipment, which will help avoid unnecessary delays or expenses when the products arrive in Japan. A list of ingredients as well as a brief description of the manufacturing process must be included with the products when they are submitted to the lab.

The Japanese Ministry of Agriculture, Forestry and Fisheries requires certain certificates for quarantine inspection of fresh products such as meat and vegetables (including frozen meat and vegetables). Exporters should consult MAFF or the Japan External Trade Organization (JETRO) to ensure that all necessary certificates are included in any shipment.

The Japanese Agricultural Standards (JAS) mark is a widely used voluntary mark that informs consumers that the product adheres to government labelling and quality standards. This system is open to foreign products and tends to make imported products more appealing to consumers.

Canadian exporters can obtain, for a fee, a "carnet" that permits temporary importation of commercial samples without having to pay duties or posting bonds. However, any products listed on the carnet must be re-exported. More information can be obtained from the Canadian Chamber of Commerce, which issues the carnets.

Canadian exporters may also wish to contact JETRO's Standards Information Service, which has been designated as the national inquiry point for the GATT Standards Code in Japan.

Local Standards, Certificates or Registrations

All products exported to Japan must be accompanied by a set of shipping documents. It is recommended that Canadian exporters use the services of a Japanese customs broker, importer, agent or distributor to ensure that all essential documentation is correctly prepared and arrives with the shipment. All documents should be completed in both English and Japanese in order to avoid any unnecessary delay. Among the required documents are the following:

Commercial Invoice

The commercial invoice serves as a bill to the buyer from the exporter and must accompany every shipment to Japan. Invoices must be signed by the exporter. The invoice should be thoroughly checked, since any error or omission can result in delays, fines or even confiscation. The invoice must include the following information:

• place and date of issue;
• names and addresses of importer and exporter;
• detailed description of the merchandise, including identifying marks, quantities, numbers and varieties;
• method of shipment;
• signature of responsible officer, along with name and title;
• all insurance and freight charges; and
• shipper's invoice number and customer's order number.

Exporters should consult their customs broker to determine how many copies of the commercial invoice should be sent with each shipment, since the number of copies required depends on the product being shipped. Any promotional information should also be included with the commercial invoice.

Export Declaration Form (Form B-13)

Exporters whose shipments have a value of $2,000 or greater must complete Form B-13. Although exporters are technically responsible, agents, brokers or carriers typically complete the form and submit it on behalf of the exporter.

Packing List

A packing list is necessary when multiple packages are shipped, unless the commercial invoice provides the required information. The list should include the number of packages within one case; the net, gross and legal weights of each case and of the total shipment; and the volume of individual packages, as well as of the shipment as a whole. Between four and seven copies of the packing list should be included in any shipment.

Bill of Lading

The bill of lading is the shipper's recognition of receipt of the shipment. Each shipment may contain a set of bills of lading, one copy of which should be kept on file, while other copies are sent to the importer and customs broker. The bill of lading should include:

• description of the product(s);
• weights and measurements of the packages and their types;
• ports of origin and destination;
• names and addresses of the shipper, importer and customs broker;
• any freight or other charges incurred;
• number of bills of lading in the full set; and
• carrier's acknowledgment of receipt on board of the goods for shipment.

Certificate of Origin

A certificate of origin verifies that the goods originate in Canada and are therefore subject to all duties or taxes that apply to Canadian products.

Packaging and Labelling

Japanese product packaging requirements are different from those established for similar products found in North America. Package sizes in Japan tend to be smaller, as warehouse space, shelf space and consumer storage space is limited. All packaged retail food must have the following information clearly written, in Japanese, either directly on the package or attached with a seal or stick-on label:

• name of the product;
• statement of what the product is;
• expiry date and any other storage requirement;
• country of origin;
• alcohol content, by volume (when applicable);
• manufacturer's lot or batch number;
• all nutritional information;
• list of ingredients and weights in metric units; and
• list of additives, preservatives or colouring used.

Many exporters use stick-on labels or seals for products that are not specifically produced for the Japanese market. These labels or seals can be affixed to the product either in Canada or in Japan before retail sale.

Authentication of Documents

Documents that need to be authenticated, such as certificates of sale and letters authorizing an exporter's local agent or importer to act on their behalf, must first be notarized in Canada. Exporters can have the notarized documents authenticated, at no cost, by sending them to the Authentication and Service of Documents (JLAC) division at the Department of Foreign Affairs and International Trade.

Export Credit Risks, Restrictions on Letters of Credit, Currency Controls

Japan currently implements no restrictions on letters of credit or currency controls.

Generally the method of payment is a matter for negotiation between the individual supplier and importer. Usual practice is for payment to be made by terms of a letter of credit for 30 to 60 days. In cases where distribution arrangements are concluded, exporters are advised to prepare a contract detailing all major points of agreement, including rights and responsibilities.

The recession in Japan has caused a retraction in corporate and consumer demand. Financial-sector problems threaten to stifle business activity. Some trading houses and importers are showing signs of difficulty because of this credit crunch and their exposure to other troubled Asian countries. EDC is of the opinion that, while prospects in the agri-food sector remain good, bankruptcies, in general, are up, which makes typical open-account transactions in this sector more vulnerable.

Japan, however, is an economic powerhouse. Its problems are those of a mature economy and should not be considered in the same light as those of developing states in the region and elsewhere. Japan has the second-largest economy in the world, with a GDP of $5.5 trillion (over half of Asia's total and nearly a fifth of the world's), two-way trade of over $1.1 trillion and a surplus of $110 billion in 1998, foreign exchange reserves of nearly $350 billion (the world's largest) and private savings of approximately $13 trillion (one third of the world's total). The economic reserves that Japan has available to address its current challenges are distinctly greater than those possessed by any of its neighbours.

PROMOTIONAL EVENTS

Food Design Show
Tokyo International Exhibition Center
September 26-28, 2001 (Annual)

Organizer:
The Kenkoh Sangyo Shimbun Co., Ltd. (Health Industry News)
Kanda Horii Bldg. 8^th Floor
2-3-3, Kaji-cho, Chiyoda-ku
Tokyo, Japan 101-0044
Tel.: (03) 5296-1011
Fax: (03) 5296-1010

Health Ingredients Japan 2001
September 26-28, 2001 (Annual)
Tokyo, Japan

Organizer:
The Kenkoh Sangyo Shimbun Co., Ltd. (Health Industry News)
Kanda Horii Bldg. 8^th Floor
2-3-3, Kaji-cho, Chiyoda-ku
Tokyo, Japan 101-0044
Tel.: (03) 5296-1011
Fax: (03) 5296-1010

Japan Food
October, 2002 (Biennial)
Osaka (Osaka), Japan
International food show. Also contains Food-Tech, Japan's international food engineering and industry show.

Organizer:
Osaka International Trade Fair Commission
1-5-102 Nanko-kita
Suminoe-ku
Osaka 559, Japan
Contact: H. Tanaka
Tel.: (81) 6612-1212
Fax: (81) 6612-8585
E-mail: info@fair.or.jp
Internet: http://oitfc.fair.or.jp

International Food Fair 2002 in Kitakyushu
October, 2002 (Biennial)
Kitakyushu (Fukuoka), Japan
International food and beverage exhibition.

Organizer:
Nishinippon International Trade Fair Commission
1-1 Jonai
Kokurakita-ku, Kitakyushu, Fukuoka 803-8501
Contact: Mr. Tsuyoshi Nimiya
Tel:(093) 582-4101
Fax:(093) 582-3865
E-mail: iff@kix.or.j
Internet: http://www.kix.or.jp/iff

Food Services Industry Fair
October 5-6, 2001 (Annual)
Tokyo, Japan
Foodstuff and food materials for catering business, hotels and restaurants.

Organizer:
Japan Food Service Distributor Association
1-10-1 Uchikanda
Chyoda-ku
Tokyo 101-0047
Contact: Yoshio Hirabayashi
Tel:(03) 3292-8225
Fax:(03) 3295-9169

Caterex Japan
November 28-December 1, 2000 (Annual)
Tokyo, Japan
The largest specialized exhibition for the food-catering business in Japan. Held for professional people such as licensed chefs, dietitians and those who provide meals and packed lunches to companies, schools, hospitals and welfare centres.

Organizer:
Japan Management Association
3-1-22 Shibakoen
Minato-ku
Tokyo 105-8522, Japan
Contact: Hiroaki Uyeno
Tel.: (03) 3434-3451
Fax: (03) 3434-8076
E-mail: tomio.inoue@jma.or.jp
Internet: http://www.jma.or.jp/CATEREX/

Food Service Industry Fair
September, 2001
Osaka, Japan
Equipment and systems for food processing, restaurants, and catering businesses; systems and technologies for freshness/sanitary/ environment preservation, etc.

Organizer:
Japan Food Service Distributor Association
1-10-1 Uchikanda
Chyoda-ku
Tokyo 101-0047
Contact: Yoshio Hirabayashi
Tel:(03) 3292-8225
Fax:(03) 3295-9169

Foodex Japan
March 13-16, 2001 (Annual)
Chiba, Japan
International food and beverage exhibition.

Organizer:
Japan Management Association
Hiroaki Uyeno
3-1-22 Shibakoen
Minato-ku
Tokyo 105-8522, Japan
Contact: N.Tagashira
Tel.: (03) 3434-8116
Fax: (03) 3434-8076
E-mail: tomio.inoue@jma.or.jp
Internet: http://www.jma.or.jp

Hoteres & Foodex Kansai
October 23-26, 2001 (Biennial)
Osaka, Japan
International food and beverage exhibition, plus equipment for food catering, processing, and packaging.

Organizer:
Japan Management Association
Osaka Kokusai Bldg. 28F
2-3-13 Azuchi-machi
Chuo-ku
Osaka 541-0052, Japan
Contact: K. Hisatake
Tel.: (06)6261-7151
Fax: (06)6261-5852
E-mail: tomio.inoue@jma.or.jp
Internet: http://www.jma.or.jp/CONVENTION/

Eating-Out Industry Grand Fair
Science Museum Exhibition Hall, Tokyo
April 8-9, 2001 (Annual)
Food materials, related equipment & materials for catering industry and business use.

Organizer:
Tokyo Metropolitan Institutional Food Service Wholesalers Co-Operative
3-5-2 Ueno
Taito-ku
Tokyo 110-0005
Contact: Y. Murakami
Tel:(03)3835-1541
Fax:(03)3835-1542

Fooma Japan
May 14-17, 2001 (Annual)
Tokyo, Japan
The biggest business trade show in Asia; concentrates on the future of food manufacturing and processing technologies.

Japan Food Machinery Manufacturers' Association
Fooma Bldg.3-19-20
Shibaura, Minato-ku
Tokyo 108, Japan
Tel.: (03) 5484-0981
Fax: (03) 5484-0989
E-mail: fooma@ppp.bekkoame.ne.jp
Internet: http://www.fooma.or.jp

Brewtex Tokyo 2001
March 13-16, 2001 (Annual)
Tokyo, Japan
Distillery & beverage plant, facilities and equipment for distillery & beverage raw materials, additives, consulting related with micro-brewery, utensils and fixtures for pubs & restaurants.

Organizer:
Japan Management Association
3-1-22 Shibakoen
Minato-ku
Tokyo 105-8522
Tel:(03) 3434-1377
Fax:(03) 3434-8076
Contact: Tadashi Yoshida
E-mail: Tadashi-Yoshida@jma.or.jp

West Japan Food Machinery/Kitchen & Cooking Equipment/Food Materials Software & Technology Exhibition
June 6-8, 2001
Fukuoka (Fukuoka), Japan

Organizer:
The Nikkan Kogyo Shimbun, Ltd. (Seibu Branch)
1-1 Komondo-machi
Hakata-ku
Fukuoka 812-0029, Japan
Tel:(092) 271-5715
Fax:(092) 271-5743

International Food Ingredients & Additives Exhibition and Conference
May 16-18, 2001 (Annual)
Tokyo, Japan
Asia's leading food ingredients and additives event, attending to the ever-increasing desire for new food items, lower prices and quality of product. Low-calorie and low-cholesterol items, foods with vitamins, minerals and fibre, and functional foods are all featured, among other foods.

Organizer:
Food Chemical Newspaper Inc.
Shobunkan Bldg., 3-2-8 Kandajinboocho
Chiyoda-ku
Tokyo 101-0051, Japan
Tel:(03) 3238-7818
Fax:(03) 3238-7898

KEY CONTACTS AND SUPPORT SERVICES

Canadian Government and Industry

Canadian Embassy
7-3-38 Akasaka
Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 5412-6200
Fax: (81-3) 5412-6247
E-mail: tokyo-td@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/ni-ka/

Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, ON K1A 0G2 Authentication and Service of Documents (JLAC)
Tel.: (613) 992-6602
Fax: (613) 992-2467 Korea and Oceania Division (PJP)
Contact: Jo Anne Roy-Foster
Tel.: 1-800-267-8376 or (613) 992-6185
Fax: (613) 943-8286 Market Support Division (TCM)
Contact: Robert Lazariuk
Tel.: 1-800-267-8376 or (613) 995-1773
Fax: (613) 944-0050

Canadian Consulate - Fukuoka
FT Building 9F
4-8-28 Watanabe-dori, Chuo-ku
Fukuoka 810-0004, Japan
Tel.: (81-92) 752-6055
Fax: (81-92) 752-6077
E-mail: fkoka@dfait-maeci.gc.ca

Alliance of Manufacturers and Exporters Canada
1 Nicholas Street, Suite 1500
Ottawa, ON K1N 7B7
Tel.: (613) 238-8888
Fax: (613) 563-9218
Internet: http://www.the-alliance.org

Canadian Consulate - Nagoya
Nakato Marunouchi Building 6F
3-17-6 Marunouchi, Naka-ku
Nagoya 460-0002, Japan
Tel.: (81-52) 972-0450
Fax: (81-52) 972-0453
E-mail: ngoya@dfait-maeci.gc.ca

Business Development Bank of Canada
5 Place Ville Marie, Suite 400
Montreal, QC H3B 2G2
Tel.: 1-888-463-6232
Fax: (514) 283-0617
Internet: http://www.bdc.ca

Canadian Consulate General - Osaka
Daisan Shoho Building, 12th Floor
2-2-3 Nishi-Shinsaibashi, Chuo-ku
Osaka 542-8691, Japan
Tel.: (81-6) 212-4910
Fax: (81-6) 212-4914
E-mail: osaka@dfait-maeci.gc.ca

Canada-Japan Trade Council
75 Albert Street, Suite 903
Ottawa, ON K1P 5E7
Tel.: (613) 233-4047
Fax: (613) 233-2256
E-mail: cjtc@magi.com
Internet: http://magi.com/~cjtc

Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue
Ottawa, ON K1A 0C5
Contact: Mike Leclair
Tel.: (613) 759-7523
Fax: (613) 759-7506
E-mail: leclairm@agr.gc.ca
(See below for regional service contacts)

Canadian Commercial Corporation
50 O'Connor Street, 11th Floor
Ottawa, ON K1A 0S6
Tel.: (613) 996-0034
Fax: (613) 995-2121
E-mail: info@ccc.ca
Internet: http://www.ccc.ca

Canadian Food Inspection Agency (CFIA)
59 Camelot Drive
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6653
E-mail: cfiamaster@agr.gc.ca

Canadian Chamber of Commerce
Ottawa
Delta Office Tower
350 Sparks Street
Suite 501
Ottawa, ON K1R 7S8
Tel.: (613) 238-4000
Fax: (613) 238-7643<
Internet: http://www.chamber.ca/

Canadian Chamber of Commerce
Toronto
BCE Place
181 Bay Street
Heritage Building
(Galleria)
PO Box 818
Toronto, ON M5J 2T3
Tel.: (416) 868-6415
Fax: (416) 868-0189 Montreal
1255 University Street
Suite 1510
Montreal, QC H3B 3X2
Tel.: (514) 866-4334
Fax: (514) 866-7296

Canadian International Development Agency (CIDA)
Business Co-operation Branch, Bureau for Asia
200 Promenade du Portage
Hull, QC K1A 0G4
Tel.: (819) 997-7901
Fax: (819) 953-5024

Export Development Corporation
151 O'Connor Street
Ottawa, ON K1A 1K3
Tel.: (613) 598-2500
Fax: (613) 237-2690
E-mail: export@edc4.edc.ca
Internet: http://www.edc.ca

Agriculture and Agri-Food Canada

The Agri-Food Trade Service regional contacts are:

Al McIsaac
St. John's, NF
Tel.: (709) 772-0330
E-mail: mcisaaca@agr.gc.ca

Chris Pharo
Charlottetown, PEI
Tel.: (902) 566-7310
E-mail: pharoc@agr.gc.ca

Fay Abizadeh
Winnipeg, MB
Tel.: (204) 983-8622
E-mail: abizadehf@agr.gc.ca

Shelley Manning
Halifax, NS
Tel.: (902) 426-2137
E-mail: mannings@agr.gc.ca

Bernard Mallet
Moncton, NB
Tel.: (506) 452-3732
E-mail: malletb@agr.gc.ca

Marc Chénier
Montreal, QC
Tel.: (514) 283-3815 (510)
E-mail: chénierm@agr.gc.ca

Sharon Burke
Guelph, ON
Tel.: (519) 837-5831
E-mail: burkess@agr.gc.ca

Roy Gordon
Regina, SK
Tel.: (306) 780-7134
E-mail: gordonr@agr.gc.ca

Rodney Dlugos
Edmonton, AB
Tel.: (403) 495-5526
E-mail: dlugosr@agr.gc.ca

Shun Ishiguro
New Westminster, BC
Tel.: (604)666-9803
E-mail: ishiguros@agr.gc.ca

International Trade Centres

For export counselling or publications for Canadian exporters, contact a local International Trade Centre by calling 1-888-811-1119.

Japanese Government Contacts

Embassy of Japan in Canada
255 Sussex Drive
Ottawa, Ontario
K1N 9E6
Tel.: (613) 241-8541
Fax: 613) 241-2232

Japanese External Trade Organization (JETRO) - in Canada
In Montreal
1 Place Ville-Marie, Suite 1506
Montreal, QC H3B 2B5
Tel.: (514) 879-5617
Fax: (514) 879-5618
Internet: http://www.toronto.jetro.org In Toronto
181 University Avenue, Suite 1600
Toronto, ON M5H 3M7
Tel.: (416) 861-0000
Fax: (416) 861-9666
Internet: http://www.toronto.jetro.org In Vancouver
World Trade Centre
999 Canada Place, Suite 660
Vancouver, BC V6C 3E1
Tel.: (604) 684-4174
Fax: (604) 684-6877
Internet: http://www.canadex.com/jetrovan

Foreign Investment Promotion Development Corporation (FIND)
ATT Building
2-17-22 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3224-1203
Fax: (81-3) 3224-9871

JETRO - in Japan
2-2-5 Toranomon, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 3582-5562
Fax: (81-3) 3582-5027

JETRO - Business Support Centre
ATT Building
2-17-22 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 5562-3131
Fax: (81-3) 5562-3100

Japan Health Food and Nutrition Food Association
6-1, Jingumae 2-chome
Shibuya-ku
Tokyo 150, Japan
Tel.: (03) 5410-8231
Fax: (03) 5410-8235

Japan Standards Association
4-1-24 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3583-8003
Fax: (81-3) 3586-2029 International Standardization Co-operation Centre
Olumu Building, 3rd Floor
4-6-11 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3583-8073
Fax: (81-3) 3582-2390

National Agriculture Research Centre
3-1-1 Kannondai
Tsukuba, Ibaraki 305, Japan
Tel.: (81-298) 38-8510
Fax: (81-298) 38-8484
E-mail: www@narc.affrc.go.jp
Internet: http://ss.narc.affrc.go.jp/ index-e.html

National Food Research Institute
Ministry of Agriculture, Forestry and Fisheries
2-1-2 Kannondai
Tsukuba, Ibaraki-ken 305, Japan
Tel.: (81-298) 38-7971
Fax: (81-298) 38-7996
Internet: http://www.nfri.affrc.go.jp/ english/gaiyoE.html

JETRO - Standards Information Service
2-2-5 Toranomon, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3582-6270
Fax: (81-3) 3589-4179

National Institute of Agrobiological Resources
2-1-2 Kannondai
Tsukuba, Ibaraki 305-8602, Japan
Tel.: (81-298) 38-7406
Fax: (81-298) 38-7408
E-mail : www@abr.affrc.go.jp
Internet: http://ss.abr.affrc.go.jp/index_e.html

Ministry of Agriculture, Forestry and Fisheries
1-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100-8950, Japan
Tel.: (81-3) 3591-2874
Fax: (81-3) 3501-3720

Ministry for Health and Welfare
2-2 Kasumigaseki, 1-chome
Chiyoda-ku
Tokyo 10, Japan
Contact: Satoshi Takaya, D.V.M.
Senior Officer for Imported Food Inspection
Tel.: (03) 3503-1711, ext. 2442

National Research Institute of Agricultural Engineering
2-1-2 Kannondai
Tsukuba 305, Japan
Tel.: (81-298) 38-7513
Fax: (81-298) 38-7609
Internet: http://ss.nkk.affrc.go.jp/index-e.htm

Ministry of Foreign Affairs (MOFA) - Standards Information Service
2-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3580-3311
Fax: (81-3) 3503-3136

Ministry of International Trade and Industry (MITI)
1-3-3 Kasumigaseki, Chiyoda-ku
Tokyo 170, Japan
Tel.: (81-3) 3501-1664
Fax: (81-3) 3501-5912

Japanese Phytosanitary Contacts

Ministry of Agriculture, Forestry and Fisheries
Plant Quarantine Administration
1-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3502-8111, ext. 4149

Nagoya Plant Protection Station
3-12-2 Irifune, Minato-ku
Nagoya 455, Japan
Tel.: (81-52) 651-0111
Fax: (81-52) 651-0115

Japan Plant Quarantine Association
8-15-3 Kaigan, Minato-ku
Tokyo 108, Japan
Tel.: (81-3) 3453-5935 or 3453-6038
Fax: (81-3) 3453-5935

Moji Plant Protection Station
3-10-1 Nishikaigan, Moji-ku
Kitakyushu 801, Japan
Tel.: (81-93) 321-2601
Fax: (81-93) 332-5189

Kobe Plant Protection Station
1-1, Hatabo-cho, Chuou-ku
Kobe 650, Japan
Tel.: (81-78) 331-135/2376
Fax: (81-78) 332-2796

Yokohama Plant Protection Station
5-57 Kitanaka-dori, Naka-ku
Yokohama 231, Japan
Tel.: (81-45) 211-7152
Fax: (81-45) 201-2360

Naha Plant Protection Station
ll-l, 2-chome, Minato-machi
Naha 900, Japan
Tel.: (81-98) 868-2850
Fax: (81-98) 861-5500

Trade Associations/Chambers of Commerce in Japan

American Chamber of Commerce in Japan (AACJ) - Kansai Chapter
Business Centre 301, East Court Two
1-14 Koyocho Naka, Higashi Nada-ku
Kobe 658, Japan
Tel.: (81-6) 857-9745
Fax: (81-6) 857-6714

Japan Foreign Trade Council, Inc.
World Trade Centre Building
2-4-1 Hamamatsu-cho, Minato-ku
Tokyo 100, Japan
Tel.: (81-3) 3435-5950
Fax: (81-3) 3435-5979

Canadian Chamber of Commerce in Japan (CCCJ)
Chez Irene Building, 2F
7-4-7 Akasaka, Minato-ku
Tokyo 107-0052, Japan
Tel.: (81-3) 3224-7824
Fax: (81-3) 3224-7825
E-mail: cccj@twics.com
Internet: http://www.cccj.or.jp

Japan Frozen Food Association
No.2 Katsuraya Building.
10-6 Kobuna-cho, Nihonbashi, Chuo-ku
Tokyo 107, Japan
Tel.: (81-3) 3667-6671
Fax: (81-3) 3669-2117

Japan Chamber of Commerce and Industry
Tosho Building
3-2-2 Marunouchi, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3283-7608
Fax: (81-3) 3216-6491

Nagoya Chamber of Commerce and Industry
2-10-19 Sakae, Naka-ku
Nagoya 460, Japan
Tel.: (81-52) 221-7211
Fax: (81-52) 231-5213

Japan Food Service Association
Hamamatsucho Central Bldg.
1-29-6 Hamamatsu-cho, Minato-ku, Tokyo 105
Tel.: (81-3) 5403-1060
Fax: (81-3) 5403-1070

Osaka Chamber of Commerce and Industry
2-8 Honmachi-bashi, Chuo-ku
Osaka 540, Japan
Tel.: (81-6) 944-6400
Fax: (81-6) 944-6409

Tokyo Chamber of Commerce and Industry
3-2-2 Marunouchi, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3283-7540
Fax: (81-3) 3284-1208

Canadian Banks in Japan

Bank of Nova Scotia
Fukoku Seimei Building, 21^st Floor
2-2 Uchisaiwaicho 2-Chome, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 593-0201
Fax: (81-3) 593-0414

National Bank of Canada
Ogawamachi - Mitsui Building, Suite 502
3-Kanda - Ogawamachi 1-Chome, Chiyoda-ku
Tokyo 101, Japan
Tel.: (81-3) 292-6361

Bank of Montreal
Mitsui Nigokan
1-1 Nihonbashi-Muromachi 2-Chome, Chuo-ku
Tokyo 103, Japan
Tel.: (81-3) 246-0103
Fax: (81-3) 246-4215

Royal Bank of Canada
Hibaya Kokusai Building, 14^th Floor
2-2-3 Uchisaiwaicho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3501-1382
Fax: (81-3) 3508-0403

Canadian Imperial Bank of Commerce
Hibaya Kokusai Building, 8th Floor
2-2-3 Uchisaiwai-Cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 5512-8901
Fax: (81-3) 3591-3169

Toronto-Dominion Bank
Kamiyacho Building, 16th Floor
3-20 Toranomon 4-Chome, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 5473-1610
Fax: (81-3) 5473-6899

Commercial Banks in Japan

Asahi Bank
1-1-2 Ohtemachi, Chiyoda-ku
Tokyo 100-8106
Tel.: (81-3) 3287-2111
Fax: (81-3) 3212-3663

Industrial Bank of Japan
1-3-3 Marunouchi, Chiyoda-ku
Tokyo 100-8210
Tel.: (81-3) 3214-1111
Fax: (81-3) 3215-0367

Bank of Tokyo-Mitsubishi
2-7-1 Marunouchi, Chiyoda-ku
Tokyo 100-8388
Tel.: (81-3) 3240-1111
Fax: (81-3) 3240-4764

Japan Development Bank
1-9-1 Ohtemachi, Chiyoda-ku
Tokyo 100-0004
Tel.: (81-3) 3270-3211
Fax: (81-3) 3245-1938

Daiichi Kangyo Bank
1-1-5 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100-0011
Tel.: (81-3) 3596-1111
Fax: (81-3) 3596-2179

Sakura Bank
1-3-1 Kudan-Minami, Chiyoda-ku
Tokyo 100-8611
Tel.: (81-3) 3230-3111
Fax: (81-3) 3239-1022

Daiwa Bank
2-2-1 Bingo-machi, Chuo-ku
Osaka 540-8610
Phone: (81-3) 271-1221
Fax: (81-3) 268-1337

Sanwa Bank
3-5-6 Fushimi-machi, Chuo-ku
Osaka 541-8530
Tel.: (81-3) 206-8111
Fax: (81-3) 229-9305

The Export-Import Bank of Japan
1-4-1 Ohtemachi, Chiyoda-ku
Tokyo 100-8144
Tel.: (81-3) 3287-9500
Fax: (81-3) 3287-9579

Sumitomo Bank
4-6-5 Kitahama, Chuo-ku
Osaka 541-0041
Tel.: (81-3) 227-2111
Fax: (81-3) 3282-8480

Fuji Bank
1-5-5 Ohtemachi, Chiyoda-ku
Tokyo 100-0004
Tel.: (81-3) 3216-2211
Fax: (81-3) 3201-0527

Translation Agencies in Japan

Access Japan Inc.
Tokyo Tatemono Shibuya Building 8F
3-9-9 Shibuya, Shibuya-ku
Tokyo 150, Japan
Tel.: (81-3) 5467-4723
Fax: (81-3) 5467-4722

Japan Onvention Service Inc.
Nihon Press Centre Building
2-2-1 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3508-1215
Fax: (81-3) 3508-0820

Berlitz Translation Service
Akasaka Annex Building
2-17-42 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3505-3356
Fax: (81-3) 3582-7393

Linguabank Inc.
2-3-18-502 Hirakawa-cho, Chiyoda-ku
Tokyo 102, Japan
Tel.: (81-3) 3234-7575
Fax: (81-3) 3234-7055

Dynaword, K.K.
Kakihara Asahi Eitai Building 10F
3-7-13 Toyo, Koto-ku
Tokyo 135, Japan
Tel.: (81-3) 5632-5001
Fax: (81-3) 5632-5011

Linx Inc.
1-33-32-108 Hamadayama, Suginami-ku
Tokyo 168, Japan
Tel.: (81-3) 3478-0266
Fax: (81-3) 3302-3166

Forte Inc.
5-28-10 Sendagaya, Shibuya-ku
Tokyo 306, Japan
Tel.: (81-3) 3353-3545
Fax: (81-3) 3354-2845

Simul International Inc.
Kowa Building No. 9
1-8-10 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 2586-8911
Fax: (81-3) 3583-8336

I.S.S. Service Centre Inc.
23-3 Ichiban-cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3230-2521
Fax: (81-3) 3262-6633

Sansei International Inc.
Pukide Daini Building 8F
4-1-21 Toranomon, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 3433-1560
Fax: (81-3) 3433-1612

Inter Group Co. Ltd.
Builco Building 5F
3-7-3 Nakatsu, Kita-ku
Osaka 531, Japan
Tel.: (81-6) 372-8048
Fax: (81-6) 372-6164

BIBLIOGRAPHY

Print

Asia Pulse. "Japan's Convenience Stores Scale Back New Outlet Plans," October 23, 1998.

------. "Japanese Restaurant Group to Set Own Organic Standards," April 15, 1998.

------. "McDonald's Japan Posts 13% Rise in FY98 Pretax Profit," March 8, 1999.

Brent, Elizabeth. "Japan's deep recession spells big change for branches of US brands," Nation's Restaurant News, vol. 33, no. 7, February 15, 1999, pp. 31-34.

Comline Pacific Research Consulting. "Current Topics: 50-Second Spaghetti Developed," January 11, 1999.

Euromonitor. Consumer catering in Japan, November 1998.

Focus Japan (JETRO), "Freshly prepared foods are hot items in many retail stores," vol. 25 no. 8, September 1998.

Japan Business: The Portable Encyclopaedia for Doing Business with Japan.

Japan Food Service News, vol. 10, no. 2, June/July 1999.

Los Angeles Times, "Japanese Choke on American Biofood," March 14, 1999.

Mainichi Daily News, "Impending demise of the home-cooked meal," February 3, 1998.

National Institute of Population and Social Security Research. "Selected Demographic Indicators for Japan," downloaded 8 July 1999 from http://www.ipss.go.jp/English/S_D_I/Indip.html.

Nation's Restaurant News, "Japan's deep recession spells big change for branches of US brands," February 15, 1999.

Ono, Yumiko. "At Tokyo's Minute-Metered Buffets, Some Diners Just Skip the Seconds," Asian Wall Street Journal, December 24, 1998.

Passport Japan, Dean Engel and Ken Murakami. World Trade Press, San Rafael, CA, 1996.

United States Department of Agriculture. Japan: Food Processing Sector - Overview, June 7, 1999.

------. Overview of the Japanese Market for Consumer-Ready Agricultural Products, 1998, August 7, 1998.

Electronic

Global Corporate Information Systems: http://www.gcis.com/japan/profile/le_04022.htm.

OTHER REFERENCE MATERIAL

Print

The Agri-Food Market in Japan (FaxLink no. 34036), Team Canada Market Research Centre, June 1999.

The Food Biotechnology Market in Japan (FaxLink no. 42551), Team Canada Market Research Centre, June 1999.

The Cereal-Based Market in Japan (FaxLink no. 34967), Team Canada Market Research Centre, June 1999.

Focus Japan (JETRO), "Wine boom sweeps Japan as lifestyles change," vol. 25 no. 9, October 1998.

The Japanese Food Service Sector (draft), The Canadian Embassy in Japan, drafted by Nakodo Consulting Inc., June 2000.

Internet Sites

Asia-Pacific Foundation of Canada: http://www.apfnet.org/apfc/index.html

Asia Pacific media links: http://www.neog.com/asianow/links1.html

Canada Business Service Centres (1-888-811-1119): http://www.cbsc.org

Canada-Japan Internet Project: http://www.multinova.com

Canada-Japan Trade Council: http://infoweb.magi.com/~cjtc

Canadian Embassy in Japan: http://www.dfait-maeci.gc.ca/ni-ka

Department of Foreign Affairs and International Trade: http://www.dfait-maeci.gc.ca

Economic Development Corporation: http://www.edc.ca

Economic Planning Agency of Japan: http://www.epa.go.jp

ExpoGuide: http://www.expoguide.com

Export Source: http://exportsource.gc.ca

Global Window (A guide to business success in Japan): http://www.anderson.ucla.edu/research/japan/mainfrm.htm

Governments on the World Wide Web: Japan: http://www.gksoft.com/govt/en/jp.html

InfoExport: www.infoexport.gc.ca

Japan Customs: http://www.mof.go.jp/~customs/conte-e.htm

Japan External Trade Organization (JETRO): http://www.jetro.go.jp

Japan Information Network (JIN): http://jin.jcic.or.jp

Japanese Ministry of Finance: http://www.mof.go.jp/english/files.htm

Japanese Web sites: http://www.magnet.state.ma.us/export/govinfo.htm#japan

Links to statistical agencies: http://www.stat.go.jp/148.htm

Ministry of Agriculture, Forestry and Fisheries of Japan: http://www.maff.go.jp/eindex.html

Ministry of Finance: http://www.mof.go.jp/english/index.htm

Ministry of Foreign Affairs of Japan: http://www.mofa.go.jp

Ministry of International Trade and Industry: http://www.miti.go.jp/index-e.html

Montgomery Network (International trade show organization): http://www.montnet.com

National Agriculture Research Centre: http://ss.narc.affrc.go.jp/index-e.html

National Food Research institute: http://www.nfri.affrc.go.jp/english/gaiyoE.html

Ni-ka On-line (Japan-Canada relations): http://www.dfait-maeci.gc.ca/ni-ka

Regional industrial profiles for Asia Pacific: http://aspac.kpmg.com/asiashphere

Strategis: http://strategis.ic.gc.ca

Tradeport: http://www.tradeport.org

Source: IDD Information Services, Tradeline, March 2000.

1.  All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, March 2000.

2. In many cases, the most current statistics available were from 1997 and 1998.

3. For contact information regarding key organizations mentioned in this report, please refer to the Key Contacts section.

4. Causes of the food safety scares are discussed in "Key Factors Shaping Market Growth"

5. Canadian trade officers at both the Canadian embassy in Japan and at the Department of Foreign Affairs (Ottawa) may be able to address questions concerning recent developments in the food services sector.

6. Canada's Action Plan for Japan is available through the Department of Foreign Affairs and International Trade website, Ni-Ka On-line (http://www.dfait-maeci.gc.ca/ni-ka).