TPP is opportunity, not threat
Japan's high-cost farmers are trying to export more of their pricey produce as they see the TPP as a…Japan's high-cost farmers are trying to export more of their pricey produce as they see the TPP as an opportunity, not a threat.
Japan's agricultural sector only exports 5% of it's output but Prime Minister Shinzo Abe said "We should challenge with courage. It is time to make innovation happen and take the step into the open world,” he said after 12 countries, including Japan and the United States, concluded the TPP, which covers about 40 per cent of the global economy and aims to cut or eliminate tariffs and quotas.
Despite Japan's agriculture products prices, because of an obstacle for expanding the export sales channels Japanese farmers are still exporting their produce. Due to Japan's decreasing population, export markets seem appealing to Japanese farmers.
Japanese fruits and vegetables are already recognized by shoppers in Hong Kong, Japan's biggest market for farm produce.
Industry insiders say transport costs for grapes can add 50 per cent or more to the price, and for beef it is around 10 per cent. Beef and fruit are among Japan’s main food exports.
Katsuhiko Umetsu, head of Yamato Transport’s global business development division, said better delivery options were key to increasing overseas demand for Japan’s agricultural products. What they have decided to do is offer a service to farm producers so they can export their products in small lots. By consolidating small lots from all over Japan to a 24-hour airport in Okinawa, the country’s farm products can be delivered to neighbouring Asian countries the following day.