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Japan Market Desktop Report 8-11-19 Web.Pdf Australian Institute for Business & Economics 24 June 2019 Evaluation of the potential to expand horticultural industries in Northern Australia CRCNA Project International Market Report – Japan Dr Shoufeng Cao A/Prof Damian Hine Professor Robert Henry Professor Neena Mitter CRCNA Project International Market Report – Japan Chapter Contents Background and purpose of the desktop research ...................................................................................... 1 1. Local production ........................................................................................................................................... 1 1.1 Mango production ......................................................................................................................................... 1 1.2 Avocado production ...................................................................................................................................... 1 1.3 Lychee production ........................................................................................................................................ 2 2. Import regulation .......................................................................................................................................... 2 2.1 Import protocol .............................................................................................................................................. 2 2.2 Ports of entry ................................................................................................................................................ 3 3. Import evolution ............................................................................................................................................ 4 3.1 Mango imports .............................................................................................................................................. 4 3.2 Avocado imports ........................................................................................................................................... 5 3.3 Lychee imports ............................................................................................................................................. 6 4. Market preference ......................................................................................................................................... 7 4.1 Appearance .................................................................................................................................................. 7 4.2 Taste ............................................................................................................................................................. 7 4.3 Fruit size ....................................................................................................................................................... 7 4.4 Variety ........................................................................................................................................................... 7 5. Consumer insight ......................................................................................................................................... 7 5.1 Consumer behaviour for fresh fruit ............................................................................................................... 7 5.2 Health and safety .......................................................................................................................................... 8 5.3 Preference for domestic fruit ........................................................................................................................ 8 6. Channel positioning ..................................................................................................................................... 9 6.1 Supply chain structure .................................................................................................................................. 9 6.2 Sales channels ........................................................................................................................................... 10 6.2.1 Supermarkets .......................................................................................................................................... 10 6.2.2 Convenience stores ................................................................................................................................. 10 6.2.3 Department stores/Fruit gift shops .......................................................................................................... 10 6.2.4 Consumer Cooperatives (Co-ops) ........................................................................................................... 11 6.2.5 E-commerce/ internet retailing ................................................................................................................. 11 7. Benchmarking analysis.............................................................................................................................. 11 7.1 Supply seasonality ...................................................................................................................................... 11 7.1.1 Mango supply seasonality ....................................................................................................................... 11 7.1.2 Avocado supply seasonality .................................................................................................................... 12 7.1.3 Lychee supply seasonality ....................................................................................................................... 12 7.2 Import price ................................................................................................................................................. 12 7.2.1 Mango import price .................................................................................................................................. 12 7.2.2 Avocado import price ............................................................................................................................... 13 7.2.3 Lychee import price ................................................................................................................................. 14 7.3 Wholesale performance .............................................................................................................................. 14 7.3.1 Mango wholesale price ............................................................................................................................ 14 7.3.2 Avocado wholesale price ......................................................................................................................... 15 7.3.3 Lychee wholesale price ........................................................................................................................... 16 i 7.4 Retailing performance................................................................................................................................. 16 7.4.1 Mango retail price .................................................................................................................................... 16 7.4.2 Avocado retail price ................................................................................................................................. 18 7.4.3 Lychee retail price.................................................................................................................................... 19 8. Indications for Australia’s export development ...................................................................................... 20 References ...................................................................................................................................................... 22 ii Background and purpose of the desktop research The Japanese market for fresh fruit and vegetables has traditionally been dominated by domestic suppliers, with imports limited to a narrow range of products (ATC, 2006). However, due to decreasing competitiveness in the domestic farm sector, global climate change, natural disasters and the opening up of the import market, Japan has steadily increased import volumes in order to secure sufficient supply to meet the country’s demand (ATC, 2006). In 2017, total imports of fresh fruit to Japan were valued at US$ 2.14 billion, accounting for one third of fresh fruit demanded in the Japanese market (Motomura, 2018). Japan is an important market for Australian fresh fruit, with the export increasing by 35.05% from 41,772 tonnes in 2015/16 to 56,009 tonnes in 2017/18 (AHIA, 2018). According to the Fresh Fruit & Vegetable Export/Import Statistics 2017/2018, Japan overtook Hong Kong by export volume in the 2017/18 financial year and became the second largest export destination for Australian fresh fruit. With the increasing export of fresh fruit to Japan from Australia, there would create opportunities for Australian mango, avocado and lychee exports to Japan. Australian mangoes have been approved for exports to Japan for a long time. However, Australia’s mango export to Japan has decreased in recent years, dropping from 69,179 tonnes in 2015 to 36308 tonnes in 2018 (HIA, 2019). The reduction in export volume could be because the Japanese fresh fruit sector is highly competitive with other countries making some inroads to the market (Motomura, 2018). Australian
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