""

Required Report - public distribution

**Date:** 11/7/2003

**GAIN Report Number:** JA3072

JA3072

**Japan**

**Strawberries**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Kevin Latner

#### U.S.Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

The United States exported \$31.4 million (CIF) or 4,091 metric tons of
fresh strawberries to Japan in 2002, a marginal increase from the
previous year. Summer Strawberry campaigns in retail stores helped
increase sales of fresh U.S. strawberries. In the frozen market, the
U.S. exported \$19.4 million (CIF), 9,294 metric tons, of frozen
strawberries to Japan in 2002, a decline of 18 percent from the previous
year, principally due to competition from lower priced Chinese products.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

**Table of Contents**

[**Fresh U.S. Strawberry Imports Steady
3**](#fresh-u.s.-strawberry-imports-steady)

[Ca. Strawberry Commission Created New Summer Strawberry Market
3](#ca.-strawberry-commission-created-new-summer-strawberry-market)

[Fresh U.S. Strawberry Retail Promotions Appealed to Japanese Consumers
3](#fresh-u.s.-strawberry-retail-promotions-appealed-to-japanese-consumers)

[2002 Japanese Imports of U.S. Frozen Strawberries Down 18 Percent
4](#japanese-imports-of-u.s.-frozen-strawberries-down-18-percent)

[High Quality U.S. Frozen Strawberry Finds More Users in Food Service
4](#high-quality-u.s.-frozen-strawberry-finds-more-users-in-food-service)

[High Japanese Import Duties are Imposed on Fresh and Frozen
Strawberries
4](#high-japanese-import-duties-are-imposed-on-fresh-and-frozen-strawberries)

[PS&D Tables and Trade Matrices 5](#psd-tables-and-trade-matrices)

[Fresh Strawberry PS&D Table 5](#fresh-strawberry-psd-table)

[Frozen Strawberry PS&D Table 6](#frozen-strawberry-psd-table)

[Fresh Strawberry Import Trade Matrix
7](#fresh-strawberry-import-trade-matrix)

[Frozen Strawberry Import Trade Matrix
8](#frozen-strawberry-import-trade-matrix)

[Fresh Strawberry Wholesale Price Table
9](#fresh-strawberry-wholesale-price-table)

# Fresh U.S. Strawberry Imports Steady 

![](media/image2.wmf)

In 2002, Japanese imports of fresh U.S. strawberries increased
approximately 1.8 percent to 4,091 metric tons, valued at \$31.4 million
(CIF). Japanese retail sales promotions, along with heavy use by the
confectionary industry were the principal reasons. U.S. strawberry sales
started in May when the supply of domestic strawberries ended and will
continue until the new crop of domestic strawberries appear in the
market in early December. Although fresh U.S. strawberries are largely
consumed by the Japanese confectionery sector (approximately 80 percent
of U.S. strawberry imports), mainly in shortcake, consumption at retail
stores and in the food service sector is increasing. Japanese traders
expect fresh U.S. strawberry imports to reach 4,200 metric tons in 2003.

# Ca. Strawberry Commission Created New Summer Strawberry Market

Traditionally, domestic strawberries fill the retail market in winter
and spring. This year, as a result of heavy sales promotions by Japanese
retailers and the California strawberry industry, summer sales of fresh
U.S. strawberries increased significantly at Japan's retail outlets.
Japan imported 1,759 metric tons of U.S. strawberries in the 2003
June-August period, up approximately 5.5 percent from the same period
last year. Fruit arrived in better condition than in previous years and
with better packaging, according to Tokyo traders. Although U.S.
strawberries have more acidity than Japanese ones, the acidity actually
accentuates the fruity flavor in the hot summer season. Fresh U.S.
strawberries have quickly become accepted by Japanese consumers as a
table consumption fruit.

# Fresh U.S. Strawberry Retail Promotions Appealed to Japanese Consumers

Japanese traders and U.S. suppliers in cooperation with the California
Strawberry Commission continue fresh U.S. strawberry sales campaigns,
featuring fresh California summer strawberries. Tokyo's major
supermarkets demonstrated various breakfasts with fresh summer
strawberries, offering sample tasting of California strawberries mixed
with yogurt, cereals or salad! "Summer Strawberry" sales promotional
girls highlighted the events. U.S. summer strawberry sales campaigns
also extended to Japan's food service sector with new menu presentations
by Japanese traders. Table place mats printed with dessert menus,
featuring fresh California strawberries, attracted customers at Tokyo's
family restaurant outlets.

In early October, U.S. strawberries were traded at \$68.33 (7,500 yen),
a similar price to last year, for a 5-kilogram case at Tokyo's Ohta
Fresh Produce Wholesale Market. U.S. strawberries are pre-packaged in
California in retail-size clamshell container and normally sold at
\$4.53 (498 yen) for a package of 6 oz (284 grams) in Tokyo
supermarkets. During supermarket sales fairs they are often discounted
to \$3.62 (398 yen) per pack.

# 2002 Japanese Imports of U.S. Frozen Strawberries Down 18 Percent

![](media/image3.wmf)Japan imported 9,294 metric tons of U.S. frozen
strawberries in 2002, valued at \$19.4 million (CIF), down approximately
18 percent from the previous year. Taking advantage of low production
costs, China continued to increase its shipments to Japan, supplying
13,236 metric tons of frozen strawberries in 2002. Chinese frozen
strawberries are often specifically prepared to Japanese industry.
Chinese strawberries are Chandler variety, while U.S. ones are Camarosa
variety. The average U.S. import price was \$2.09 per kilogram (CIF) in
2002, reflecting the higher quality products. The average price for
Chinese products was \$1.03 per kilogram (CIF). South Korea, Mexico and
Chile are also important suppliers of frozen strawberries to the
Japanese market. The average import prices were \$1.36, \$1.58 and
\$1.31 per kilogram (CIF), respectively.

# High Quality U.S. Frozen Strawberry Finds More Users in Food Service

Traditionally, Japan's jam manufacturers are the largest users of U.S.
frozen strawberries. Lower priced products from China have pushed the
U.S. out of strawberries as a jam ingredient. Despite being almost
double the price of Chinese strawberries, higher quality U.S. products
are penetrating the Japan hotel and restaurant market. Pastry cooks,
chefs and bartenders are increasingly using U.S. frozen strawberries to
make desserts, cakes and cocktails.

# High Japanese Import Duties are Imposed on Fresh and Frozen Strawberries

These duties are not subject to further reductions outside of the next
round of WTO negotiations. The applicable import duties are as follows:

+----------------------+-------------------------+---------------------+
| TARIFF CODE (HS)     | DESCRIPTION             | DUTY RATE           |
+----------------------+-------------------------+---------------------+
| 0810.10-000          | Fresh Strawberry        | 6.0 %               |
+----------------------+-------------------------+---------------------+
| 0811.10-100          | Frozen Strawberry       | 9.6 %               |
|                      |                         |                     |
|                      | Added Sugar             |                     |
+----------------------+-------------------------+---------------------+
| 0811.10-200          | Frozen Strawberry       | 12.0 %              |
|                      |                         |                     |
|                      | No Added Sugar          |                     |
+----------------------+-------------------------+---------------------+

All duties are charged on a CIF basis.

# PS&D Tables and Trade Matrices

## Fresh Strawberry PS&D Table

  ---------------- ---------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                                 

  **Country**      **Japan**                                                    

  **Commodity**    **Fresh                                           (HA)(MT)   
                   Strawberries**                                               

                   2001             Revised    2002       Estimate   2003       Forecast

                   USDA Official    Post       USDA       Post       USDA       Post
                   \[Old\]          Estimate   Official   Estimate   Official   Estimate
                                    \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                     10/2001               10/2002               10/2003
  Begin**                                                                       

  Area Planted     7440             7360       7400       7300       0          7230

  Area Harvested   7440             7360       7400       7300       0          7230

  TOTAL Production 208600           210500     205000     209000     0          208000

  Imports, Fresh   4765             4871       5000       4497       0          4600

  TOTAL SUPPLY     213365           215371     210000     213497     0          212600

  Exports, Fresh   0                0          0          0          0          0

  Domestic Fresh   210765           211871     207500     209397     0          208600
  Market                                                                        

  For Processing   2600             3500       2500       4100       0          4000

  TOTAL            213365           215371     210000     213497     0          212600
  UTILIZATION                                                                   
  ---------------- ---------------- ---------- ---------- ---------- ---------- ----------

## Frozen Strawberry PS&D Table

  ----------------- ---------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                                  

  **Country**       **Japan**                                                    

  **Commodity**     **Frozen                                          (MT)       
                    Strawberries**                                               

                    2001             Revised    2002       Estimate   2003       Forecast

                    USDA Official    Post       USDA       Post       USDA       Post
                    \[Old\]          Estimate   Official   Estimate   Official   Estimate
                                     \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                      10/2001               10/2002               10/2003
  Begin**                                                                        

  Deliv. To         2600             3500       2500       4100       0          4000
  Processors                                                                     

  Beginning Stocks  0                0          0          0          0          0

  Production        520              870        500        1030       0          1000

  Imports           29581            29703      30000      27711      0          28000

  TOTAL SUPPLY      30101            30573      30500      28741      0          29000

  Exports           0                0          0          0          0          0

  Domestic          30101            30573      30500      28741      0          29000
  Consumption                                                                    

  Ending Stocks     0                0          0          0          0          0

  TOTAL             30101            30573      30500      28741      0          29000
  DISTRIBUTION                                                                   
  ----------------- ---------------- ---------- ---------- ---------- ---------- ----------

## Fresh Strawberry Import Trade Matrix

  -------------------- ----------------- ----------------- --------------
  **Import Trade                                           
  Matrix**                                                 

  **Country**          Japan                               

  **Commodity**        Fresh                               
                       Strawberries                        

  Time Period          Oct. - Sept.      Units:            Metric Tons

  Imports for:         2001                                **2002**

  U.S.                 3953              U.S.              4171

  Others                                 Others            

  South Korea          804               South Korea       212

  New Zealand          89                New Zealand       80

  Australia            31                Australia         33

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

  Total for Others     924                                 325

  Others not Listed    0                                   1

  Grand Total          4877                                4497
  -------------------- ----------------- ----------------- --------------

## Frozen Strawberry Import Trade Matrix

  -------------------- ----------------- ----------------- --------------
  **Import Trade                                           
  Matrix**                                                 

  **Country**          Japan                               

  **Commodity**        Frozen                              
                       Strawberries                        

  Time Period          Oct. - Sept.      Units:            Metric Tons

  Imports for:         2001                                **2002**

  U.S.                 9706              U.S.              8540

  Others                                 Others            

  China                12878             China             14469

  South Korea          2558              South Korea       1631

  Mexico               1697              Chile             1040

  Chile                1203              Mexico            695

  Thailand             675               Thailand          609

  Poland               475               Poland            246

  Egypt                177               Egypt             197

  Netherlands          93                Netherlands       138

                                                            

                                                            

  Total for Others     19756                               19025

  Others not Listed    241                                 146

  Grand Total          29703                               27711
  -------------------- ----------------- ----------------- --------------

## Fresh Strawberry Wholesale Price Table

  --------------------- ------------------ ----------------- -------------
  **Prices Table**                                           

  **Country**           Japan                                

  **Commodity**         Fresh Strawberries                   

  Prices in             Yen                per uom           KG

                                                             

  Year                  2002               2003              \% Change

  Jan                   1183               1129              -5%

  Feb                   1025               1079              5%

  Mar                   879                979               11%

  Apr                   709                730               3%

  May                   684                699               2%

  Jun                   752                881               17%

  Jul                   1419               1488              5%

  Aug                   2318                                 -100%

  Sep                   2393                                 -100%

  Oct                   1877                                 -100%

  Nov                   1980                                 -100%

  Dec                   1844                                 -100%

                                                             

  Exchange Rate         109.76             Local Currency/US 
                                           \$                

  Date of Quote         10/8/2003          MM/DD/YYYY        
  --------------------- ------------------ ----------------- -------------