Required Report - public distribution

**Date:** 8/2/2005

**GAIN Report Number:** JA5047

JA5047

**Japan**

**Planting Seeds**

**Annual Report**

**2005**

**Approved by:**

![](media/image1.wmf)Rachel Nelson

U.S. Embassy

**Prepared by:**

Masaoki Nagahama

**Report Highlights:**

The volume of Japanese planting seed imports in 2004 was 83,427 metric
tons, up 26% from the previous year. The U.S. remains Japan\'s leading
supplier of the imported seeds with a market share of 17% based on
volume and 27.5% based on value. Japan's overall seed imports were down
5.6% in 2004 to \$115,422,000.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[I. Executive Summary 3](#i.-executive-summary)

[II. Production 4](#ii.-production)

[III. Trade 4](#iii.-trade)

[1) Imports 4](#imports)

[2) Exports 6](#exports)

[IV. Harmonized System -- Tariff Codes for Planting Seeds in Japan.
7](#iv.-harmonized-system-tariff-codes-for-planting-seeds-in-japan.)

[V. Tariff: 8](#v.-tariff)

[VII. Variety Registrations: 9](#vii.-variety-registrations)

# 

# I. Executive Summary

Japanese planting seed imports in 2004 were \$115,422,000 according to
Japanese Customs data, down 5.6% from the previous year. The United
States was the leading exporter of seeds to Japan, supplying
\$31,705,000 worth of seeds or 27.5% of Japan's imports by value and 17%
by volume. The U.S. export share of 17% in 2004 was down from 24.7% in
quantity from the previous year. Japanese seed exports, on the other
hand, grew 7.3% from the previous year to \$98,441,000 in 2004, of which
the share of U.S. as Japan's export market was 15.2% or \$14,916,000.

Japanese phytosanitary regulations on seed imports do not constitute a
significant impediment to U.S. seed trade with Japan. Japan subscribes
to the International Convention on the Protection of New Plant Varieties
and newly registered seed varieties are protected under Japan's Seeds &
Seedlings Act, revised most recently in June 2003 to make enforcement of
the Act more stringent and effective.

The number of new applications to the Japanese Ministry of Agriculture,
Forestry, and Fisheries for legal protection of seed varieties during
the Japanese fiscal year 2004 (Apr. 2004 -- Mar. 2005) was 1,337, up 4%
from the previous fiscal year. The number of newly registered seed
varieties during the same period grew 62.1% to 1,132 cases. The total
number of officially registered seed varieties that were planted and
grown overseas (i.e. outside Japan) in the most recent fiscal year (Apr.
2004 -- Mar. 2005) was reported as 3,574 cases, up 9.5% from 3,261 in
the previous year.

End of Summary

# II. Production 

With Japan's domestic farm sector showing continuing signs of
stagnation, the focus of Japanese seed business trade continues to be
placed on export marketing and international operations. Statistical
information for domestic production of seeds is not available.

# III. Trade

## 1) Imports

-Japanese planting seed imports totaled \$115,422,000 in 2004, down 5.6%
from \$122,347,000 in the previous year. In quantity, however, imports
grew 26% from 65,994 metric tons in 2003 to 83,427 tons in 2004. Except
for vegetables and herbaceous plant seeds, where Japanese imports
declined substantially, seed imports for other crops grew substantially
in terms of value across the board.

In spite of the overall decline in Japanese vegetable seed imports, the
U.S. retained its position as the top seed supplier to Japan with 30%
share in terms of quantity and 19% share in terms of value in 2004. The
U.S. is the top supplier to Japan of seeds for sweet corns, peas and
beans as well as other planting crops. In the case of forage crop seeds,
the U.S. share of 32% (by volume) was second only to that of Australia
in 2004, even though the U.S. enjoyed the largest share in 2003 (in
terms of value).

+-------------------------+---------+---------+-----------+-----------+
| Japanese Seed Imports   |         |         |           |           |
| from the World          |         |         |           |           |
+-------------------------+---------+---------+-----------+-----------+
|                         | Q       |         | Value (\$ |           |
|                         | uantity |         | 000) 1/   |           |
|                         | (Metric |         |           |           |
|                         | Tons)   |         |           |           |
+-------------------------+---------+---------+-----------+-----------+
| #### Crops:             | [200    | [200    | [2003]{.u | [2004]{.u |
|                         | 3]{.und | 4]{.und | nderline} | nderline} |
|                         | erline} | erline} |           |           |
+-------------------------+---------+---------+-----------+-----------+
| Vegetables              | 5,354   | 4,823   | 57,696    | 49,378    |
+-------------------------+---------+---------+-----------+-----------+
| Forage Crops            | 57,559  | 75,364  | 33,414    | 38,106    |
+-------------------------+---------+---------+-----------+-----------+
| Herbaceous Plants       | 316     | 255     | 17,730    | 12,261    |
+-------------------------+---------+---------+-----------+-----------+
| Sweet Corns             | 227     | 327     | 3,248     | 4,932     |
+-------------------------+---------+---------+-----------+-----------+
| Peas / Beans            | 753     | 813     | 2,376     | 2,853     |
+-------------------------+---------+---------+-----------+-----------+
| Other Plants            | 1,785   | 1,845   | 7,883     | 7,892     |
+-------------------------+---------+---------+-----------+-----------+
| Total:                  | 65,994  | 83,427  | 122,347   | 115,422   |
+-------------------------+---------+---------+-----------+-----------+

(Source: Ministry of Finance Customs Data)

  --------------------------- -------------------- -------------------- -------------------- --------------------
  Japanese Seed Imports from                                                                 
  the U.S.                                                                                   

                              Quantity (Metric                          Value (\$ 000) 1/    
                              Tons)                                                          

  Crops:                      [2003]{.underline}   [2004]{.underline}   [2003]{.underline}   [2004]{.underline}

  Vegetables                  1,742                1,352                17,297               9,324

  Forage Crops                13,318               11,544               14,793               12,282

  Sweet Corns                 196                  243                  2,711                3,317

  Peas / Beans                543                  631                  1,610                2,240

  Herbaceous Plants           72                   49                   1,600                1,618

  Other Plants                469                  463                  2,682                2,924

  Total:                      16,340               14,282               40,693               31,705
  --------------------------- -------------------- -------------------- -------------------- --------------------

> (Source: Ministry of Finance Customs Data)

Note: 1/ Based on Japanese customs dollar value, CIF/ Japanese ports of
entry.

##### 

##### Leading Seed Exporters to Japan By Crop & Dollar Value:

(Source: Ministry of Finance Customs Data)

+---------------------+-------------+---------+-------------+---------+
|                     | ###### Vege |         |             |         |
|                     | table Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [57,696]{   | [100    | [49,378]{   | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) U.S.A.          | 17,297      | 30%     | 9,324       | 19%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) Italy           | 9,008       | 16%     | 7,416       | 15%     |
+---------------------+-------------+---------+-------------+---------+
| 3\) China           | 3,977       | 7%      | 3,967       | 8%      |
+---------------------+-------------+---------+-------------+---------+
| 4\) South Korea     | 3,701       | 6%      | 3,882       | 8%      |
+---------------------+-------------+---------+-------------+---------+
| 5\) Thailand        | 2,370       | 4%      | 3,483       | 7%      |
+---------------------+-------------+---------+-------------+---------+
| Big-5 Total:        | 36,353      | 63%     | 28,072      | 57%     |
+---------------------+-------------+---------+-------------+---------+

+---------------------+-------------+---------+-------------+---------+
|                     | ##          |         |             |         |
|                     | #### Forage |         |             |         |
|                     |  Crop Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [33,414]{   | [100    | [38,106]{   | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) Australia       | 9,060       | 27%     | 16,246      | 43%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) U.S.A.          | 14,793      | 44%     | 12,282      | 32%     |
+---------------------+-------------+---------+-------------+---------+
| 3\) France          | 2,078       | 6%      | 2,347       | 6%      |
+---------------------+-------------+---------+-------------+---------+
| 4\) Canada          | 1,217       | 4%      | 1,271       | 3%      |
+---------------------+-------------+---------+-------------+---------+
| 5\) Austria         | 1,821       | 5%      | 1,191       | 3%      |
+---------------------+-------------+---------+-------------+---------+
| Big-5 Total:        | 28,969      | 87%     | 33,337      | 87%     |
+---------------------+-------------+---------+-------------+---------+

+---------------------+-------------+---------+-------------+---------+
|                     | ######      |         |             |         |
|                     | Herbaceous  |         |             |         |
|                     | Plant Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [17,730]{   | [100    | [12,261]{   | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) Netherlands     | 3,328       | 19%     | 2,938       | 24%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) Chile           | 7,176       | 40%     | 2,594       | 21%     |
+---------------------+-------------+---------+-------------+---------+
| 3\) U.S.A.          | 1,600       | 9%      | 1,618       | 13%     |
+---------------------+-------------+---------+-------------+---------+
| 4\) China           | 1,735       | 10%     | 1,535       | 12%     |
+---------------------+-------------+---------+-------------+---------+
| 5\) France          | 826         | 5%      | 1,128       | 9%      |
+---------------------+-------------+---------+-------------+---------+
| Big-5 Total:        | 14,665      | 83%     | 9,813       | 80%     |
+---------------------+-------------+---------+-------------+---------+

+---------------------+-------------+---------+-------------+---------+
|                     | #           |         |             |         |
|                     | ##### Sweet |         |             |         |
|                     |  Corn Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [3,248]{    | [100    | [4,932]{    | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) U.S.A.          | 2,711       | 83%     | 3,317       | 67%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) Chile           | 518         | 16%     | 1,605       | 48%     |
+---------------------+-------------+---------+-------------+---------+
| 3\) France          | 12          | 0.3%    | 6           | 0.1%    |
+---------------------+-------------+---------+-------------+---------+
| Big-3 Total:        | 3,241       | 99%     | 4,928       | 99%     |
+---------------------+-------------+---------+-------------+---------+

+---------------------+-------------+---------+-------------+---------+
|                     | #           |         |             |         |
|                     | ##### Pea / |         |             |         |
|                     |  Bean Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [2,376]{    | [100    | [2,853]{    | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) U.S.A.          | 1,610       | 68%     | 2,240       | 79%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) Netherlands     | 166         | 7%      | 190         | 6%      |
+---------------------+-------------+---------+-------------+---------+
| 3\) Thailand        | 113         | 5%      | 105         | 4%      |
+---------------------+-------------+---------+-------------+---------+
| 4\) China           | 85          | 4%      | 69          | 2%      |
+---------------------+-------------+---------+-------------+---------+
| 5\) India           | 109         | 5%      | 66          | 2%      |
+---------------------+-------------+---------+-------------+---------+
| Big-5 Total:        | 2,083       | 88%     | 2,670       | 94%     |
+---------------------+-------------+---------+-------------+---------+

+---------------------+-------------+---------+-------------+---------+
|                     | ##          |         |             |         |
|                     | #### Other  |         |             |         |
|                     | Plant Seeds |         |             |         |
+---------------------+-------------+---------+-------------+---------+
| Japanese Imports    | [2003]{     |         | [2004]{     |         |
|                     | .underline} |         | .underline} |         |
+---------------------+-------------+---------+-------------+---------+
| From:               | V           | \%      | V           | \%      |
|                     | alue(\$000) | Share   | alue(\$000) | Share   |
+---------------------+-------------+---------+-------------+---------+
| [The                | [7,883]{    | [100    | [7,892]{    | [100    |
| World]{.underline}  | .underline} | %]{.und | .underline} | %]{.und |
|                     |             | erline} |             | erline} |
+---------------------+-------------+---------+-------------+---------+
| 1\) U.S.A.          | 2,682       | 34%     | 2,924       | 37%     |
+---------------------+-------------+---------+-------------+---------+
| 2\) China           | 2,349       | 30%     | 2,171       | 28%     |
+---------------------+-------------+---------+-------------+---------+
| 3\) South Korea     | 673         | 9%      | 631         | 8%      |
+---------------------+-------------+---------+-------------+---------+
| 4\) Taiwan          | 398         | 5%      | 576         | 7%      |
+---------------------+-------------+---------+-------------+---------+
| 5\) Thailand        | 643         | 8%      | 566         | 7%      |
+---------------------+-------------+---------+-------------+---------+
| Big-5 Total:        | 6,745       | 86%     | 6,868       | 87%     |
+---------------------+-------------+---------+-------------+---------+

## 2) Exports

-Japanese seed exports in 2004 were \$98,441,000 in value, up 7.3% from
the previous year. Vegetable seed exports grew 5% in quantity and 14% in
dollar value. Herbaceous plant seed exports more than doubled in
quantity, albeit from a low base in the previous year, but dropped 8% in
dollar value in 2004 from the previous year.

-Japanese seed exports to the United States in 2004 totaled
\$14,916,000, down 6% in value from the previous year, and accounted for
15% of total Japanese seed exports. Vegetable seeds, with a 29% share of
seed export by value, led the Japanese seed exports to the world,
followed by herbaceous plant seeds, which make up 67% of Japan's seed
exports to U.S., as shown in the tables below.

+---------------------------+---------+---------+----------+----------+
| ###### Japanese           |         |         |          |          |
| Seed Exports to the World |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
|                           | Q       |         | Value    |          |
|                           | uantity |         | (\$ 000) |          |
|                           | (Metric |         | 1/       |          |
|                           | Tons)   |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Crops:                    | [200    | [200    | [2       | [2       |
|                           | 3]{.und | 4]{.und | 003]{.un | 004]{.un |
|                           | erline} | erline} | derline} | derline} |
+---------------------------+---------+---------+----------+----------+
| Vegetables                | 1,366   | 1,436   | 62,605   | 71,410   |
+---------------------------+---------+---------+----------+----------+
| Forage Crops              | 17      | 16      | 176      | 132      |
+---------------------------+---------+---------+----------+----------+
| Herbaceous Plants         | 13      | 38      | 25,259   | 23,211   |
+---------------------------+---------+---------+----------+----------+
| Other Plants              | 442     | 454     | 3,734    | 3,688    |
+---------------------------+---------+---------+----------+----------+
| Total:                    | 1,838   | 1,944   | 91,774   | 98,441   |
+---------------------------+---------+---------+----------+----------+

  --------------------------- -------------------- -------------------- -------------------- --------------------
  Japanese Seed Export to the                                                                
  U.S.                                                                                       

                              Quantity (Metric                          Value (\$ 000) 1/    
                              Tons)                                                          

  Crops:                      [2003]{.underline}   [2004]{.underline}   [2003]{.underline}   [2004]{.underline}

  Vegetables                  45                   51                   4,152                4,388

  Forage Crops                17                   16                   91                   98

  Herbaceous Plants           4                    6                    11,152               10,060

  Other Plants                14                   6                    549                  370

  Total:                      80                   79                   15,944               14,916

  U.S. % Share                4.3%                 4.0%                 17.4%                15.2%
  --------------------------- -------------------- -------------------- -------------------- --------------------

(Source: Ministry of Finance Customs Data.)

Note: 1/ Based on Japanese customs dollar value, FOB/Japanese ports of
export.

# IV. Harmonized System -- Tariff Codes for Planting Seeds in Japan.

+------------------+-----------------------------+--------------------+
| Reference: HS    |                             |                    |
| (Harmonized      |                             |                    |
| System) tariff   |                             |                    |
| codes, used in   |                             |                    |
| statistical      |                             |                    |
| tabulation for   |                             |                    |
| each seed group. |                             |                    |
+------------------+-----------------------------+--------------------+
| Seed Group       | Imports                     | Exports            |
+------------------+-----------------------------+--------------------+
| Vegetable Seeds  | 1209.91-010; 1209.91-090    | 1209.91-000        |
+------------------+-----------------------------+--------------------+
| Sugar Beet Seeds | 1209.11-000; 1209.19-000    | None               |
+------------------+-----------------------------+--------------------+
| Forage Crop      | 1209.21-000; 1209.22-000;   | 1209.21-000;       |
| Seeds            | 1209.23-000; 1209.24-000;   | 1209.22-000;       |
|                  | 1209.25-000; 1209.26-000;   | 1209.23-000;       |
|                  | 1209.29-000; 1002.00-010;   | 1209.24-000;       |
|                  | 1004.00--010;1005.10-010;   | 1209.25-000;       |
|                  | 1007.00-010; 1008.10-010;   | 1209.26-000;       |
|                  | 1008.90-010;                |                    |
|                  |                             | 1209.29-000;       |
+------------------+-----------------------------+--------------------+
| Herbaceous Plant | 1209.30-000                 | 1209.30-000        |
| Seeds            |                             |                    |
+------------------+-----------------------------+--------------------+
| Pea / bean Seeds | 0713.10-010; 0713.10-211;   | None               |
|                  | 0713.20-010; 0713.33-010;   |                    |
|                  | 0713.33-210; 0713.39-010;   |                    |
|                  | 0713.39-210; 0713.40-010;   |                    |
|                  |                             |                    |
|                  | 0713.50-010; 0713.50-210;   |                    |
|                  | 0713.90-010; 0713.90-210    |                    |
+------------------+-----------------------------+--------------------+
| Sweet Corn Seeds | 0712.90-031                 | None               |
+------------------+-----------------------------+--------------------+
| Other Planting   | 1209.99-000                 | 1209.99-000        |
| Seeds            |                             |                    |
+------------------+-----------------------------+--------------------+

# V. Tariff:

The table below shows the only import duties levied on planting seeds.

+--------------------+-----------------------------+------------------+
| # Crop             | HS Code                     | Tariff Rates     |
|                    |                             |                  |
|                    | (Harmonized System)         | ( WTO )          |
+--------------------+-----------------------------+------------------+
| Pea Seeds          | 0713.10.211                 | 6.0 %            |
+--------------------+-----------------------------+------------------+
| Kidney Bean Seeds  | 0713.33.210                 | 6.0 %            |
+--------------------+-----------------------------+------------------+
| Broad Bean Seeds   | 0713.50.210                 | 6.0 %            |
+--------------------+-----------------------------+------------------+
| Other Seeds        | 0713.39.210                 | 6.0 %            |
+--------------------+-----------------------------+------------------+
| Other Seeds        | 0713.90.210                 | 6.0 %            |
+--------------------+-----------------------------+------------------+

> (Source: Customs Tariff Schedule of Japan )

Regulatory Updates - Japanese Seeds and Seedlings Act revised.

The planting seed business in Japan is regulated primarily under the
Seeds and Seedlings Act. As a result of the 1991 revision in the
International Convention for Protection of New Plant Varieties (UPOV) to
which Japan is a signatory, the Japanese Seed and Seedlings Act was
revised in 1998 with enforcement starting December 24, 1998. It was
revised again in June, 2003.

The Act has been revised so far to introduce the following key
provisions.

1)  Expand the scope of penal regulations against violations of the Act.
    (Article #6)

> -Before revision - Transaction was confined strictly to planting
> seeds.
>
> -After revision - Scope of transactions expanded to cover not only
> "seeds" but also "crops".

2)  Maximum amount of penal fine for corporate violators raised (Article
    #60)

> -Before revision - 3 million Yen
>
> -After revision - 100 million Yen.

In line with revisions of the Seeds and Seedlings Act, Japanese Customs
Law was amended on March 28, 2003 and took effect on April 1,2003. This
authorized Japanese customs officials to order confiscation,
disposition, or destruction of imported planting seeds and/or crops
found to be in violation of provisions of the Act during the customs
clearance inspection process.

In the aftermath of a series of criminal offenses reported in recent
years that violated the Seeds and Seedlings Act, which involved various
crops such as fruits, flowers, vegetables and other farm products,
another revision of the Act is on the floor of Japanese Diet (i.e.
legislature) this year for enactment during the current legislative
session, scheduled to close in the summer of 2005. Intended to further
expand coverage of the objects to be monitored to assure the lawful
rights of registered seed variety growers, this latest revision of the
Act seeks to:

(1) Cover not only "crops", resulting from the illegal use of seeds, but
    also production,

distribution and importation of "processed foodstuff or ingredients in
remanufactured

materials and products", as long as infringement of the original
growers' lawful rights and

violation of the Act can be traced and identified by scientific analysis
with a DNA-technology;

(2) Penalize violators with fines of up to 100 million Yen (approx.\$ 1
    million) for

corporate violations against illegal infringements of the lawful variety
growers' rights in the "processed foodstuff or ingredients in
remanufactured materials and products" as well as "crops", and

\(3\) Prolong effective validity of the original variety growers' rights
from the current

25-year protection period to a 30-year period for certain long-lived
plants and crops, such as fruits, and from the current 20-year
protection for other plants up to a 25-year period.

# VII. Variety Registrations:

The number of applications for legal protection of seed varieties under
the Seeds and Seedlings Act, accepted by the Ministry of Agriculture,
Forestry and Fisheries from private individuals, seed companies, food
makers, agricultural co-operatives and institutional entities was 1,337
in 2004, up 4.4% from 1,280 in the previous year (i.e. April-March).
However, the number of varieties officially authorized was 1,132, up 62%
from 698 in the previous fiscal year, as shown in the table below.

+------------------+-----------+-----------+-----------+--------------+
| Number of Seed   |           |           |           |              |
| Variety          |           |           |           |              |
| Applications &   |           |           |           |              |
| Registrations    |           |           |           |              |
|                  |           |           |           |              |
| 2 Yr. Comparison |           |           |           |              |
| (Japan Fiscal    |           |           |           |              |
| Year: March      |           |           |           |              |
| through April )  |           |           |           |              |
+------------------+-----------+-----------+-----------+--------------+
| Crops            | App       |           | New       |              |
|                  | lications |           | Variety   |              |
|                  |           |           | Regi      |              |
|                  |           |           | strations |              |
+------------------+-----------+-----------+-----------+--------------+
|                  | 2003      | 2004      | 2003      | 2004         |
+------------------+-----------+-----------+-----------+--------------+
| Edible Crops     | 56        | 47        | 27        | 55           |
+------------------+-----------+-----------+-----------+--------------+
| Vegetables       | 55        | 63        | 25        | 80           |
+------------------+-----------+-----------+-----------+--------------+
| Fruits           | 43        | 45        | 28        | 70           |
+------------------+-----------+-----------+-----------+--------------+
| Forage Crops     | 8         | 17        | 10        | 12           |
+------------------+-----------+-----------+-----------+--------------+
| Herbaceous       | 844       | 941       | 436       | 664          |
| Plants           |           |           |           |              |
+------------------+-----------+-----------+-----------+--------------+
| Ornamental       | 243       | 183       | 154       | 233          |
| Plants           |           |           |           |              |
+------------------+-----------+-----------+-----------+--------------+
| Forest Trees     | 1         | 2         | 1         | 1            |
+------------------+-----------+-----------+-----------+--------------+
| Others           | 30        | 39        | 17        | 17           |
+------------------+-----------+-----------+-----------+--------------+
| Total:           | 1,280     | 1,337     | 698       | 1,132        |
+------------------+-----------+-----------+-----------+--------------+

> (Source: Ministry of Agriculture, Forestry and Fisheries)
>
> The role of foreign countries as a providers of soil and other
> resources for cultivation and growing of the new seed varieties
> continues to be important in the Japanese seed trade sector. As of the
> end of March 2005, the cumulative number of applications for new
> registration for seed varieties, grown outside Japan, was officially
> reported as 5,505 cases, up 469 cases or 9.3% from the previous year,
> and the cumulative number of authorized registrations for new variety
> protection under the Seed Act, accepted by the Japanese Ministry of
> Agriculture, Forestry and Fisheries, was 3,574 cases, up 9.6%
> respectively from the previous year, as indicated in the table below
> by country.

+---------+---------+-----+-------+------+-----+---------+---------+
| -Number |         |     |       |      |     |         |         |
| of      |         |     |       |      |     |         |         |
| Regist  |         |     |       |      |     |         |         |
| rations |         |     |       |      |     |         |         |
| of Seed |         |     |       |      |     |         |         |
| Va      |         |     |       |      |     |         |         |
| rieties |         |     |       |      |     |         |         |
| By Crop |         |     |       |      |     |         |         |
| &       |         |     |       |      |     |         |         |
| C       |         |     |       |      |     |         |         |
| ountry, |         |     |       |      |     |         |         |
| grown   |         |     |       |      |     |         |         |
| outside |         |     |       |      |     |         |         |
| Japan   |         |     |       |      |     |         |         |
| --      |         |     |       |      |     |         |         |
|         |         |     |       |      |     |         |         |
| As of   |         |     |       |      |     |         |         |
| the end |         |     |       |      |     |         |         |
| of      |         |     |       |      |     |         |         |
| March,  |         |     |       |      |     |         |         |
| 2005    |         |     |       |      |     |         |         |
| (In     |         |     |       |      |     |         |         |
| pare    |         |     |       |      |     |         |         |
| nthesis |         |     |       |      |     |         |         |
| -       |         |     |       |      |     |         |         |
| -Number |         |     |       |      |     |         |         |
| of      |         |     |       |      |     |         |         |
| Reg     |         |     |       |      |     |         |         |
| istered |         |     |       |      |     |         |         |
| Seed    |         |     |       |      |     |         |         |
| Var     |         |     |       |      |     |         |         |
| ieties) |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Country | Applied | Edi | Vege  | F    | For | Her     | Orn     |
|         |         | ble | table | ruit | age | baceous | amental |
|         | (Regi   |     |       |      |     |         |         |
|         | stered) | Cr  |       | T    | Cr  | Plants  | Plants  |
|         |         | ops |       | rees | ops |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **      |         |     |       |      |     |         |         |
| Asia:** |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Israel  | 328     | \-  | 1 (1) | \-   | \-  | 327     | \-      |
|         | (195)   |     |       |      |     | (194)   |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| T       | 22 (14) | \-  | 1 (1) | \-   | \-  | 21 (13) | \-      |
| hailand |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| China   | 10 (6)  | 5   | \-    | 2    | \-  | 3 (1)   | \-      |
|         |         | (5) |       | (0)  |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Korea   | 4 (0)   | \-  | 1 (0) | \-   | \-  | 3 (0)   | \-      |
| ,So.    |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Taiwan  | 12 (8)  | 1   | 2 (2) | \-   | \-  | 9 (6)   | \-      |
|         |         | (0) |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| In      | 2 (0)   | \-  | \-    | \-   | 2   | \-      | \-      |
| donesia |         |     |       |      | (0) |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **Eu    |         |     |       |      |     |         |         |
| rope:** |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Neth    | 2,016   | \-  | 13    | \-   | \-  | 1,546   | 457     |
| erlands | (1,357) |     | (10)  |      |     | (1,020) | (327)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Germany | 924     | \-  | \-    | 1    | \-  | 559     | 364     |
|         | (641)   |     |       | (0)  |     | (332)   | (309)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| France  | 355     | 8   | 2 (1) | 8    | \-  | 155     | 182     |
|         | (272)   | (3) |       | (5)  |     | (107)   | (156)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Italy   | 226     | \-  | \-    | \-   | \-  | 185     | 41 (32) |
|         | (145)   |     |       |      |     | (113)   |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| U. K.   | 318     | \-  | 2 (2) | 7    | \-  | 190     | 119     |
|         | (214)   |     |       | (7)  |     | (107)   | (98)    |
+---------+---------+-----+-------+------+-----+---------+---------+
| Denmark | 322     | \-  | \-    | \-   | \-  | 187     | 135     |
|         | (147)   |     |       |      |     | (94)    | (53)    |
+---------+---------+-----+-------+------+-----+---------+---------+
| Ireland | 8 (0)   | \-  | \-    | \-   | \-  | 6 (0)   | 2 (0)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Belgium | 11 (3)  | \-  | \-    | 1    | \-  | 7 (1)   | 3 (2)   |
|         |         |     |       | (0)  |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Swit    | 7 (3)   | \-  | \-    | 2    | \-  | 5 (2)   | \-      |
| zerland |         |     |       | (1)  |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Spain   | 9 (3)   | \-  | \-    | \-   | \-  | 8 (2)   | 1 (1)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Austria | 1 (0)   | \-  | \-    | \-   | \-  | 1 (0)   | \-      |
+---------+---------+-----+-------+------+-----+---------+---------+
| Sweden  | 1 (1)   | \-  | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Norway  | 1 (1)   | \-  | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| S       | 2 (1)   | \-  | \-    | \-   | \-  | 2 (1)   | \-      |
| lovakia |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Czech   | 1 (0)   | \-  | \-    | \-   | \-  | 1 (0)   | \-      |
+---------+---------+-----+-------+------+-----+---------+---------+
| Poland  | 4 (4)   | \-  | \-    | \-   | \-  | 4 (4)   | \-      |
+---------+---------+-----+-------+------+-----+---------+---------+
| P       | 2 (2)   | \-  | \-    | \-   | \-  | \-      | 2 (2)   |
| ortugal |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **Amer  |         |     |       |      |     |         |         |
| icas:** |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **U     | **647   | **1 | **23  | **8  | *   | **434   | **171   |
| .S.A.** | (405)** | (1  | (     | (    | *10 | (241)** | (132)** |
|         |         | )** | 19)** | 4)** | (8  |         | 1/      |
|         |         |     |       |      | )** |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Ar      | 2 (1)   | \-  | \-    | \-   | \-  | 1 (1)   | 1 (0)   |
| gentina |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Ecuador | 1 (1)   | \-  | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Costa   | 23 (6)  | \-  | \-    | \-   | \-  | 23 (6)  | \-      |
| Rica    |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Canada  | 4 (2)   | \-  | \-    | \-   | \-  | 2 (0)   | 2 (2)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Mexico  | 1 (1)   | \-  | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+-----+-------+------+-----+---------+---------+
| Brazil  | 9 (6)   | \-  | \-    | 3    | \-  | 6 (5)   | \-      |
|         |         |     |       | (1)  |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **Ocea  |         |     |       |      |     |         |         |
| ania:** |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| Au      | 111     | \-  | \-    | 2    | \-  | 101     | 8 (0)   |
| stralia | (75)    |     |       | (0)  |     | (75)    |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| New     | 105     | \-  | \-    | 19   | \-  | 29 (16) | 57 (39) |
| Zealand | (57)    |     |       | (2)  |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **Af    |         |     |       |      |     |         |         |
| rica:** |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| South   | 16 (3)  | \-  | \-    | \-   | \-  | 15(3)   | 1 (0)   |
| Africa  |         |     |       |      |     |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+
| **      | **5,505 | *   | **45  | **53 | *   | **3,830 | **1,550 |
| Total** | (3      | *15 | (     | (2   | *12 | (2      | (1      |
|         | ,574)** | (9  | 36)** | 0)** | (8  | ,344)** | ,157)** |
|         |         | )** |       |      | )** |         |         |
+---------+---------+-----+-------+------+-----+---------+---------+

( Source: Ministry of Agriculture, Forestry & Fisheries)

1/ Includes 2 cases of crops of craftsmanship.

##### 

##### End of Report