Required Report - public distribution

**Date:** 5/2/2005

**GAIN Report Number:** JA5024

JA5024

**Japan**

**Oilseeds and Products**

**Oilseed Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Clay Hamilton

U. S. Embassy

**Prepared by:**

Tetsuo Hamamoto

**Report Highlights:**

A 15% drop in domestic production is expected to cause food soybean
imports to increase through MY 04/05. This year's production may also be
low because of a 10% drop in planted area. High soybean price resulted
in a 15% decrease in crushing that reflected in a 15 percent decrease of
total imports of soybeans to 4,407 metric tons in CY 2004. The total
soybean imports are expected to remain at the same for CY 2005.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[SECTION I. SITUATION AND OUTLOOK 3](#section-i.-situation-and-outlook)

[Oilseeds Situation and Outlook 3](#oilseeds-situation-and-outlook)

[Oil meal Situation and Outlook 3](#oil-meal-situation-and-outlook)

[Oil Situation and Outlook 4](#oil-situation-and-outlook)

[SECTION II. NARRATIVE ON SUPPLY AND DEMAND, POLICY & MARKETING
4](#section-ii.-narrative-on-supply-and-demand-policy-marketing)

[TOTAL OILSEEDS 4](#total-oilseeds)

[Production 4](#production)

[Consumption 6](#consumption)

[Crushing Capacity 6](#crushing-capacity)

[Trade 7](#trade)

[Price 8](#price)

[Policy 9](#policy)

[Biotechnology 10](#biotechnology)

[TOTAL OIL MEALS 10](#total-oil-meals)

[Production 10](#production-1)

[Consumption 11](#consumption-1)

[Trade 11](#trade-1)

[Price 12](#price-1)

[Policy 13](#policy-1)

[TOTAL OILS 13](#total-oils)

[Production 13](#production-2)

[Consumption 13](#consumption-2)

[Trade 14](#trade-2)

[Policy 14](#policy-2)

[SECTION III. STATISTICAL TABLES 16](#section-iii.-statistical-tables)

[Soybean PS&D Table 16](#soybean-psd-table)

[Soybean Meal PS&D Table 16](#soybean-meal-psd-table)

[Soybean Oil PS&D Table 17](#soybean-oil-psd-table)

[Import Trade Matrix for Soybean 18](#import-trade-matrix-for-soybean)

[Import Trade Matrix for Soybean Meal
18](#import-trade-matrix-for-soybean-meal)

[Rapeseed PS&D Table 19](#rapeseed-psd-table)

[Rapeseed Meal PS&D Table 19](#rapeseed-meal-psd-table)

[Rapeseed Oil PS&D 20](#rapeseed-oil-psd)

[Import Trade Matrix for Rapeseed 21](#import-trade-matrix-for-rapeseed)

[Import Trade Matrix for Rapeseed Meal
21](#import-trade-matrix-for-rapeseed-meal)

[Cottonseed PS&D Table 22](#cottonseed-psd-table)

[Cottonseed Oil PS&D Table 22](#cottonseed-oil-psd-table)

[Import Trade Matrix for Cottonseed
23](#import-trade-matrix-for-cottonseed)

[Peanut PS&D Table 24](#peanut-psd-table)

[Import Trade Matrix for Peanut 24](#import-trade-matrix-for-peanut)

[Palm Oil PS&D Table 25](#palm-oil-psd-table)

[Import Trade Matrix for Fish Meal
25](#import-trade-matrix-for-fish-meal)

[Import Trade Matrix for Fish Oil 26](#import-trade-matrix-for-fish-oil)

# SECTION I. SITUATION AND OUTLOOK

## Oilseeds Situation and Outlook

Japan\'s total utilization of soybeans in CY 2003 was about 4.4 million
metric tons with domestic production accounting for 165,400 metric tons
and imports accounting for the remainder. Imports were mainly from the
U.S. (3.18 million metric tons), followed by Brazil (0.8 million metric
tons). Low domestic production is expected to cause total soybean
imports to increase through Marketing Year (MY) 2004-2005 (October
2004 - September 2005).

Total soybean planted area decreased by 10 percent (15,100 ha) in CY
2004 from the previous year. Total production decreased significantly in
CY 2004 (121 kg/10 are) because of the decrease in planting and a series
of typhoons hit in the major production areas. Domestic soybeans are
almost exclusively used for food. Japan does not produce biotech
soybeans domestically.

The annual demand for rapeseed is about 2 million metric tons.
Production of rapeseed in Japan is negligible and, like soybeans, Japan
depends almost exclusively on imports. In CY 2004, Canada captured a 73
percent market share. Japan's rapeseed import increased by about 10
percent from CY 2003 to 2.3 million metric tons due to the crushing
demand increase due to high soybean prices. Australia\'s rapeseed market
share increased from 18 percent in CY 2003 to 27 percent in CY 2004 that
absorbed the rapeseed crushing demand increase in 2004. The U.S. share
was almost zero in the recent years.

Peanut demand is about 120,000 metric tons annually with total domestic
production of peanuts reaching about 21,300 metric tons in 2004. Total
imports of raw peanuts and processed peanuts in CY 2004 reached 97,200
metric tons. China is the largest supplier of peanuts to Japan with a 70
percent share for raw peanuts and almost 100 percent share for processed
peanuts. Only around 1,000 tons of domestically produced peanuts were
crushed for peanut oil, which is sold as a premium cooking oil.

Annual demand for cottonseed is about 157,000 metric tons. Cottonseed is
not produced in Japan. Total imports of cottonseed in CY 2004 were
157,000 metric tons, with 30,000 tons being crushed for oil and the
remaining amount used as feed primarily for dairy cattle. Australia
dominates the Japanese cottonseed market by occupying a share of 82
percent.

## Oil meal Situation and Outlook

Soybean and rapeseed meal are the primary protein ingredients used in
compound feed production in Japan. About 85 percent of soybean meal is
used for feed production with the remainder used for foods such as soy
sauce. Due to a strong consumer preference for non-biotech soy products,
most soy sauce manufacturers are using soybean meal from non-biotech
beans. Rapeseed and fishmeal are used exclusively for feed and
fertilizer production. Total soybean meal production declined by 7
percent due to the high soybean price in 2004, while rapeseed meal
increased by 10 percent to compensate for the soybean meal decrease.
Soybean crushing by Japanese oil crushers is expected to remain at low
levels through MY 2004/2005. To compensate for the lower production,
soybean meal imports will remain relatively high during the same period.

In early 2000's, soybean meal imports from China almost doubled during
this period to a level of 500,000 to 600,000 tons because of China's
increased crushing capacity, along with shorter transportation time,
lower prices, and the ability to purchase smaller lots, which allow for
direct shipments to local ports in Japan. China's soybean meal share is
around a half and the rest is almost equally shared by the U.S. and
India.

In September 2001, the Japanese Government banned the use of meat bone
meal as an ingredient of cattle feed following the first detection of
bovine spongiform encephalopathy (BSE) infected cattle in Japan.
Consequently the livestock industry and feed manufacturers started to
use oilseed meals as substitutes for animal-origin meals resulting in an
increase in total meal demand. Usage is expected to remain level in MY
2004/2005.

## Oil Situation and Outlook

The two primary edible oils in Japan are soybean and rapeseed, which are
mainly consumed as blended oil. Imports of soybean oil and rapeseed oil
have traditionally been very small as Japan meets most of its demand
with domestic crushing. Although imports of soybean and rapeseed oils
remained small, their imports increased in CY 2004 due to the high price
of soybeans and rapeseeds. Total imports of refined palm oil, used for
the production of margarine, shortening, instant noodles and snacks,
reached 466,000 metric tons in CY 2004. Malaysia dominated the palm oil
market with a 99 percent market share.

Both cottonseed oil and sunflower oil are used for salad oil production.
In CY 2004, Japan imported 6,821 metric tons of cottonseed oil with a
100 percent U.S. share. Imports of sunflower oil were 19,973 metric tons
in CY 2004, with a 25 percent U.S. share (5,089 metric tons). Imports of
safflower oil were 13,265 metric tons in CY 2004, with a 99.9 percent
U.S. share (13,203 metric tons).

Total imports of fish oil in CY 2004 were 39,493 metric tons. The U.S.
supplied 18,284 metric tons in CY 2004.

As demand for processed oil products is likely to remain at the same
level for the next few years, total oil imports are forecast to stay
flat through CY 2005.

# SECTION II. NARRATIVE ON SUPPLY AND DEMAND, POLICY & MARKETING

## TOTAL OILSEEDS

### Production

Soybeans and peanuts are the two major oilseeds produced in Japan. In
2004, soybeans occupied about 94 percent of the total planted area for
oilseeds and peanuts occupied about 6 percent. Total soybean planted
area increased in three consecutive years until 2003, from 122,500 ha in
2000 to 151,900 ha in 2003, as a result of policy efforts made by the
Ministry of Agriculture, Forestry and Fisheries (MAFF) to divert rice
production to alternate crops such as soybeans. Due to lower yields
resulting from unfavorable cold weather conditions in major production
areas, total production in 2003 significantly decreased (by 38,000
metric tons) to 232,200 metric tons despite the increased planted area.

However, total soybean planted area decreased by 10 percent (136,800 ha)
in CY 2004. Despite MAFF's policy of diverting rice to alternate crops
such as soybeans, the increase in planting acreage seemed to hit the
ceiling under the current domestic soybean production situation. The
decrease of the planting area is also assumed partly due to producers'
hesitance in growing soybeans as a result of low yields in 2003 (153
kg/10 are in 2003 vs. 180 to 192 kg/10 are in 2000 to 2002) due to the
cold weather conditions. Total production further decreased
significantly in CY 2004 (121 kg/10 are) because of a series of typhoons
hit in the major production areas.

MAFF set a production target in 2010 for soybeans of about 250,000 tons
(240,000 tons for food use) equal to a self-sufficiency ratio of 5
percent as part of a legislated policy to increase the country\'s
self-sufficiency rate for major crops. Although the soybean production
met the 5 percent level in 2002, the production could not meet the
target in 2003 and 2004. The demand for domestic beans in the food
industry has not been very enthusiastic, even though there have been a
sufficient supply of domestic soybeans, because of their expense and
poor quality.

Until 2000, soybeans had been covered by a deficiency payment policy
with a fixed target level (standard price: 14,011 yen/60 kg in 1999).
MAFF paid the difference between market and target prices to farmers,
regardless of the price or quality. In 2000, the deficiency payments
were replaced with a new Soybean Subsidy Program. Under the new subsidy
program, soybean farmers are paid a fixed subsidy (8,120 yen/60 kg in
2004, 73.8 USD at 110 yen per USD) when the sum of the producer price
and the fixed subsidy does not reach the production cost set by the MAFF
Minister each year (13,730 yen/60 kg in 2004, or 124.8 USD at 110 yen
per USD). If the sum of the producer price and the fixed subsidy exceeds
the production cost, MAFF would pay farmers only the difference between
the production cost and the producer price, instead of full amount of
the fixed subsidy. If the producer price exceeds the production cost, no
subsidy would be paid. Under this current subsidiary program, farmers
who grow higher quality soybeans can earn higher prices. In addition to
the subsidy for soybeans, farmers who transfer acreage from rice
production to soybean production received an additional 83,000 yen, 755
USD, per 10 ares (0.1 hectares).

Peanut area decreased about 3 percent, partly due to urbanization of the
major production area.

Table 1. Planted Area and Production of Soybeans and Peanuts in Japan

  ------------ -------------- -------------- -------------- --------------
  CY           Soybeans                      Peanuts        

               Planted Area   Production     Planted Area   Production
               (Hectares)     (MT)           (Hectares)     (MT)

  2001         143,900        270,600        10,300         23,100

  2002         149,900        270,200        9,950          24,000

  2003         151,900        232,200        9,530          22,000

  2004         136,800        165,000        9,110          21,300
  ------------ -------------- -------------- -------------- --------------

Source: MAFF

Table 2. Japan\'s Self-Sufficiency Ratio

(%)

  ------------------- ------ ------ ------ ------ ------ ------ ------ ------
                      1990   1997   1998   1999   2000   2001   2002   2003

  Rice                100    99     95     95     95     95     96     95

  Wheat               15     9      9      9      11     11     13     14

  Soybeans            5      3      3      4      5      5      5      4

  Vegetables          91     86     84     83     82     82     83     82

  Fruits              63     53     49     49     44     45     44     44

  Meats (Beef)        70     56     55     54     52     53     53     54
                      (51)   (36)   (35)   (36)   (34)   (36)   (39)   (39)

  Eggs                98     96     96     96     95     96     96     96

  Milk/Dairy          78     71     71     70     68     68     69     69

  Seafood             72     60     57     55     53     53     53     57

  Sugar               32     29     32     31     29     32     34     35

  Self-sufficiency    47     41     40     40     40     40     40     40
  (Calorie Basis)                                                      

  Self-sufficiency    67     62     59     59     60     60     61     60
  (Major Food Grains)                                                  

  Self-sufficiency    30     26     27     27     28     28     28     27
  (Food + Feed                                                         
  Grains)                                                              
  ------------------- ------ ------ ------ ------ ------ ------ ------ ------

Source: MAFF

### Consumption

Soybeans are the most consumed oilseed in Japan followed by rapeseed.
About 74 percent of total demand for soybeans is for oil use; 23 percent
is for food use; and the remaining 3 percent is for feed use. Crushing
of soybeans decreased by around 15 percent in CY 2004 from the previous
year due to the high price of soybeans. Food soybeans are used for tofu
(soybean curd), frozen tofu, fried tofu, miso (soybean paste), natto
(fermented whole beans), boiled soybeans, and soy sauce. The meal from
soybean crushing is used for both animal feedstuffs and further
processing into such products as soy protein and soy sauce. Food soybean
consumption in 2004 remained stable as no particular demand increase nor
decrease was seen. Total import of soybeans for CY 2005 is forecast to
be 4,525 thousand metric tons, almost at the same level as CY 2003, due
to reduced soybean crushing.

Rapeseed is almost exclusively imported for crushing consumption. The
meal from rapeseed crushing is used for animal feedstuffs and as a
fertilizer and mulch for tobacco and citrus crops. Rapeseed and soybeans
can substitute for each other in the Japanese oil market mainly as
cooking oil, and demand fluctuates depending on their import prices. As
a result of the price increase in soybeans in late CY 2003, consumption
of rapeseed increased to fill the growing demand of vegetable oil as a
substitute for soybeans. Cottonseed oil is mainly used for salad oil
production.

Peanuts are planted exclusively for human consumption. Only damaged and
shriveled kernels not suitable for human consumption, a negligible
amount, are used by the crushing industry. Both domestic and imported
peanuts are generally processed\--roasted, fried, sugared, etc.\--into a
variety of snack items. No significant change in the consumption of
peanuts is forecast through MY 2004/2005.

### Crushing Capacity

As of December 2001, there were 53 domestic oil crushing factories in
Japan with a total crushing capacity of 9.0 million metric tons. Actual
production of oil, however, was 6.7 million metric tons. Due to
shrinking profitability, the number of crushers has been declining
gradually over the years as companies consolidate. For example, there
were 117 crushing factories in CY 1990.

Table 3. Japan\'s Oil Crushing Capacity

  --------- --------------- --------------- --------------- ---------------
  CY        Number of       Annual Crushing Actual Annual   Operation Ratio
            Factories       Capacity (1000  Production      (percent)
                            MT)             (1000 MT)       

  1998      92              9,055           6,516           72.0

  1999      88              8,922           6,679           74.9

  2000      -\*             -\*             6,726           -\*

  2001      53              8,992           6,669           74.2
  --------- --------------- --------------- --------------- ---------------

Source: MAFF, \*MAFF began to provide crushing capacity data biannually
from 1999.

### Trade

From April 1, 2001, MAFF, the Government of Japan implemented mandatory
labeling for selected foods derived from biotechnology. In anticipation
of this rule, many food manufacturers in CY 2000, shifted from U.S.
supplies to non-biotech soybeans from Canada and Brazil, resulting in a
decrease of imports from the United States by 7 percent in CY 2000. As
IP handling systems in the U.S. for non-biotech soybeans were
established, Japanese soybean users became confident in the non-biotech
supply from the U.S. with imports recovering to original levels over in
CY 2001 through CY 2003.

In addition to the MAFF's biotech labeling policy that requires a number
of soy based food products such as tofu, miso (soybean paste) and natto
(fermented soybeans) to be labeled as such if the ingredient soybeans
are biotech, some manufacturers of other soy base foods including soy
sauce voluntarily label their products as non-biotech for a marketing
advantage. To meet Japan's demand for non-biotech food soybeans for
those products, U.S. producers and suppliers have maintained the
confidence of Japanese importers and industries' through their ability
to supply non-biotech soybeans through a well-established IP handling
system. Soybean oil is not subject to the MAFF labeling scheme and the
Japanese crushing industry mainly sources biotech non-segregated
soybeans.

Table 4. Japanese Soybean Imports by Country of Origin

(1,000 MT)

  ------------------ ----------------- ----------------- -----------------
                     CY 2002           CY 2003           CY 2004

  U.S.               3,821             3,858             3,178

  Brazil             812               890               779

  Canada             167               189               259

  China              136               143               187

  Australia          3                 0                 4

  Paraguay           73                73                0

  Argentina          25                18                0

  Others             4                 2                 0

  Total              5,039             5,173             4,407
  ------------------ ----------------- ----------------- -----------------

Source: Ministry of Finance

Canada continues to be the dominant rapeseed supplier to Japan. However,
Australia almost quadrupled its exports in CY 1996 to also become a
stable supplier accounting for about 27 percent of the total rapeseed
market in Japan in CY 2004.

Table 5. Japanese Rapeseed Imports by Country of Origin

(1,000 MT)

  ------------------ ----------------- ----------------- -----------------
                     CY 2002           CY 2003           CY 2004

  Canada             1,578             1,660             1,684

  Australia          438               369               629

  France             59                53                0

  U.S.               1                 2                 0

  Others             0                 0                 0

  Total              2,075             2,084             2,313
  ------------------ ----------------- ----------------- -----------------

Source: Ministry of Finance

Australia continues to dominate the Japanese cottonseed market. In
recent years, the U.S. had been a negligible supplier. However, the U.S.
increased the market share to 15 percent because of supply shortage from
the drought in Australia in CY 2003 and was successful in maintaining
the share in CY 2004 due to continuous high Australian cottonseed price.

Table 6. Japanese Cottonseed Imports by Country of Origin

(1,000 MT)

  ------------------ ----------------- ----------------- -----------------
                     CY 2002           CY 2003           CY 2004

  Australia          149               124               129

  U.S.               3                 24                22

  Others             3                 9                 6

  Total              155               157               157
  ------------------ ----------------- ----------------- -----------------

Source: Ministry of Finance

China has been a leading supplier of peanuts to Japan. Total imports of
raw peanuts and processed peanuts in CY 2004 reached 97,200 metric tons.
In CY 2004, China had a 70 percent market share for raw peanuts and 100
percent market share for processed peanuts. Total peanut imports have
been stagnant, but maintain the level, in recent years reflecting weak
consumer demand for snack and confectionary items.

Table 7. Japanese Peanut Imports by Country of Origin

(1,000 MT)

  ----------------- ----------------- ----------------- -----------------
                    CY 2002           CY 2003           CY 2004

  Imports of Raw                                        
  Peanuts                                               

  China             26                30                30

  South Africa      8                 8                 6

  U.S.              7                 5                 5

  Others            1                 1                 0

  Total             42                44                41

  Imports of                                            
  Processed Peanuts                                     

  China             59                59                56

  Others            0                 0                 0

  Total             59                59                56
  ----------------- ----------------- ----------------- -----------------

Source: Ministry of Finance

### Price

The CIF import prices of soybeans increased significantly in late CY
2003 by 20 percent. CY 2004 CIF import prices are 65 percent higher than
those in CY 2002. Rapeseed and cottonseed prices have also increased
significantly due to tight supplies in CY 2003. The CIF price for U.S.
peanuts in CY 2003 increased about 25 percent from the previous year and
remained at the same levels in CY 2004.

Table 8. CIF Import Price Comparison of Major Oilseeds

(Dollars per MT)

  ------------------- ----------------- ----------------- -----------------
                      CY 2002           CY 2003           CY 2004

  Soybeans (World)    \(243\)           \(293\)           \(403\)

  U.S.                239               291               393

  Brazil              223               264               377

  Canada              331               372               473

  China               394               447               577

  Rapeseed (World)    \(275\)           \(326\)           \(364\)

  Canada              278               326               361

  Australia           264               324               372

  U.S.                361               334               1,548

  Cottonseed (World)  \(177\)           \(238\)           \(247\)

  Australia           176               243               255

  U.S.                188               215               207

  Raw peanuts (World) \(872\)           \(970\)           (1,070)

  China               878               922               1,048

  South Africa        811               1,019             1,161

  U.S.                927               1,157             1,097
  ------------------- ----------------- ----------------- -----------------

Source: Ministry of Finance

### Policy

Since 1974, Japan had maintained an emergency soybean stock reserve
amounting to 50,000 metric tons until 2003. The reserve volume was
equivalent to about 5 percent of annual demand for food soybeans. In
2003, Japan decided to revise the stock program every year. Although the
target stock amount remains at 50,000 metric tons, the amount has been
decreased to 47,000 metric tons in 2004, and further revised to 43,000
metric tons in 2005. Eleven private oil crushers hold the emergency
stocks.

Japan maintained a quota system on raw peanuts until the end of JFY 1994
with a minimum annual quantity of 75,000 metric tons. However, under the
Uruguay Round Agreement, the quota system was replaced by a tariff quota
system. Under this system, 10 percent of the tariff is maintained within
a quantity stipulated each year by the Cabinet. The quota uses 75,000
metric tons as a basis and is adjusted depending on other considerations
such as the quantity of prospective domestic production and
international market situation. The quota for JFY 2005 is 75,000 metric
tons. The initial tariff equivalent was set at 726 yen per kilogram and
was reduced to 617 yen in the JFY 2000. Japan's raw peanut imports in CY
2002, CY 2003 and CY 2004 were 42,000, 44,000 and 41,000 metric tons,
respectively; therefore, the 75,000 metric tons quota amount has not
been filled. The tariff on processed peanuts was also reduced from 25
percent in the JFY 1995 to 21.3 percent in JFY 2000. There are no
tariffs on soybean, rapeseed and cotton seed imports. JFY 2000 was the
last year of the Uruguay Round Implementation year, so tariff levels are
set until the completion of next WTO agricultural negotiations.

Table 9. Japan\'s Tariff on Major Oilseeds

  ----------------------- ----------------------- -----------------------
  HS Code                 Commodity               Duty JFY 2003

  1201.00-000             Soybeans                0

  1205.10-000 1205.90-000 Rapeseed                0

  1207.20-000             Cottonseed              0

  1202.10-010 1202.20-010 Raw peanuts for oil     0
                          extraction              

  1202.10-091 1202.20-091 Raw Peanuts within TRQ  10 percent (Primary
                                                  Tariff Rate)

  1202.10-099 1202.20-099 Raw Peanuts outside of  617 yen/kg (Secondary
                          TRQ                     Tariff Rate)

  2008.11-291 2008.11-292 Processed Peanuts       21.3 percent
  2008.11-299                                     
  ----------------------- ----------------------- -----------------------

Source: Japan Tariff Association

### Biotechnology

Japan has been importing biotech soybeans and canola since 1996. As of
December 2004, the Government of Japan (GOJ) had approved 59
biotechnology products (soybeans, canola, corn, potatoes, cotton and
sugar beet) for food. Japanese consumer groups, however, have expressed
strong concerns about the safety of these agricultural products and the
Japanese mass media has actively highlighted issues about their safety.
In response to these concerns, MAFF introduced mandatory labeling
requirements for 30 foods in which DNA or proteins of their
biotechnology ingredients can be detected.

In 2001, MAFF expanded the labeling scheme to include high oleic acid
soybean oil when the Ministry of Health, Labor and Welfare (MHLW)
approved biotech high oleic acid soybeans. However, to date, there has
been no import of the oil into Japan. In an effort to gain a marketing
advantage, Japanese domestic processors of soy foods (tofu, natto,
etc.), corn foods (corn snacks, etc.) and potato foods (potato snacks,
etc.) are using non-biotech agricultural products. As a result, all
consumer products subject to the labeling scheme on the market are using
non-biotech soybeans and labeled as \"non-biotech.\"

Oils, including soybean oil, rapeseed oil and cotton oil, are exempted
from the biotech labeling scheme. Oil crushers therefore have the
liberty of using biotechnology non-segregated soybeans, rapeseeds and
cotton for crushing purposes. However, manufacturers of certain
consumer-oriented foods not subject to the labeling, including soy sauce
and beer using corn starch, purchase non-biotech ingredients so that
they can label their products as non-biotech on a voluntary basis.

Given the concerns about biotech products in Japan, efforts to increase
consumer acceptance will hinge on education about the safety of biotech
agricultural products. FAS/Tokyo continues to conduct various seminars
and round table discussions throughout Japan to educate food processors,
importers and consumers on biotech food safety.

## TOTAL OIL MEALS

### Production

The first finding of BSE infected cattle in Japan in September 2001
created a demand for oilseed meals as substitutes for animal-origin
meals. The tight supply of rapeseeds also pushed up the demand for
soybeans and soybean meal in 2002, however, the high price of soybeans
since late CY 2004 pushed down soybean crushing. Demand levels of
soybean meal are expected to remain at the same level for 2005;
therefore, imports, mainly from China, in CY 2005 are expected to remain
at a high level.

### Consumption

Soybeans and rapeseed meals are the primary protein ingredients used in
compound feed production in Japan. About 90 percent of soybean meal is
used for feed production, and the remainder is used for the production
of tofu, soybean paste and soy sauce.

Table 10. Utilization of Major Vegetable and Fish Meals

in Compound & Mixed Feed Production

(1,000 MT)

  ------ --------- ----------- ---------- ------------- ------------- ----------
  CY     Soybean   Other       Fish Meal  Other         Total         Percent of
         Meal      Vegetable              Ingredients   Ingredients   Veg. &
                   Meal                                               Fish Meals

  2002   3,542     981         205        19,685        24,413        19.4

  2003   3,518     998         198        19,869        24,583        19.2

  2004   3,275     1,078       186        19,501        24,040        18.9
  ------ --------- ----------- ---------- ------------- ------------- ----------

Source: MAFF

The decline in the number of Japanese livestock farmers is caused by a
variety of factors including an aging farming population, lack of
successors of livestock farmers, and increases in meat imports. As a
consequence, the livestock population continues to decrease.

Table 11. Japanese Livestock Population

(1,000 heads)

  ----------------- ----------------- ----------------- -----------------
  CY                2002              2003              2004

  Dairy cows        1,726             1,719             1,690

  Beef cattle       2,838             2,804             2,788

  Swine             9,612             9,725             9,724

  Layers            177,447           176,049           174,550

  Broilers          105,658           103,729           104,950
  ----------------- ----------------- ----------------- -----------------

Source: MAFF

### Trade

The ban of use of meat and bone meal as feed as a consequence of the
first confirmed BSE detection in cattle in Japan in September 2001
increased the demand for soybean meal, rapeseed meal and fish meal. Much
of the increased demand for soybean meal was covered by soybean meal
imports from China, where the number of oil crushing factories has
increased dramatically. Japan imported 525 thousand metric tons of
soybean meal from China in CY 2003. China dominated the soybean meal
imports because of increasing crushing capacity, shorter transportation
length, lower price, and small quantity lots allowing direct shipments
to local ports in Japan. Total imports of meal, including Chinese
soybean meal, is expected to remain at a high level through CY 2005 due
to reduction of soybean crushing and continuing high demand for compound
feed from the livestock sector as a substitute for meat bone meal.

Table 12. Japanese Soybean, Rapeseed and Fish Meal Imports by Country of
Origin

(1,000 MT)

  ------------------ ----------------- ----------------- -----------------
                     CY 2002           CY 2003           CY 2004

  Imports of Soybean                                     
  Meal                                                   

  China              613               525               597

  U.S.               203               340               229

  India              92                119               293

  Brazil             59                51                53

  Others             5                 6                 10

  Total              971               1,041             1,182

  Imports of                                             
  Rapeseed Meal                                          

  China              29                9                 7

  Canada             4                 3                 0

  India              9                 7                 9

  Others             0                 1                 0

  Total              42                20                16

  Imports of Fish                                        
  Meal                                                   

  Peru               206               161               192

  Chile              118               103               101

  Ecuador            15                32                25

  Denmark            18                18                18

  U.S.               13                9                 13

  Others             120               60                49

  Total              475               383               398
  ------------------ ----------------- ----------------- -----------------

Source: Ministry of Finance

### Price

Reflecting high prices of soybeans and rapeseeds have been pushing up
the price of their meals in the past few years. The prices of soybean
and rapeseed meals in CY 2005 are expected to remain at the level or
slightly decrease in CY 2005.

Table 13. Wholesale Prices for Soybean and Rapeseed Meal

  ----------------------- ----------------------- -----------------------
  CY                      Soybean Meal (Yen/MT)   Rapeseed Meal (Yen/MT)

  2001                    41,900                  24,100

  2002                    43,000                  25,200

  2003                    45,900                  26,100

  2004                    52,400                  28,600
  ----------------------- ----------------------- -----------------------

Source: Japanese vegetable oil industry publications.

Due to the high demand of soybean meal and rapeseed meal for feed, in
combination with the high prices of soybeans and rapeseeds, the CIF
import prices remained high in CY 2004. Also, the continued need of
soybean and rapeseed meals as a substitute of banned for meat and bone
meal as feed, and the tight supply of rapeseeds, prices for MBM
substitutes such as soybean, rapeseed and fish meal, will likely keep
prices high through CY 2005.

Table 14. CIF Import Price Comparison of Soybean and Rapeseed Meal

(Dollars per MT)

  -------------------- ---------------- ---------------- ----------------
                       CY 2002          CY 2003          CY 2004

  Soybeans Meal        \(229\)          \(267\)          \(350\)
  (World)                                                

  Brazil               229              248              376

  India                233              256              304

  U.S.                 275              298              402

  China                210              241              349

  Rapeseed Meal\*      \(159\)          \(176\)          \(202\)
  (World)                                                

  India                148              151              177

  China                165              201              240
  -------------------- ---------------- ---------------- ----------------

\*: For HS Code 230649

Source: Ministry of Finance

### Policy

There is no tariff on soybean meal, rapeseed meal or fish meal.

## TOTAL OILS

### Production

Production of major processed oil products remained flat in CY 2004.

Table 15. Production of Major Processed Oil Products in Japan

(MT)

  ---------- ------------ --------------- ---------- ------------ -----------
  CY         Margarine    Margarine for   Low-fat    Shortening   Refined
             for          Institutional   Spread                  Edible Oils
             Household    Use                                     
             Use                                                  

  2002       13,580       161,763         70,704     199,973      48,324

  2003       12,863       163,018         70,224     201,489      48,691

  2004       13,079       155,225         78,765     208,563      49,719
  ---------- ------------ --------------- ---------- ------------ -----------

Source: Japan Margarine Industry Association

### Consumption

The two primary edible oils in Japan are soybean oil and rapeseed oil,
which are largely consumed as blended oils. Crude palm oil is used for
industrial use such as soap production. Refined palm oil is used for the
production of margarine, shortening, instant noodles, and snacks. Both
cottonseed oil and sunflower oil are mainly used for salad oil. In CY
2004, consumption of oil products showed no significant change.

Table 16. Average Annual Expenditures for Processed Oil Products

Per Japanese Household

  ------ ------------ ------------- ------------ ------------- ------------
  CY     Margarine                  Edible Oil                 Mayonnaise &
                                                               Salad
                                                               Dressing

         Value (Yen)  Quantity      Value (Yen)  Quantity      Value
                      (Gram)                     (Gram)        (Yen)\*

  2002   848          1,542         3,344        9,709         2,848

  2003   863          1,565         3,279        9,174         2,850

  2004   834          1,552         3,478        9,439         2,855
  ------ ------------ ------------- ------------ ------------- ------------

\*Only value is available.

Source: Management and Coordination Agency

### Trade

Palm and fish oils are the major oils imported into Japan. Palm oil
imports have been increasing to compensate for a decline in the supply
of animal origin fats due to BSE. Malaysia is the leading exporter of
palm oil to Japan with a 99 percent share in CY 2004. Japan\'s total oil
imports are expected to remain at the same level throughout CY 2005.

Imports of soybean oil and rapeseed oil, the two primary edible oils in
Japan, have traditionally been very small as Japan meets most of its
demand with domestic crushing. For example, total imports of soybean oil
for CY 2004 were 28,269 metric tons, compared to the annual total
soybean oil supply, 639,134 tons. In CY 2004, the U.S. supplied 5,475
metric tons of soybean oil. Rapeseed oil imports to Japan in CY 2004
were 48,477 metric tons. Although imports of soybean and rapeseed oils
remained small, their imports increased in CY 2004 due to the high price
of soybeans and rapeseeds.

Table 17. Japanese Palm and Fish Oil Imports by Country of Origin

(1,000 MT)

  ------------------ ----------------- ----------------- -----------------
                     CY 2002           CY 2003           CY 2004

  Imports of Palm                                        
  Oil                                                    

  Malaysia           410               424               462

  Singapore          2                 2                 2

  Netherlands        1                 1                 1

  Others             2                 1                 1

  Total              415               428               466

  Imports of Fish                                        
  Oil                                                    

  U.S.               33                12                18

  Peru               11                13                8

  Chile              6                 7                 6

  Others             9                 7                 7

  Total              59                39                39
  ------------------ ----------------- ----------------- -----------------

Source: Ministry of Finance

### Policy

Japan\'s tariffs on oil are as listed below.

Table 18. Japan\'s Tariff on Major Oils

  ------------- ----------------------------------- -----------------------
  HS Code       Commodity                           Duty JFY 2005

  1507.10-100   Soybean oil, crude, of an acid      10.9 yen/kg
                value exceeding 0.6                 

  1507.10-200   Soybean oil, crude, other           13.2 yen/kg

  1507.90-000   Soybean oil, other                  13.2 yen/kg

  1508.10-100   Peanut oil, crude, of an acid value 8.5 yen/kg
                exceeding 0.6                       

  1508.10-200   Peanut oil, crude, other            10.4 yen/kg

  1508.90-000   Peanut oil, other                   10.4 yen/kg

  1509 & 1510   Olive oil                           0

  1511.10-000   Palm oil, crude                     3.5 percent

  1511.90-010   Palm stearin                        2.5 percent

  1511.90-090   Palm oil, other                     3.5 percent

  1512.11-110   Sunflower-seed oil, of an acid      8.5 yen/kg
                value exceeding 0.6                 

  1512.11-210   Safflower oil, of an acid value     8.5 yen/kg
                exceeding 0.6                       

  1512.11-120   Sunflower-seed oil, other           10.4 yen/kg

  1512.11-220   Safflower-seed oil, other           10.4 yen/kg

  1514.11-100   Low erucic acid rapeseed oil,       10.9 yen/kg
                crude, of an acid value exceeding   
                0.6                                 

  1514.11-200   Low erucic acid rapeseed oil,       13.2 yen/kg
                crude, other                        

  1514.19-000   Low erucic acid rapeseed oil, other 13.2 yen/kg

  1514.91-100   Rapeseed oil, other, crude, of an   10.9 yen/kg
                acid value exceeding 0.6            

  1514.91-200   Rapeseed oil, other, crude, other   13.2 yen/kg

  1515.90-600   Jojoba oil                          0

  1504.10       Fish-liver oil                      3.5 percent

  1504.20       Fish & oil, fish                    7 percent or 4.20
                                                    yen/kg, whichever is
                                                    higher
  ------------- ----------------------------------- -----------------------

Source: Japan Tariff Association

#  

# SECTION III. STATISTICAL TABLES

### Soybean PS&D Table

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

  **Country**       **Japan**                                                           

  **Commodity**     **Oilseed,                                    (1000                 
                    Soybean**                                     HA)(1000              
                                                                  MT)                   

                    2003         Revised    2004       Estimate   2005       Forecast   UOM

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

  **Market Year                  10/2003               10/2004               10/2005    MM/YYYY
  Begin**                                                                               

  Area Planted      155          152        150        137        0          150        (1000 HA)

  Area Harvested    152          152        150        137        0          150        (1000 HA)

  Beginning Stocks  705          728        652        545        640        500        (1000 MT)

  Production        232          232        280        165        0          230        (1000 MT)

  MY Imports        4688         4688       4700       4500       0          4500       (1000 MT)

  MY Imp. from U.S. 3488         3488       0          3500       0          3500       (1000 MT)

  MY Imp. from the  0            0          0          0          0          0          (1000 MT)
  EC                                                                                    

  TOTAL SUPPLY      5625         5648       5632       5210       640        5230       (1000 MT)

  MY Exports        0            0          0          0          0          0          (1000 MT)

  MY Exp. to the EC 0            0          0          0          0          0          (1000 MT)

  Crush Dom.        3663         3810       3647       3420       0          3400       (1000 MT)
  Consumption                                                                           

  Food Use Dom.     1010         1035       1020       1040       0          1050       (1000 MT)
  Consump.                                                                              

  Feed,Seed,Waste   300          258        325        250        0          250        (1000 MT)
  Dm.Cn.                                                                                

  TOTAL Dom.        4973         5103       4992       4710       0          4700       (1000 MT)
  Consumption                                                                           

  Ending Stocks     652          545        640        500        0          530        (1000 MT)

  TOTAL             5625         5648       5632       5210       0          5230       (1000 MT)
  DISTRIBUTION                                                                          

  Calendar Year     0            5173       0          4407       0          4500       (1000 MT)
  Imports                                                                               

  Calendar Yr Imp.  0            3858       0          3178       0          3500       (1000 MT)
  U.S.                                                                                  

  Calendar Year     0            0          0          0          0          0          (1000 MT)
  Exports                                                                               

  Calndr Yr Exp. to 0            0          0          0          0          0          (1000 MT)
  U.S.                                                                                  
  ----------------- ------------ ---------- ---------- ---------- ---------- ---------- ---------

### Soybean Meal PS&D Table

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

  **Country**       **Japan**                                                              

  **Commodity**     **Meal,                                      (1000                     
                    Soybean**                                    MT)(PERCENT)              

                    2003        Revised    2004       Estimate   2005           Forecast   UOM

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

  **Market Year                 10/2003               10/2004                   10/2005    MM/YYYY
  Begin**                                                                                  

  Crush             3663        3810       3647       3800       0              0          (1000 MT)

  Extr. Rate,       0.767131    0.737533   0.767754   0.692105   0              0          (PERCENT)
  999.9999                                                                                 

  Beginning Stocks  478         130        308        134        270            169        (1000 MT)

  Production        2810        2810       2800       2630       0              2600       (1000 MT)

  MY Imports        1195        1191       1250       1200       0              1200       (1000 MT)

  MY Imp. from U.S. 242         241        0          250        0              250        (1000 MT)

  MY Imp. from the  0           0          0          0          0              0          (1000 MT)
  EC                                                                                       

  TOTAL SUPPLY      4483        4131       4358       3964       270            3969       (1000 MT)

  MY Exports        0           1          0          0          0              0          (1000 MT)

  MY Exp. to the EC 0           0          0          0          0              0          (1000 MT)

  Industrial Dom.   330         330        335        330        0              330        (1000 MT)
  Consum                                                                                   

  Food Use Dom.     65          165        65         165        0              165        (1000 MT)
  Consump.                                                                                 

  Feed Waste Dom.   3780        3501       3688       3300       0              3300       (1000 MT)
  Consum                                                                                   

  TOTAL Dom.        4175        3996       4088       3795       0              3795       (1000 MT)
  Consumption                                                                              

  Ending Stocks     308         134        270        169        0              174        (1000 MT)

  TOTAL             4483        4131       4358       3964       0              3969       (1000 MT)
  DISTRIBUTION                                                                             

  Calendar Year     1043        1041       0          1182       0              0          (1000 MT)
  Imports                                                                                  

  Calendar Yr Imp.  341         340        0          229        0              0          (1000 MT)
  U.S.                                                                                     

  Calendar Year     0           0          0          0          0              0          (1000 MT)
  Exports                                                                                  

  Calndr Yr Exp. to 0           0          0          0          0              0          (1000 MT)
  U.S.                                                                                     
  ----------------- ----------- ---------- ---------- ---------- -------------- ---------- -----------

### Soybean Oil PS&D Table

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

  **Country**       **Japan**                                                              

  **Commodity**     **Oil,                                       (1000                     
                    Soybean**                                    MT)(PERCENT)              

                    2003        Revised    2004       Estimate   2005           Forecast   UOM

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

  **Market Year                 10/2003               10/2004                   10/2005    MM/YYYY
  Begin**                                                                                  

  Crush             3663        3810       3647       3800       0              0          (1000 MT)

  Extr. Rate,       0.189189    0.173753   0.187826   0.173684   0              0          (PERCENT)
  999.9999                                                                                 

  Beginning Stocks  51          29         31         35         30             30         (1000 MT)

  Production        693         662        685        660        0              660        (1000 MT)

  MY Imports        24          24         50         15         0              10         (1000 MT)

  MY Imp. from U.S. 5           8          0          5          0              0          (1000 MT)

  MY Imp. from the  0           0          0          0          0              0          (1000 MT)
  EC                                                                                       

  TOTAL SUPPLY      768         715        766        710        30             700        (1000 MT)

  MY Exports        0           0          0          0          0              0          (1000 MT)

  MY Exp. to the EC 0           0          0          0          0              0          (1000 MT)

  Industrial Dom.   36          18         40         20         0              20         (1000 MT)
  Consum                                                                                   

  Food Use Dom.     701         662        696        660        0              660        (1000 MT)
  Consump.                                                                                 

  Feed Waste Dom.   0           0          0          0          0              0          (1000 MT)
  Consum                                                                                   

  TOTAL Dom.        737         680        736        680        0              680        (1000 MT)
  Consumption                                                                              

  Ending Stocks     31          35         30         30         \*             20         (1000 MT)

  TOTAL             768         715        766        710        0              700        (1000 MT)
  DISTRIBUTION                                                                             

  Calendar Year     0           17         0          0          0              0          (1000 MT)
  Imports                                                                                  

  Calendar Yr Imp.  0           12         0          0          0              0          (1000 MT)
  U.S.                                                                                     

  Calendar Year     0           0          0          0          0              0          (1000 MT)
  Exports                                                                                  

  Calndr Yr Exp. to 0           0          0          0          0              0          (1000 MT)
  U.S.                                                                                     
  ----------------- ----------- ---------- ---------- ---------- -------------- ---------- -----------

### Import Trade Matrix for Soybean

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

  **Country**          Japan                               

  **Commodity**        Oilseed,                            
                       Soybean                             

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 3745           U.S.                 3488

  Others                              Others               

  Brazil               916            Brazil               768

  Canada               191            Canada               248

  China                141            China                181

  Paraguay             73             Australia            3

  Argentina            19                                  

  Australia            1                                   

  Total for Others     1341                                1200

  Others not Listed    1                                   0

  Grand Total          5087                                4688
  -------------------- -------------- -------------------- --------------

### Import Trade Matrix for Soybean Meal

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

  **Country**          Japan                               

  **Commodity**        Meal, Soybean                       

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 315            U.S.                 241

  Others                              Others               

  China                565            China                589

  India                97             India                327

  Brazil               91             Brazil               27

  Canada               3              Indonesia            4

  Denmark              1              Canada               2

  Total for Others     757                                 949

  Others not Listed    1                                   1

  Grand Total          1073                                1191
  -------------------- -------------- -------------------- --------------

### Rapeseed PS&D Table

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

  **Country**       **Japan**                                                           

  **Commodity**     **Oilseed,                                    (1000                 
                    Rapeseed**                                    HA)(1000              
                                                                  MT)                   

                    2003         Revised    2004       Estimate   2005       Forecast   UOM

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

  **Market Year                  10/2003               10/2004               10/2005    MM/YYYY
  Begin**                                                                               

  Area Planted      0            0          0          0          0          0          (1000 HA)

  Area Harvested    1            0          1          0          0          0          (1000 HA)

  Beginning Stocks  186          166        191        206        190        206        (1000 MT)

  Production        1            1          1          0          0          0          (1000 MT)

  MY Imports        2283         2283       2300       2250       0          2250       (1000 MT)

  MY Imp. from U.S. 1            2          1          1          0          0          (1000 MT)

  MY Imp. from the  0            0          0          0          0          0          (1000 MT)
  EC                                                                                    

  TOTAL SUPPLY      2470         2450       2492       2456       190        2456       (1000 MT)

  MY Exports        0            0          0          0          0          0          (1000 MT)

  MY Exp. to the EC 0            0          0          0          0          0          (1000 MT)

  Crush Dom.        2274         2244       2297       2250       0          2250       (1000 MT)
  Consumption                                                                           

  Food Use Dom.     0            0          0          0          0          0          (1000 MT)
  Consump.                                                                              

  Feed,Seed,Waste   5            0          5          0          0          0          (1000 MT)
  Dm.Cn.                                                                                

  TOTAL Dom.        2279         2244       2302       2250       0          2250       (1000 MT)
  Consumption                                                                           

  Ending Stocks     191          206        190        206        0          206        (1000 MT)

  TOTAL             2470         2450       2492       2456       0          2456       (1000 MT)
  DISTRIBUTION                                                                          

  Calendar Year     0            2084       0          2313       0          0          (1000 MT)
  Imports                                                                               

  Calendar Yr Imp.  0            2          0          0          0          0          (1000 MT)
  U.S.                                                                                  

  Calendar Year     0            0          0          0          0          0          (1000 MT)
  Exports                                                                               

  Calndr Yr Exp. to 0            0          0          0          0          0          (1000 MT)
  U.S.                                                                                  
  ----------------- ------------ ---------- ---------- ---------- ---------- ---------- ---------

### Rapeseed Meal PS&D Table

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

  **Country**       **Japan**                                                               

  **Commodity**     **Meal,                                       (1000                     
                    Rapeseed**                                    MT)(PERCENT)              

                    2003         Revised    2004       Estimate   2005           Forecast   UOM

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

  **Market Year                  10/2003               10/2004                   10/2005    MM/YYYY
  Begin**                                                                                   

  Crush             2274         2100       2297       2100       0              0          (1000 MT)

  Extr. Rate,       0.562885     0.628571   0.561602   0.628095   0              0          (PERCENT)
  999.9999                                                                                  

  Beginning Stocks  45           45         38         35         40             74         (1000 MT)

  Production        1280         1320       1290       1319       0              1320       (1000 MT)

  MY Imports        19           19         30         20         0              20         (1000 MT)

  MY Imp. from U.S. 0            0          0          0          0              0          (1000 MT)

  MY Imp. from the  0            0          0          0          0              0          (1000 MT)
  EC                                                                                        

  TOTAL SUPPLY      1344         1384       1358       1374       40             1414       (1000 MT)

  MY Exports        0            9          0          10         0              10         (1000 MT)

  MY Exp. to the EC 0            0          0          0          0              0          (1000 MT)

  Industrial Dom.   440          420        428        420        0              420        (1000 MT)
  Consum                                                                                    

  Food Use Dom.     0            0          0          0          0              0          (1000 MT)
  Consump.                                                                                  

  Feed Waste Dom.   866          920        890        870        0              870        (1000 MT)
  Consum                                                                                    

  TOTAL Dom.        1306         1340       1318       1290       0              1290       (1000 MT)
  Consumption                                                                               

  Ending Stocks     38           35         40         74         0              114        (1000 MT)

  TOTAL             1344         1384       1358       1374       0              1414       (1000 MT)
  DISTRIBUTION                                                                              

  Calendar Year     0            18         0          40         0              0          (1000 MT)
  Imports                                                                                   

  Calendar Yr Imp.  0            0          0          0          0              0          (1000 MT)
  U.S.                                                                                      

  Calendar Year     0            0          0          0          0              0          (1000 MT)
  Exports                                                                                   

  Calndr Yr Exp. to 0            0          0          0          0              0          (1000 MT)
  U.S.                                                                                      
  ----------------- ------------ ---------- ---------- ---------- -------------- ---------- -----------

### Rapeseed Oil PS&D

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

  **Country**       **Japan**                                                               

  **Commodity**     **Oil,                                        (1000                     
                    Rapeseed**                                    MT)(PERCENT)              

                    2003         Revised    2004       Estimate   2005           Forecast   UOM

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

  **Market Year                  10/2003               10/2004                   10/2005    MM/YYYY
  Begin**                                                                                   

  Crush             2274         2100       2297       2100       0              0          (1000 MT)

  Extr. Rate,       0.397977     0.442381   0.396169   0.438095   0              0          (PERCENT)
  999.9999                                                                                  

  Beginning Stocks  50           27         40         46         40             61         (1000 MT)

  Production        905          929        910        920        0              900        (1000 MT)

  MY Imports        37           37         60         40         0              40         (1000 MT)

  MY Imp. from U.S. 0            1          0          0          0              0          (1000 MT)

  MY Imp. from the  0            0          0          0          0              0          (1000 MT)
  EC                                                                                        

  TOTAL SUPPLY      992          993        1010       1006       40             1001       (1000 MT)

  MY Exports        0            0          0          0          0              0          (1000 MT)

  MY Exp. to the EC 0            0          0          0          0              0          (1000 MT)

  Industrial Dom.   51           23         52         25         0              25         (1000 MT)
  Consum                                                                                    

  Food Use Dom.     901          924        918        920        0              920        (1000 MT)
  Consump.                                                                                  

  Feed Waste Dom.   0            0          0          0          0              0          (1000 MT)
  Consum                                                                                    

  TOTAL Dom.        952          947        970        945        0              945        (1000 MT)
  Consumption                                                                               

  Ending Stocks     40           46         40         61         0              56         (1000 MT)

  TOTAL             992          993        1010       1006       0              1001       (1000 MT)
  DISTRIBUTION                                                                              

  Calendar Year     0            17         0          48         0              0          (1000 MT)
  Imports                                                                                   

  Calendar Yr Imp.  0            0          0          1          0              0          (1000 MT)
  U.S.                                                                                      

  Calendar Year     0            0          0          0          0              0          (1000 MT)
  Exports                                                                                   

  Calndr Yr Exp. to 0            0          0          0          0              0          (1000 MT)
  U.S.                                                                                      
  ----------------- ------------ ---------- ---------- ---------- -------------- ---------- -----------

### Import Trade Matrix for Rapeseed

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

  **Country**          Japan                               

  **Commodity**        Oilseed,                            
                       Rapeseed                            

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 1              U.S.                 2

  Others                              Others               

  Canada               1610           Canada               1656

  Australia            426            Australia            601

  France               74             France               24

  Total for Others     2110                                2281

  Others not Listed                                        

  Grand Total          2111                                2283
  -------------------- -------------- -------------------- --------------

### Import Trade Matrix for Rapeseed Meal

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

  **Country**          Japan                               

  **Commodity**        Meal, Rapeseed                      

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 0              U.S.                 0

  Others                              Others               

  China                14             India                9

  India                7              China                8

  Canada               3              Canada               1

                                      Pakistan             1

  Total for Others     24                                  19

  Others not Listed                                        

  Grand Total          24                                  19
  -------------------- -------------- -------------------- --------------

### Cottonseed PS&D Table

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

  **Country**         **Japan**                                                               

  **Commodity**       **Oilseed,                                      (1000                   
                      Cottonseed**                                    HA)(1000                
                                                                      MT)(RATIO)              

                      2003           Revised    2004       Estimate   2005         Forecast   UOM

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

  **Market Year                      10/2003               10/2004                 10/2005    MM/YYYY
  Begin**                                                                                     

  Area Planted        0              0          0          0          0            0          (1000 HA)
  (COTTON)                                                                                    

  Area                0              0          0          0          0            0          (1000 HA)
  Harvested(COTTON)                                                                           

  Seed to Lint Ratio  0              0          0          0          0            0          (RATIO)

  Beginning Stocks    19             19         16         20         16           22         (1000 MT)

  Production          0              0          0          0          0            0          (1000 MT)

  MY Imports          156            156        155        156        0            155        (1000 MT)

  MY Imp. from U.S.   20             26         2          18         0            20         (1000 MT)

  MY Imp. from the EC 0              0          0          0          0            0          (1000 MT)

  TOTAL SUPPLY        175            175        171        176        16           177        (1000 MT)

  MY Exports          0              0          0          0          0            0          (1000 MT)

  MY Exp. to the EC   0              0          0          0          0            0          (1000 MT)

  Crush Dom.          33             30         31         29         0            30         (1000 MT)
  Consumption                                                                                 

  Food Use Dom.       0              0          0          0          0            0          (1000 MT)
  Consump.                                                                                    

  Feed,Seed,Waste     126            125        124        125        0            125        (1000 MT)
  Dm.Cm.                                                                                      

  TOTAL Dom.          159            155        155        154        0            155        (1000 MT)
  Consumption                                                                                 

  Ending Stocks       16             20         16         22         0            22         (1000 MT)

  TOTAL DISTRIBUTION  175            175        171        176        0            177        (1000 MT)

  Calendar Year       0              157        0          157        0            0          (1000 MT)
  Imports                                                                                     

  Calendar Yr Imp.    0              24         0          22         0            0          (1000 MT)
  U.S.                                                                                        

  Calendar Year       0              0          0          0          0            0          (1000 MT)
  Exports                                                                                     

  Calndr Yr Exp. to   0              0          0          0          0            0          (1000 MT)
  U.S.                                                                                        
  ------------------- -------------- ---------- ---------- ---------- ------------ ---------- ---------

### Cottonseed Oil PS&D Table

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

  **Country**       **Japan**                                                                 

  **Commodity**     **Oil,                                          (1000                     
                    Cottonseed**                                    MT)(PERCENT)              

                    2003           Revised    2004       Estimate   2005           Forecast   UOM

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

  **Market Year                    10/2003               10/2004                   10/2005    MM/YYYY
  Begin**                                                                                     

  Crush             33             31         31         31         0              0          (1000 MT)

  Extr. Rate,       0.181818       0.419355   0.16129    0.419355   0              0          (PERCENT)
  999.9999                                                                                    

  Beginning Stocks  1              1          1          1          0              0          (1000 MT)

  Production        6              13         5          13         0              13         (1000 MT)

  MY Imports        8              8          8          7          0              7          (1000 MT)

  MY Imp. from U.S. 1              8          1          5          0              4          (1000 MT)

  MY Imp. from the  0              0          0          0          0              0          (1000 MT)
  EC                                                                                          

  TOTAL SUPPLY      15             22         14         21         0              20         (1000 MT)

  MY Exports        0              0          0          0          0              0          (1000 MT)

  MY Exp. to the EC 0              0          0          0          0              0          (1000 MT)

  Industrial Dom.   0              0          0          0          0              0          (1000 MT)
  Consum                                                                                      

  Food Use Dom.     14             21         14         21         0              20         (1000 MT)
  Consump.                                                                                    

  Feed Waste Dom.   0              0          0          0          0              0          (1000 MT)
  Consum                                                                                      

  TOTAL Dom.        14             21         14         21         0              20         (1000 MT)
  Consumption                                                                                 

  Ending Stocks     1              1          0          0          0              0          (1000 MT)

  TOTAL             15             22         14         21         0              20         (1000 MT)
  DISTRIBUTION                                                                                

  Calendar Year     0              0          0          0          0              0          (1000 MT)
  Imports                                                                                     

  Calendar Yr Imp.  0              0          0          0          0              0          (1000 MT)
  U.S.                                                                                        

  Calendar Year     0              0          0          0          0              0          (1000 MT)
  Exports                                                                                     

  Calndr Yr Exp. to 0              0          0          0          0              0          (1000 MT)
  U.S.                                                                                        
  ----------------- -------------- ---------- ---------- ---------- -------------- ---------- -----------

### Import Trade Matrix for Cottonseed

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

  **Country**          Japan                               

  **Commodity**        Oilseed,                            
                       Cottonseed                          

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 20             U.S.                 26

  Others                              Others               

  Australia            130            Australia            124

  Greece               3              Brazil               5

  Thailand             3                                   

  China                1                                   

  Total for Others     137                                 129

  Others not Listed                                        1

  Grand Total          157                                 156
  -------------------- -------------- -------------------- --------------

### Peanut PS&D Table

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

  **Country**       **Japan**                                                           

  **Commodity**     **Oilseed,                                    (1000                 
                    Peanut**                                      HA)(1000              
                                                                  MT)                   

                    2003         Revised    2004       Estimate   2005       Forecast   UOM

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

  **Market Year                  10/2003               10/2004               10/2005    MM/YYYY
  Begin**                                                                               

  Area Planted      10           9          10         9          0          9          (1000 HA)

  Area Harvested    10           9          10         9          0          9          (1000 HA)

  Beginning Stocks  23           2          23         4          23         4          (1000 MT)

  Production        23           21         23         20         0          19         (1000 MT)

  MY Imports        127          98         132        96         0          95         (1000 MT)

  My Imp. from U.S. 8            5          0          0          0          0          (1000 MT)

  MY Imp. from the  0            0          0          0          0          0          (1000 MT)
  EC                                                                                    

  TOTAL SUPPLY      173          121        178        120        23         118        (1000 MT)

  MY Exports        0            0          0          0          0          0          (1000 MT)

  MY Exp. to the EC 0            0          0          0          0          0          (1000 MT)

  Crush Dom.        2            1          2          1          0          0          (1000 MT)
  Consumption                                                                           

  Food Use Dom.     143          116        148        115        0          114        (1000 MT)
  Consump.                                                                              

  Feed,Seed,Waste   5            0          5          0          0          0          (1000 MT)
  Dm.Cn.                                                                                

  TOTAL Dom.        150          117        155        116        0          114        (1000 MT)
  Consumption                                                                           

  Ending Stocks     23           4          23         4          0          4          (1000 MT)

  TOTAL             173          121        178        120        0          118        (1000 MT)
  DISTRIBUTION                                                                          

  Calendar Year     132          101        0          105        0          0          (1000 MT)
  Imports                                                                               

  Calendar Yr Imp.  0            5          0          5          0          0          (1000 MT)
  U.S.                                                                                  

  Calendar Year     0            0          0          0          0          0          (1000 MT)
  Exports                                                                               

  Calndr Yr Exp. to 0            0          0          0          0          0          (1000 MT)
  U.S.                                                                                  
  ----------------- ------------ ---------- ---------- ---------- ---------- ---------- ---------

### Import Trade Matrix for Peanut

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

  **Country**          Japan                               

  **Commodity**        Oilseed,                            
                       Peanut                              

  Time Period          Oct/Sep        Units:               1000MT

  Imports for:         2002                                **2003**

  U.S.                 5              U.S.                 5

  Others                              Others               

  China                88             China                87

  South Africa         9              South Africa         4

  Total for Others     97                                  91

  Others not Listed    1                                   1

  Grand Total          103                                 97
  -------------------- -------------- -------------------- --------------

### Palm Oil PS&D Table

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

  **Country**       **Japan**                                                             

  **Commodity**     **Oil,                                       (1000                    
                    Palm**                                       HA)(1000                 
                                                                 TREES)(1000              
                                                                 MT)                      

                    2003        Revised    2004       Estimate   2005          Forecast   UOM

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

  **Market Year                 10/2003               10/2004                  10/2005    MM/YYYY
  Begin**                                                                                 

  Area Planted      0           0          0          0          0             0          (1000 HA)

  Area Harvested    0           0          0          0          0             0          (1000 HA)

  Trees             0           0          0          0          0             0          (1000
                                                                                          TREES)

  Beginning Stocks  21          30         20         29         20            29         (1000 MT)

  Production        0           0          0          0          0             0          (1000 MT)

  MY Imports        450         450        470        450        0             450        (1000 MT)

  MY Imp. from U.S. 0           0          0          0          0             0          (1000 MT)

  MY Imp. from the  0           1          0          0          0             0          (1000 MT)
  EC                                                                                      

  TOTAL SUPPLY      471         480        490        479        20            479        (1000 MT)

  MY Exports        0           0          0          0          0             0          (1000 MT)

  MY Exp. to the EC 0           0          0          0          0             0          (1000 MT)

  Industrial Dom.   35          35         35         35         0             35         (1000 MT)
  Consum                                                                                  

  Food Use Dom.     416         416        435        415        0             415        (1000 MT)
  Consump.                                                                                

  Feed Waste        0           0          0          0          0             0          (1000 MT)
  Consumption                                                                             

  TOTAL Dom.        451         451        470        450        0             450        (1000 MT)
  Consumption                                                                             

  Ending Stocks     20          29         20         29         0             29         (1000 MT)

  TOTAL             471         480        490        479        0             479        (1000 MT)
  DISTRIBUTION                                                                            

  Calendar Year     0           0          0          0          0             0          (1000 MT)
  Imports                                                                                 

  Calendar Yr Imp.  0           0          0          0          0             0          (1000 MT)
  U.S.                                                                                    

  Calendar Year     0           0          0          0          0             0          (1000 MT)
  Exports                                                                                 

  Calndr Yr Exp. to 0           0          0          0          0             0          (1000 MT)
  U.S.                                                                                    
  ----------------- ----------- ---------- ---------- ---------- ------------- ---------- ---------

### Import Trade Matrix for Fish Meal

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

  **Country**          Japan                               

  **Commodity**        Meal, Fish                          

  Time Period          Jan/Dec        Units:               1000MT

  Imports for:         2003                                **2004**

  U.S.                 9              U.S.                 13

  Others                              Others               

  Peru                 161            Peru                 192

  Chile                103            Chile                101

  Ecuador              32             Ecuador              25

  Denmark              18             Denmark              18

  South Africa         11             Indonesia            8

  Namibia              8                                   

  Total for Others     333                                 344

  Others not Listed    41                                  41

  Grand Total          383                                 398
  -------------------- -------------- -------------------- --------------

### Import Trade Matrix for Fish Oil

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

  **Country**          Japan                               

  **Commodity**        Oil, Fish                           

  Time Period          Jan/Dec        Units:               1000MT

  Imports for:         2003                                **2004**

  U.S.                 12             U.S.                 18

  Others                              Others               

  Peru                 13             Peru                 8

  Chile                7              Chile                6

  Denmark              4              Denmark              3

  New Zealand          1              South Korea          2

                                      New Zealand          1

                                      Panama               1

  Total for Others     25                                  21

  Others not Listed    2                                   0

  Grand Total          39                                  39
  -------------------- -------------- -------------------- --------------