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Voluntary Report - public distribution

**Date:** 8/19/2003

**GAIN Report Number:** JA3056

JA9100

**Japan**

**Agricultural Situation**

**Hokkaido Onion Production Down 16 Percent**

**2003**

**Approved by:**

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

#### U.S.Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

The 2003 Hokkaido onion production is estimated at 587,700 metric tons,
down approximately 16 percent from the previous year, due largely to the
decline in production area. Market prices of Hokkaido onions were weak
in the recent seasons and some farmers have converted their onion fields
to produce other commodities such as soybeans, wheat and sugar beats.
Hokkaido onion production area is estimated at 11,200 hectare, down
approximately 9 percent from the previous season.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo \[JA1\]

\[JA\]

![](media/image2.wmf)The 2003 Hokkaido onion production is estimated at
587,700 metric tons, down approximately 16 percent from the previous
year, due largely to the decline in production acreage, according to the
Ministry of Agriculture, Forestry and Fisheries (MAFF). Market prices of
Hokkaido onions were weak in recent seasons and some farmers have
converted their onion fields to crops such as soybeans, wheat and sugar
beats. Hokkaido onion production area is estimated at 11,200 hectare,
down approximately 9 percent from the previous season.

MAFF's 2003 Hokkaido onion crop forecast is as follows:

  ----------------------- ----------------------- -----------------------
                          2003 Crop Forecast      Changes from 2002

  Harvested Area          11,200 HR               \- 9 %

  Production              587,700 MT              \- 16 %

  Commercial Shipment     546,500 MT              \- 7 %

  For Fresh Consumption   471,800 MT              \- 2 %

  For Processing          74,600 MT               \- 30 %
  ----------------------- ----------------------- -----------------------

A shipment forecast before September 30 and after October 1 is as
follows:

  ----------------------------------- -----------------------------------
                                      Commercial Shipment for Fresh
                                      Consumption Onions

  Before September 30                 288,600 MT

  After October 1                     183,200 MT

  Total                               471,800 MT
  ----------------------------------- -----------------------------------

The agricultural producers coop in Hokkaido (Hokuren) confirmed MAFF's
forecast of the crop situation, but attributed much of the drop in
production to weather. Japan experienced cool weather nation-wide this
summer. Hokkaido had short rainfalls in June and July and insufficient
sunshine led to slow growth. The size of bulbs for this year's Hokkaido
onions is expected to be small. Despite significant damage elsewhere,
the recent typhoon that hit the main island of Japan (Honshu) and
Hokkaido left little damage to Hokkaido onions, according to Hokuren.
The rain the typhoon brought is unlikely to cause serious damage to
Hokkaido onions since the onion fields were fairly dry throughout this
summer, according to growers.

Recent weak prices for domestic onions were largely blamed on cheap
imports from China, according to Hokkaido onion growers. In July 2003
Chinese onions were traded at \$0.47 (59 yen) per kilogram at the Tokyo
Wholesale Market, while domestic onions from Saga and Hyogo Prefectures
were traded at \$0.89 - \$0.91 (106 -- 109 yen) per kilogram. Trading
volume for Chinese onions in July were almost doubled the same month in
2002.