Required Report - public distribution

**Date:** 10/24/2005

**GAIN Report Number:** JA5066

JA9999

**Japan**

**Strawberries**

**Annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

Fresh strawberries, with a market value of approximately \$2 billion,
have the highest valued sales of all fresh fruit in Japan, according to
Tokyo traders. However, Japan\'s strawberry production volume has been
on a declining trend due largely to labor shortages in some regions. The
United States is the leader in Japan\'s imported fresh strawberry
market, supplying approximately 4,000 metric tons annually. This
accounts for approximately 96 percent of Japan\'s imports. China
supplies a large volume of frozen strawberries to Japan, accounting for
64 percent of the nation\'s frozen strawberry sales. U.S. frozen
strawberries have a good reputation for their high quality in Japan\'s
food processing and food service sectors.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[Japanese Strawberry Production Declined Marginally
3](#japanese-strawberry-production-declined-marginally)

[Summer Crop Strawberries Used for Confectionary
3](#summer-crop-strawberries-used-for-confectionary)

[U.S. Fresh Strawberry Imports Are Fairly Stable
4](#u.s.-fresh-strawberry-imports-are-fairly-stable)

[China Remains Leader in Japan's Frozen Strawberry Market
4](#china-maintains-leadership-in-japans-frozen-strawberry-market)

["California Strawberry Fair" a Big Success
5](#california-strawberry-fair-a-big-success)

[High Import Duties Are Applied to Fresh and Frozen Strawberries
5](#high-import-duties-are-applied-to-fresh-and-frozen-strawberries)

[PS&D Tables and Trade Matrices 6](#psd-tables-and-trade-matrices)

[Fresh Strawberry PS&D Table 6](#fresh-strawberry-psd-table)

[Frozen Strawberry PS&D Table 7](#frozen-strawberry-psd-table)

[Fresh Strawberry Export Trade Matrix
8](#fresh-strawberry-export-trade-matrix)

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

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

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

# Japanese Strawberry Production Declined Marginally 

![](media/image2.wmf)Although fresh strawberries are an important
product in Japan's fresh produce market, domestic production of fresh
strawberries declined marginally since 2001 due largely to labor
shortages in some regions. In the 2003 season (from October 2003 to
September 2004,) Japan produced 198,200 metric tons nationwide,
according to the Ministry of Agriculture, Forestry and Fisheries (MAFF).
Tochigi prefecture, approximately 100 miles north of Tokyo, and the
Kyushu region encompassing the southern island of Japan are the two
major production regions, supplying over 50 percent of the nation's
strawberries. Over 99 percent of Japanese strawberries are harvested in
green houses from December through May, with peak sales occurring during
the January New Year's holiday season and during the early March holiday
called "girl's day". A great deal of Japanese strawberries are the table
consumption-type berries with relatively high Brix levels. The Japanese
harvest area of strawberries is approximately 7,000 hectares, declining
at an annual rate of about 2 percent.

According to a MAFF survey in 2003, the great majority (approximately
96.4 percent) of Japan's fresh strawberries were distributed through
wholesale markets, approximately 2.1 percent were sold directly to
retail stores and approximately 0.5 percent went to the food processing
sector. Post estimates that approximately 1,000 metric tons go to the
food-processing sector annually, of which roughly 700 - 800 metric tons
go to freezing for further processing.

# Summer Crop Strawberries Used for Confectionary 

Japanese production of fresh strawberries is approximately 200,000
metric tons annually with an estimated market size of approximately \$2
billion, of which approximately 20,000 metric tons goes to the
confectionery sector, according to industry sources. Traditionally
domestic strawberries are available nationwide in the winter and spring,
and in limited volumes in the summer and fall. A firm in Hokkaido, the
north-most island of Japan, developed a new summer-crop variety
specifically for confectionery use. In 2005, the firm expects to produce
over 400 metric tons of summer-crop strawberries from over 300 locally
contracted farms, and plans to expand its annual production to over
1,000 metric tons in the near future.

California strawberries play a major role in the Japanese summer
strawberry market, supplying a great deal of berries to the
confectionery sector during the summer and fall. Currently, since
Japanese summer-crop strawberry production capacity is limited and their
prices are twice as much as California berries, there is no immediate
threat to California strawberry supplies. However, this may cause
concern in the future, say Tokyo traders.

# U.S. Fresh Strawberry Imports Are Fairly Stable 

![](media/image3.wmf)In the 2004 marketing season (October 2004 --
September 2005,) Japan imported approximately 4,000 metric tons of fresh
strawberries from the United States. This accounted for approximately 96
percent of Japan's total fresh strawberry imports. The total value of
imports were approximately \$32 million on a CIF basis. South Korea
supplied approximately 170 metric tons in the same period, valued at
approximately \$2.5 million (CIF.) South Korean berries cost twice as
much as U.S. berries. In the 2004 season, the average import price of
U.S. strawberries was \$8.12 (CIF) per kilogram, while South Korean
berries were \$15.07 per kilogram.

U.S. fresh strawberry sales take place from May to December in Japan
during the period of short supply of domestic berries. According to
Japanese traders, approximately 80 -- 90 percent of U.S. fresh
strawberries go to the confectionery sector, mainly for use as cake
decorations, and the rest go to retail sales. When new crop berries
arrive from California in early May, U.S. fresh strawberry marketing
start. Extra large sized berries called "California Long Stems" are
often sold in retail stores. Japanese retailers sell California
strawberries for \$4.20 - \$5.08 (480 -- 580 yen) per 10-ounce pack (284
grams). A 10-ounce pack contains 12 -- 14 regular sized berries.

# China Maintains Leadership in Japan's Frozen Strawberry Market

![](media/image4.wmf)Only a few years ago Chinese shipments of frozen
strawberries to Japan surpassed U.S. shipments, and since then China has
continuously expanded its market share. In the 2004 season (October 2004
-- September 2005) China supplied approximately 17,700 metric tons of
frozen strawberries to Japan, which accounted for approximately 64.5
percent (in terms of volume) of Japan's frozen strawberry market, valued
at approximately \$18.4 million on a CIF basis. The United States
supplied approximately 6,240 metric tons in the same period, with a
market share of approximately 22.7 percent (in terms of volume). The
total volume of U.S. frozen strawberry exports to Japan were
approximately \$13.1 million CIF. Due to China's strong sales in Japan,
Mexico and South Korea have significantly lost market share in Japan's
frozen strawberry market. Chile maintained its position, sharing
approximately 4.7 percent of the market.

According to Japanese traders, frozen strawberries are mostly processed
into jam and yogurt products in Japan and it is common for food
processors to use cheaper ingredients in order to stay competitive. The
price of Chinese frozen strawberries is less than a half of the price of
U.S. berries. In the 2004 marketing season, the average import price of
Chinese frozen strawberries was \$1.04 per kilogram on a CIF basis,
while the price of U.S berries was \$2.10 per kilogram.

# "California Strawberry Fair" a Big Success

High quality U.S. frozen strawberries are targeting customers that sell
high-valued products. The California Strawberry Commission, along with
Japanese traders, launched various promotional activities in the food
service sector including hotels, restaurants, cafes and convenience
stores. The "Summer Strawberry Fair" was conducted at many of Tokyo's
five-star hotels this summer, featuring California strawberries in
desserts and cocktails. Strawberry frappe mixed with tropical fruits,
mousse-type drink made from frozen strawberries and strawberry frozen
yogurt are a few examples of dessert menus. Tokyo's fast-food restaurant
chains also conducted "Summer Dessert Fairs" throughout a total of 520
outlets, featuring ice cream mixed with frozen California strawberries.
"Summer Strawberry Milk," a strawberry drink mixed with milk, was also a
popular menu item among restaurant visitors. A soup menu based on frozen
California strawberries and Mascarpone cheese was a big hit at a
specialized soup restaurant in Tokyo. The name "California" carries a
good image to many Japanese people and so traders are promoting
California frozen strawberries and focusing specifically on their high
quality.

# High Import Duties Are Applied to Fresh and Frozen Strawberries

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

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

All duties are charged on a CIF basis.

# PS&D Tables and Trade Matrices

## Fresh Strawberry PS&D Table

  ------------- --------------- ----------------- ---------- ----------------- ---------- -----------------
  PSD Table                                                                               

  Country       Japan                                                                     

  Commodity     Strawberries,                                                  (HA)(MT)   
                Fresh                                                                     

                2003            Revised           2004       Estimate          2005       Forecast

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

  Market Year                   10/2003                      10/2004                      10/2005
  Begin                                                                                   

  Area Planted  7100            7000              7000       6900              0          6800

  Area          7100            7000              7000       6900              0          6800
  Harvested                                                                               

  TOTAL         205000          198200            204000     193000            0          188000
  Production                                                                              

  Imports,      4072            4239              4000       4152              0          4200
  Fresh                                                                                   

  TOTAL SUPPLY  209072          202439            208000     197152            0          192200

  Exports,      0               8                 0          30                0          30
  Fresh                                                                                   

  Domestic      205072          201431            204200     196122            0          191170
  Fresh Market                                                                            

  For           4000            1000              3800       1000              0          1000
  Processing                                                                              

  TOTAL         209072          202439            208000     197152            0          192200
  UTILIZATION                                                                             
  ------------- --------------- ----------------- ---------- ----------------- ---------- -----------------

## Frozen Strawberry PS&D Table

  -------------- --------------- ----------------- ---------- ----------------- ---------- -----------------
  PSD Table                                                                                

  Country        Japan                                                                     

  Commodity      Strawberries,                                                  (MT)       
                 Frozen                                                                    

                 2003            Revised           2004       Estimate          2005       Forecast

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

  Market Year                    10/2003                      10/2004                      10/2005
  Begin                                                                                    

  Deliv. To      4000            750               3800       750               0          750
  Processors                                                                               

  Beginning      0               0                 0          0                 0          0
  Stocks                                                                                   

  Production     1000            700               950        700               0          700

  Imports        28643           29180             28500      27460             0          28000

  TOTAL SUPPLY   29643           29880             29450      28160             0          28700

  Exports        0               0                 0          0                 0          0

  Domestic       29643           29880             29450      28160             0          28700
  Consumption                                                                              

  Ending Stocks  0               0                 0          0                 0          0

  TOTAL          29643           29880             29450      28160             0          28700
  DISTRIBUTION                                                                             
  -------------- --------------- ----------------- ---------- ----------------- ---------- -----------------

## Fresh Strawberry Export Trade Matrix

  ------------------ ------------------ ----------------- ----------------
  Export Trade                                            
  Matrix                                                  

  Country            Japan                                

  Commodity          Strawberries,                        
                     Fresh                                

  Time Period        Oct.-Sept.         Units:            Metric Tons

  Exports for:       2003                                 2004

  U.S.               0                  U.S.              0

  Others                                Others            

  Taiwan             5                  Hong Kong         20

  Hong Kong          3                  Taiwan            10

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

  Total for Others   8                                    30

  Others not Listed  0                                    0

  Grand Total        8                                    30
  ------------------ ------------------ ----------------- ----------------

## Fresh Strawberry Import Trade Matrix

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

  Country          Japan                                

  Commodity        Strawberries,                        
                   Fresh                                

  Time Period      Oct.-Sept.        Units:             Metric Tons

  Imports for:     2003                                 2004

  U.S.             4067              U.S.               3975

  Others                             Others             

  South Korea      156               South Korea        170

  Australia        11                Australia          5

  New Zealand      5                 New Zealand        2

                                                         

                                                         

                                                         

                                                         

                                                         

                                                         

                                                         

  Total for Others 172                                  177

  Others not       0                                    0
  Listed                                                

  Grand Total      4239                                 4152
  ---------------- ----------------- ------------------ -----------------

## Frozen Strawberry Import Trade Matrix

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

  Country           Japan                                 

  Commodity         Strawberries,                         
                    Frozen                                

  Time Period       Oct.-Sept.        Units:              Metric Tons

  Imports for:      2003                                  2004

  U.S.              7513              U.S.                6242

  Others                              Others              

  China             17390             China               17735

  South Korea       1263              Chile               1310

  Chile             1176              South Korea         764

  Mexico            734               Thailand            388

  Thailand          445               Poland              327

  Poland            366               Mexico              229

  Netherlands       97                Egypt               201

  Morocco           69                Morocco             46

  Egypt             50                Netherlands         11

                                                           

  Total for Others  21590                                 21011

  Others not Listed 77                                    211

  Grand Total       29180                                 27464
  ----------------- ----------------- ------------------- -----------------

## Fresh Strawberry Wholesale Price Table

  -------------------- ----------------- --------------- -----------------
  Prices Table                                           

  Country              Japan                             

  Commodity            Strawberries,                     
                       Fresh                             

  Prices in            Yen               per uom         KG

                                                         

  Year                 2004              2005            \% Change

  Jan                  1133              1184            5%

  Feb                  1192              1176            -1%

  Mar                  906               1140            26%

  Apr                  632               767             21%

  May                  744               698             -6%

  Jun                  783               837             7%

  Jul                  1597              1147            -28%

  Aug                  1966              1781            -9%

  Sep                  2542                              -100%

  Oct                  2304                              -100%

  Nov                  1670                              -100%

  Dec                  1411                              -100%

                                                         

  Exchange Rate        114.06            Local           
                                         Currency/US \$  

  Date of Quote        10/11/2005        MM/DD/YYYY      
  -------------------- ----------------- --------------- -----------------