Required Report - public distribution

**Date:** 7/1/2005

**GAIN Report Number:** JA5039

**Japan**

**Asparagus**

**Annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Kenzo Ito

**Report Highlights:**

Japan produced 29,100 metric tons of fresh asparagus in 2004, in a total
growing area of 6,480 hectares. Domestic asparagus supplied
approximately 60 percent of the nation\'s total demand and imports
supplied the rest. According to industry sources, cold spring weather
delayed the 2005 Hokkaido asparagus harvest, which took place in May and
June. Japan imported 1,162 metric tons of fresh U.S. asparagus in the
first four months of this year, down approximately 26 percent from last
year. A decline in U.S. asparagus imports was due to California\'s
continuous rainfall this spring, which resulted in higher export prices.
China is currently a minor player in Japan\'s fresh asparagus market,
but its exports to Japan are quickly expanding.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[2004 Japanese Production of Fresh Asparagus Up Marginally
3](#japanese-production-of-fresh-asparagus-up-marginally)

[Cold Weather Delayed 2005 Hokkaido Harvest
3](#cold-weather-delayed-2005-hokkaido-harvest)

[2005 Prices: 3](#prices)

[Japanese Imports of U.S. Fresh Asparagus Declined
3](#japanese-imports-of-u.s.-fresh-asparagus-declined)

[Eastern Japan Likes Dark Green Asparagus; West Prefers Light Green
4](#eastern-japan-likes-dark-green-asparagus-west-prefers-light-green-one)

[Low Cost Chinese Asparagus Continued to Expand
4](#low-cost-chinese-asparagus-continues-to-expand)

[Import Duties 5](#import-duties)

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

[Fresh Asparagus PS&D Table 6](#fresh-asparagus-psd-table)

[Fresh Asparagus Import Trade Matrix
7](#fresh-asparagus-import-trade-matrix)

[Fresh Asparagus Wholesale Price Table
8](#fresh-asparagus-wholesale-price-table)

# 2004 Japanese Production of Fresh Asparagus Up Marginally 

In 2004 Japanese production of fresh asparagus was 29,100 metric tons,
up approximately 3.9 percent from the previous year, according to the
Ministry of Agriculture, Forestry and Fisheries (MAFF). Good weather led
to a good crop in the Hokkaido region. Southern regions such as
Nagasaki, Saga, Kumamoto and Fukuoka also expanded their production. The
nation's asparagus growing area increased approximately 1.4 percent to
6,480 hectares in 2004. Three prefectures produced almost half of the
nation's asparagus. Specifically these were Nagano (produced 19 percent
of the total), Hokkaido (18 percent) and Nagasaki (10 percent).

# Cold Weather Delayed 2005 Hokkaido Harvest

Hokkaido, the north-most island of Japan, experienced cold temperatures
in April and May, which significantly delayed its asparagus harvest,
according to industry sources. Hokkaido's harvest started in mid May,
which was approximately one week to ten days later than average years,
and peaked in early June. Japan produces fresh asparagus nationwide and
the peak production occurs in May and June. Nagasaki and Saga growers in
southern Japan cultivate asparagus in warm green houses in order to sell
them in early spring before the other major players come to the market.
The majority of domestic asparagus is green and consumed at home.
Japanese white asparagus production is very small. In the Hokkaido
region, approximately 40 hectares of white asparagus is planted. The
production of canning asparagus is decreasing, accounting for
approximately 2 percent of the total crop.

## 2005 Prices:

In early June, domestic asparagus from Hokkaido and Nagano prefectures
was trading at \$6.67 - \$7.59 (724 -- 824 yen) and \$7.33 - \$7.76 (796
-- 842 yen) per kilogram, respectively, at Tokyo's Ohta Wholesale
Market. The same week, U.S. asparagus was trading at \$6.09 - \$6.77
(661 -- 735 yen) per kilogram, while asparagus from Thailand was trading
at around \$7.67 (833 yen) per kilogram. Domestic asparagus was usually
packaged in 150-gram or 100-gram bundles. In early June, Tokyo
supermarket sold fresh asparagus from Nagano prefecture for \$1.45 (158
yen) per bundle of 100 grams (4 -- 5 spears), and Hokkaido asparagus was
sold for \$1.82 (198 yen) per bundle of 150 grams.

\* The exchange rate of 108.48 yen per dollar is used, based on the
Nikkei News on June 13, 2005.

# Japanese Imports of U.S. Fresh Asparagus Declined 

Increased competition in the Japanese fresh asparagus market forced U.S.
exports to decline. ![](media/image2.wmf)In 2004, Japan's total imports
of fresh asparagus from the United States were 2,019 metric tons, down
approximately 24 percent from the previous year. U.S. asparagus sales
peaked from March through June, and competed with Mexican asparagus in
an early part of the season, and then competed with domestic asparagus
in the later part of the season. Fresh asparagus from Thailand and the
Philippines also affected U.S. asparagus sales in Japan. Japanese
imports of U.S. asparagus in the first four months of this year (January
-- April 2005) were 1,162 metric tons, down approximately 26 percent
from the same period the previous year. According to Japanese traders, a
decline in imports of U.S. asparagus this season was partly due to
California's continuous rainfall in this spring, which resulted in
higher export prices. The average import price of U.S. asparagus (May
2005) was \$5.16 per kilogram (CIF), approximately 31 percent higher
than last year.

From January to April of 2005, Mexico exported 3,545 metric tons of
fresh asparagus to Japan, up approximately 36 percent from the previous
season. In March 2005, Japanese traders increased their imports of
Mexican asparagus significantly from the previous year since the price
of Mexican asparagus was significantly lower than U.S. prices for
Japanese buyers, reported Tokyo traders. Thailand also increased its
asparagus shipments to Japan significantly during the same period to
1,868 metric tons, up approximately 19 percent from the previous year.
The Philippines supplied 752 metric tons in the same period. From
January to April of 2005, average import prices of Mexican, Thai and
Philippine asparagus were \$4,20, \$5.16 and \$3.50 per kilogram (CIF),
respectively.

Japanese retailers sell fresh asparagus year round by supplying it from
various coutries with different growing seasons. They sell, for example,
Mexican asparagus from January through March; U.S. asparagus from March
through June; domestic asparagus from April through June; and Australian
asparagus from September through December. Fresh asparagus from Thailand
and the Philippines is sold year round. Domestic asparagus fills
approximately 60 percent of the nation's demand. Imports are sold in a
similar manner to domestic asparagus in a 100-gram or 150-gram bundle.
In general, imported product is sold approximately 25 -- 30 percent
cheaper than domestic product. In April 2005, an average Japanese
wholesale price for imported asparagus was \$6.97 (756 yen) per
kilogram, while the average price for domestic product was \$10.91
(1,184 yen).

# Eastern Japan Likes Dark Green Asparagus; West Prefers Light Green One

As a general consumer trend, Eastern Japan (including Tokyo) consumers
prefer dark green colored asparagus, while Western Japan (including
Osaka) people like light green colored spears, according to Tokyo
traders. Hokkaido and Eastern Japan growers produce more of the thick
and dark green type, while Nagasaki, Saga and Western Japanese farmers
cultivate thin and light green type stalks. U.S. supplies thick and dark
green colored asparagus that sells more in Eastern Japan. Asian
countries such as Thailand and Philippines supply thin and light green
colored asparagus.

# Low Cost Chinese Asparagus Continues to Expand

China is still a minor player in the Japanese fresh asparagus market;
however, its exports to Japan are quickly growing. In the first four
months of this year (January -- April 2005), Chinese exports of fresh
asparagus to Japan jumped approximately three times higher to 215 metric
tons over the same period last year. The average CIF price of Chinese
asparagus was \$3.55 per kilogram, significantly less than other
imports. Chinese asparagus mainly goes to Japanese restaurants and the
food-processing sector since Japanese consumers have strong concerns
about pesticide residues on Chinese vegetable products in general
including fresh asparagus, reported industry sources. The total imports
from China from January to December 2004 were 283 metric tons, valued at
\$725,114 (CIF).

# Import Duties

Import duties are not subject to further reductions outside of the next
round of WTO negotiations. The applicable import duty for fresh
asparagus is as follows:

  ----------------------- ----------------------- -----------------------
  Tariff Code (HS)        Description             Duty Rate

  0709.20-000             Fresh Asparagus         3%
  ----------------------- ----------------------- -----------------------

All duties are charged on a CIF basis.

# PS&D Tables and Trade Matrices

## Fresh Asparagus PS&D Table

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

  Country       Japan                                                    

  Commodity     Asparagus,                                    (HA)(MT)   
                Fresh                                                    

                2003         Revised    2004       Estimate   2005       Forecast

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

  Market Year                01/2004               01/2005               01/2006
  Begin                                                                  

  Area Planted  6320         6480       6260       6520       0          6560

  Area          6320         6480       6260       6520       0          6560
  Harvested                                                              

  TOTAL         27500        29100      27000      29300      0          29600
  Production                                                             

  Imports,      17000        17147      16200      17500      0          17800
  Fresh                                                                  

  TOTAL SUPPLY  44500        46247      43200      46800      0          47400

  Exports,      0            0          0          0          0          0
  Fresh                                                                  

  Domestic      43950        45697      42660      46260      0          46870
  Fresh Market                                                           

  For           550          550        540        540        0          530
  Processing                                                             

  TOTAL         44500        46247      43200      46800      0          47400
  UTILIZATION                                                            
  ------------- ------------ ---------- ---------- ---------- ---------- ----------

## Fresh Asparagus Import Trade Matrix

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

  Country              Japan                               

  Commodity            Asparagus, Fresh                    

  Time Period          Jan.-Dec.        Units:             Metric Tons

  Imports for:         2003                                2004

  U.S.                 2656             U.S.               2019

  Others                                Others             

  Australia            3864             Australia          4698

  Philippines          3636             Thailand           3932

  Mexico               3430             Mexico             2642

  Thailand             2847             Philippines        2392

  New Zealand          1112             New Zealand        704

  Peru                 137              Peru               403

  China                74               China              283

  France               63               France             49

  Netherlands          26               Netherlands        10

                                                            

  Total for Others     15189                               15113

  Others not Listed    5                                   16

  Grand Total          17850                               17148
  -------------------- ---------------- ------------------ ---------------

## Fresh Asparagus Wholesale Price Table

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

  Country            Japan                                 

  Commodity          Asparagus, Fresh                      

  Prices in          Yen                per uom            KG

                                                           

  Year               2004               2005               \% Change

  Jan                1077               955                -11%

  Feb                973                785                -19%

  Mar                989                932                -6%

  Apr                1019               1184               16%

  May                914                                   -100%

  Jun                876                                   -100%

  Jul                781                                   -100%

  Aug                700                                   -100%

  Sep                840                                   -100%

  Oct                772                                   -100%

  Nov                682                                   -100%

  Dec                850                                   -100%

                                                           

  Exchange Rate      108.48             Local Currency/US  
                                        \$                 

  Date of Quote      6/13/2005          MM/DD/YYYY         
  ------------------ ------------------ ------------------ ----------------