Required Report - Public distribution

**Date:** 5/15/2007

**GAIN Report Number:** JA7031

JA7031

**Japan**

**Agricultural Situation**

**Oilseeds and Products Annual Report**

**2007**

**Approved by:**

![](media/image1.wmf)Stephen Wixom

US Embassy Tokyo, Japan

**Prepared by:**

Suguru Sato

**Report Highlights:**

In 2006, soybean imports from the United States remained crucial for
Japan. Japan's domestic consumption of soybeans in CY2006 was 4.1 mmt,
which was mostly supplied by the United States (3.13 mmt, 78%). The rest
of the market was supplied by imports from Brazil (0.38 mmt, 9%), Canada
(0.28 mmt, 7%), China (1%) and domestic production (0.23 mmt, 5%). The
reliance on imports is the same for canola. Among the 2.27 mmt of canola
consumed domestically in Japan, Canada supplied 1.94 mmt (85%),
Australia 0.33 mmt (15%) and domestic production remained marginal.
Japanese importers of U.S. soybeans are concerned over availability with
recent developments in the U.S. soybean market. The increasing
proportion of biotech crops in the United States leaves less non-biotech
soybeans available for export. Furthermore, there is likely to be a
decrease in soybean production as producers shift to maize following
increasing demand for corn to produce bio-ethanol.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Oilseeds 3](#oilseeds)

[Oil Meal 3](#oil-meal)

[Oil 3](#oil)

[Production 3](#production)

[Oilseeds production 3](#oilseeds-production)

[Oilseeds meal production 5](#oilseeds-meal-production)

[Oil production 5](#oil-production)

[Consumption 5](#consumption)

[Oilseed consumption 5](#oilseed-consumption)

[Meal consumption 6](#meal-consumption)

[Oil consumption 7](#oil-consumption)

[Crushing capacity 7](#crushing-capacity)

[Trade 8](#trade)

[Oilseed trade 8](#oilseed-trade)

[Trade of oilseed meals 8](#trade-of-oilseed-meals)

[Price of oilseeds 9](#price-of-oilseeds)

[Price of oilseed meals 9](#price-of-oilseed-meals)

[Stocks 10](#stocks)

[Policy 10](#policy)

[Biotechnology 11](#biotechnology)

[Marketing 12](#marketing)

[Statistical Tables 13](#statistical-tables)

[Soybean PS&D Table 13](#soybean-psd-table)

[Soybean Meal PS&D Table 13](#soybean-meal-psd-table)

[Soybean Oil PS&D Table 14](#soybean-oil-psd-table)

[Import Trade Matrix for Soybean 15](#import-trade-matrix-for-soybean)

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

[Import Trade Matrix for Soybean Oil
16](#import-trade-matrix-for-soybean-oil)

[Prices Table for Soybean 17](#prices-table-for-soybean)

[Prices Table for Soybean Meal 18](#prices-table-for-soybean-meal)

[Prices Table for Soybean Oil 18](#prices-table-for-soybean-oil)

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

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

[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
22](#import-trade-matrix-for-rapeseed-meal)

[Import Trade Matrix for Rapeseed Oil
22](#import-trade-matrix-for-rapeseed-oil)

[Prices Table for Rapeseed 23](#prices-table-for-rapeseed)

[Prices Table for Rapeseed Meal 23](#prices-table-for-rapeseed-meal)

[Prices Table for Rapeseed Oil 24](#prices-table-for-rapeseed-oil)

[Sunflowerseed Oil PS&D Table 24](#sunflowerseed-oil-psd-table)

[Import Trade Matrix for Sunflowerseed
25](#import-trade-matrix-for-sunflowerseed)

[Prices Table for Sunflowerseed 26](#prices-table-for-sunflowerseed)

# Executive Summary

## Oilseeds

Japan\'s total utilization of soybeans in CY 2006 was about 4.1 million
metric tons with domestic production accounting for 230,900 metric tons
and imports accounting for the remainder. Imports were mainly from the
United States (3.23 million metric tons), followed by Brazil (378,000
metric tons). Domestic soybeans are almost exclusively produced for food
use. Japan does not produce biotech soybeans domestically. Total soybean
planted area was 142,000 ha in FY2006, up slightly from the previous
year.

Biofuel fever in the fall of 2006 in the United States led to increasing
demand for corn and parallel increases in grain prices triggering
concerns among the Japanese soybean industry whether future availability
could be guaranteed.

The demand for rapeseed in CY2006 was 2.27 million metric tons.
Production of rapeseed in Japan is negligible and, like soybeans, Japan
depends almost exclusively on imports. In CY 2005, Canada captured an 85
percent market share. The U.S. share was almost zero in recent years.

## Oil Meal

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 used exclusively for feed and fertilizer production.
Soybean crushing by Japanese oil crushers is expected to remain at low
levels through MY 2006/2007. To compensate for the lower production,
soybean meal imports will remain relatively high during the same period.

In September 2001, the Japanese Government banned the use of meat bone
meal as an ingredient in 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.

## Oil

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.

# Production

## Oilseeds production

Soybeans and peanuts are the two major oilseeds produced in Japan. In
2006, the planted area of soybeans was 142,000 ha. Total soybean planted
area increased from 81,800 ha in 1996 as a result of policy efforts made
by the Ministry of Agriculture, Forestry and Fisheries (MAFF) to divert
rice production to alternate crops. In general, soybean yields in Japan
are relatively small compared with those in the United States, possibly
due to the smaller scale of fields, lack of suitable cultivars for the
climate, and the absence of biotech soybean production. In relation to
this, MAFF started the second term of the soybean genome project in
FY2007. The government of Japan (GOJ) will spend approximately \$4
million annually in the next five years for basic and applied soybean
research, including breeding.

MAFF set a soybean production target for 2010 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. Soybean production in 2005 could
not meet the self-sufficiency target set by the government. Until
recently, the demand for domestic beans in the food industry has not
been very enthusiastic due to their expense and poor quality, even
though there has been a relatively adequate supply of domestic soybeans.
However, the situation has changed recently with speculation that U.S.
soybean supplies would be limited with reduced soybean planting in the
United States following high demand for corn to produce biofuel and the
reduction of non-biotech soybeans in favor of biotech soybeans. This
could be a motivating factor to increase domestic soybean production for
food use.

On October 27, 2005, MAFF announced the outline of a new farm subsidy
program that departs from the current commodity-specific support given
to practically all farmers and launches direct payments targeting larger
scale farmers. The new scheme was commenced on April 1, 2007. Soybeans
are one of the "targeted farm products" under this plan. The payments
are comprised of two components: a payment based on the acreage during
the base period (2004-2006) and a payment based on the current year's
production volume and quality. (For further information on the new
policy direction please see GAIN JA5068: \"Japan Embarks on a Drastic
Change in its Farm Subsidy Scheme, November 22, 2005, and GAIN JA7022:
"Japan's New Farm Subsidies Not Green Enough, April 6, 2007).

Table 1. Planted Area, Production and Yield of Soybeans in Japan

+------------+-----------+----------+--------------+------------------+
| CY         | Planted   | Pr       | Yield        | Yield -- US      |
|            | Area      | oduction |              |                  |
|            | (         | (MT)     | (Metric tons | (Metric tons per |
|            | Hectares) |          | per hectare) | hectare)         |
+------------+-----------+----------+--------------+------------------+
| 2002       | 149,900   | 270,200  | 1.80         | 2.56             |
+------------+-----------+----------+--------------+------------------+
| 2003       | 151,900   | 232,200  | 1.53         | 2.28             |
+------------+-----------+----------+--------------+------------------+
| 2004       | 136,800   | 163,200  | 1.19         | 2.86             |
+------------+-----------+----------+--------------+------------------+
| 2005       | 134,000   | ######   | 1.68         | N/a              |
|            |           |  225,000 |              |                  |
+------------+-----------+----------+--------------+------------------+
| 2006       | 142,000   | ######   | 1.63         | N/a              |
|            |           |  230,900 |              |                  |
+------------+-----------+----------+--------------+------------------+

Source: MAFF (approximate figures for CY2006)

Table 2. Demand and supply of soybeans in Japan

<table style="width:100%;">
<colgroup>
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 11%" />
<col style="width: 8%" />
<col style="width: 12%" />
</colgroup>
<tbody>
<tr class="odd">
<td></td>
<td colspan="4">Demand (1,000 mt)</td>
<td colspan="6">Supply (1,000 mt)</td>
</tr>
<tr class="even">
<td>CY</td>
<td>Total</td>
<td>Oil</td>
<td>Food</td>
<td>Feed</td>
<td>Total</td>
<td>US</td>
<td>Brazil</td>
<td>Canada</td>
<td>China</td>
<td>Domestic</td>
</tr>
<tr class="odd">
<td>2003</td>
<td>5,169</td>
<td>4,011</td>
<td>1,034</td>
<td>124</td>
<td>5,173</td>
<td>3,858</td>
<td>890</td>
<td>189</td>
<td>143</td>
<td>287</td>
</tr>
<tr class="even">
<td>2004</td>
<td>4,593</td>
<td>3,419</td>
<td>1,053</td>
<td>121</td>
<td>4,407</td>
<td>3,178</td>
<td>779</td>
<td>259</td>
<td>187</td>
<td>232</td>
</tr>
<tr class="odd">
<td>2005</td>
<td>4,257</td>
<td>3,080</td>
<td>1,052</td>
<td>125</td>
<td><h6 id="section-2">4,181</h6></td>
<td><h6 id="section-3">3,126</h6></td>
<td><h6 id="section-4">563</h6></td>
<td><h6 id="section-5">305</h6></td>
<td><h6 id="section-6">184</h6></td>
<td><h6 id="section-7">163</h6></td>
</tr>
<tr class="even">
<td>2006</td>
<td>4,149</td>
<td>2,978</td>
<td>1,046</td>
<td>125</td>
<td><h6 id="section-8">4,042</h6></td>
<td><h6 id="section-9">3,225</h6></td>
<td><h6 id="section-10">378</h6></td>
<td><h6 id="section-11">282</h6></td>
<td><h6 id="section-12">156</h6></td>
<td><h6 id="section-13">225</h6></td>
</tr>
<tr class="odd">
<td>2007</td>
<td>4,159</td>
<td>2,980</td>
<td>1,054</td>
<td>125</td>
<td><h6 id="section-14">4,010</h6></td>
<td><h6 id="na">N/a</h6></td>
<td><h6 id="na-1">N/a</h6></td>
<td><h6 id="na-2">N/a</h6></td>
<td><h6 id="na-3">N/a</h6></td>
<td><h6 id="section-15">231</h6></td>
</tr>
</tbody>
</table>

Source: MAFF (CY2007 is projection)

Table 3. Demand and supply of rapeseeds in Japan

+----------+-----------------+----------+--------+---------+----------+
|          | Demand (1,000   | Supply   |        |         |          |
|          | mt)             | (1,000   |        |         |          |
|          |                 | mt)      |        |         |          |
|          | (all for oil)   |          |        |         |          |
+----------+-----------------+----------+--------+---------+----------+
| CY       |                 | Total    | Canada | Au      | Domestic |
|          |                 |          |        | stralia |          |
+----------+-----------------+----------+--------+---------+----------+
| 2003     | 2,095           | 2,084    | 1,660  | 369     | 1        |
+----------+-----------------+----------+--------+---------+----------+
| 2004     | 2,282           | 2,313    | 1,684  | 629     | 1        |
+----------+-----------------+----------+--------+---------+----------+
| 2005     | 2,253           | ##       | ##     | ###     | ######   |
|          |                 | #### 2,2 | #### 1 | ### 425 |  1 {#sec |
|          |                 | 95 {#sec | ,867 { |  {#sect | tion-19} |
|          |                 | tion-16} | #secti | ion-18} |          |
|          |                 |          | on-17} |         |          |
+----------+-----------------+----------+--------+---------+----------+
| 2006     | 2,272           | ##       | ##     | ###     | ######   |
|          |                 | #### 2,2 | #### 1 | ### 333 |  1 {#sec |
|          |                 | 74 {#sec | ,941 { |  {#sect | tion-23} |
|          |                 | tion-20} | #secti | ion-22} |          |
|          |                 |          | on-21} |         |          |
+----------+-----------------+----------+--------+---------+----------+
| 2007     | 2,050           | ##       | ###### | ####    | ######   |
|          |                 | #### 2,0 |  N/a { | ## N/a  |  1 {#sec |
|          |                 | 50 {#sec | #na-4} | {#na-5} | tion-25} |
|          |                 | tion-24} |        |         |          |
+----------+-----------------+----------+--------+---------+----------+

Source: MAFF (CY2007 is projection)

Table 4. Japan\'s Self-Sufficiency Ratio

(%)

  ------------------- ------ ------ ------ ------ ------ ------ ------ ------
                      1998   1999   2000   2001   2002   2003   2004   2005

  Rice                95     95     95     95     96     95     95     95

  Wheat               9      9      11     11     13     14     14     14

  Soybeans            3      4      5      5      5      4      3      5

  Vegetables          84     83     82     82     83     82     80     79

  Fruits              49     49     44     45     44     44     39     41

  Meats (Beef)        55     54     52     53     53     54     55     54
                      (35)   (36)   (34)   (36)   (39)   (39)   (44)   (43)

  Eggs                96     96     95     96     96     96     95     94

  Milk/Dairy          71     70     68     68     69     69     67     68

  Seafood             57     55     53     53     53     57     49     50

  Sugar               32     31     29     32     34     35     34     34

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

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

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

Source: MAFF

##  {#section-26}

## Oilseeds meal 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. Demand levels of soybean and rapeseed meal are expected to remain
at the same level for 2007; therefore, imports are expected to remain at
the current level.

## Oil production

Production of major processed oil products remained flat in CY 2006.

Table 5. Production of Major Processed Oil Products in Japan

(MT)

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

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

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

  2005       11,360       153,423        80,842    205,966      49,736

  2006       12,204       149,470        78,757    214,117      46,783
  ---------- ------------ -------------- --------- ------------ -----------

Source: Japan Margarine Industry Association

# Consumption

## Oilseed consumption

Soybeans are the most consumed oilseed in Japan followed by rapeseed. In
2006, about 72 percent (2.98 mmt) of total demand for soybeans was for
oil use; 25 percent (1.05 mmt) was for food use; and the remaining 3
percent (125,000 mt) was for feed use. Crushing of soybeans in CY 2006
remained the same as CY 2005. Food soybeans are used for tofu (soybean
curd), frozen tofu, fried tofu, miso (soybean paste), natto (fermented
whole beans), boiled soybeans, and soy sauce. Soymilk and soy bars are
gaining in popularity, too. The meal from soybean crushing is used for
both animal feedstuffs and further processing into such products as soy
protein and soy sauce. All users of food soybeans require "non biotech"
varieties from their suppliers. Total import of soybeans for CY 2007 is
forecast around 4.16 mmt, the same as CY2006.

#######  {#section-27}

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 and the level remained the same through CY 2006.
The demand in CY2007 is predicted to decrease by MAFF, however.

## Meal 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 6. Demand and supply of soybean meals

(1,000 MT)

  -------- -------- ------- --------- -------- ------------ ---------- --------
  CY       Demand                     Supply                           

           Total    Feed    Food and  Total    Initial      Domestic   Import
                            others             Stock                   

  2003     4,106    3,560   546       4,225    119          3,065      1,041

  2004     3,804    3,308   495       3,928    119          2,627      1,182

  2005     4,006    3,409   597       4,109    124          2,355      1,630

  2006     3,879    3,401   478       4,008    103          2,258      1,647

  2007\*   3,880    3,400   480       4,039    129          2,260      1,650
  -------- -------- ------- --------- -------- ------------ ---------- --------

Source: MAFF (\*CY2007 is prediction)

Table 7. Demand and supply of rapeseed meals

(1,000 MT)

  -------- -------- -------- ------------ -------- --------- ---------- --------
  CY       Demand                         Supply                        

           Total    Feed     Fertilizer   Total    Initial   Domestic   Import
                             and other             Stock                

  2003     1,228    830      398          1,291    71        1,200      20

  2004     1,354    917      428          1,410    63        1,329      18

  2005     1,303    909      394          1,386    56        1,394      36

  2006     1,305    930      375          1,369    83        1,252      34

  2007\*   1,190    850      340          1,244    64        1,130      50
  -------- -------- -------- ------------ -------- --------- ---------- --------

Source: MAFF (\*CY2007 is prediction)

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

Table 8. Japanese Livestock Population

(1,000 heads)

  -------------- -------------- -------------- -------------- --------------
  CY             2003           2004           2005           2006

  Dairy cows     1,719          1,690          1,655          1,635

  Beef cattle    2,804          2,788          2,747          2,755

  Swine          9,725          9,724          N/a            9,620

  Layers         176,049        174,550        N/a            176,955

  Broilers       103,729        104,950        102,520        104,236
  -------------- -------------- -------------- -------------- --------------

Source: MAFF

## Oil 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
2006, consumption of oil products showed no significant change.

Table 9. Average Annual Expenditures for Processed Oil Products

Per Japanese Household

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

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

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

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

  2005   780          1,443         3,401        9,708      2,867

  2006   752          1,383         3,305        9,188      2,938
  ------ ------------ ------------- ------------ ---------- ---------------

\*Only value is available.

Source: Management and Coordination Agency

##  {#section-28}

## Crushing capacity

As of December 2005, there were 41 domestic crushing factories in Japan
with a total crushing capacity of 8.9 million metric tons. Actual
production of oil, however, was approximately 6.0 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 10. Japan\'s Oil Crushing Capacity

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

  2001      53              8,992           6,669           74.2

  2003      49              9,294           6,770           72.8

  2005      41              8,911           5,987           67.2
  --------- --------------- --------------- --------------- ---------------

Source: MAFF (note: this data is updated biannually)

##  {#section-29}

# Trade

## Oilseed trade

The United States occupied 80 percent of Japan's total soybean import
market in 2006. Other major suppliers are Brazil and Canada. MAFF, and
the Government of Japan (GOJ) have implemented mandatory labeling for
selected foods derived from biotechnology. However, as IP handling
systems for non-biotech soybeans were established, Japanese soybean
users became confident in the non-biotech supply from the United States.
This confidence has been brought into question by biofuel fever in the
United States and the speculation over a possible reduction in soybean
planting area in CY2007 due to the shift to corn, as well as the
increased price of non-biotech soybeans and increasingly shrinking
non-biotech soybean production.

MAFF's biotech labeling policy requires a number of soy based food
products such as tofu, miso (soybean paste) and natto (fermented
soybeans) be labeled, if the ingredient soybeans are biotech. In
addition, 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. The industry has already predicted that the area planted for
soybeans will decrease and the proportion of non-biotech will increase
in CY2007 and there is a keen interest and attention to the production
and supply of non-biotech soybean in the United States. Soybean oil is
not subject to the MAFF labeling scheme and the Japanese crushing
industry mainly sources biotech non-segregated soybeans.

2006 marked the 50^th^ anniversary of the American Soybean Association
office in Japan. The occasion was marked with a celebration of the close
trading relationship that has developed between the Japanese and U.S.
soybean industries.

Canada continues to be the dominant rapeseed supplier to Japan,
providing 83% in CY2006. Australia has been also a stable rapeseed
supplier for Japan. However, its exports decreased from 425,000 mt in
CY2005 to 333,000 mt in CY2006 mostly due to drought. Rapeseed exported
from Australia also had a violation of the Positive List system, the
GOJ's new chemical residue regulation implemented in May 29, 2006 (For
further information on the Positive List System see GAIN JA6004:
\"Summary of Japan's New Positive List System for Regulation of
Agricultural Chemical Residues" and GAIN JA6011 "Partial English Version
of Final MRL "Positive List" System Released on March 1 2006".

MAFF has launched a new export promotion program of Japanese
agricultural products in FY2007. Promotion of agricultural products is
combined with marketing of Japanese foods that include some soy products
such as miso. MAFF's goal is to increase the export of agricultural
products to 1 trillion yen by FY2013 from 295.4 billion yen in FY2004.

## Trade of oilseed meals

The ban on the use of meat and bone meal as feed following the first
confirmed BSE detection in cattle in Japan in September 2001 increased
the demand for soybean meal, rapeseed meal and fishmeal. 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. China dominated 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 are expected to remain at a high level through due to a
reduction in soybean crushing and continuing high demand for compound
feed from the livestock sector as a substitute for meat bone meal.

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. The U.S. soybean meal import
share is about the same as that of China. The U.S. share in the future
is expected to depend on China's capacity to export in response to
growing domestic demand on soybean oil and meal.

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.

##  {#section-30}

## Price of oilseeds

The CIF import price of soybeans in 2006 was \$317/mt. The monthly
average price marked for soybeans marked \$292/mt in September, the
lowest of CY2006, and started to increase through the rest of year to
\$329 in December, and was \$363/mt as of March 2007. The price increase
was probably because of biofuel fever in the United States, with the
surge in media reports related to biofuel and industry's concern over
future soybean availability as crop production shifts from soybeans to
maize. Another possible factor influencing the price is the increase of
the proportion of biotech soybean produced in the United States. The
proportion of biotech soybean has been increasing in the United States
and the rest of the major soybean producing countries since the
introduction of biotech soybeans, and is expected to further increase.
Despite heavy reliance on imported soybeans, biotech soybeans are not
well accepted yet in Japanese market. Soybean prices are likely to be
influenced significantly by the 2007 season's planting in the United
States.

The price trend for rapeseeds was similar to that of soybeans due to
recent biofuel trends. The monthly average price in CY2006 was the
lowest in April (\$290/mt), started to climb up in September and reached
\$346/mt in December. The price of rapeseeds continued to increase to
\$416/mt in March 2007.

Table 11. CIF Import Price Comparison of Soybeans and Rapeseeds

(Dollars per MT)

  ------------------- ------------ ------------- ------------- -------------
                      CY 2003      CY 2004       CY 2005       CY 2006

  Soybeans (World)    \(293\)      \(403\)       \(342\)       \(317\)

  U.S.                291          393           324           304

  Brazil              264          377           304           278

  Canada              372          473           415           419

  China               447          577           637           508

  Rapeseed (World)    \(326\)      \(365\)       \(316\)       \(315\)

  Canada              326          361           312           310

  Australia           324          372           326           330

  U.S.                334          1,548         2,439         n/a
  ------------------- ------------ ------------- ------------- -------------

Source: Ministry of Finance

## Price of oilseed meals

Table 12. Wholesale Prices for Soybean and Rapeseed Meal

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

  2002                    43,000                  25,200

  2003                    45,900                  26,100

  2004                    52,400                  28,600

  2005                    44,800                  25,100

  2006                    41,400                  25,200
  ----------------------- ----------------------- -----------------------

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 fairly high in CY 2006. Also, the continued need
of soybean and rapeseed meals as a substitute of for banned 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 2007.

Table 13. CIF Import Price Comparison of Soybean and Rapeseed Meal

(Dollars per MT)

  ---------------- ------------- ------------- ------------ --------------
                   CY 2003       CY 2004       CY 2005      CY 2006

  Soybeans Meal    \(267\)       \(350\)       \(297\)      \(269\)
  (World)                                                   

  Brazil           248           376           299          276

  India            256           304           277          243

  U.S.             298           402           322          297

  China            241           349           287          281

  Rapeseed Meal\*  \(176\)       \(202\)       \(213\)      \(119\)
  (World)                                                   

  India            151           177           155          152

  China            201           240           238          232
  ---------------- ------------- ------------- ------------ --------------

\*: For HS Code 230649

Source: Ministry of Finance

# Stocks

The ending stock of soybeans in CY2006 was 222,000 mt, approximately 5
percent of total consumption (4,149,000 mt) for the year. The proportion
of soybean stocks to consumption has remained the same in the past few
years.

The ending stock of rapeseeds in CY2006 was 252,000 mt, approximately 11
percent of total consumption (4,149,000 mt) for the year. The proportion
of rapeseed stock to consumption has been 9 to 11 percent in the past
few years.

# Policy

From 1974 until 2003, Japan maintained an emergency soybean stock
reserve amounting to 50,000 metric tons. The reserve volume was
equivalent to about 5 percent of annual demand for food soybeans. Since
2003, Japan has revised the stock program every year. The target stock
amount of 50,000 metric tons in 2003 was reduced to 43,000 metric tons
in 2005 and to 39,000 metric tons in April 2006. Eleven crushing plants
owned by five private oil crushers hold the emergency stocks.

There are no tariffs on soybean and rapeseed. JFY 2000 was the last year
of the Uruguay Round implementation, so tariff levels are set until the
completion of next WTO agricultural negotiations.

Table 14. Japan\'s Tariff on Major Oilseeds

  ----------------------- ----------------------- -----------------------
  HS Code                 Commodity               Duty As Of JFY 2003

  1201.00-000             Soybeans                0

  1205.10-000             Rapeseed (low erucic    0
                          acid)                   

  1205.90-000             Rapeseed (others)       0
  ----------------------- ----------------------- -----------------------

Source: Japan Tariff Association

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

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

Table 15. Japan\'s Tariff on Major Oils

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

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

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

  1507.90-000   Soybean oil, other                        13.2 yen/kg

  1509 & 1510   Olive oil                                 0

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

  1512.11-210   Safflower oil, of an acid value exceeding 8.5 yen/kg
                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, crude, of   10.9 yen/kg
                an acid value exceeding 0.6               

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

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

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

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

  1515.90-600   Jojoba oil                                0
  ------------- ----------------------------------------- -----------------

Source: Japan Tariff Association

##  {#section-31}

## Biotechnology

Japan has been importing biotech soybeans and canola since 1996. As of
April 2007, the Government of Japan (GOJ) had approved 77 biotechnology
products for food, including 4 soybeans, 15 canola, 26 corn, 8 potatoes,
18 cotton and 3 sugar beets. 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 31 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.

For biotechnology information, please look at the latest Japan
biotechnology information
(http://www.fas.usda.gov/scriptsw/AttacheRep/default.asp).

# Marketing

Japan's domestic production of soybeans was 5 percent of total
consumption in CY2006. All domestic soybeans are for food use, and
domestic production amounted to 15 percent of soybeans used for food
purposes in CY2006.

Table 16. The use of domestic soybean (1000 mt)

+------------------+-----------+-----------+-------------+-----------+
|                  | 2004      | 2005      | 2006        | Share of  |
|                  |           |           |             | domestic  |
+------------------+-----------+-----------+-------------+-----------+
| Food -- Total    | 263       | 224       | 126 (100%)  | 15%       |
|                  | (100%)    | (100%)    |             |           |
+------------------+-----------+-----------+-------------+-----------+
| > Tofu           | 155 (59%) | 131(28%)  | 94(58%)     | 18%       |
+------------------+-----------+-----------+-------------+-----------+
| > Cooked food    | 29(11%)   | 29(13%)   | 24(15%)     | 73%       |
+------------------+-----------+-----------+-------------+-----------+
| > Natto          | 18(7%)    | 17(8%)    | 11(7%)      | 8%        |
+------------------+-----------+-----------+-------------+-----------+
| > Miso &         | 28(11%)   | 15(7%)    | 5(3%)       | 3%        |
| > Soysource      |           |           |             |           |
+------------------+-----------+-----------+-------------+-----------+

# Statistical Tables

## Soybean PS&D Table

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

  **Country**     **Japan**                                                                                               

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

                  2005         Revised                2006       Estimate               2007       Forecast               UOM

                  USDA\        Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\       
                  Official     Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                          New                               New                               New         

  **Market Year                10/2005    10/2005                10/2006    10/2006                10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                 

  Area Planted    150          137        134         150        135        142         0          0          150         (1000 HA)

  Area Harvested  137          137        137         135        135        135         0          0          135         (1000 HA)

  Beginning       260          321        260         253        300        227         263        300        222         (1000 MT)
  Stocks                                                                                                                  

  Production      226          226        226         200        200        225         0          0          225         (1000 MT)

  MY Imports      3957         4300       4181        4100       4200       4042        0          0          4042        (1000 MT)

  MY Imp. from    3080         3500       3126        3125       3300       3225        0          0          3225        (1000 MT)
  U.S.                                                                                                                    

  MY Imp. from EU 0            0          0           0          0          0           0          0          0           (1000 MT)

  Total Supply    4443         4847       4667        4553       4700       4494        263        300        4489        (1000 MT)

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

  MY Exp. to EU   0            0          0           0          0          0           0          0          0           (1000 MT)

  Crush           2820         3080       3070        2925       3100       2907        0          0          2902        (1000 MT)

  Food Use Dom.   1035         997        1035        1045       1100       1045        0          0          1045        (1000 MT)
  Cons.                                                                                                                   

  Feed Waste Dom. 335          470        335         320        200        320         0          0          320         (1000 MT)
  Cons.                                                                                                                   

  Total Dom.      4190         4547       4440        4290       4400       4272        0          0          4267        (1000 MT)
  Cons.                                                                                                                   

  Ending Stocks   253          300        227         263        300        222         0          0          222         (1000 MT)

  Total           4443         4847       4667        4553       4700       4494        0          0          4489        (1000 MT)
  Distribution                                                                                                            

  CY Imports      4036         4181       4181        4100       0          4042        0          0          4042        (1000 MT)

  CY Imp. from    3220         3126       3220        3100       0          3225        0          0          3225        (1000 MT)
  U.S.                                                                                                                    

  CY Exports      0            0          0           0          0          0           0          0          0           (1000 MT)

  CY Exp. to U.S. 0            0          0           0          0          0           0          0          0           (1000 MT)
  --------------- ------------ ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

##  {#section-32}

## Soybean Meal PS&D Table

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

  **Country**     **Japan**                                                                                                  

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

                  2005        Revised                2006       Estimate               2007           Forecast               UOM

                  USDA\       Post\      Post\       USDA\      Post\      Post\       USDA\          Post\      Post\       
                  Official    Estimate   Estimate\   Official   Estimate   Estimate\   Official       Estimate   Estimate\   
                                         New                               New                                   New         

  **Market Year               10/2005    10/2005                10/2006    10/2006                    10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                    

  Crush           2820        3080       2820        2925       3100       2925        0              0          2925        (1000 MT)

  Extr. Rate,     0.779787    0.772727   0.835106    0.777778   0.767742   0.771966    0              0          0.771966    (PERCENT)
  999.9999                                                                                                                   

  Beginning       219         62         124         173        47         103         187            32         129         (1000 MT)
  Stocks                                                                                                                     

  Production      2199        2380       2355        2275       2380       2258        0              0          2258        (1000 MT)

  MY Imports      1601        1600       1630        1625       1600       1647        0              0          1647        (1000 MT)

  MY Imp. from    478         300        478         515        300        515         0              0          515         (1000 MT)
  U.S.                                                                                                                       

  MY Imp. from EU 0           0          0           0          0          0           0              0          0           (1000 MT)

  Total Supply    4019        4042       4109        4073       4027       4008        187            32         4034        (1000 MT)

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

  MY Exp. to EU   0           0          0           0          0          0           0              0          0           (1000 MT)

  Industrial Dom. 320         330        390         330        330        320         0              0          320         (1000 MT)
  Cons.                                                                                                                      

  Food Use Dom.   166         165        207         166        165        158         0              0          158         (1000 MT)
  Cons.                                                                                                                      

  Feed Waste Dom. 3360        3500       3409        3390       3500       3401        0              0          3401        (1000 MT)
  Cons.                                                                                                                      

  Total Dom.      3846        3995       4006        3886       3995       3879        0              0          3879        (1000 MT)
  Cons.                                                                                                                      

  Ending Stocks   173         47         103         187        32         129         0              0          155         (1000 MT)

  Total           4019        4042       4109        4073       4027       4008        0              0          4034        (1000 MT)
  Distribution                                                                                                               

  CY Imports      1653        1630       1630        1650       0          1647        0              0          1647        (1000 MT)

  CY Imp. from    527         552        527         525        0          525         0              0          525         (1000 MT)
  U.S.                                                                                                                       

  CY Exports      0           0          0           0          0          0           0              0          0           (1000 MT)

  CY Exp. to U.S. 0           0          0           0          0          0           0              0          0           (1000 MT)

  SME             3846        3995       4006        3886       3995       3879        0              0          3879        (1000 MT)
  --------------- ----------- ---------- ----------- ---------- ---------- ----------- -------------- ---------- ----------- -----------

##  {#section-33}

## Soybean Oil PS&D Table

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

  **Country**     **Japan**                                                                                                  

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

                  2005        Revised                2006       Estimate               2007           Forecast               UOM

                  USDA\       Post\      Post\       USDA\      Post\      Post\       USDA\          Post\      Post\       
                  Official    Estimate   Estimate\   Official   Estimate   Estimate\   Official       Estimate   Estimate\   
                                         New                               New                                   New         

  **Market Year               10/2005    10/2005                10/2006    10/2006                    10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                    

  Crush           2820        3080       2820        2925       3100       2925        0              0          2925        (1000 MT)

  Extr. Rate,     0.182624    0.189935   0.182624    0.179487   0.18871    0.179487    0              0          0.179487    (PERCENT)
  999.9999                                                                                                                   

  Beginning       15          27         15          18         22         18          25             22         25          (1000 MT)
  Stocks                                                                                                                     

  Production      515         585        515         525        585        525         0              0          525         (1000 MT)

  MY Imports      61          60         61          65         65         65          0              0          65          (1000 MT)

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

  MY Imp. from EU 0           0          0           0          0          0           0              0          0           (1000 MT)

  Total Supply    591         672        591         608        672        608         25             22         615         (1000 MT)

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

  MY Exp. to EU   0           0          0           0          0          0           0              0          0           (1000 MT)

  Industrial Dom. 30          30         30          32         30         32          0              0          32          (1000 MT)
  Cons.                                                                                                                      

  Food Use Dom.   543         620        543         551        620        551         0              0          551         (1000 MT)
  Cons.                                                                                                                      

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

  Total Dom.      573         650        573         583        650        583         0              0          583         (1000 MT)
  Cons.                                                                                                                      

  Ending Stocks   18          22         18          25         22         25          0              0          32          (1000 MT)

  Total           591         672        591         608        672        608         0              0          615         (1000 MT)
  Distribution                                                                                                               

  CY Imports      60          0          60          65         0          65          0              0          65          (1000 MT)

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

  CY Exports      0           0          0           0          0          0           0              0          0           (1000 MT)

  CY Exp. to U.S. 0           0          0           0          0          0           0              0          0           (1000 MT)
  --------------- ----------- ---------- ----------- ---------- ---------- ----------- -------------- ---------- ----------- -----------

## Import Trade Matrix for Soybean

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

  **Country**        Japan                                     

  **Commodity**      Oilseed, Soybean                          

  Time Period        Oct/Sept                  Units:          1000MT

  Imports for:       2004                                      **2005**

  U.S.               3170                      U.S.            3085

  Others                                       Others          

  Brazil             636                       Brazil          434

  Canada             297                       Canada          283

  China              190                       China           159

  Australia          2                         Australia       2

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others   1125                                      878

  Others not Listed  0                                         0

  Grand Total        4295                                      3963
  ------------------ ------------------------- --------------- -----------

##  {#section-34}

## Import Trade Matrix for Soybean Meal

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

  **Country**         Japan                                    

  **Commodity**       Meal, Soybean                            

  Time Period         Oct/Sept                Units:           1000MT

  Imports for:        2004                                     **2005**

  U.S.                530                     U.S.             477

  Others                                      Others           

  China               536                     India            548

  India               324                     China            278

  Brazil              87                      Brazil           172

  UAE                 11                      Argentina        114

  Indonesia           6                       UAE              4

                                              Denmark          1

                                                                

                                                                

                                                                

                                                                

  Total for Others    964                                      1117

  Others not Listed   2                                        0

  Grand Total         1496                                     1594
  ------------------- ----------------------- ---------------- -----------

## Import Trade Matrix for Soybean Oil

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

  **Country**          Japan                                   

  **Commodity**        Oil, Soybean                            

  Time Period          Oct/Sept              Units:            1000MT

  Imports for:         2004                                    **2005**

  U.S.                 8                     U.S.              8

  Others                                     Others            

  Malyasia             15                    China             44

  China                14                    Malaysia          5

  Taiwan               3                     Taiwan            3

  Thailand             3                     Singapore         1

  Singapore            1                                        

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others     36                                      53

  Others not Listed    1                                       1

  Grand Total          45                                      62
  -------------------- --------------------- ----------------- ------------

## Prices Table for Soybean

  ------------------ ------------------ ---------------------- -----------
  **Prices Table**                                             

  **Country**        Japan                                     

  **Commodity**      Oilseed, Soybean                          

  Prices in          1000 JP yen        per uom                MT

                                                               

  Year               2006               2007                   \% Change

  Jan                34.76              42.24                  22%

  Feb                38.07              45.15                  19%

  Mar                39.15              42.61                  9%

  Apr                38.31                                     -100%

  May                36.23                                     -100%

  Jun                35.21                                     -100%

  Jul                36.63                                     -100%

  Aug                36.13                                     -100%

  Sep                34.26                                     -100%

  Oct                35.44                                     -100%

  Nov                36.14                                     -100%

  Dec                38.57                                     -100%

                                                               

  Exchange Rate      119.52             Local Currency/US \$   

  Date of Quote      05/01/2007         MM/DD/YYYY             
  ------------------ ------------------ ---------------------- -----------

## Prices Table for Soybean Meal

  ------------------- ---------------- ----------------------- -----------
  **Prices Table**                                             

  **Country**         Japan                                    

  **Commodity**       Meal, Soybean                            

  Prices in           1000 JP yen      per uom                 MT

                                                               

  Year                2006             2007                    \% Change

  Jan                 31.86            32.29                   1%

  Feb                 32.73            34.25                   5%

  Mar                 32.28            33.48                   4%

  Apr                 29.98                                    -100%

  May                 31.65                                    -100%

  Jun                 29.81                                    -100%

  Jul                 30.15                                    -100%

  Aug                 31.63                                    -100%

  Sep                 31.82                                    -100%

  Oct                 30.5                                     -100%

  Nov                 32.42                                    -100%

  Dec                 31.4                                     -100%

                                                               

  Exchange Rate       119.52           Local Currency/US \$    

  Date of Quote       05/01/2007       MM/DD/YYYY              
  ------------------- ---------------- ----------------------- -----------

## Prices Table for Soybean Oil

  ------------------- -------------- ----------------------- ------------
  **Prices Table**                                           

  **Country**         Japan                                  

  **Commodity**       Oil, Soybean                           

  Prices in           1000 JP yen    per uom                 KG

                                                             

  Year                2006           2007                    \% Change

  Jan                 0.11           0.1                     -9%

  Feb                 0.09           0.1                     11%

  Mar                 0.1            0.13                    30%

  Apr                 0.12           0.11                    -8%

  May                 0.11                                   -100%

  Jun                 0.09                                   -100%

  Jul                 0.12                                   -100%

  Aug                 0.08                                   -100%

  Sep                 0.1                                    -100%

  Oct                 0.1                                    -100%

  Nov                 0.11                                   -100%

  Dec                 0.1                                    -100%

                                                             

  Exchange Rate       119.52         Local Currency/US \$    

  Date of Quote       05/01/2007     MM/DD/YYYY              
  ------------------- -------------- ----------------------- ------------

## Rapeseed PS&D Table

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

  **Country**     **Japan**                                                                                               

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

                  2005         Revised                2006       Estimate               2007       Forecast               UOM

                  USDA\        Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\       
                  Official     Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                          New                               New                               New         

  **Market Year                10/2005    10/2005                10/2006    10/2006                10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                 

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

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

  Beginning       165          199        165         181        210        181         157        211        157         (1000 MT)
  Stocks                                                                                                                  

  Production      1            1          1           1          1          1           0          0          1           (1000 MT)

  MY Imports      2281         2250       2281        2250       2250       2250        0          0          2274        (1000 MT)

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

  MY Imp. from EU 0            0          0           0          0          0           0          0          0           (1000 MT)

  Total Supply    2447         2450       2447        2432       2461       2432        157        211        2432        (1000 MT)

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

  MY Exp. to EU   0            0          0           0          0          0           0          0          0           (1000 MT)

  Crush           2261         2240       2261        2270       2250       2270        0          0          2272        (1000 MT)

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

  Feed Waste Dom. 5            0          5           5          0          5           0          0          0           (1000 MT)
  Cons.                                                                                                                   

  Total Dom.      2266         2240       2266        2275       2250       2275        0          0          2272        (1000 MT)
  Cons.                                                                                                                   

  Ending Stocks   181          210        181         157        211        157         0          0          160         (1000 MT)

  Total           2447         2450       2447        2432       2461       2432        0          0          2432        (1000 MT)
  Distribution                                                                                                            

  CY Imports      2274         2295       2274        2250       0          2250        0          0          2250        (1000 MT)

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

  CY Exports      0            0          0           0          0          0           0          0          0           (1000 MT)

  CY Exp. to U.S. 0            0          0           0          0          0           0          0          0           (1000 MT)
  --------------- ------------ ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## Rapeseed Meal PS&D

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

  **Country**     **Japan**                                                                                                   

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

                  2005         Revised                2006       Estimate               2007           Forecast               UOM

                  USDA\        Post\      Post\       USDA\      Post\      Post\       USDA\          Post\      Post\       
                  Official     Estimate   Estimate\   Official   Estimate   Estimate\   Official       Estimate   Estimate\   
                                          New                               New                                   New         

  **Market Year                10/2005    10/2005                10/2006    10/2006                    10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                     

  Crush           2261         2240       2261        2270       2250       2270        0              0          2270        (1000 MT)

  Extr. Rate,     0.564794     0.589286   0.564794    0.566079   0.586667   0.566079    0              0          0.551542    (PERCENT)
  999.9999                                                                                                                    

  Beginning       41           80         41          40         100        40          35             100        35          (1000 MT)
  Stocks                                                                                                                      

  Production      1277         1320       1277        1285       1320       1285        0              0          1252        (1000 MT)

  MY Imports      31           30         31          30         30         30          0              0          34          (1000 MT)

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

  MY Imp. from EU 0            0          0           0          0          0           0              0          0           (1000 MT)

  Total Supply    1349         1430       1349        1355       1450       1355        35             100        1321        (1000 MT)

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

  MY Exp. to EU   0            0          0           0          0          0           0              0          0           (1000 MT)

  Industrial Dom. 420          420        420         420        420        420         0              0          375         (1000 MT)
  Cons.                                                                                                                       

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

  Feed Waste Dom. 889          900        889         900        900        900         0              0          850         (1000 MT)
  Cons.                                                                                                                       

  Total Dom.      1309         1320       1309        1320       1320       1320        0              0          1225        (1000 MT)
  Cons.                                                                                                                       

  Ending Stocks   40           100        40          35         100        35          0              0          96          (1000 MT)

  Total           1349         1430       1349        1355       1430       1355        0              0          1321        (1000 MT)
  Distribution                                                                                                                

  CY Imports      34           36         34          30         30         30          0              0          34          (1000 MT)

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

  CY Exports      0            0          0           0          0          0           0              0          0           (1000 MT)

  CY Exp. to U.S. 0            0          0           0          0          0           0              0          0           (1000 MT)

  SME             931.3535     939.18     931.3535    939.18     939.18     939.18      0              0          871.5875    (1000 MT)
  --------------- ------------ ---------- ----------- ---------- ---------- ----------- -------------- ---------- ----------- -----------

## Rapeseed Oil PS&D

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

  **Country**     **Japan**                                                                                                   

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

                  2005         Revised                2006       Estimate               2007           Forecast               UOM

                  USDA\        Post\      Post\       USDA\      Post\      Post\       USDA\          Post\      Post\       
                  Official     Estimate   Estimate\   Official   Estimate   Estimate\   Official       Estimate   Estimate\   
                                          New                               New                                   New         

  **Market Year                10/2005    10/2005                10/2006    10/2006                    10/2007    10/2007     MM/YYYY
  Begin**                                                                                                                     

  Crush           2261         2240       2261        2270       2250       2270        0              0          2270        (1000 MT)

  Extr. Rate,     0.402919     0.415179   0.402919    0.405286   0.415556   0.405286    0              0          0.405286    (PERCENT)
  999.9999                                                                                                                    

  Beginning       42           30         42          38         30         38          38             35         38          (1000 MT)
  Stocks                                                                                                                      

  Production      911          930        911         920        935        920         0              0          920         (1000 MT)

  MY Imports      28           90         28          30         90         30          0              0          30          (1000 MT)

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

  MY Imp. from EU 0            0          0           0          0          0           0              0          0           (1000 MT)

  Total Supply    981          1050       981         988        1055       988         38             35         988         (1000 MT)

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

  MY Exp. to EU   0            0          0           0          0          0           0              0          0           (1000 MT)

  Industrial Dom. 50           60         50          50         60         50          0              0          50          (1000 MT)
  Cons.                                                                                                                       

  Food Use Dom.   893          960        893         900        960        900         0              0          900         (1000 MT)
  Cons.                                                                                                                       

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

  Total Dom.      943          1020       943         950        1020       950         0              0          950         (1000 MT)
  Cons.                                                                                                                       

  Ending Stocks   38           30         38          38         35         38          0              0          38          (1000 MT)

  Total           981          1050       981         988        1055       988         0              0          988         (1000 MT)
  Distribution                                                                                                                

  CY Imports      17           63         17          30         80         30          0              0          30          (1000 MT)

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

  CY Exports      0            0          0           0          0          0           0              0          0           (1000 MT)

  CY Exp. to U.S. 0            0          0           0          0          0           0              0          0           (1000 MT)
  --------------- ------------ ---------- ----------- ---------- ---------- ----------- -------------- ---------- ----------- -----------

## Import Trade Matrix for Rapeseed

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

  **Country**       Japan                                       

  **Commodity**     Oilseed, Rapeseed                           

  Time Period        Oct/Sept                   Units:           1000MT

  Imports for:       2004                                       **2005**

  U.S.               0                          U.S.             0

  Others                                        Others          

   Canada            1793                        Canada          1963

   Australia         438                         Australia       318

  Total for Others  2231                                        2281

  Others not Listed  0                                           0

  Grand Total       2231                                        2281
  ----------------- --------------------------- --------------- ----------

##  {#section-35}

## Import Trade Matrix for Rapeseed Meal

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

  **Country**        Japan                                     

  **Commodity**      Meal, Rapeseed                            

  Time Period         Oct/Sept                Units:            1000MT

  Imports for:        2004                                     **2005**

  U.S.                0                       U.S.              0

  Others                                      Others           

   China              24                       China            25

   India              6                        India            6

   Canada             5                                         

  Total for Others   35                                        31

  Others not Listed   0                                         0

  Grand Total        35                                        31
  ------------------ ------------------------ ---------------- -----------

## Import Trade Matrix for Rapeseed Oil

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

  **Country**         Japan                                   

  **Commodity**       Oil, Rapeseed                           

  Time Period          Oct/Sept              Units:            1000MT

  Imports for:        2004                                    2005

  U.S.                 1                     U.S.              0

  Others                                     Others           

   Canada              36                     Canada           20

   Australia           20                     Australia        6

   Malaysia            7                      China            2

   China               1                                       

  Total for Others    64                                      28

  Others not Listed    0                                       0

  Grand Total         64                                      28
  ------------------- ---------------------- ---------------- ------------

## Prices Table for Rapeseed

  ------------------ ------------------- --------------------- -----------
  **Prices Table**                                             

  **Country**        Japan                                     

  **Commodity**      Oilseed, Rapeseed                         

  Prices in          CIF, 1000 JP Yen    per uom               MT

                                                               

  Year               2006                2007                  \% Change

  Jan                34.53               45.45                 32%

  Feb                33.98               48.28                 42%

  Mar                34.11               48.77                 43%

  Apr                33.91                                     -100%

  May                34.19                                     -100%

  Jun                35.13                                     -100%

  Jul                37.15                                     -100%

  Aug                36.44                                     -100%

  Sep                38.88                                     -100%

  Oct                39.71                                     -100%

  Nov                41.26                                     -100%

  Dec                40.54                                     -100%

                                                               

  Exchange Rate      119.52              Local Currency/US \$  

  Date of Quote      05/01/2007          MM/DD/YYYY            
  ------------------ ------------------- --------------------- -----------

## Prices Table for Rapeseed Meal

  ------------------ ------------------ ---------------------- -----------
  **Prices Table**                                             

  **Country**        Japan                                     

  **Commodity**      Meal, Rapeseed                            

  Prices in          CIF, 1000 JP yen   per uom                MT

                                                               

  Year               2006               2007                   \% Change

  Jan                28.11              30.76                  9%

  Feb                29.31              32.4                   11%

  Mar                30.04              21.38                  -29%

  Apr                25.09                                     -100%

  May                27.7                                      -100%

  Jun                17.99                                     -100%

  Jul                29.43                                     -100%

  Aug                29.57                                     -100%

  Sep                21.9                                      -100%

  Oct                28.68                                     -100%

  Nov                29.37                                     -100%

  Dec                28.51                                     -100%

                                                               

  Exchange Rate      119.52             Local Currency/US \$   

  Date of Quote      05/01/2007         MM/DD/YYYY             
  ------------------ ------------------ ---------------------- -----------

## Prices Table for Rapeseed Oil

  ------------------ ------------------ ---------------------- -----------
  **Prices Table**                                             

  **Country**        Japan                                     

  **Commodity**      Oil, Rapeseed                             

  Prices in          CIF, 1000 JP yen   per uom                KG

                                                               

  Year               2006               2007                   \% Change

  Jan                0.09               0.1                    11%

  Feb                0.09               0.11                   22%

  Mar                0.09               0.12                   33%

  Apr                0.08                                      -100%

  May                0.09                                      -100%

  Jun                0.09                                      -100%

  Jul                0.1                                       -100%

  Aug                0.12                                      -100%

  Sep                0.12                                      -100%

  Oct                0.12                                      -100%

  Nov                0.11                                      -100%

  Dec                0.1                                       -100%

                                                               

  Exchange Rate       119.52            Local Currency/US \$   

  Date of Quote      05/01/2007         MM/DD/YYYY             
  ------------------ ------------------ ---------------------- -----------

## Sunflowerseed Oil PS&D Table

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

  **Country**     **Japan**                                                                                                    

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

                  2005              Revised                2006       Estimate               2007       Forecast               UOM

                  USDA\             Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\       
                  Official          Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                               New                               New                               New         

  **Market Year                     01/2005    01/2005                01/2005    01/2005                01/2005    01/2005     MM/YYYY
  Begin**                                                                                                                      

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

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

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

  Production      0                 0          0           0          0          0           0          0          0           (1000 MT)

  MY Imports      0                 0          2           0          0          2           0          0          2           (1000 MT)

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

  MY Imp. from EU 0                 0          0           0          0          0           0          0          0           (1000 MT)

  Total Supply    0                 0          2           0          0          2           0          0          2           (1000 MT)

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

  MY Exp. to EU   0                 0          0           0          0          0           0          0          0           (1000 MT)

  Crush           0                 0          0           0          0          0           0          0          0           (1000 MT)

  Food Use Dom.   0                 0          2           0          0          2           0          0          2           (1000 MT)
  Cons.                                                                                                                        

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

  Total Dom.      0                 0          2           0          0          2           0          0          2           (1000 MT)
  Cons.                                                                                                                        

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

  Total           0                 0          2           0          0          2           0          0          2           (1000 MT)
  Distribution                                                                                                                 

  CY Imports      0                 0          0           0          0          0           0          0          0           (1000 MT)

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

  CY Exports      0                 0          0           0          0          0           0          0          0           (1000 MT)

  CY Exp. to U.S. 0                 0          0           0          0          0           0          0          0           (1000 MT)
  --------------- ----------------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## Import Trade Matrix for Sunflowerseed

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

  **Country**      Japan                                        

  **Commodity**    Oilseed, Sunflowerseed                       

  Time Period      Oct/Sept                       Units:        MT

  Imports for:     2004                                         **2005**

  U.S.             457                            U.S.          851

  Others                                          Others        

  China            1419                           China         516

  Netherlands      253                            Canada        272

  Canada           147                            Netherlands   183

  Australia        66                             Australia     110

  Bulgaria         45                             Bulgaria      24

  South Africa     43                             Argentina     23

  Hungary          41                             Poland        22

  Chille           24                             Italy         14

  Argentina        22                             Chile         13

  Germany          3                              France        5

  Total for Others 2063                                         1182

  Others not       1                                            0
  Listed                                                        

  Grand Total      2521                                         2033
  ---------------- ------------------------------ ------------- ----------

## Prices Table for Sunflowerseed

  ----------------- ----------------------- -------------------- ----------
  **Prices Table**                                               

  **Country**       Japan                                        

  **Commodity**     Oilseed, Sunflowerseed                       

  Prices in         1000 JP yen             per uom              MT

                                                                 

  Year              2006                    2007                 \% Change

  Jan               194.34                  140.98               -27%

  Feb               232.62                  102.36               -56%

  Mar               145.89                  184.09               26%

  Apr               117.07                                       -100%

  May               118.2                                        -100%

  Jun               127.09                                       -100%

  Jul               149.34                                       -100%

  Aug               83.93                                        -100%

  Sep               139.33                                       -100%

  Oct               136.33                                       -100%

  Nov               98.73                                        -100%

  Dec               265.58                                       -100%

                                                                 

  Exchange Rate     109.52                  Local Currency/US \$ 

  Date of Quote     05/01/2007              MM/DD/YYYY           
  ----------------- ----------------------- -------------------- ----------

##  {#section-36}