Corn is the predominant feed grain in Japan, accounting for about 80% of domestic feed grain consumption (including of barley, corn, oats, rye, sorghum and wheat). Japan does not produce corn and is the world largest importer of corn. For 2007-2008, corn imports are forecast at 16.3 Mt, down marginally from last year. The majority of corn is imported from the US (95%), with the remainder supplied by China.
The majority of corn supplies are used for feed, mainly for the poultry industry, with the remainder used by starch manufacturers, and the rest from other food-use sectors. Over the long-term, given a declining livestock population, slow decreases in feed use demand is expected. However, food use demand will remain strong on support from high beverage demand for corn sweeteners.
Japan also imports small quantities of rye and oats, for the feed industry. For 2007-2008, rye and oat imports are forecast at 75 kt and 60 kt, respectively.
Oilseeds
Soybeans and canola are the two major oilseeds imported by Japan, mostly to supply the large oilseed crushing industry. Imports of canola and soybean oil, the two primary edible oils used in the country, are subject to high tariffs which keep imports low. Bulk oilseeds, however, are not subject to the same import barriers as manufactured oils, allowing crushers to import large quantities.
Soybeans
Soybean production in Japan has increased by 55% since 1997-1998, to 225 kt in 2006-2007, and is forecast by the USDA to remain at this level for 2007-2008. All soybeans produced are non-GM varieties, thus consumed almost entirely in the food industry. Aside from large import demand from the crushing sector, domestically-produced supplies do not satisfy total domestic demand from the food manufacturing industry; opening up this niche market to Canadian and US exports of non-GM and GM food-certified varieties.
Japan imports 4.0-4.7 Mt of soybeans annually, accounting for about 10% of world trade. This makes it the third largest market for soybeans; behind the EU and China. The US has a 70-80% market share, followed by Brazil (10-15%), and Canada (5-10%).
Nevertheless, Canada is established as a primary high quality supplier to Japan’s food manufacturing sector. Demand for Canada’s food-certified soybeans has resulted in a niche market for Canadian producers. Exports to Japan have fallen over the last 10 years. However, Canada receives a premium of around US$80-90 per tonne above US soybean prices.
For 2006-2007, Canadian soybean exports to Japan remained low, estimated at 18 kt. Exports for 2007-2008 are forecast by AAFC to remain at this level or increase in 2007-2008, supported by rising demand from the food manufacturing sector.