JAPAN Law and Practice Contributed by: Eri Hirata, Takunori Kono, Naoki Matsumoto and Ikki Kawasaki, Nishimura & Asahi
Nishimura & Asahi Otemon Tower 1-1-2 Otemachi Chiyoda-ku Tokyo 100-8124 Japan Tel: +81 3 6250 6200 Fax: +81 3 6250 7200 Email: info@nishimura.com Web: www.nishimura.com
1. Agricultural Market Overview 1.1 Key Economic Indicators Agricultural Output
1.2 Main Crops and Supply Chains Major Crops
In its final report for FY 2023, the MAFF estimates that the agricultural output for the year was as follows:
According to the Ministry of Agriculture, Forestry and Fisheries (MAFF), Japan’s agricultural output in 2024 was approximately JPY10.78 trillion, reflecting signifi- cant increases in the prices of rice and vegetables. Agricultural Production Income Agricultural production income increased to approxi- mately JPY3.96 trillion in 2024, compared with approximately JPY3.29 trillion in 2023. Core Persons Mainly Engaged in Farming The MAFF’s “Agricultural Workforce Statistics (core persons mainly engaged in farming)” for 2024 esti- mated this to be approximately 1,114,000 people. Since 2015, there has been a consistent decline in the number of people engaged in farming in Japan. The sector is ageing significantly, with 71.7% of farm- ers now aged 65 or older, and an average age of 69 years and two months, making workforce succession a critical issue. The new Basic Plan also notes that only approximately 224,000 core farmers were aged 50 years or younger, highlighting continuing concerns regarding generational succession.
• livestock – approximately JPY3.7 trillion; • vegetables – approximately JPY2.3 trillion; • rice – approximately JPY1.5 trillion; and • fruit – approximately JPY1 trillion.
In 2024, increases in rice and vegetable prices contrib- uted significantly to overall agricultural output growth. Consequently, rice regained greater economic signifi- cance within the agricultural sector, although livestock products remain the largest category by output value. Supply Chain Characteristics The MAFF makes the following observations about the agribusiness supply chain in Japan: • Production is characterised by many small-scale, multi-crop farms, with production patterns differing by region (eg, livestock-focused regions, vegeta- ble-producing regions). • At the distribution stage, wholesale markets func- tion as key infrastructure for perishable foods, with more than 50% of fruit and vegetables and more than 40% of fishery products being distributed through wholesale markets. Distribution channels now range from traditional agricultural co-opera- tives to wholesaler to retailer flows to EC-based direct sales.
33 A GRICULTURA L LAW 20 26
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