Agri-Food Trade Service

The Fish and Seafood Market in Japan

January 2007

Prepared by the Business Sectors Bureau
and the
Canadian Trade Commissioner Service

© Foreign Affairs and International Trade Canada

FaxLink #0800037

Report prepared by
Business Sectors Bureau
Foreign Affairs and International Trade Canada (DFAIT)
125 Sussex Drive, Ottawa K1A 0G2
Fax: (613) 943-1103
E-mail: mrc-cem@international.gc.ca

Trade Evaluation and Analysis Division (TEAD)
Agriculture and Agri-Food Canada (AAFC)
Contact: Andy Archibald, Senior Economist
Tel.: (613) 759-7665
Fax: (613) 759-7505
E-mail: archibalda@agr.gc.ca

Reports are available from:

-- DFAIT's InfoExport Internet site (www.infoexport.gc.ca)
-- AAFC's Agri-Food Trade Service (ATS) Internet Site (ats.agr.ca)

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.

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EXECUTIVE SUMMARY

Japan is the world's largest consumer and importer of fish and seafood products. Imports accounted for about 45% or nearly $17.3 billion⁽¹⁾ of the total fish and seafood market in 2005. About half of Japan's total fishery product imports consist of shrimp, tuna and marlin, salmon and trout, crab, processed eels, cod and pollock roes, and processed shrimp. Although per-capita Japanese fish and seafood consumption has fallen slightly in recent years, Japan's self-sufficiency in supplying its domestic demand is falling at a greater pace, creating increased dependency on imports. Total fish and seafood sales in Japan were estimated by Thomson Business Intelligence to be $104.5 billion in 2005--up from $98 billion in 2004--and are projected to reach $141.8 billion by 2010.

Opportunities for Canadian fish and seafood companies exist in a number of areas in the Japanese market. In particular, there are opportunities to supply mackerel, snow crab, cold-water shrimp, lobster and sea urchin to the market. As well, sustainable, ecological and traceable fish products, anti-ageing fish products (e.g. collagen or glucosamine), and fish and seafood products in packaging that enables the consumer to see the contents and keeps the contents fresher will likely be well-received in the Japanese market.

Partnership and investment opportunities exist, given Canada's strong relations and integration with the Japanese fish and seafood sector. Although Canada had a 3.5% value share of the Japanese fish and seafood market in 2005, Canada is one of Japan's leading suppliers of several products to Japan such as snow crab, lobster, roe products, and capelin.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY

MARKET OVERVIEW

COMPETITIVE ENVIRONMENT 

CUSTOMERS

MARKET LOGISTICS

PROMOTIONAL EVENTS 

KEY CONTACTS AND SUPPORT SERVICES

ANNEXES

BIBLIOGRAPHY

OTHER REFERENCE MATERIAL 

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MARKET OVERVIEW

Fish is a major component of the traditional Japanese diet. Consumers eat fish and seafood prepared in a variety of ways, ranging from raw to heavily processed products. Like food consumption overall in Japan, fish and seafood consumption is falling. The average per-capita fish consumption in 2004 was 34.5 kg (net weight), down from 35.7 kg in 2003, but still remains the highest fish consumption rate in the world. The average Japanese household spent $1026 on fish and seafood in 2005. Total fish and seafood sales in Japan, estimated by Thomson Business Intelligence to have increased from $98 billion in 2004 to $104.5 billion in 2005, may reach $141.8 billion by 2010.

Japan is also the world's largest fish and seafood importer, importing nearly $17.3-billion worth of fish and seafood products in 2005. Because of the immensity of the Japanese fish and seafood market, Japan is generally considered the world price-setter for fish and seafood products. Although per-capita Japanese fish and seafood consumption has fallen slightly in recent years, Japan's self-sufficiency in supplying its domestic demand is falling at a greater pace (from about 60% of volume self-sufficiency in 1994 to 55% in 2004), thus increasing the country's imports of fish and seafood products. Japan is Canada's second-largest market for seafood products (after the United States), with Canada exporting $471 million of fish and seafood products to Japan in 2005.

Table 1 shows the breakdown of fish and seafood supply in Japan in 2003. More than 76% of the fish and seafood supply in Japan is destined for human consumption; in 2003, that represented 8.4 million tonnes.

Table 1. Japan's Fish and Seafood Supply, 2003 ('000 Tonnes)

	Domestic Production	Imports	Exports	Total Supply
Fish for Human Consumption	4804	3922	405	8390
Fish for Animal Feed and Other Purposes	656	1829	105	2590

Source: Food and Agriculture Organization of the United Nations (FAO). "Fishery Country Profile: Japan." October 2005

Fish and Seafood Varieties

Fresh, frozen and chilled fish sales accounted for about 65% ($68.1 billion) of total Japanese fish and seafood sales in 2005, and may reach $93.8 billion by 2010. Sales of shellfish should grow at a quicker pace from $8.2 billion in 2005 to $11.6 billion in 2010. Sales of canned fish and seafood accounted for 63% of total canned food sales in 2005, with total revenues of $2.4 billion.

In recent years, Japan's consumption of shrimp and yellowtail has decreased due in part to a supply shortfall. On the other hand, consumption of trout, crab and salmon has been strong. On the whole, Japan continues to be one of the world's leading importers of seafood, particularly pollock, shrimp and mackerel.

In 2004, the top fish and seafood varieties consumed by Japanese households by volume were salmon, tuna, cuttlefish, saury and shrimps and lobsters. There are, however, wide regional variations in the varieties of fish and seafood consumed. Japan is the largest consumer of tuna in the world, accounting for nearly one third of worldwide tuna consumption.

Shrimp

By value, shrimp is the most-imported fish and seafood product in Japan, with raw frozen and prepared shrimp accounting for 16.8% of total fishery imports in 2005. The Japanese market for raw frozen shrimp (consisting mainly of farmed black tiger and white vannamei shrimp) is unstable with fluctuating demand, while value-added processed shrimp imports are growing. Cooked shrimp imports (including cold-water shrimp) declined slightly in the first quarter of 2006.

Seven countries supply nearly 90% of Japan's cold-water shrimp imports: Russia, Canada, Greenland and Argentina are the leading suppliers. Japan imported 33 364 tonnes of cold-water shrimp in 2003, down from 38 355 tonnes in 2002. This drop can be attributed to a significant drop in supply from Argentina (-58%). Argentina's landings of the wild Pleoticus muelleri shrimp have declined since 2001, from about 79 000 tonnes to about 7 000 tonnes in 2005. Correspondingly, Japan's imports of shrimp from Argentina fell from 4 742 tonnes in 2001 to 619 tonnes in 2005.

Tuna

Japan is the world's largest producer and market for fresh and frozen tuna and tuna-based products (excluding canned tuna). On average, a Japanese household spends $77 on tuna per year, well-above the $43-per-year average for shrimp, the second-most consumed fish and seafood product. Consumer spending on tuna increases dramatically in December, with prices reaching up to $22 per saku⁽²⁾ (120-150 g) in the last week of December (leading up to most important holiday in Japan, shogatsu [New Year]). Bluefin tuna, southern bluefin and bigeye tuna are the highest-priced tunas.

Tuna is typically sold at top department stores and high-end restaurants and used for sushi and sashimi. Some supermarkets sell tuna that has been frozen (which reduces its value). These supermarkets typically receive the tuna in frozen blocks, which are cut into smaller pieces and thawed in warm salt-water baths (which brings out the tuna's color, raises its temperature, and gives the tuna a fresh look).

Due to declining tuna stocks, Japan is exploring aquaculture as a way to meet its high domestic demand. Japan shipped the world's first completely cultured bluefin tuna in September 2004.

Salmon

Salmon generates the third-highest sales of all fish and seafood products, with the average Japanese household spending $42 on salmon in 2005. Salmon is a year-round staple of the Japanese diet and is sold at a fairly stable price throughout the year (varies from about $3.30 to $3.85 per saku). Salmon is eaten in a variety of ways in Japan, including raw, broiled with salt or other seasonings, fried, meunière-style, marinated or in a stew. Consumers judge the freshness and quality of salmon by how glossy and silver the scales are, how taut the body is, and the alignment and the colour of the body. Fish that meet these requirements are more likely to command a higher price.

Sardines

Sardines are typically considered a lesser fish in Japan (as is mackerel) and is a low-priced staple of household meals. In 2004, however, Japan caught no sardines in its waters, which escalated the price to record-high levels that were equal to that of the best sea bass. Total sardine market landings decreased to 16 193 tonnes in 2005 from 34 152 tonnes in 2004. Catch data for sardine landings from January through October 2006 show that landings have been restored to a level of 35 867 tonnes for the 10-month period.

Crab

In 2004, Japan set the market price for snow crab too high because the prices for snow crab at the end of the season in 2003 were high. As a result, producers of snow crab made a large profit, but due to a scale-back in demand by Japanese consumers because of the high prices, wholesalers and retailers did not sell all their inventories in 2004. Consequently, in 2005 customers were carrying high inventories at a high cost and Japanese importers faced markets below their wholesale cost. The 2005 market price of snow crab was scaled back to compensate for the decrease in consumer demand and high existing inventories in Japan. In 2006, snow crab prices began to recover.

Crab is a popular dish among Japanese travellers, with 20% of respondents in a recent on-line survey saying crab was the best-tasting dish they had ever had on a trip. In addition, according to an Internet survey conducted by the Japanese travel agency JTB Corp., crab was the most-popular dish eaten by Japanese consumers travelling domestically in the autumn and winter, with 40% of votes. Other popular dishes cited included fugu (puffer fish), oysters, shrimp and yellowtail.

Spawn on Kelp

Japanese demand for spawn on kelp is decreasing, especially among young consumers. Prices for spawn on kelp in Japan have also decreased dramatically, due in part to overproduction of supply of this niche product (through an increase of harvesters and the entrance of Alaskan and Russian suppliers in the market), and declining herring stocks.

Sea Urchin

Sea urchin (uni) is a traditional product in Japan. Japan is the world's largest market for uni consuming about 6000 tonnes--75% of global production--each year. Sea urchin is sold in a variety of ways in Japan, including fresh, frozen, steamed, baked and frozen, and salted. The most-popular and highest-value use for the product is chilled fresh uni on sushi.

Canadian sea urchin processors tend sell their products to Japanese companies through the use of contract sales at a set price rather than via consignment on the Tsukiji Seafood Auction in Tokyo. Typically average prices for contract sales of British Columbia and California red sea urchin uni range between $50 and $55 per kg.

Because of illegal, unregulated and unreported (IUU) sea urchin catches from Russia, the market for sea urchin products in Japan is in turmoil. Almost all producers are having problems because the Russian supplies, which are not subject to normal regulatory limits and costs, are entering the market below-cost. Canada exports approximately 460 tonnes or 75% of total Canadian sea urchin production to Japan each year. The wholesale export value of Canadian sea urchin shipments decreased to $21.6 million in 2004 from about $25 million in 2002 due to the market impacts of Russian IUU catches.

Lobster

Japanese imports of lobster in 2005 originated almost entirely from Canada and the United States, with Canada providing 87% of frozen lobster and 68% of live and chilled lobster exports to Japan. Industry sources indicate that Japan is now favouring imports of spiny and rock lobster (which do not have claws), particularly from Australia, over supplies of American lobster (Homarus genus). However, Chinese buyers are offering to pay higher prices for spiny and rock lobster than Japanese (especially near New Year's), which may limit the supply in Japan--and increase prices.

Key Factors Shaping Market Growth

Rising Global Demand and Prices

Demand for fish and seafood products has surged in Western countries and China as consumers seek health-conscious food products. Together with declining global fish stocks, this increased demand has resulted in increased global fish prices. Due to this increase in competition, Japan's dominant position in the fish and seafood industry is diminishing. According to an official at the Japanese seafood company Nippon Suisan Kaisha Ltd., "the time is gone when the seafood market was a buyer's market for Japan."

The European Union (EU) in particular is becoming an aggressive buyer of fish and seafood, aided by a rapid 35% appreciation of the Euro over the Yen from 2000 to 2005. Japanese companies are having difficulties securing supplies of imported fish and seafood products, as foreign companies are outbidding Japanese companies in a number of cases (e.g. for products such as tuna, salmon and cod).

Consumers and buyers in Japan are fairly price conscious and with prices increasing, these factors are changing Japanese consumption of fish and seafood products. For example, Japanese consumption of surimi⁽³⁾ has fallen to 52% of the global total from 65% five years ago, due to the rising popularity of surimi in Western countries. Since domestic retailers do not accept price hikes for kamaboko⁽⁴⁾, Japanese surimi importers are often beaten on price by foreign companies.

Many restaurants and fish retailers are dealing with the increased prices by revising their menus or selling fish in smaller portions. For example, the Mutenkura sushi bar in Itami, Hyogo Prefecture⁽⁵⁾, have increased their offering of non-sushi dishes to account for 30% of their menu, thereby reducing the impact of rising fish prices. Ito-Yokado Co., a major supermarket in Japan, reduced the quantity of sashimi it sells in packs in order to cut the unit price by 13%, but has maintained the same price. If the fish gets too expensive, fish and seafood retailers will withdraw the pricier fish from their offerings. Many sushi restaurants stopped offering salmon once it became more expensive than delicacies such as toro (fatty tuna) or uni.

Consumption Trends

In Japan, as consumers adopt a more Westernized diet and increase consumption of meat, fish and seafood consumption has fallen. Where traditionally the Japanese diet relied almost entirely on fish and seafood for animal protein, in 2003 fish consumption accounted for only 39% of total animal protein intake. Markets for traditional products (e.g. herring roe, smelt, or spawn on kelp) are stagnant or declining. In 2004, however, the volume of fish and seafood consumed by Japanese households still exceeded that of meat by 37%.

Consumers are purchasing fewer fresh fish and seafood products directly from retailers, and are consuming more fresh fishery products in the food-service sector and through consuming ready meals (e.g. boxed meals, rice balls). This change in consumption patterns can be attributed in part to an increase in the number of single-member and two-member households, which tend to prefer convenient meal solutions, and an increase in the number of working women, which has decreased households' time available for cooking from scratch.

Older Japanese consumers (40 years of age and older) tend to purchase more fish and seafood than younger consumers. Younger consumers typically eat out and purchase ready meals more often, which reduces their fish and seafood purchases. Japan's population is ageing, with an average age of 41.86 in 2004. Similarly, the proportion of the population older than 65 years is growing, at 19% in 2004, which is one of the largest proportions of this age group in the world. The increasing ageing population in Japan may increase fish and seafood consumption in the country, especially as older consumers continue to seek healthier foods.

Niche Product Trends

Anti-ageing Foods

Anti-ageing products and services are popular in the Japanese market. Collagen-rich food, which are aimed at improving the look of skin, are growing in popularity. One such food is eelpout, a deep-sea fish often caught by crab fishing boats. Eelpout is recognized as being rich in collagen and docosahexaenoic acid (DHA), an essential fatty acid that helps slow the brain's ageing. In the resort town of Iwami, Tottori Prefecture, ryokan (traditional inns) are attracting tourists with eelpout dishes.

Eco Tec, a Shizuoka Prefecture firm, introduced a technology in July 2006 that extracts high-purity collagen from the scales and skin of tuna and refines it for use in food products. Flavourings can be added, such as crab extract and tuna extract, and the product can be used in a variety of dishes. As of November 2006, Eco Tec was producing 2 tonnes of the collagen product a month, and expects to triple output by spring 2007 due to the high demand it is receiving from high-end restaurants and hotels.

Glucosamine is also being recognized as an anti-ageing product. Glucosamine sulfate is extracted from animal tissue including crab, lobster or shrimp shells and is sold as a nutritional supplement. The use of glucosamine-related products is said to help alleviate the symptoms of degenerative arthritis and rheumatism and also improve skin texture and blood circulation. For example, Japanese Koyo Chemical Co entered the glucosamine processing industry in 2005 by constructing a glucosamine refining facility at its Sakaiminato plant. Opportunities to introduce similar facilities in Canada may exist.

Student-targetted Products

Many food and beverage companies in Japan compete in the "lucky" products market for Japanese university students, especially before university entrance exams in January. For example, Maruha Corp.introduced a good-luck fish paste in the shape of bamboo in January 2005. Maruha stresses the DHA content of the product, which is believed to be good for the eyes as well as the brain, and bamboo is believed to be good luck in Japanese culture. Maruha has also launched a fish sausage, Maruha DHA Iri Gokaku Chikuwa (fish sausage with DHA to pass exams), aimed at students taking exams. The sausage contains high levels of DHA, and has the word gokaku (passing exams) imprinted on it.

Food Safety

Japanese consumers have a high concern for food safety. Local fish and seafood companies are responding to this demand through introducing products, creating traceability systems, and marketing ecologically friendly products. For example, Maruha Corp. (Japan) introduced fish gelatin to Japan in 2005 in response to consumer concerns with gelatin produced by cattle (due to bovine spongiform encephalopathy [BSE]). Maruha imports skin from farm-raised tilapia from China and produces the gelatin in Japan.

The Japanese fishing industry (through fishery co-operative associations and other groups) is beginning to construct traceability systems for fishery products to address Japanese consumers' growing concern for food safety. Fish retailers feel that traceability is important to consumers, but believe the cost of implementing a traceability system should be borne by seafood producers. Obstacles to implementing traceability in the fish and seafood industry include a lack of unified standards (nationally, internationally and among species), and the high cost to producers. Despite these obstacles, some fish and seafood producers have introduced traceability systems. For example, the Mie Union of Fishery Co-operative Associations (Miegyoren), which owns several fish and seafood processing and selling companies and has a distribution system within Tokyo (including a quality-control office), has developed a Hazard Analysis Critical Control Points (HACCP)-based food-safety system and keeps detailed records (e.g. feed, medication) for its farmed red sea bream that are available to consumers upon request. As well, Optima-Foods Co. Ltd, an aquaculture producer of puffer, is the first company in Japan to introduce a universal traceability system. Optima-Foods adopted the EU standard TraceFish as the basis for its traceability system.

Consumers are also beginning to demand that the fishery products they consume have been harvested in a sustainable manner. Fishery products with a marine eco-label (assuring shoppers that the fish were caught in an ecological and sustainable manner) have been introduced in several Japanese supermarkets (e.g. Bruce Gore and Aeon). For example, there were 19 products from the Alaska salmon, hoki, Pacific cod, and Alaska pollock species available under the Marine Stewardship Council's⁽⁶⁾ eco-label in Japan in 2006, mostly from U.S., European and Australian suppliers.

Sustainable and Illegal Fishing

In order to ensure sustainable fishing, migratory fish stocks are controlled by regional fisheries management organizations in Japan. In 2005, the Japanese government developed seven new fish stock sustainability plans including the Resource Recovery Plan for Red Snow Crab in the Offshore Area of the Sea of Japan, and the Resource Recovery Plan for Machi (Blue Fusilier, Lavender Jobfish, Crimson Snapper, and Ruby Snapper) in the Waters of the Nansei Islands.

Japan promotes the control of fishing capacity, takes measures against illegal fishing, and seeks to strengthen the efforts of regional fisheries management organizations. Japan has thus been trying to enhance its monitoring and punishment of illegal fishing activities. Illegal fish catches entering the Japanese market have severely affected Canadian fish and seafood exports. Illegally caught and unreported catches of crab and green sea urchins from Russia has seriously affected the market for Canadian snow crab and virtually destroyed the market for Canadian green sea urchins.

According to the Russian news agency ITAR-TASS, a source informed them that dozens of Russian ships come to Japanese ports daily with loads of marine products that are not on the "white list" of vessels (i.e. ships that have undergone official registration at Russian ports and have permission to deliver marine products to Japan). Most of these vessels call at ports using counterfeit documents. According to Russia's Audit Chamber, shipments of illegal Russian marine products to Japan are estimated to be worth $969 million annually (33% of the value of Russia's total fish sector). An Audit Chamber inspection discovered that the amount of illegal crab catches supplied to Japan exceeded the quota by 31 300 tonnes (50%) in 2001, 13 300 tonnes (23.6%) in 2002, and 9 900 tonnes (13.9%) in 2003. This illegal crab fishing has depleted crab stocks in Russian waters.

In an effort to combat illegal fishing, in 2005 Japan seized 16 foreign fishing vessels, conducted boarding inspections on 148 vessels and confiscated fishing gear from 44 vessels. Russia has asked for Japanese assistance in combating illegal fishing in Russian waters for crab and other seafood, and as such, the Japanese are examining Russian vessels when they enter port. This is done according to the Japanese law which requires either documentation from the foreign fisheries authority or permission from the Japanese Minister responsible when calling at a Japanese port.

Packaging

Packaging that allows consumers to see the products' content and keeps food fresher is appearing on supermarket shelves in Japan. Within the canned foods market, companies are packaging some of their products in containers with small windows that allow consumers to see the package's contents. These containers are typically coated with a special treatment that slows the penetration of oxygen and allows the contents to be preserved for more than a year at room temperature. This packaging, however, is more expensive than cans and retort pouches. Maruha Corp. has also been packaging its scallops, crabs and clams in resin-product pouches or Pure Packs since March 2003, selling the products for about $2.75 per 35-g serving. These pouches not only let consumers see the product, but also require less time for heat sterilization than canned foods, which lessens the damage to the integrity of the food and keeps it fresher.

Opportunities

Opportunities for Canadian fish and seafood companies exist in a number of areas in the Japanese market.

Opportunities exist to introduce sustainable, ecological and traceable fish products to Japan. Opportunities may exist for Canadian producers to work with Japanese associations already developing these systems.

Canadian mackerel suppliers will also likely continue to benefit from Japan's initiative to look for alternative suppliers to the European Union.

As Japanese snow crab markets continue to recover from the 2004 crash, Canadian suppliers may find opportunities to regain exports to the market (albeit at a lower price than in 2003).

Canadian companies may find opportunities to supply cold-water shrimp to Japan to buyers that typically sourced from Argentina. Argentina continues to face depleted supply and decreasing landings of cold-water shrimp.

Canadian suppliers of live and frozen lobsters (Japan's main source of these products) will likely continue to find opportunities in this market provided they remain cost-competitive with Australian rock lobster.

The growing popularity of food products that combat the effects of ageing may present opportunities for Canadian companies. For example, there may be opportunities to introduce products collagen or glucosamine products made from fish and seafood.

Fish and seafood products that have packaging that enables the consumer to see the contents and keeps the contents fresher will likely be well-received (e.g. modified atmosphere packaging).

The close integration of the Japanese and Canadian fish and seafood industry leads to opportunities for further partnerships and investment with Japanese partners (such as the Quinlan brothers crab and shrimp liquid extract project). Opportunities may exist to partner to set up high-tech manufacturing/processing/packaging plants in Japan or Canada. For example, there may be opportunities to add glucosamine refining facilities to already established shellfish processing plants.

COMPETITIVE ENVIRONMENT

Local Capabilities

Japanese fisheries resources are fast-becoming depleted; the local fish supply was capable of meeting only 55% of domestic demand in 2004. Marine fishery catches account for more than 90% of Japan's fish and seafood production (the rest is attributed to inland water catches and aquaculture).

Annex 1 shows Japan's market landings of fishery products from 2002 to September 2006. By volume, mackerel, skipjack and saury had the highest landings in 2005.

Japan conducts marine fishing in its own waters and, through bilateral agreements, in the waters of China, South Korea, Russia, and the 200-mile coastal zones of various Pacific Island and African countries. In 2005, Japanese fishing vessels did not operate in China's waters because no relevant fishing grounds were established for China's waters.

Processed Fish and Seafood

Japan processed 2.1 million tonnes of fish and seafood in 2004. Table 2 shows the volume of processing that occurred by type.

Table 2. Japanese Production of Processed Fish and Seafood Products, 2003-2004 (Tonnes)

Processed Fish and Seafood	2003	2004	% Change
Fish paste/cake Frozen food Dried seafood Salted seafood Smoked seafood	658 293 319 582 346 680 208 947 12 848	660 322 303 236 332 872 218 396 13 037	0% -5% -4% 5% 1%
Other dried/sliced fish Other fish and seafood processing	110 770 472 046	109 839 491 895	-1% 4%
Total Processed Fish and Seafood	2 129 166	2 129 597	0%

Source: United States Department of Agriculture (USDA). FAS. "Japan Fishery Products Annual Report 2005." September 30, 2005

Some of the major Japanese fish and seafood processors include Hohsui Corporation, Kyokuyo Co., Ltd., Maruha Corp., and Nippon Suisan Kaisha, Ltd.

Hohsui Corporation processes, imports and exports fresh, frozen and salted fish and seafood products, and sells fresh seafood to Japanese retailers and wholesalers. Hohsui had annual revenues of $242.6 million in 2005. The company operates its business activities through three divisions: the Wholesale Marine Products division, which offers fresh, salted and processed marine products, such as prawns, crabs and tuna; the Seafood Sales division, which offers fresh, salted and prepared fish products; and the Overseas division, which offers frozen fish products.

Kyokuyo Co., Ltd. earned revenues of $1.7 billion in 2005. It has a fish-catching segment, and a marine business segment that purchases, processes, cans and sells fresh, salted and frozen fish and seafood products. The company also imports and sells shrimp and sushi from Thai Union Frozen Products.

Maruha Corp. (a company of Maruha Group, Inc.) is one of the largest seafood processors in Japan with annual revenues of $7.6 billion in 2005. Maruha operates three main business segments: the Marine Products segment catches, farms, purchases, processes and sells fish and seafood; the Food Products segment manufactures and sells canned foods, frozen foods, stock farm products and other processed foods; and the Storage and Distribution segment provides frozen storage and distribution services for fish. Maruha's products include canned, frozen and other processed convenience foods, meats, animal feed and fish byproducts. The company has operations in the United States, the United Kingdom, Switzerland and Thailand, and plans to open new plants in China and Thailand to increase production of frozen fish product with edible bones. Maruha Group Inc. and third-ranked Nichiro Corporation are to merge operations on October 1, 2007.

Nippon Suisan Kaisha, Ltd. (Nissui) is involved in fishing, aquaculture, purchasing, processing and sales of fish and seafood products. Nissui had total revenues of $6.1 billion in 2005. Its products include fresh, frozen and canned fish, fish paste, chikuwa⁽⁷⁾, fish sausage, fish cake, fish oil, and feed. Nissui has operations in Japan, the United States, Chile, Argentina, Singapore, Canada (BlueWater Seafood in Lachine, Quebec) New Zealand and the Netherlands. Nissui is expanding its fish farming operations in Japan and abroad in order to secure more stable fish and seafood supplies.

International Competition

Japan imported $17.3 billion worth of fish and seafood products in 2005. China has been the largest supplier of fish and seafood products to Japan in volume and value since 1998, supplying 21.3% ($3.8 billion) of Japan's fish and seafood import market in 2005. The United States was the second-largest supplier with a 9.8% value share ($1.7 billion), followed by Russia (7.9%), Thailand (6.9%) and Taiwan (6%).

About half of Japan's total fishery product imports consist of shrimp, tuna and marlin, salmon and trout, crab, processed eels, cod and pollock roes, and processed shrimp. Table 3 shows Japan's top fish and seafood imports in 2005.

Table 3. Japan's Top Fish and Seafood Imports, 2005

HS Code	Product	Value ($ million)	Top Supplier	Market Share of Top Supplier	Canada's Market Share
30613	Shrimps and prawns, including in shell, cooked, frozen	2361.94	Vietnam	23.17%	3.50%
30420	Fish fillets, frozen	1450.12	China	33.00%	0.43%
160419	Fish, nesoi*, prepared or preserved (whole or in pieces, but not minced)	969.45	China	83.61%	0.00%
30490	Fish meat, nesoi (excluding fish steaks and fillets), frozen	913.48	United States	40.07%	0.12%
30380	Fish livers and roes, frozen	774.32	United States	54.49%	3.24%
30379	Fish, nesoi (excluding fillets, livers and roes), frozen	758.46	United States	25.27%	7.83%
30344	Bigeye tunas (excluding fillets, livers and roes), frozen	654.94	Taiwan	58.75%	0.00%
160590	Molluscs and other aquatic invertebrates (clams, abalone, scallops, squid, etc.), prepared or preserved (including products containing fish meat)	613.83	China	67.76%	0.59%
160520	Shrimps and prawns, prepared or preserved, (including products containing fish meat)	573.89	Thailand	43.48%	0.76%

* not elsewhere specified or indicated
Source: Japan Customs (World Trade Atlas). "Japan Imports." April 2006

Major competitors to Canadian fish and seafood producers in supplying the Japanese market are shown in Table 4.

Table 4. Competitors to Canadian Fish and Seafood Products in Japan, 2005

Country	Major Competing Products
United States	wild salmon/roe sablefish herring/roe	lobster mackerel snow crab	Dungeness crab scallops sea urchin
Chile	armed salmon	sea urchin
Greenland	cold-water shrimp
Russia	wild salmon snow crab	sea urchin Greenland halibut
Norway	farmed salmon groundfish	capelin mackerel
Iceland	capelin	redfish
Australia	lobster

Sources: Agriculture and Agri-food Canada (AAFC). "Canadian Fish and Seafood Sector: Exports to Japan." June 2006; Explorations Unlimited Inc. "Benchmarked Competitiveness Study of BC's Sea Urchin Fisheries." March 30, 2006; and EuroFish. "Lobster." April 2006

There is strong foreign competition in the Japanese fish and seafood market. Foreign agencies that promote fish and seafood exports are active in Japan (e.g. Alaska Seafood Marketing Institute and Norwegian Seafood Export Council office). In addition, many foreign companies are heavily involved in joint ventures and business partnerships with Japanese companies.

For example, Nippon Suisan has partnerships with many foreign-based companies. Nippon Suisan has a global network for developing and marketing of fish & seafood from overseas with the Sealord Group (EU, New Zealand), JP Klausen & Co. (Denmark) and Alaska Ocean Seafoods (U.S.).

Nippon also has partnerships with U.S.-based Fishking Processors Inc., UNISEA Inc. and Gorton's Inc. Fishking Processors Inc. jointly works with Nippon Susian for processing frozen food and distributing to the U.S. and Japanese markets. UNISEA Inc. processes seafood and distributes finished product to Nippon Suisan. Gorton's Inc. processes and distributes frozen food for Nippon Suisan.

In South America, Empresa De Desarrollo Pesquero De Chile is jointly operating trawl fisheries with Nippon Suisan, and Salmones Antartica, S.A. is jointly operating Atlantic salmon culture with Nippon Suisan. Their processing plants are located in Chile and L.A. in the U.S.

Maruha Group also has partnerships with many foreign-based companies. For example, Westwords Seafoods Inc. (U.S.) processes and markets Maruha's seafood products in North America, and Trans-Ocean (100% owned by Maruha) was the pioneer in the introduction of surimi seafoods to markets throughout the United States. Nichiro owns Peter Pan Seafoods, Inc. in the U.S. which processes canned salmon, frozen salmon, salmon roe, crab meat and grounding fish for sales to the US, EU and Japan.

Canadian Position

Canada was the 11th largest fish and seafood exporter to Japan by value in 2005, with a 3.5% value share. Canada is one of Japan's leading suppliers of several products including snow crab, lobster, roe products, and capelin. More than half (more than $225 million) of Canadian fish and seafood exports to Japan in 2005 were shellfish products, with crab being the largest category.

Japan is Canada's second-largest export market for fish and seafood (after the United States) and accounts for more than 10% of Canada's total fish and seafood exports. In addition, Japan is the fifth-largest market for Canadian lobster (after the United States, France, Belgium, Germany and Italy).

Table 5 shows Canada's top fish and seafood exports to Japan by value.

Table 5. Canada's Top Fish and Seafood Exports to Japan, 2005

HS Code	Description	Value ($ million)	Average Annual Change (2000-2005)
30614	Crabs, cooked, frozen	81.07	-2.2%
30613	Shrimps and prawns, cooked, frozen	70.79	10.3%
30520	Fish livers and roes, dried, smoked, salted or in brine	64.79	-10.0%
30380	Fish livers and roes, frozen	34.41	7.8%
30379	Fish, nesoi, excluding fillets, livers and roes, frozen	33.61	6.0%
30212	Salmon Pacific, Atlantic and Danube (excluding fillets, liver and roe), fresh or chilled	26.24	62.9%
30799	Molluscs and other aquatic invertebrates nesoi, frozen, dried, salted or in brine	22.48	3.9%
30791	Molluscs and other aquatic invertebrates nesoi, live, fresh or chilled	17.37	15.1%
30374	Mackerel, excluding fillets, livers and roes, frozen	17	396.9%
30622	Lobsters, live, fresh, chilled, dried, salted or in brine, or cooked, not frozen	15.83	4.8%

Source: Statistics Canada. (World Trade Atlas). "Canada exports". April 2006

A significant volume of Canadian seafood is processed in China before being re-exported to Japan. Canadian exports of snow crab, shrimp, Greenland turbot and mackerel are often processed in China before arriving in Japan. It is difficult to estimate exactly how much Canadian fish and seafood is processed in China and re-exported to Japan, but some herring roe and almost all Canadian salmon roe is stripped in China before being cured in Japan.

There are strong relationships and integration between Japan and Canada in the fish and seafood industry. For example, Japanese companies helped to develop some important Canadian fisheries (e.g. herring roe, capelin, salmon roe, Greenland halibut), Japanese importers send technicians to Canada every year to oversee processing of key fish and seafood species, there are Japanese investments and partnerships in Canada's fish and seafood industry (e.g. Quinlan Brothers Limited of Bay de Verde Newfoundland and a Japanese partner jointly developed a crab and shrimp liquid extract that is exported to Japan, where it is further processed into a flavouring powder), and Japanese tuna buyers are located at Canada's major ports.

With fish and seafood consumption declining among Japan's younger generations, Canadian exporters are re-inventing traditional products to appeal more to these younger consumers. For example, Kazunoko exporters are re-positioning and reformulating their product into an every-day item that is much less expensive and more appealing than the traditional, end-of-year gift item, and spawn-on-kelp exporters are experimenting with different marinades and tempura batters.

Competitive Advantage through Canadian Government Policies and Initiatives

Canadian Agriculture and Food International Program

The Canadian Agriculture and Food International (CAFI) Program is a key element of Canada's international strategy. The program is designed to support Canada's agriculture and food industry by helping to build long-term international strategies that will help ensure that the industry is well-positioned to succeed in key markets, and to respond to increasing consumer demands and global competition.

The CAFI Program matches industry funds dollar-for-dollar to support activities that enhance and promote Canada's reputation as the world leader in supplying safe, high-quality agriculture, agri-food, beverage and seafood products that meet the changing demands of world markets.

As a result, the Canadian agriculture and food industry will enjoy improved access to global markets, and will strengthen its ability to increase international sales. For more information on the CAFI program, visit www.agr.gc.ca/int/cafi-picaa.

Canadian Commercial Corporation

The overarching business objective of the Canadian Commercial Corporation (CCC), Canada's international contracting agency, is to connect Canadian exporters with international public-sector opportunities. CCC accomplishes this through excellence in the delivery of international contracting solutions in complex government-to-government markets. CCC gives Canadian exporters a competitive edge with its government-backed guarantees of contract performance, which reassure foreign government buyers that the terms and conditions of each contract will be fulfilled. For further information, visit www.ccc.ca.

Export Development Canada

Canada's export credit agency, Export Development Canada (EDC), offers innovative commercial solutions to help Canadian exporters and investors expand their international business. Each year, EDC's knowledge and partnerships are used by 7000 Canadian companies and their global customers in up to 200 markets worldwide. EDC is itself financially self-sustaining and a recognized leader in financial reporting, economic analysis and human resource management.

EDC's trade finance and risk-management services to Canadians include:

• insurance solutions that protect Canadian exporters and investors against losses (e.g. accounts receivable insurance, contract insurance and political risk insurance);
• financing solutions for Canadian companies (e.g. pre-shipment financing, equity investments, note purchases and Canadian foreign investments) and for foreign buyers of Canadian capital goods and services (e.g. direct loans, lines of credit, corporate loan syndication, leasing, project finance and investments in Canada);
• contract bonding services that facilitate export sales (e.g. performance security guarantee and surety bond insurance); and
• on-line business solutions for exporters that are reliable and easily accessible.

For further information, contact EDC at (866) 283-2957 (toll-free) or visit www.edc.ca.

International Business Opportunities Centre

Through its unique "company matching" service, the International Business Opportunities Centre (IBOC) connects Canadian companies--in particular small and medium-sized enterprises (SMEs)--with foreign buyers. IBOC works closely with the Canadian Trade Commissioner Service's trade officers, who are located in Canadian embassies and consulates around the world. The business opportunities for Canadian companies, which span all markets and sectors, are handled on a case-by-case basis.

In providing this business lead service, IBOC searches the Trade Commissioner Service database, Industry Canada's Canadian Company Capabilities database, as well as the vast resources of the Internet. In addition, IBOC taps into an impressive Canada-wide network of industry-sector experts at Industry Canada, Agriculture and Agri-Food Canada, and other federal Team Canada Inc departments and agencies. IBOC also consults regularly with experts at industry associations and provincial trade offices.

Business leads are communicated by telephone, face-to-face meeting or by e-mail. Electronic leads are delivered through the Virtual Trade Commissioner (VTC, see below). For further information or to register for the VTC, visit www.infoexport.gc.ca.

Virtual Trade Commissioner

The VTC is an on-line service offered by Foreign Affairs and International Trade Canada's Trade Commissioner Service in partnership with EDC, CCC, Agriculture and Agri-Food Canada, and Canadian Heritage. Through a personalized and password-protected Web page, VTC-registered Canadian exporters receive timely and relevant information on contacts and business opportunities in targeted foreign markets. The VTC offers users direct, on-line access to market information, including market reports, business news, events and business leads related to sectors and markets of interest. Users can request services on-line from a trade commissioner responsible for the industry sector in Canada or in their target markets and may also access the services of VTC partners. They will also automatically receive new information as it becomes available. Canadian exporters can register for a Virtual Trade Commissioner at www.infoexport.gc.ca

CUSTOMERS

Fish and seafood products are purchased from foreign suppliers by Japanese companies involved in the fish and seafood supply chain (e.g. importers, distributers, wholesalers, fish markets, retailers and restaurants). At the last stage of distribution, of course, products are bought by Japanese consumers.

Fish and Seafood Supply Chain Buyers

Japanese importers of fish and seafood products have very stringent buying preferences and demand credibility and consistent supply from suppliers. Fish and seafood buyers place high importance on food safety and the appearance of products. Many Japanese importers tend to reject seafood for flaws that other buyers would ignore. In Japan, the concept of kata (the notion of the ideal form) is extremely important to buyers. For example, the ideal shipment of lobster would be perfectly matched in color, weight and claw size. In Japan, anything less than ideal is regarded as slightly substandard. Even superficial blemishes such as a scar on a fish's tail is cause for rejection. Buyers at Tsukiji market (the largest fish and seafood market in Tokyo) are particularly choosy. When evaluating a fish, it is not uncommon for a buyer to sniff, taste, press the flesh of a fish to determine ideal fat content, look for proper colour and structure of the fish, or slice the tail to look at the quality of the inside of the fish. Buyers seek highly uniform products that meet the ideal of perfection, not necessarily the lowest price.

See Market Logistics for more detailed information on buyers' practices and preferences.

Consumers

Japanese consumers are very quality conscious, with colour, size consistency, packaging and stacking pattern all key indicators of quality to Japanese consumers. Freshness, convenience, food safety and low price are key buying factors for Japanese consumers. Freshness is particularly important for consumers, who typically buy fish the day it is to be consumed and rarely store the product at home for more than a few hours. In a survey conducted in 2003 by Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF), 65% of consumers indicated that freshness or the degree of deterioration was the factor they noted when choosing fresh fishery products, followed by place of origin and brand (33%), quality and fat content (30%), price (20%), indication of best-before dates (13%), taste (10%), color or gloss (8%), indications such as healthy nature, natural, choice or organic (6%), and size or volume (6%).⁽⁸⁾ Many Japanese consumers view frozen and canned fish as inferior to fresh fish, with frozen fish and seafood accounting for only 1% of total fish and seafood consumption.

Consumers also value the notion of kata, and do make some buying decisions based on cultural norms. For example, if lobster is to be served at a Japanese wedding, the claws would not be served because they resemble scissors and it is taboo to mention anything that can be cut at a wedding; furthermore, the lobsters would need to be of uniform size so they would not cause an envious uproar.

December is the best month for selling fish and seafood in Japan as consumers prepare for New Year celebrations.

Regional preferences for fish and seafood varieties differ across Japan. In Hokkaido, sashimi is not very popular, and cuttlefish and salmon are the best-selling varieties followed by tuna and crab. Most crab consumption in Japan, in fact, occurs in Hokkaido. In Kanto, tuna is the best-selling fish and seafood variety, with the region's average per-capita spending well-above the national average. In Kinki, shrimp is the best-selling fish and seafood variety, followed by tuna and cuttlefish. In addition consumption of octopus in Kinki is nearly double that of other regions. In Kyushu, the best-selling fish and seafood variety is horse mackerel (the ninth most-popular species nationwide), followed by shrimp, and yellowtail (the seventh most-popular species nationwide).

MARKET LOGISTICS

In general, fish and seafood distribution systems in Japan are complex, featuring many intermediaries. In most cases, fish and seafood products go through a six-step distribution process before reaching consumers; however, some large retailers eliminate some of these steps (and reduce costs) by purchasing directly from landing markets (a three-step process). Figure 1 shows the typical supply chains for raw fish and seafood products in Japan.

Figure 1. Fish and Seafood Distribution Channels in Japan

Source: Scuster, Edmond W. And Watanabe, Kazunari. "The Impact of e-Commerce on the Japanese Raw Fish Supply Chain." 2001

Because large supermarkets are gaining an increasing share of fish and seafood sales, an increasing number of fish and seafood transactions are skipping central wholesale markets. In the central auction market, buyers typically control price. An example of a direct sales agreement is a fishery co-operative in Fukushima Prefecture that sells fish and seafood products directly to large supermarket chains in Tokyo. Under direct sales agreements, the co-operative is able to negotiate a more favourable price with supermarket buyers directly (up to 30% more).

Distribution margins tend to be higher for fish and seafood products than other food products because they go through wholesale landing markets, and they require constant refrigeration to keep the product fresh. In general, fish and seafood producers receive 20-30% of the retail price of fish and seafood products in Japan. Annex 2 shows the prices of various fish and seafood products at different stages in the supply chain.

Landing Area Markets

There are about 900 landing area markets in Japan, many of them small with limited price-setting ability. It is at the landing area markets that fish is sorted for processing, feed and fresh product according to their size and quality. The price paid for fish in the landing area varies greatly on their end use. If the fish is destined for processing, it is worth about 50% of the price paid for fresh fish. If fish is to be used for feed, the price paid is about 10% of the price paid for fresh fish.

Importers/Trading Companies

Importers and trading companies source foreign fish and seafood products from exporters and then sell these products in the Japanese market. One fish and seafood importer in Japan is Nichirei Corporation. Nichirei's marine products operations import and sell fresh seafood from all over the globe. The principal products imported and sold include pink shrimp, black tiger shrimp and Norwegian salmon. The company has 11 branches and a network of 56 logistics service centres in Japan.

Central Wholesale Markets

Central wholesale markets, established by local Japanese governments under the Wholesale Market Law, sell perishable food products, including fish and seafood. Prices are determined through face-to-face negotiations or public auctions. Sales of fish and seafood products are conducted between authorized wholesalers at the markets and either intermediate wholesalers or authorized buyers.

Authorized wholesalers: These wholesalers are given permission from the MAFF to auction the fish and seafood products consigned to them by producers, and take a 5.5% commission of the wholesale price.

Intermediate wholesalers: These wholesalers are given permission from the central market authorities to sell the fish and seafood products they buy from the authorized wholesalers to buyers through their stores, and to those visiting the market.

Authorized buyers: Retailers and supermarket agents typically buy fish and seafood products from intermediate wholesalers, but may also buy from authorized wholesalers if they receive permission from the central market's authorities. The number of negotiated transactions between supermarkets and authorized wholesalers are increasing in Japan.

There are 54 central wholesale markets in Japan for fish and seafood products, the largest of which is Tsukiji in Tokyo's Central Wholesale Market. Tsukiji is the world's largest wholesale fish and seafood market, handling more than 450 species of fish from all over the world, with sales of about $7 billion annually. About 33% of the fish handled at Tsukiji is fresh, 33% is frozen, and the rest is dried or in other forms. More than 35 000 sushi chefs, restaurateurs, fishmongers and supermarket agents visit Tsukiji each day to buy fish and seafood products.

Authorized Central Market Wholesalers

Seven authorized wholesalers at the Tsukiji market sell fish and seafood products: Daito Gyorui Co., Ltd., Tohto Suisan Kabushiki Kaisha, Daiichi Suisan Co., Ltd., Sougou Syokuhin Co., Ltd., Chuogyorui Co., Ltd., Tsukiji Uoichiba Co., Ltd. and Chiyoda Suisan Co., Ltd.

Chuogyorui Co., Ltd. is one of the largest wholesalers of fish and seafood products at Tsukiji market , handling about 500 species of fish and seafood products through its fresh fish, frozen fish, restaurant fish, tuna and dried fish departments. On a volume and value basis, Chuogyorui mostly handles tuna, shrimp, salmon and trout, fish roe, crab, yellowtail, sea urchin, horse mackerel, squid and octopus.

Daito Gyorui Co., Ltd. owns five fish markets in the Greater Tokyo area and is a subsidiary of Maruha Group, Inc. Daito is affiliated with fish wholesaling, processing and retailing companies, and is increasingly sourcing imported fish and seafood supplies directly from foreign suppliers. Frozen fish and seafood products are being sourced from China and Southeast Asia, and live fish is being flown in from a variety of countries, including Canadian sea urchin, bluefin tuna and lobster.

Tohto Suisan Kabushiki Kaisha has five wholesaler subsidiaries and is involved in cold storage and fish. It has a fish and seafood processing and trading company, Aero Trading Co., Ltd., in Vancouver.

Daiichi Suisan Co., Ltd. sells products on consignment and also on its own account from domestic and international fish and seafood suppliers. Its major product lines include fresh fish (e.g. tuna, mackerel, flounder, bonita, sea bream, shrimp, lobster), shellfish (e.g. sea urchin, clam, oyster, scallop), frozen (e.g. tuna, shrimp, lobster, crab, salmon, trout, cod, herring), and processed (e.g. fish paste, dried sardine, salted salmon and trout, salmon roe, herring roe).

Sougou Syokuhin Co., Ltd. is a medium size seafood wholesaler at the Tsukiji wholesale market involved mainly in the business for fish roes and dried fish products.

Tsukiji Uoichiba Co., Ltd. is involved in the wholesale, trading, processing and sale of fish and seafood products. Tsukiji Uoichiba is also engaged in the refrigerated warehouse business.

Marusen Chiyoda Suisan Co., Ltd. is one of leading wholesalers in Tsukiji fish market specializing in processed seafood, salted and dried seafood. They are also developing new products in corroboration with fishery processors in Japan.

Intermediate Wholesalers

Intermediate wholesalers in Japan tend to have closer ties to retailers, whereas central market wholesalers tend to have closer ties with producers. The intermediate wholesale market has been streamlined in Japan since the 1990s, due to the rising dominance of large retailers and the trend to reduce distribution costs by using less intermediaries. As a result, thousands of wholesalers have either gone out of business or have consolidated. Intermediate wholesalers have a strong reliance on large retailers.

Retailers

There are a variety of retailers in Japan that sell fish and seafood products to consumers including supermarkets, home-delivery services and specialty fish stores. According to a Japan Fisheries Association survey, fish fillets are the most-popular fish format purchased at all of these retailers. Of note is that for home-delivery services, processed fish and seafood products are the second most-popular fish format purchased, whereas at supermarket and fish stores, it is the fourth most-popular format. Table 6 shows the preferred fish format purchased by Japanese consumers from supermarkets, home-delivery services and fish stores (up to two responses per respondent were allowed).

Table 6. Preferred Fish and Seafood Products Purchased at Japanese Retailers, 2005

Source: Japan. Ministry of Agriculture, Forestry and Fisheries (MAFF). "FY2005 Trends in Fisheries: Fisheries Measures for FY2006." 2006

Supermarkets

Most consumers prefer to buy fresh fish and seafood products at supermarkets, which, due to their convenient location, had a 67% value share of total retail fish and seafood purchases in 2003. Fish is the highest selling item in a Japanese supermarket, and consumers make frequent visits to supermarkets to buy fresh fish.

Supermarkets require four stable supply conditions from suppliers--consistent volume, quality, prices and deliveries--and tend to sign supply long-term contracts with large-scale and reliable product suppliers. In addition, many large retailers are increasingly bargaining with and purchasing directly from producers. Supermarkets tend to stock fresh fish selections that are distributed in large volumes, such as tuna and salmon or imported products that come in large lots, and have difficulty supplying seasonal fish that reflects regional taste preferences and local coastal varieties.

Fresh fish is generally delivered to supermarkets by truck. Once the fish arrives, it is soaked in cold salt water to lower its temperature and restore its fluids. Fish is processed (e.g. cut) for the display as needed throughout the day, and orders are placed daily for the next day's fish supply.

Japan has many regional and foreign-based supermarkets. In recent years, some of the major international food retailers have entered the Japanese market through various means of market entry. Costco Wholesale Corp. (U.S.) entered the Japanese market in 1999, opening a supermarket in Fukuoka. Tesco PLC (U.K.) entered the market by acquiring the Japanese retailers, C Two-Network Co. and Frec Corp. Wal-Mart Stores Inc. (U.S.) entered the market by becoming a major shareholder of Seiyu Co. Ltd. Many products carried by these international food retailers are sourced directly from producers rather than wholesalers and distributors.

The Japanese grocery market also contains large domestic food retailers, such as AEON (Jusco), Japan's largest retail chain operator, and Ito-Yokado Co., Ltd, which compete directly with foreign retail giants. Typically, these retailers rely on the use of wholesalers to source their imported products.

Fish Stores

The number of fish stores in Japan has decreased with the growing dominance of large supermarkets. Specialty fish stores tend to differentiate themselves from mass merchandisers by providing a high level of customer service (e.g. recommending seasonal fish and giving advice on how to cook it, and offering seasonal fish). About 90% of consumers who shop at fish stores state that they prefer these stores because they carry many fresh products.

Convenience Stores

Japanese convenience stores are starting to sell fresh fish products. Lawson Inc. and Am/Pm Japan Co. opened stores offering perishable food products in 2005, and Circle K Sunkus began carrying fish and seafood in 2006.

Home-delivery Services

Consumers who prefer to buy fish and seafood products from home-delivery services, such as those of co-operatives, state that they prefer to buy from these retailers because they regard the products as safe. In addition, some producers and fishery co-operatives in Japan are conducting sales of fish and seafood products from landing areas via the Internet and delivering these products directly to consumers.

Market-entry Considerations

Suggested Business Practices

Due to the complex distribution systems and market regulations within the Japanese fish and seafood industry, it is recommended that exporters use a Japanese agent/broker or partner when entering the market.

When doing business in Japan, it is helpful to have business cards that are printed in English on one side and Japanese on the other. Japanese will often refer to each other by their last names followed by san, as an indication of politeness and respect; first names are reserved for use by friends and family. Bowing is also a common sign of respect during introduction; however, a handshake is also acceptable. Giving small gifts, such as small gifts from one's country or city--although not expected--is a traditional aspect of Japanese business culture.

Import Regulations

Tariffs, Duties and Quotas

In Japan, duty is applied on the cost, insurance and freight (c.i.f.) value basis of shipments, and a 5% consumption tax is applied to all imports. Canadian exports are eligible for most-favoured nation (MFN) tariff rates, which range from 1% to 4% for select fish and seafood products (see Table 7).

Table 7. Most-Favoured Nation Tariff Rates for Select Fish and Seafood Products, 2007

Category	Item	HS Code	MFN Tariff Rate
Salmon and trout	Trout, fresh, chilled Salmon, Pacific, Atlantic and Danube Salmonidae, nesoi, fresh or chilled Sockeye salmon	30211 30212 30219 30311	3.5% 3.5% 3.5% 3.5%
	Pacific salmon Trout, frozen Atlantic and Danube salmon Salmonidae, nesoi, frozen	30319 30321 30322 30329	3.5% 3.5% 3.5% 3.5%
Tuna, skipjack or stripe-bellied bonito	Albacore or long-finned tunas Yellowfin tunas Skipjack or stripe-bellied bonito Bigeye tunas	30231 30232 30233 30234	3.5% 3.5% 3.5% 3.5%
	Bluefin tunas Southern bluefin tunas Other	30235 30236 30239	3.5% 3.5% 3.5%
Frozen shellfish	Rock lobster and other sea crawfish Lobsters Shrimps and prawns Crabs	30611 30612 30613 30614	1% 1% 1% 4%
Fresh, chilled, or live shellfish	Rock lobster and other sea crawfish Lobsters Shrimps and prawns Crabs	30621100 30622100 30623 30624	1% 1% 1% 4%

Sources: Customs Tariff Schedule of Japan, and World Tariff Database. "World Customs Duties and Taxes." 2007

For the most part, fish and seafood products do not need an import licence to enter the Japanese market. The exception is those products that are controlled by quotas, such as mackerel and squid. The complicated Japanese import quota system remains a market-access issue for some Canadian products (e.g., surimi, herring). Some exporters have found the system so complex and impenetrable they have elected to sell their products elsewhere.

Customs Clearance and Export Documentation

Documents needed for Japanese customs clearance of fish and seafood products include normal shipping documents (e.g. commercial invoice, packing list, and bill of lading or airway bill), certificate of origin, an import licence (if applicable), an import notification form (two copies), Certificate of Inspection (available from the Canadian Food Inspection Agency), self-inspection results (if applicable), and documents showing the ingredients, additives and manufacturing process (manufacturer certification). Imported food products may also be subject to inspection by the Japanese Ministry of Health, Labour and Welfare (MHLW) prior to customs clearance.

Exporters should consult the MAFF or the Japan External Trade Organization (JETRO) prior to shipping their products, to ensure all necessary certificates have been included.

Local Standards, Certificates or Registrations

Japanese Food Laws

There are three main laws regarding food safety and standards in Japan: the Food Safety Basic Law, the Japan Agricultural Standards Law and the Food Sanitation Law.

The Food Safety Basic Law, implemented in May 2003, sets out the role and function of the Food Safety Commission, which was established on July 1, 2003. The Food Safety Commission is an independent organization that conducts food risk assessments and makes recommendations to the Government of Japan, communicates and consults with consumers and industry stakeholders on food risk issues, and responds to food-borne accidents and emergencies.

The Japan Agricultural Standards Law is administered by the MAFF and addresses issues such as labelling (see below), quarantine inspection and organic food standards.

The Food Sanitation Law is administered by the MHLW to ensure that food is safe and sanitary. Imported food products need certification from the MHLW before they are allowed to enter the Japanese market. The MHLW recommends that the importer or exporter of food products consult the imported food section of the quarantine station of the MHLW at the port of entrance prior to the shipment of the product to ensure the necessary requirements are met. Importers then submit the necessary documents and a Notification Form for Importation of Foods to the MHLW's quarantine station. At the quarantine station, food sanitation inspectors carry out document examination and inspection (if required) to confirm that the foods and products comply with the Food Sanitation Law. Products that do not pass inspection are not eligible for entry to Japan.

In order to expedite customs clearance, Canadian exporters may wish to have their products inspected by the Canadian Food Inspection Agency prior to export and attach the report of the results to the shipment, which may exempt the shipment from inspection at a quarantine station upon arrival. The MHLW also suggests that, to avoid import problems, exporters send a sample of any product that is new to or unknown in Japan to the MHLW port inspectors' office, accompanied by a certificate guaranteeing compliance with required product regulations, prior to commercially exporting the product to Japan.

More information on import procedures under the Food Sanitation Law can be found at the MHLW Web site at www.mhlw.go.jp/english/topics/importedfoods/1.html.

Labelling

All fresh fish and seafood products are required under the Japan Agriculture Standards Law to bear labels that include the name and place of origin.

Labels on processed fish and seafood products are required to indicate the following information, in Japanese and in at least 8-point font:

• name of the product;
• country of origin;
• name of the importer;
• ingredients (not including additives, listed in descending order of weight percentage);
• food additives (listed in descending order of weight percentage, on a separate line than the ingredients list);
• net weight (metric units);
• best-before date, or expiry of consumption date (on perishable products);
• instructions of use, storage or preparation (when absence of such information could cause confusion);
• labelling of biotechnology ingredients (where applicable, see www.mhlw.go.jp/english/topics/qa/gm-food/index.html); and
• allergen labelling listing the possible presence of wheat, buckwheat, egg, milk or peanuts. The MHLW also recommends listing the possible presence of any of the following 20 possible allergens: abalone, crab, mackerel, prawn, squid, salmon, salmon roe, beef, chicken, pork, apple, banana, kiwi, matsutake mushroom, orange, peach, soybean, walnut, yam, cheese.

All processed foods close to fresh foods (including salted mackerel, dried young sardine and lightly roasted sliced bonito) are required to indicate the place of origin of their main ingredients.

Voluntary Labelling

In July 2005, the MAFF formulated voluntary guidelines for the labelling of place of origin of ingredients used in the food service industry.

Some retail chains also include on labels whether the seafood is "fresh" or "frozen and thawed". Traceability and trace-back systems are also marked on labels to appeal to consumers.

Nutritional labelling is voluntary in Japan, but if nutritional labelling is provided, it must conform to MHLW standards. MHLW nutritional labelling standards require that labelling be in Japanese and include content levels of 1) calories, 2) protein, 3) fat, 4) sugar or carbohydrates, and 5) sodium. Food products that are labelled with any one of these five content levels, must be labelled with all five of the required content levels.

Food-Additive Regulations

Food and beverage products containing additives that are not approved by the MHLW will not be allowed entry into Japan. The MHLW maintains a positive list of approved food additives that may be used in food and beverage products in Japan, and also regulates the amount of an additive that may be used in a final food product.

Some additives for use on fish products that are not permitted in Canada may be used on products exported to Japan (see list of approved additives in Annex 3).

For more details, see www.jetro.go.jp/en/market/regulations....

Maximum Residue Limits

On May 29, 2006, the MHLW implemented new regulations on maximum residue limits (MRLs) of agricultural chemicals, feed additives and veterinary drugs in food. Foods containing residues exceeding MRL levels on the positive list of agricultural chemicals are regarded as violations of the Food Sanitation Law and are rejected at the port.

Tolerance levels for mercury and Polychlorinated biphenyls (PCB) for fish and seafood products are:

• total mercury: 0.4 parts per million (ppm), but does not apply to tuna or sturgeon, fish oils, gelatin or other fish byproducts;
• methyl mercury: 0.3 ppm, but does not apply to tuna or sturgeon, fish oils, gelatin or other fish byproducts; and
• PCB: 0.5 ppm, but does not apply to fish oils, gelatin or other fish byproducts.

For more information about the positive list system and MRLs in Japan, see www.mhlw.go.jp...

Certification

Certification requirements for fish and seafood products exported from Canada to Japan are outlined below. These certifications are available from the Canadian Food Inspection Agency, where applicable:

• Certificate of Inspection, Content (for molluscs, an FP 1408 form is required, stating that the paralytic shellfish poison (PSP) content is less than 80 g/100 g.); or
• Live Lobster Statement of Inspection.

A pre-certification procedure is available for processed-fish products exported to Japan, except for the following types of products:

• products to which simple processing has been applied⁽⁹⁾; and
• salted salmon-roe to which sodium nitrite has been added.

Raw Oyster Products

Raw oyster products must originate from an establishment and harvest area/lease published on the List of Canadian Certified Shellfish Dealers and Leases Approved to Export their Products to Japan. For information on how to add an establishment or growing area/lease to this list, contact a CFIA office.

Raw oyster products must be accompanied by a Certificate of Origin and Hygiene stating that:

• The product meets the requirements of the Fish Inspection Act, the Fish Inspection Regulations, and the Canadian Shellfish Sanitation Program; and
• The product originates from oyster harvesting areas where the total coliform geometric mean of the most probable number (MPN) does not exceed specified limits.

The certificate must also indicate the geographic and harvest area, harvest date and growing area/lease number.

More information on certification requirements for exporting Canadian fish and seafood products to Japan can be found at CFIA's website at www.inspection.gc.ca/english/anima/fispoi/export...

Export Credit Risks, Restrictions on Letters of Credit, Currency Controls

Payments in Japan are generally quoted in c.i.f. and letter of credit is the most common payment method used. Unless fish are to be sold at central wholesale markets in Japan through auction, a fixed price is generally negotiated between the importer and exporter. In the case of auction, about 85% of the generally agreed unfixed price is prepaid by letters of credit. It is advisable that companies research the risk of financing receivables through readily available Japan credit information. Export Development Canada also offers the Export Check service, which can provide credit profiles for many foreign customers.

PROMOTIONAL EVENTS

Event/Description	Organizer
4th Japan International Seafood & Technology Expo in Osaka INTEX Osaka, Exhibition Hall 5 Osaka, Japan February 21-22, 2007 (Annual) Internet: www.exhibitiontech.com...	Exhibition Technologies, Inc. Akasaka DS Bldg., 8-5-26 Akasaka, Minato-ku, Tokyo 107-0052 Japan Tel.: (81-3) 5775-2855 Fax: (81-3) 5775-2856 Internet: www.exhibitiontech.com
9th Japan International Seafood & Technology Expo in Tokyo Tokyo Big Sight International Exhibition Centre Tokyo, Japan July 18-20, 2007 (Annual) Internet: www.exhibitiontech.com...	Exhibition Technologies, Inc. As above

KEY CONTACTS AND SUPPORT SERVICES

Canadian Federal and Provincial Government Contacts

Canadian Embassy in Japan 7-3-38 Akasaka, Minato-ku
Tokyo 107-8503 Japan
Contact: Suzanne Lalonde, Counsellor (Commercial) and Trade Commissioner
Tel.: (81-3) 5412-6200
Fax: (81-3) 5412-6254
E-mail: jpn.commerce@international.gc.ca
Internet: www.infoexport.gc.ca/jp

Consulate General of Canada in Osaka
2-2-3 Nishi-Shinsaibashi, Chuo-ku
Osaka 542-0086 Japan
Contact: Toshihisa Seki, Commercial Officer
Tel.: (81-6) 6212-4910
Fax: (81-6) 6212-4914

Consulate of Canada in Fukuoka
FT Bldg., 9th Floor
4-8-28 Watanabe-Dori, Chuo-ku
Fukuoka, Fukuoka-ken 810-0004 Japan
Contact: Koji Fujii, Trade Commissioner
Tel.: (81-92) 752-6055
Fax: (81-92) 752-6077

Consulate of Canada in Nagoya
Nakato Marunouchi Bldg., 6th Floor
3-17-6 Marunouchi, Naka-ku
Nagoya 460-0002 Japan
Contact: Louis-Pierre Emond, Consul and Senior Trade Commissioner
Tel.: (81-52) 972-0450
Fax: (81-52) 972-0453

Canadian Government Trade Office in Hiroshima
Commercial Office--Hiroshima Chamber of Commerce Bldg., 7th Floor
5-44 Motomachi, Naka-ku
Hiroshima 730-0011 Japan
Contact: Mirai Maruo, Trade Commissioner Assistant
Tel./Fax: (81-82) 211-0505 

Canadian Government Trade Office in Sapporo 
Nikko Bldg., 5th Floor
North 4 West 4, Chuo-ku
Sapporo, Hokkaido 060-0004 Japan
Contact: Shinichi Tsujio, Trade Commissioner
Tel./Fax: (81-11) 708-8702

Agriculture and Agri-Food Canada (AAFC)
International Markets Bureau
930 Carling Ave., 10th Floor
Ottawa, ON K1A 0C5
Contact: Greg Folinazzo, International Market Development Officer
Tel.: (613) 759-7523
Fax: (613) 759-7506
E-mail: folinazzog@agr.gc.ca
Internet: www.agr.gc.ca

Alberta Economic Development
Alberta Japan Office
Place Canada, 3rd Floor
3-37, Akasaka 7-chome
Minato-ku, Tokyo 1070052 Japan
Contact: Wes Sawatzky, Managing Director
Tel.: (81-3) 3475-1171
Fax: (81-3) 3470-3939
E-mail: albertajapanoffice@gov.ab.ca
Internet: www.altanet.or.jp

Canadian Commercial Corporation (CCC)
50 O'Connor St., Suite 1100
Ottawa, ON K1A 0S6
Tel.: (800) 748-8191 or (613) 996-0034
Fax: (613) 995-2121
Internet: www.ccc.ca

Canadian Food Inspection Agency (CFIA)
59 Camelot Dr.
Ottawa, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-4550
E-mail: cfiamaster@inspection.gc.ca
Internet: www.inspection.gc.ca

Export Development Canada (EDC) 151 O'Connor St.
Ottawa, ON K1A 1K3
Tel.: (800) 850-9626 or (613) 598-2500
Fax: (613) 237-2690
E-mail: export@edc.ca
Internet: www.edc.ca

Fisheries and Oceans Canada (DFO)
200 Kent St.
Ottawa, ON K1A 0E6
Tel.: (613) 993-0999
Fax: (613) 990-1866
E-mail: info@dfo-mpo.gc.ca
Internet: www.dfo-mpo.gc.ca

Foreign Affairs and International Trade Canada (DFAIT)
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: www.international.gc.ca

Asia and Oceania Commercial Relations (WOA)
Contact: John Burbridge, Deputy Director
Tel.: (613) 996-2458
Fax: (613) 994-2397
E-mail: john.burbridge@international.gc.ca  

Business Sectors Bureau (BMM)
Contact: Adele Deschamps, Senior International Market Analyst
Tel.: (613) 944-0117
Fax: (613) 943-1103
E-mail: adele.deschamps@international.gc.ca

Or

Contact: James Huget, Trade Commissioner
Tel.: (613) 995-1773
Fax: (613) 943-8820
E-mail: james.huget@international.gc.ca

Quebec Ministry of Foreign Affairs
Quebec Delegate General in Tokyo
Shiroyama JT Trust Tower, 32nd Floor
4-3-1 Toranomon, Minato-ku
Tokyo 105-6032 Japan
Tel.: (81-3) 3239-5137
Fax: (81-3) 3239-5140
E-mail: qc.tokyo@mri.gouv.qc.ca
Internet: www.mri.gouv.qc.ca/tokyo (In French and Japanese)

Agriculture and Agri-Food Canada--Regional Trade Contacts

Brian Goldsworthy
St. John's, Nfld.
Tel.: (709) 772-4055
E-mail: goldsworthyb@agr.gc.ca

Heath Coles
Charlottetown, P.E.I.
Tel.: (902) 566-7305
E-mail: colesh@agr.gc.ca

Trevor Winters
Winnipeg, Man.
Tel.: (204) 983-2998
E-mail: winterst@agr.gc.ca

Marg Bancroft
Burnaby, B.C.
Tel.: (604) 666-3054
E-mail: bancroftm@agr.gc.ca

Shelley Manning
Halifax, N.S.
Tel.: (902) 896-0098
E-mail: mannings@agr.gc.ca

Bernard Gravel
Montreal, Que.
Tel.: (514) 283-3815, ext. 506
E-mail: gravelb@agr.gc.ca

Dean Vey
Regina, Sask.
Tel.: (306) 780-7065
E-mail: veyd@agr.gc.ca

Bernard Mallet
Moncton, N.B.
Tel.: (506) 452-3706
E-mail: malletb@agr.gc.ca

Bill Robinson
Guelph, Ont.
Tel.: (519) 837-5822
E-mail: robinsonb@agr.gc.ca

Lorrie McFadden
Edmonton, Alta.
Tel.: (780) 495-2119
E-mail: mcfaddenl@agr.gc.ca

Canadian Industry Contacts

Association of Seafood Producers 
Suite 302, 3rd Floor, Baine Johnson Centre
10 Fort William Pl.
St. John's, NL A1C 1K4
Contact: Derek Butler, President
Tel.: (709) 726-3730
Fax: (709) 726-3731
E-mail: dbutler@seafoodproducers.org
Internet: www.seafoodproducers.org

B.C. Salmon Marketing Council
1100-1200 West 73rd Ave.
Vancouver, BC V6P 6G5
Contact: Grant Snell, General Manager
Tel.: (604) 267-3030
Fax: (604) 266-3097
E-mail: grant@bcsalmon.ca
Internet: www.bcsalmon.ca

Canadian Aquaculture Industry Alliance
75 Albert St., Suite 907
Ottawa, ON K1P 5E7
Contact: David Rideout, Executive Director
Tel.: (613) 239-0612
Fax: (613) 239-0619
E-mail: rideoutcaia@aquaculture.ca
Internet: www.aquaculture.ca

Canadian Food Exporters Association (CFEA)
885 Don Mills Rd., Suite 301
Don Mills, ON M3C 1V9
Tel.: (888) 227-8848 or (416) 445-3747
Fax: (416) 510-8043/4
E-mail: info@cfea.com
Internet: www.cfea.com

Canadian Pacific Kazunoko Association
1100-1200 West 73rd Ave.
Vancouver, BC V6P 6G5
Contact: Christina Burridge, Secretary-Treasurer
Tel.: (604) 377-9213
Fax: (604) 683-4510
E-mail: cburridge@smartt.com  

Canadian Pacific Sardine Association 
6-3555 Westminister Highway
Richmond, BC V7C 5P6
Contact: Don Pepper, Executive Director
Tel.: (604) 303-0141
Fax: (604) 303-0142
E-mail: dapepper@shaw.ca
Internet: www.bcsardines.ca

Fisheries Council of Canada
#900 170 Laurier Ave. W
Ottawa, ON K1P 5V5
Contact: Patrick McGuiness, President
Tel.: (613) 727-7450
Fax: (613) 727-7453
E-mail: pmcguinness@fisheriescouncil.org
Internet: www.fisheriescouncil.ca

Pacific Urchin Harvesters Association (PUHA) and
West Coast Green Urchin Association
902 4th St.
New Westminister, BC V3L 2W6
Contact: Mike Featherstone, PUHA President
Tel.: (604) 932-4559
Fax: (604) 932-4556
E-mail: mike@whistlerhome.com
Contact: Michael Callow, West Coast Green Urchin Association President
Tel.: (250) 665-0690
Internet: www.puha.org

Spawn on Kelp Operators Association (SOKOA)
8120 2 Rd., Suite 186
Richmond, BC V7C 5J8
Contact: Cecil Hill, President
Tel.: (604) 862-2603
Fax: (604) 244-2355
E-mail: chill@telus.net

Underwater Harvesters Association
PO Box 39005
3695 West 10th Ave.
Contact: Michelle James, Executive Director
Tel.: (604) 734-5929
Fax: (604) 734-5919
E-mail: info@geoduck.org
Internet: www.geoduck.org

Japanese Government Contacts

Embassy of Japan in Canada 
255 Sussex Dr.
Ottawa, ON K1N 9E6
Tel.: (613) 241-8541
Fax: (613) 241-7415
E-mail: infocul@embjapan.ca
Internet: www.ca.emb-japan.go.jp

Japan External Trade Organization (JETRO)
JETRO Headquarters
Ark Mori Bldg., 6th Floor
12-32, Akasaka 1-chome, Minato-ku
Tokyo 107-6006 Japan
Tel.: (81-03) 3582-5511
Internet: www.jetro.go.jp

JETRO in Toronto
181 University Ave., Suite 1600
Toronto, ON M5H 3M7
Tel.: (416) 861-0000
Fax: (416) 861-9666
E-mail: inquiry@jetro.go.jp   

JETRO in Vancouver
World Trade Centre
999 Canada Pl., Suite 660
Vancouver, BC V6C 3E1
Tel.: (604) 684-4174
Fax: (604) 684-6877

Ministry of Agriculture, Forestry and Fisheries (MAFF)
1-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100-8950 Japan
Tel.: (81-3) 3591-2874
Fax: (81-3) 3501-3720
Internet: www.maff.go.jp

Ministry of Health, Labour and Welfare (MHLW)
1-2-2 Kasumigaseki, Chiyoda-ku
Tokyo 100-8916 Japan
Tel.: (81-3) 5253-1111
E-mail: admin@mhlw.go.jp
Internet: www.mhlw.go.jp

Office of Port Health Administration
Food Sanitation Division
Tel.: (83-3) 3591-5048

Japanese Industry Contacts

Japan Fish Importer Association (JFTA) and Japan Fish Traders Association
No. 2 Muneyasu Bldg., 1-23
Kandanisikicho, Chiyoda-ku
Tokyo 101-0054 Japan
Tel.: (81-3) 5280-2891
Fax: (81-3) 5280-2892
E-mail: fish@jfta-or.jp
Internet: www.jfta-or.jp

Japan Fisheries Association
Sankaido Bldg., 1-9-13
Akasaka, Minato-ku, Tokyo, Japan
Tel.: (81-3) 3585-6681
Fax: (81-3) 3582-2337
E-mail: japan@suisankai.or.jp
Internet: www.suisankai.or.jp

ANNEXES

Annex 1--Japanese Fish Market Landings (excluding inland water catch), 2002 (Tonnes)

Species	2002
Bluefin tuna (fresh) Bluefin tuna (frozen) Albacore (fresh) Albacore (frozen)	3 771 3 656 30 984 47 340
Bigeye tuna (fresh) Bigeye tuna (frozen) Yellowfin tuna (fresh) Yellowfin tuna (frozen)	9 145 13 299 8 836 8 293
Striped fish (fresh) Striped fish (frozen) Broadbill swordfish (fresh) Broadbill swordfish (frozen)	3 232 364 5 217 827
Skipjack (fresh) Skipjack (frozen) Sardine Round herring	67 770 213 404 40 454 20 535
Japanese anchovy Jack mackerel Scad Mackerel	267 119 158 860 42 691 277 540
Saury Yellowtail Flat fish (fresh) Cod (fresh)	203 665 64 019 34 619 25 238
Alaska pollock (fresh) Alaska pollock (frozen) Atka mackerel Red seabream Snow crab	169 455 4 522 114 040 10 486 4 017
Squids (fresh) Squids (frozen) Flying squid (fresh) Flying squid (frozen) Octopus	149 407 82 906 60 54 649 22 613

Annex 1--Japanese Fish Market Landings (excluding inland water catch), 2003 (Tonnes)

Species	2003
Bluefin tuna (fresh) Bluefin tuna (frozen) Albacore (fresh) Albacore (frozen)	1 571 3 002 27 038 32 051
Bigeye tuna (fresh) Bigeye tuna (frozen) Yellowfin tuna (fresh) Yellowfin tuna (frozen)	8 315 12 235 9 901 7 817
Striped fish (fresh) Striped fish (frozen) Broadbill swordfish (fresh) Broadbill swordfish (frozen)	2 734 457 4 962 693
Skipjack (fresh) Skipjack (frozen) Sardine Round herring	106 609 199 774 42 362 19 385
Japanese anchovy Jack mackerel Scad Mackerel	346 744 202 727 34 514 310 144
Saury Yellowtail Flat fish (fresh) Cod (fresh)	258 626 67 176 36 034 30 863
Alaska pollock (fresh) Alaska pollock (frozen) Atka mackerel Red seabream Snow crab	162 514 749 122 779 10 147 4 342
Squids (fresh) Squids (frozen) Flying squid (fresh) Flying squid (frozen) Octopus	119 284 79 498 701 42 017 24 357

Annex 1--Japanese Fish Market Landings (excluding inland water catch), 2004 (Tonnes)

Species	2004
Bluefin tuna (fresh) Bluefin tuna (frozen) Albacore (fresh) Albacore (frozen)	5 331 2 373 37 789 23 858
Bigeye tuna (fresh) Bigeye tuna (frozen) Yellowfin tuna (fresh) Yellowfin tuna (frozen)	9 165 13 046 7 290 8 056
Striped fish (fresh) Striped fish (frozen) Broadbill swordfish (fresh) Broadbill swordfish (frozen)	2 542 455 5 507 784
Skipjack (fresh) Skipjack (frozen) Sardine Round herring	71 532 207 927 34 152 22 963
Japanese anchovy Jack mackerel Scad Mackerel	325 852 209 591 25 182 328 161
Saury Yellowtail Flat fish (fresh) Cod (fresh)	205 260 74 396 34 063 37 110
Alaska pollock (fresh) Alaska pollock (frozen) Atka mackerel Red seabream Snow crab	164 384 842 149 884 10 357 4 621
Squids (fresh) Squids (frozen) Flying squid (fresh) Flying squid (frozen) Octopus	133 715 50 775 120 46 737 23 756

Annex 1--Japanese Fish Market Landings (excluding inland water catch), 2005 (Tonnes)

Species	2005
Bluefin tuna (fresh) Bluefin tuna (frozen) Albacore (fresh) Albacore (frozen)	4 764 2 037 23 060 18 634
Bigeye tuna (fresh) Bigeye tuna (frozen) Yellowfin tuna (fresh) Yellowfin tuna (frozen)	7 691 12 093 8 044 8 707
Striped fish (fresh) Striped fish (frozen) Broadbill swordfish (fresh) Broadbill swordfish (frozen)	1 992 320 5 253 782
Skipjack (fresh) Skipjack (frozen) Sardine Round herring	108 376 248 397 16 193 23 838
Japanese anchovy Jack mackerel Scad Mackerel	157 649 160 484 19 292 601 916
Saury Yellowtail Flat fish (fresh) Cod (fresh)	226 876 62 595 32 836 47 296
Alaska pollock (fresh) Alaska pollock (frozen) Atka mackerel Red seabream Snow crab	126 846 0 117 426 9 767 3 803
Squids (fresh) Squids (frozen) Flying squid (fresh) Flying squid (frozen) Octopus	120 928 56 440 n/a 38 858 22 475

Annex 1--Japanese Fish Market Landings (excluding inland water catch), 2006 (Tonnes)

Species	2006 (Jan.-Sept.)
Bluefin tuna (fresh) Bluefin tuna (frozen) Albacore (fresh) Albacore (frozen)	2 866 804 21 916 7 762
Bigeye tuna (fresh) Bigeye tuna (frozen) Yellowfin tuna (fresh) Yellowfin tuna (frozen)	10 227 14 696 7 911 20 223
Striped fish (fresh) Striped fish (frozen) Broadbill swordfish (fresh) Broadbill swordfish (frozen)	1 335 10 3 762 n/a
Skipjack (fresh) Skipjack (frozen) Sardine Round herring	73 236 176 066 34 421 12 255
Japanese anchovy Jack mackerel Scad Mackerel	115 515 81 492 13 775 299 470
Saury Yellowtail Flat fish (fresh) Cod (fresh)	90 046 14 483 8 974 25 413
Alaska pollock (fresh) Alaska pollock (frozen) Atka mackerel Red seabream Snow crab	71 616 6 878 44 072 4 515 367
Squids (fresh) Squids (frozen) Flying squid (fresh) Flying squid (frozen) Octopus	23 024 32 014 8 40 204 4 639

Source: MAFF. "Monthly Statistics of Agriculture, Forestry & Fisheries: December 2006."

Annex 2--Average Market Price of Fishery Products at Various Points in the Distribution System, Jan-Aug 2006 ($/kg)

Species	Landing Markets*	Wholesale Market **	Retail***
			Tokyo	Osaka
Tuna			43.81	41.26
Bluefin-tuna (fresh) Bluefin-tuna (frozen) Albacore (fresh) Albacore (frozen)	19.18 21.21 3.81 3.77	31.59 28.91 13.03 9.98
Broadbill swordfish
Broadbill swordfish (fresh) Broadbill swordfish (frozen)	9.39	10.09
Skipjack
Skipjack (fresh) Skipjack (frozen)	2.42 1.44	5.06
Salmon
Salmon (frozen) Salmon (salted) Pink and cherry salmon (salted)		6.76 8.29 7.39	19.77	21.41
Sardines Herring (frozen) Round herring Japanese anchovy Sardines, round herrings, anchovies (salt-dried)	1.19 0.81 0.36	3.54 2.05 9.11	12.54	11.92
Mackerel	0.64		12.75	15.63
Mackerel (fresh) Mackerel (frozen) Atka mackerel	0.63	3.39 5.64
Spanish mackerel
Spanish mackerel (fresh) Spanish mackerel (frozen)		6.46 5.76
Jack mackerel	2.20		12.68	17.48
Jack mackerel (fresh) Jack mackerel (frozen)		4.70 3.69
Scad	1.01
Jack mackerel, scads (salt-dried)		6.01
Saury	2.98
Saury (fresh) Saury (frozen)		4.61 2.21
Yellowtail			27.26	26.86
Yellowtail (natural, fresh) Yellowtail (fish culture, fresh)	4.70	6.74 9.90
Bastard halibut (fresh)		19.14
Flat fish
Flat fish (fresh) Flat fish (frozen)	4.33	8.69 7.46
Cod
Cod (fresh) Cod (frozen)	2.72	6.62 8.17
Alaska pollock
Alaska pollock (fresh) Alaska pollock (frozen)	1.11 1.45
Flounder			19.23	33.92
Red seabream	9.45	10.37	23.88	22.35
Prawns (fresh)		56.98
Shrimp
Shrimp (frozen, domestic) Shrimp (frozen, imported)		13.97 13.57
Snow crab	3.51
Crab (fresh)		13.82
Squid (all)			11.39	10.44
Squids (fresh) Squids (frozen) Squids distant water (frozen) Squids coastal offshore (frozen) Flying squid Flying squid (frozen)	2.67 2.19 2.54 1.53	4.51 4.11
Cuttlefish (frozen)		8.98
Octopus (all)	5.23		27.97	26.03
Octopus (frozen)		9.11
Short necked clam (fresh, with shells)		5.97	12.98	14.43
Common scallop (fresh, with shells)		5.68
Oysters (fresh, without shells)		9.02
Salmon roes (salted)		25.64
Cod roes (salted)		22.14
Herring roes (salted)		14.83
Surimi (frozen)		3.6

* excludes inland catches; ** based on prices from 10 cities' wholesale markets; *** average monthly price (not adjusted for varying quantity sold each month)

Source: MAFF. "Monthly Statistics of Agriculture, Forestry & Fisheries: December 2006." December 2006. Accessed from www.maff.go.jp/toukei/geppo/geppo-e.html on November 22, 2006.

Annex 3--Approved Food Additives for Products Exported to Japan, 2006

Fish Species	Approved Additives
Crab	BL-7P	New Celco-NA
	BS-1	New Celco - SW
	Disodium dihydrogen pyrophosphate	Toyooxin-S
	New Celco - L
Redfish	Ambitol-T	Tairyo Dia Emulsion-T (emulsion form)
	Sodium erythorbate	Tairyo Dia Powder T-15 (powder form)
	Sodium citrate
Shrimp and Prawns	BL-7P	NK 70
	BL-S	Oxinon S
	CI-25	Oxinon W
	Drycut-100 (DC-100)	Pole Ace G
	F. Wrap	Sakuranbo
	Momiji	HI-Polygon
General	Aluminum potassium sulfate (dry)	Oxinon S
	BL-S	Sustane emulsion T
	F. Wrap	T-AOX
	Glaze Nole-F	T-GLX
	Kyoro Tairyo Dia Emulsion T	Tairyo Dia - T
	Nissui-A	Tairyo Dia VE
	Nissui-G

Source: Canadian Food Inspection Agency. "Certification Requirements: Japan." December 6, 2006. Accessed from www.inspection.gc.ca/english/anima/fispoi/export/cert10... on January 9, 2007

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------. "Shrimp Market Report: July 2006--Japan." July 2006. Accessed from www.globefish.org/dynamisk/php4?id=3051 on December 2, 2006.

Interfax. Food & Agriculture Report. "Illegal Seafood Exports to Japan Costing Russia About $830 Mln a Year," October 26, 2005.

ITAR-TASS World Service. "Case of Russia Captain Arrested in Japan Taken to Prosec Office," November 30, 2006.

Japan. Ministry of Agriculture, Fisheries and Forestry (MAFF). "Annual Report on the Developments in the Fisheries in FY2004." 2005. Accessed from www.maff.go.jp/hakusyo/kaigai/fy2004.pdf on November 15, 2006.

------. "FY2005 Trends in Fisheries: Fisheries Measures for FY2006." 2006. Accessed from www.maff.go.jp/hakusyo/kaigai/fy2005.pdf on November 15, 2006.

------. "Monthly Statistics of Agriculture, Forestry & Fisheries: December 2006." December 2006. Accessed from www.maff.go.jp/toukei/geppo/geppo-e.html on November 22, 2006.

------. "Self-sufficiency Ratio of Food by Commodities (Preliminary)." 2003.Accessed from www.maff.go.jp/toukei/abstract/2_5/76.htm on June 7, 2006.

Japan. Ministry of Internal Affairs and Communications. Statistics Bureau. "Annual Report on the Family Income and Expenditure Survey 2005: Statistical Tables." 2005. Accessed from www.stat.go.jp/English/data/kakei/156npt.htm on November 22, 2006.

Japanese News Digest. "Japan Koyo Chemical Completes $7.7 Mln Glucosamine Refining Facility." February 2, 2005.

Just-Food. "Overfishing and Poor Management Threaten Future Fish Stocks." February 23, 2005.

Kyodo News. "Firm Becomes Japan's First to Market Eco-labeled Seafood Products." May 28, 2006.

Mainichi Daily News. "Japanese Travelers Snap up Crab on Holiday." November 2, 2006.

Newfoundland and Labrador. Department of Fisheries and Aquaculture. "Fisheries Diversification Program: Crab and Shrimp Cookwater Extract Development." 2002. Accessed from www.fishaq.gov.nl.ca/FDP/ProjectReports/fdp_137.pdf on November 23, 2006.

Nikkei Report. "Maruha to Make Gelatin from Fish." December 1, 2004.

------. "Circle K Sunkus to Open Convenience Shops Focusing on Perishable Foods." January 19, 2006.

------. "Tuna 'Sashimi' That May Rejuvenate Skin is in Demand." November 16, 2006.

------. "NW: 'Fish Wars' Shake Nation of Seafood-Lovers." November 20, 2006.

Nikkei Weekly. "Windows Open on Pouched Food." February 15, 2005.

------. "Nissui Expanding Fish Farm Operations." August 28, 2006.

------. "Food, Music, Theme Parks Touted for Anti-ageing Effects." October 2, 2006.

------. "Market Reaction Calm, Trade Ban on Falling Imports Means Little." October 16, 2006.

------. "Japan Losing Leverage in Seafood Trade." November 20, 2006.

Onesource. "Hohsui Corporation." 2006.

------. "Kyokuyo Co. Ltd." 2006.

------. "Nippon Suisan Kaisha, Ltd." 2006.

------. "Tsukiji Uoichiba Co., Ltd." 2007.

Sackton, John. "Snow Crab Markets for 2005: A Customer Revolt." Seafood.com. March 29, 2005. Accessed from www.gov.ns.ca/nsaf/marine/SCrabReport/SCrab_Outlook_2005.pdf on November 22, 2006.

Schuster, Edmund and Watanabe, Kazunari. "The Impact of e-Commerce on the Japanese Raw Fish Supply Chain." 2001. Accessed from www.mitdatacenter.org... on January 4, 2007.

Sitnews. "Fish Factor: Snow Crab Catches Double; Prices Creeping Upward." March 11, 2006. Accessed from www.sitnews.us/LaineWelch/031106_fish_factor.html on December 14, 2006.

Swartz, Wilfram. "Global Maps of the Growth of Japanese Marine Fisheries and Fish Consumption." September 2004. Accessed from www.fisheries.ubc.ca/grad/abstracts/wilfthesis.pdf on November 12, 2006.

Thomson Business Intelligence. "Seafood (Frozen, Canned & Fresh Market)." 2005.

Tohto Suisan Kabushiki Kaisha. "Company Outline." Accessed from edi.tohsui.co.jp/Web/profile_e.html on June 1, 2006.

Tokyo Metropolitan Government. "Structure of the Market: Central Wholesale Market." 2006. Accessed from www.tsukiji-market.or.jp/chuou_e/chuou.htm on June 1, 2006.

U.S. Embassy, Tokyo. "Exporting U.S. Fishery Products to Japan (Select sections)." March 3, 2000. Accessed from www.buyusa.gov/alaska/88.pdf on January 5, 2007.

U.S. Department of Agriculture. Foreign Agricultural Service. "Japan Fishery Products Annual Report 2005." September 30, 2005. Accessed from www.fas.usda.gov/gainfiles/200509/146131049.pdf November 24, 2006.

------. "Japan: Food and Agricultural Import Regulations and Standards Annual FAIRS Report 2006." September 15, 2006. Accessed from www.fas.usda.gov/GainFiles/200609/146249059.pdf on December 11, 2006.

------. "Japan Fishery Products Annual Report 2006." October 4, 2006. Accessed from www.fas.usda.gov/gainfiles/200610/146249162.pdf on November 24, 2006.

Vancouver Sun. "Weak Demand Cripples Herring Spawn Fishery: Changing Japanese Tastes Batter the Profit for B.C. Harvesters." February 27, 2006.

World Trade Atlas. "Japan Trade Statistics." November 2006.

OTHER REFERENCE MATERIAL

Useful Internet Sites

Agriculture and Agri-Food Canada. Agri-Food Trade Service: ats.agr.gc.ca

------. "Branding Canada's Food and Agriculture Sector in International Markets": www.brandcanada.agr.gc.ca

ExportSource: exportsource.ca

Food and Agriculture Organization of the United Nations. Fish INFOnetwork: www.globefish.org

Foreign Affairs and International Trade Canada: www.international.gc.ca

------. "Canada in Japan": geo.international.gc.ca/asia/main/japan/canada_in_japan-en.asp

InfoExport: www.infoexport.gc.ca

Japan. Ministry of Agriculture, Forestry and Fisheries (MAFF): www.maff.go.jp

------. Ministry of Economy, Trade and Industry: www.meti.go.jp

------. Ministry of Foreign Affairs: www.mofa.go.jp

------. Ministry of Health, Labour and Welfare (MHLW): www.mhlw.go.jp

------. Ministry of Internal Affairs and Communications. Statistics Bureau: www.stat.go.jp

Japanscan (Monthly news on the Japanese food and drinks processing industry): www.japanscan.com

Strategis: strategis.gc.ca

Web Japan (Gateway for information on Japan)--Statistics: web-japan.org

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1. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on the annualized 2005 Bank of Canada exchange rate ($0.011035:¥1).

2. A saku is a prime cut fish fillet that is cut from the eye of the fish loin and is generally regarded as the finest part of the fish.

3. Surimi is a fish paste made of white fish (e.g. pollock or hake) that is cooked into shapes and commonly marketed as imitation seafood (e.g. crab or lobster).

4. Kamaboko is pureed surimi that is steam-cooked into the shape of a loaf.

5. A prefecture is an administrative district in Japan. Japan has 47 prefectures which are informally divided into eight regions.

6. MSC is a London-based, independent, non-profit organization that promotes well-managed, sustainable fisheries through a certification program for fisheries or companies.

7. Chikuwa is a tube-shaped puréed and steamed fish cake usually made from surimi.

8. Respondents were allowed up to two responses.

9. Simple processing includes exuviation, chopping, comminuting, slight-salt sprinkling and drying, slicing or shucking, or refrigerating.