18 November 1987



Report of the Panel adopted on 2 February 1988
(L/6253 - 35S/163)

2.4 Starch and Sugar Products

2.4.1 The Agricultural Products Price Stabilization Act (hereinafter referred to as "the Price Act"), enacted in 1953, aims at assuring the minimum selling price of potatoes and sweet potatoes. In 1965, MAFF regulation "Adjustment of domestic production of potato starch and sweet potato starch", based on the Price Act, established a target for national potato and sweet potato starch production which is allocated to Prefectures. This measure requires the governors of prefectures producing potatoes and sweet potatoes for starch to elaborate production programs for potatoes, sweet potatoes, potato starch and sweet potato starch, according to the allocated quantity, and these programs must be approved by MAFF. Under the regulation, these programs are based on the national production target level, converted to acreage of, potatoes and sweet potatoes on the production target to starch processors and potato growers. Prefecture governors enforce the production restrictions on farmers producing these products. In addition, every year the federations of starch processors are required to submit their rules adjustment programs for MAFF approval. The "Outline of sales adjustment of agricultural products based on the [Price] Act", issued by MAFF, stipulates that Government approval of sales adjustment programs is to be granted only when the quantity indicated in the programs is deemed appropriate with regard to the demand for starch and to the production programs previously mentioned. The Price Act stipulates that the Japanese Government is to purchase the quantity of potato starch and sweet potato starch offered by producer federations when these are engaged in sales adjustment programs and the farmer's selling price of potatoes and sweet potatoes to the federations is above the level of prices fixed by the Price Act, when it is deemed necessary to prevent the price of starch from dropping below an appropriate level. Federations of producers not complying with the target production and sales programs are excluded from the government purchase program during periods of price declines, Table 2.4 indicates the target and actual production levels of potatoes, sweet potatoes, potato starch, sweet potato starch and all starches in Japan. Approximately 60 per cent of the potato starch and sweet potato starch produced in Japan is used for the production of "mizu-ame" (a viscous sweetener) and other sugars for Use in confectionery products and beverages.


Dried Leguminous Vegetables
(Unit: '000 tons)

Crop Year (CrY-Oct.-Sept.) or Fiscal Year (FY)1965197019821983198419851986
Target planting acreage Hokkaido ('000 ha.) (CrY)
Actual planting acreage Hokkaido ('000 ha.) (CrY)131.8115.
Total actual planting area ('000 ha.) (CrY)234.6182.297.1101.999.487.980.2
Domestic production ('000 tons) (CrY)279.0254.6157.798.2173.1145.2131.7
Planned import quota7 (FY)173.5154.8112.5117.3122.6120.1116.9
Okinawa quota8
Total actual imports9148.3153.8143.7143.9124.9119.4131.9
Small red beans
- Quota28.733.727.811.123.5
- Imports36.237.531.410.225.4
- Quota18.018.717.222.419.4
- Imports21.225.019.622.626.0
Broad beans
- Quota16.212.913.116.115.8
- Imports15.115.811.515.415.1
French beans and others
- Quota49.652.064.570.558.2
- Imports71.265.662.471.265.4
7 Planned quota is published in dollars converting from volume.
8 Okinawa quota is not divided for 4 categories.
9 Import quota and actual imports do not necessarily coincide, due to time lags, etc.

2.4.2 Starch and insulin (11.08 ex) imports into Japan are subject to a planned quota. In addition, imports for processing into special use (i.e., explosives, building material, etc.) are included in the Miscellaneous Import Quota, whereas imports into Okinawa are part of that specific quota. Imports under the Planned Quota are allocated to users (manufacturers), those under the MIQ to users and trading companies, and those under the Okinawa quota to trading companies. Allocation to newcomers is permitted under all quotas. The planned quota amounts are announced twice annually, with the timing of the announcement depending on the planned end-use of the imported starch and insulin. The quota for imports for processing into sugar is usually announced in April and October; for processing into chemical seasoning, during the latter part of April or early May and again in the latter part of October or early November; and the quota for imports for the production of modified starch is usually announced in August and February. The total value of the Miscellaneous Import Quota (including starch and insulin for special use) is announced in May and November; the special quota for Okinawa is announced in June and November. Modified starches are not subject to quota. Quota levels and actual imports are given in Table 2.4. Imports of glucose and other sugars (17.02 ex) and of food preparations not elsewhere specified, mainly consisting of sugar (21,07 ex), are subject to the Miscellaneous Import Quota. In both categories, quota allocations are made to users (manufacturers) and to trading companies, and newcomers may receive quota allocations.


Starch and Insulin, Glucose and Sugar Products
(Unit: '000 tons)

Starch year (Oct.-Sept.)19651970198319841985
Planted area - Total ('000 ha.)469288193195196
Production of potatoes and sweet potatoes9,0116,1754,9455,1075,254
- of which used for starch3,6702,3131,8722,0082,078
Largest production level - potato and sweet potato starch700500400400400
Actual production - Potato and sweet potato starch800474358400410
Total starch production1,159N/AN/AN/A2,260
Import quota10 (FY)5.043.7136.2144.4150.8
Actual imports10 (CY)
Glucose and other sugars
Production 130128129
Permitted imports (FY) 0.0310.0330.060
Actual imports (CY) 0.0040.0070.021
Sugar food preparations
Permitted amount (FY) 2.90110.510.45
Actual imports11 (CY) 0.960.751.54
10 Include MIQ and Okinawa quotas and imports
11 Include items consisting of sugar less than 50 per cent by weight, liberalized in 1984

2.5 Groundnuts

2.5.1 Measures concerning groundnut production have been in force since the 1960's. Area planted to groundnuts has declined since that time. Production measures were reinforced in 1984 as programs to reduce rice cultivation increased farmers' interest in peanut production. Under the Agricultural Basic Law, MAFF directed the Principal Groundnut-Producing Prefectures Liaison Council (composed of eight prefectures accounting for 94 per cent of total domestic production) to implement restrictive measures on the production of groundnuts. Before the annual seeding period, MAFF determines the desired planting area for the eight prefectures, based upon cultivation plans submitted by the eight prefectural governments, in cooperation with producer associations, and taking account of long-term supply/demand projections and short-term trends such as groundnut prices. The Government's decision regarding target planting area is then given to the Liaison Council, and subsequently to the member prefectures and to the agricultural associations and cooperatives. The associations and cooperatives then apportion total targeted cultivation area for each prefecture to individual farmers. Cooperatives are responsible for reporting any excess cultivation and generally for marketing farmers' groundnuts. Guidelines are also set by MAFF and the governments of the eight prefectures, which are authorized by the Agricultural Cooperative Law to supervise agricultural cooperatives. In the case of farmers whose cooperatives report them in two consecutive years as exceeding their target area, the MAFF directive indicates that such measures may be taken as removing the farmer from the list of those eligible to receive subsidies or loans from the Government or from the prefecture. The target cultivation area as well as actual cultivation area and production levels in Japan are indicated in Table 2.5.

2.5.2 Groundnuts (12.01 ex) are subject to a planned quota and to a special quota for Okinawa. The quota is allocated to trading companies, based on their past performance. Allocation of the Okinawa quota to newcomers is permitted. A minimum import quota of 55,000 tons was established in FY 1984. The actual annual import quota, as well as actual imports, are indicated in Table 2.5. Processed groundnuts are not subject to import restrictions.

2.6 Beef Products

2.6.1 The Law Concerning Price Stabilization of Livestock Products established a price stabilization scheme for beef with the aim of expanding domestic beef production and consumption. The price stabilization system is operated by the Livestock Industry Promotion Corporation (LIPC) , which purchases domestic beef at central wholesale markets whenever the price of beef falls, or is likely to fall, below the minimum stabilization price, and which sells domestic as well as imported beef whenever the price exceeds, or is likely to exceed, the maximum stabilization price. LIPC also releases beef to the market when the price of beef is within the stabilization range in its efforts to stabilize the production and consumption of beef. Data on Japanese production of beef and beef products is contained in Table 2.6.


(Unit: '000 ha.)

Calendar Year196519701983198419851986
Target planting area (8 prefectures)27,326,825,3
Actual planting area (8 prefectures)59,355,727,826,925,122,7
Actual planting area - Nationwide (CrY: Oct.-Sept.)66,560,129,728,726,824,3

(Unit: '000 tons)

Production- In-shell:136,6124,249,451,350,546,6
- Shelled:80,778,331,227,431,929,4
Import quota12 (FY)27,054,062,456,058,055,3
Actual imports1225,159,059,862,957,256,5
12 Shelled. Includes Okinawa quota of 1,000 m.t./year.


Prepared Beef
(Unit: '000 tons)

Fiscal year19821983198419851986
Domestic production:
of beef483505539556559
of prepared beef products148159154153N/A

(Unit: tons)

Planned quota (boiled beef)4,7004,7004,7004,7004,500
Actual imports of boiled beef4,3624,1544,0094,422N/A
MIQ allocations2,5242,5542,8252,8702,920
Actual imports under MIQ2,3012,4742,3182,394N/A
Okinawa quota (canned beef)1,1001,1001,1001,1001,100
Actual imports into Okinawa935716787643N/A

2.6.2 LIPC maintains monopoly rights, based on the Livestock Products Price Stabilization Law, to import beef, whereas some categories of beef and beef products may be imported by users and traders. The tariff category to meat of bovine animals, prepared or preserved (16.02 ex) , includes a wide range of products such as seasoned beef, boiled beef, canned beef, etc. With respect to these products, a planned quota has been established for boiled beef, canned beef enters Okinawa under its special quota, and all other prepared beef products are included in the Miscellaneous Import Quota (MIQ) . Allocation of the Planned Quota, Okinawa Quota and MIQ, is made to LIPC, end-users and traders based on their past performance. The import quotas ("permitted imports" under the MIQ) and actual import amounts are indicated in Table 2.6.

2.7 Fruit Products

2.7.1 Under the Fruit Growing Industry Promotion Special Measures Act, the Government has promulgated the Basic Policy for Fruit-Growing Industry Promotion, which determines target levels of production in line with the long-term prospects of demand for fruit. The Regulation on long-Term Prospects of Demand of Fruit and various directives by MAFF on control of new plantings of citrus, apples, grapes, peaches and pineapples, require the establishment of production plans in accordance with the Government's policy. Programs to control new plantings were introduced in FY 1974 for Unshu-mikan (oranges), in 1981 for grapes, in 1982 for pineapples and peaches, and in 1984 for apples. For apples and grapes, the prefectures are to prepare planting programs for five consecutive years in line with the target national acreage proposed by MAFF, and report the actual planting acreage every year. For peaches, the target planting acreage is established directly by MAFF. Okinawa prefecture establishes the target planting area for pineapple at a level not exceeding the 1985 planted acreage and subject to MAFF approval. The governors of the prefectures give guidance to municipal and local authorities and to farmers' co-operatives to ensure that the target planting programs of each prefecture are not exceeded. Under the Regulation on Acreage Reduction of Unshu-Mikan Orchards, implemented in FY 1979, MAFF sets annual target acreage for these oranges which is then allocated to individual farmers through producer organizations. The Government also subsidizes producers for the costs of extracting Unshu-Mikan tree roots and of converting to other fruit plants. The Regulation on Control of Production of Apple Juice (implemented in FY 1986) requires prefectures to submit an annual shipping plan of apples for juice which must be approved by MAFF. Farmers who cultivate and ship in excess of the target amounts may be deleted from eligibility for government subsidies or loans.

2.7.2 There is no differentiation in Japanese production of fruits destined for fresh consumption or for processing. More than 75 per cent of Japanese production of most fresh fruits are consumed fresh, with the notable exceptions of Unshu-mikan oranges (30 per cent processed), and pineapples (essentially all processed, no more than 10 per cent into juice, remainder canned). Data on target and actual planted acreage, production of fresh fruit and of various fruit products is given in Table 2.7.1.

TABLE 2.7.1

Fruit products
(Unit: ha.)

Calendar year19821983198419851986
Planting acreage:
Apples- TargetRR54,700
- Actual53,10053,90054,30054,40054,700
Grapes- TargetLLLL28,400
- Actual29,60029,30028,80028,40028 000
Peaches- TargetLL16,10016,10016,100
- Actual16,30016,10015,70015,30015,000
Pineapples- TargetLLLL2,260
- Actual2,8702,4702,2302,2602,160
Unshu-mikan- Target127,000120,000118,000115,000111,000
- Actual125,900120,700116,400115,000108,400
Other,citrus13- Target
- Actual49,30049,90050,08049,90049,640

(Unit: '000 tons)

Production of: (Crop years)19821983198419851986
Apples9251 048812910986
Other citrus13808871801800806

(Unit: tons)

Fruit purée and paste:
Planned quota (FY)3,0002,0002,0002,000
MIQ allocation14-112-4

TABLEAU 2.7.1 (cont.)

Fruit products
(Unit: ha.)

Calendar year19821983198419851986
Fruit pulp:
Import quota (FY)5,0722,000162,000162,00016
Fruit juice:
Production of juice of:17
Total domestic production24,01034,79923,27235,27634,149
Planned import quota (FY)184,5006,50011,5008,000
MIQ permitted amount2,738kl2,666kl3,179kl4,412kl
13 Other citrus includes Natsu-mikan, Navel orange, Hassaku and Iyokan
14 No applicant for quota in 1983 or 1985
15 Figures include those products liberalized in 1984
16 Figures exclude those products liberalized in 1984
17 Equivalent to one-fifth concentration R = Restriction of new planting
18 Including minimum quotas for apple and grape juices

TABLE 2.7.2

Fruit Juices
(Unit: tons or kilo liter)

ItemsKind of quota1983198419851986
Concentrated grape juicePlanned quota (FY)3,500t3,5004,0004,500
Actual imports (CY)3,200t3,3644,1064,280
Concentrated apple juicePlanned quota (FY)-2,000t6,500*3,000
Actual imports (CY)-141t5,2063,149
Concentrated pineapple juicePlanned quota (FY)---500t
Actual imports (CY)
Concentrated other non-citrus juicePlanned quota (FY)1,000t1,0001,0001,000
Actual imports (CY)-98t34029
Juice excluding orange and pineappleMiscellaneous quota (FY)2,000kl1,6001,5001,600
Concentrated berry juice for manufacturing useMiscellaneous quota (FY)2,000kl1,2001,2001,296
Fruit juice for baby foodMiscellaneous quota (FY)430kl7821,3731,516
Grape juiceOther quota for specific purpose (FY)2kl449
Apple juiceOther quota for specific purpose (FY)---16
Pineapple juiceOther quota for specific purpose (FY)306kl282299267
*Included emergency quota of 5,500 tons.
Note: 1. Import quota and actual imports do not necessarily coincide, due to time-lags.
2. Although all the actual allocation of MIQ or other quota for specific purpose are utilized, actual imports are not statistically available on an annual basis.
3. Concentrated juices other than berry juice for manufacturing use are equivalent to 1/5 concentrate.

2.7.3 Imports of fruit purée and paste (20.05 ex) made from grapes, apples, pineapples, peaches, or certain citrus are subject to a planned quota, with the exception of fruit purees and pastes for baby food, which are included in the Miscellaneous Import Quota. All products were previously included in the MIQ but were recently assigned planned quotas. In 1984, purees and pastes made from prunes, berries and tropical fruits were exempted from the quota restriction altogether. Allocation of import permits under the planned quota is generally made to trading companies, and allocation to newcomers is permitted. Fruit pulp (20.06 ex) , made from grapes, apples, pineapples, peaches, or certain citrus is also subject to a planned quota. The quota is allocated to trading companies, and allocation to newcomers is permitted. Table 2.7.1 indicates both quota and actual import levels.

2.7.4 Fruit juices (20.07 ex, excluding citrus and tomato juice), are subject to various types of quotas. Concentrated juice of apples, grapes, pineapples and other non-citrus fruits are subject to a planned quota. Planned quota allocations are made to users, and newcomers are granted allocations. Other, non-concentrated fruit juices (except orange and pineapple juice) , as well as fruit juices for baby food use and concentrated berry juice for manufacturing use, are included in the Miscellaneous Import Quota. Single-strength orange, pineapple, grape and apple juice are subject to a special quota for hotel, shipping and airline use only. Announcement of the planned quota is usually made in February for concentrated apple juice (1,000 ton minimum annual quota since 1984); in January for grape juice (3,500 ton minimum annual quota since 1984); in December for pineapple juice, and in July for other non-citrus juices. The MIQ allocations are made to end users and trading companies, and allocation to newcomers is permitted only for juice for baby food use and for concentrated berry juices for manufacturing purposes. Import quotas and actual imports of the various types of fruit juices are given on Table 2.7.2. There are no restrictions on the importation of fresh fruits, other than oranges and tangerines, into Japan.

2.8 Preserved Pineapple

2.8.1 Pineapple production in Japan occurs almost exclusively in Okinawa Prefecture, and over 90 per cent of the pineapple production is destined for processing (primarily canning) as opposed to fresh consumption. Imported frozen pineapple is also canned in Japan. Pineapple production has been subject to the Basic Policy for the Fruit Growing Industry Promotion. In FY 1982, MAFF provided administrative guidance to the Governor of Okinawa to restrict new planting. Directives issued by MAFF in FY 1986 on "Guidance to be Given Immediately in Planting of Fruit Trees", "Production control of canned pineapples" and "Stabilization of Demand and Supply of Canned Pineapples" urge the Governor of Okinawa to establish a planting plan for five year periods, with target cultivation acreages, and to report the results every year. This target cultivation acreage is allocated through municipalities and Agricultural Cooperative Associations to producers or groups of producers. In addition, since FY 1986 the Governor and concerned associations have been required to submit annual shipping targets of raw pineapple for canning for government approval. Farmers who cultivate and ship in excess of the target amount may be deleted from the list of those eligible to receive subsidies or loans from the government. Target and actual cultivated area for pineapple, as well as pineapple and canned pineapple production, are indicated in Table 2.8.



Fiscal year1982198319841985
Growing area (Unit: ha.)2,8702,4702,2302,260
Target growing area19RRRR
Production of pineapple (Unit: tons)51,50044,30035,90041,100
for processing20 (Unit: tons)48,10041,30033,10038,000
(Unit: 10,000 cases)
Actual production of canned pineapple10597 87
(incl. made from frozen pineapple imports)(157)(155)(152)(167)
Import quota - preserved pineapple90909090
Actual imports - preserved pineapple89838591
19 Target growing area set at 2,260 ha. for each year from FY 1986 - FY 1990
20 Target of shipping for canning (FY 1986) 31,000 tons
Actual volume of shipping 30,100 tons
R = Restriction of new planting

2.8.2 Prepared and preserved pineapple (20.06 ex) is imported under a planned quota, which is allocated to trading companies based on their past performance; allocation to newcomers is not permitted. Table 2.8 indicates the actual levels of imports, as well as the planned quota level.

2.9 Tomato Products

2.9.1 Tomatoes for processing are distinct in terms of varieties, characteristics, cultivation, harvesting and distribution methods from tomatoes produced in Japan for fresh consumption. Tomatoes for processing use are not used for direct table consumption but only for the production of tomato products. Tomatoes for direct table consumption are not used for processing in Japan. The "Execution of Projects for the Production Control of Vegetables for Processing Use and Processed Vegetable Products", issued in 1981 by MAFF, deals with restrictions on plantings of tomatoes for processing use. Processors are also to restrict the production of tomato juice, tomato ketchup and tomato sauce. MAFF determines target production levels for two categories of tomato products: tomato juice, and tomato ketchup and sauce. These desired production levels are communicated through the National Council for Production Control of Tomato for Processing and Processed Tomato Products to agricultural cooperatives and tomato processors. The cooperatives make contracts with the processing plants with regard to their cultivation acreage and prices. Tomato processors are obliged to buy all the tomatoes produced in the contracted areas. Should a farmer ship out tomatoes produced from an area in excess of the allocated cultivation area, the trading prices of all tomatoes already shipped out by his agricultural cooperative will be reduced by 30 per cent.

2.9.2 Tomato juice produced in Japan is "fresh pack" juice made from fresh tomatoes. After extraction of the juice, the resulting tomato puree is generally further processed into ketchup or sauce by the same processing plant.