The market appears promising for Wisconsin agricultural exporters.
Japan is the world’s biggest consumer of U.S. agricultural products, and that’s a good reason for Wisconsin farm and food producers to consider selling their goods in Japan—if they’re not already doing so.
Nearly one-fourth of Japan’s food and agricultural imports came from the U.S. in 2021; rounding out the top five sources were the European Union, China, Australia, and Thailand.
Japan purchased $15.6 billion worth of U.S. agriculture and food products in 2021, making it the fourth-largest export market for those products, according to the U.S. Department of Agriculture’s Global Agricultural Information Network (GAIN). Japan is also the largest market in Asia for packaged, ready-to-eat products from the U.S.
Japanese consumers are seeking quality, value, and convenience, as well as food safety.
Japan’s need for imports has risen significantly in recent decades. Historically, the country had more than 13 million acres of farmland, 14 million people employed in agriculture, and 5.5 million farm households until 1960. Then, the government enforced a law that reformed the agricultural sector. As a result, the farming community shrank substantially.
From 1960 to 2005, agricultural production’s share of Japan’s gross domestic product fell from 9% to 1%, employment in the ag sector declined to 2.5 million, and the number of households in the farming industry dropped to 2.8 million, according to the Tokyo Foundation for Policy Research.
Meanwhile, due to declining birth rates, the Japanese population is shrinking and steadily aging. Nearly 30% of the population is over the age of 65, and that number is expected to rise to 35% by 2040, the GAIN report says.
Demand is high for foods considered healthy, such as those that feature antioxidants or reduce cholesterol, and particularly, foods with high protein content.
The GAIN report says beef, pork, and other meat products are among the top 10 food categories showing the greatest growth in demand in Japan. Tree nuts and dairy products rank fourth and fifth, and beer ranks ninth. Japan is the fourth-largest market for Wisconsin dairy exports, according to the Wisconsin Department of Agriculture, Trade, and Consumer Protection.
Business is conducted formally in Japan, often requiring appointments to be made well in advance via email and involving several rounds of negotiations, the GAIN report says.
After more than two years of travel restrictions preventing most U.S. exporters from entering Japan, the Japanese government relaxed the rules in late 2022, allowing U.S. producers to travel to Japan to meet with prospective buyers and attend trade shows.
