Monthly Report for February 2017 Japan I. Activities during February 2017 1. Spearheaded the USDBC trade mission to Japan that took place the week of February 12-17, 2017. The trade mission included meetings with the U.S. Agricultural Trade Office at the U.S. embassy in Tokyo, meetings and reception with the Japan Bean and Pea Importers Association in both Tokyo and Kobe, visits to bean paste manufacturing facilities and confection shops, a meeting with a major Japanese food manufacturer who currently buys dry beans for non-bean paste applications, and a visit to a warehouse in Kobe. A brief synopsis of the itinerary appears below. A trip report will be forwarded separately with the March report. 2. Discussed potential changes being considered by the Japanese government to of Origin Labeling laws with FAS US embassy staff regarding ingredients for food products produced in Japan. More information is expected to be released by the Japanese government at the end of March 2017 and will be forwarded to USDBC at that time. 3. Forwarded import statistics to USDBC for US dry beans for the month of December 2016 Itinerary for USDBC Reverse Trade Mission Report Date: February 12 17, 2017 Participants Mr. Chris Capaul (CA baby lima grower), Mr. Jim Wallace (CA, Colusa Produce) Mr. Gary Huss, Mr. Andrew Carlson (N, Kelley Bean Company), Mr. Nathan Sano (USDBC) USDBC Japan: Jeff McNeill, Hiroshi Furuyama, Itsuki Tomiyama Date Time Hotel Mon, Feb 13 9:00 10:00 11:00 Tue, Feb 14 9:25 12:00 13:10 Meet with USDBC Japan in the hotel lobby Visit to U.S. mbassy ATO Director, Ms. Rachel Nelson and others. 11:30-13:30 Lunch meeting with Importers Association at Hibiki restaurant in Akasaka (walking distance from U.S. mbassy) 14:00-16:30 Store checks/free time 16:55 Depart for dinner from Okura by a shuttle bus 17:30 Meiji Kinenkan tour 18:00-20:00 Dinner with importers (place: Meiji Kinenkan http://www.meijikinenkan.gr.jp/english/) Bus departs for Asakusa (visit Matoba Bakery in Asakusa) Lunch nearby Matoba-seian plant (USDBC only) Plant Tour at Matoba Seian in Matsudo, Chiba Hotel: Okura Tokyo 1
Date Time Hotel 16:30 18:00 Wed, Feb 15 10:00 AM 16:00 17:30-19:30 (1hr from Tokyo by car) Traditional Wagashi shop Saka-sho tour Back to hotel Check-out, move to Tokyo station by jumbo taxi Bullet Train travel to Kobe (3.5 hrs from Tokyo) Importers Association meeting Place: inside the hotel (Room: Forest Wind on 35th Floor) Dinner with importers (35 th floor) Thu, Feb 16 9:10 10:00-12:00 Leave hotel by Jumbo taxi Meeting with Fujicco in Kobe (http://www.fujicco.co.jp/english/index.html) 14:00 Warehouse visit at Sugihara Sangyo in Kobe 17:00 Back to hotel Fri, Feb 17 10:00 Check out Fly out of Kansai International airport (70 minutes by airport shuttle bus from the nearby station from the hotel) Hotel: ANA Crowne Plaza Kobe II. Dry Bean Import Statistics The Japanese import statistics for U.S. dry beans for the first month of 2017 are attached. After increasing by 9.5% in November 2016 and 96.4% in December 2016, imports of U.S. dry beans fell sharply in January 2017 as importers adjusted inventories. Overall, exports of U.S. dry beans to Japan as measured by the Japanese government decreased 64.2% versus the previous year to 280 MT. Sales of baby lima beans decreased 67.8% versus the prior year to 182 MT. Imports of U.S. kidney beans, including great northern beans, decreased 56.3%, while Adzuki Beans (small red beans) were not imported. Imports of U.S. garbanzo beans decreased 48.8% compared to the same period in 2015. US baby lima exports to Japan have been negatively impacted by the sharp decline in the prices of Myanmar butter beans the past year and the influence of the strong dollar. The large Japanese domestic dry bean crop last season, especially for adzuki beans and white otebo beans, also has hurt US adzuki and great northern bean imports. Shipments are expected to rebound in February but the current negative competitive environment is expected to continue for the next several months Bean Category Adzuki (Small red) (HS code 071332010) Kidney Beans (Great Northern, Tebou & Navy beans) (HS code 071333221) Other Bean (includes baby limas) (HS code 071339226) Garbanzos (HS code 071320020) U.S. Dry Bean xports to Japan January (MT) YTD(MT) 2016 2017 % Chg. 2016 2017 % Chg. 0 0 #DIV/0! 0 0 #DIV/0! 176 77-56.3% 176 77-56.3% 565 182-67.8% 565 182-67.8% 41 21-48.8% 41 21-48.8% TOTAL 782 280-64.2% 782 280-64.2% Souce: Japanese Government Import Statistics 2
III. Market Conditions Imports of dry beans from around the world to Japan for the Pooled Quota were 4,268 MT for the first month of 2017 compared to 3,799 MT the same period in 2016, an increase of 12.3%. xports of Myanmar butter beans, with which baby lima beans compete, were 346 MT for the January period, compared to 63 MT for the same period in 2016. xports of Myanmar butter beans have increased dramatically as a result of very low prices for most of 2016. Despite increasing demand from China for Myanmar butter beans, the price of Myamanr beans (see below) remains nearly half that of U.S. baby limas on a delivered to Japan basis. Prices of domestic Japanese adzuki beans have increased due to rains during the 2016 harvest which reduced the size of this year s crop. However, according to industry sources, sufficient inventories of domestic adzuki beans exist to carry through to the 2017 summer harvest. Baby Limas: Prices for U.S. baby limas as measured on a CNF basis to Japan were 133.3/kg in January 2017 compared to 151.4/kg in January 2016. On a yen basis, the value of baby lima bean imports was 24 million yen (approximately $0.22 million) for the first month of 2017. Prices of Myanmar butter beans clearing customs in January decreased 29.1% versus the same period of the prior year, and were 62.2/kg in January on a CNF basis to Japan compared to 87.7/kg, the same period in 2016. Prices for Myanmar butter beans have declined sharply due to lowered demand from China and a large butter bean crop. This led to an increase in the exports to Japan as Japanese importers took advantage of extremely low prices from Myanmar. CNF Price Japan Port, HS code 0713.39.226 IV. General conomic Conditions The Japanese GDP economy rose only 0.2% in the last quarter of 2016. Overall GDP grew less than 1.0% in 2016, reflecting the continued weakness of the Japanese economy. Prime Minister Abe travelled to the U.S. to meet President Trump in February 2017 to discuss economic and security ties. As a result of their meetings, talks on potential economic bilateral ties were agreed to be initiated in April between the two countries. Vice President Pence and Deputy Prime Minister Aso will spearhead the negotiations. V. Projects for March Yen Price/kg CNF Japan January 2017 January 2016 YTD 2016 YTD 2015 Myanmar Beans 62.2 87.7 62.2 87.7 USA Lima Beans 133.3 151.4 133.3 151.4 Source: Japanese Government Import Statistics Follow-up issues from the 2017 USDBC trade mission to Japan on February 12 to 17 Prepare a trip report draft in conjunction with the USDBC trade mission leader Research and report updates to Japanese requirements for of Origin Labelling for 3
ingredients for domestically produced Japanese foods Begin writing the US for 2018 Forward U.S. dry bean import statistics for the month of February 2017 to USDBC 4
The dry bean quota for the second half of fiscal 2016 (October 1, 2016 March 31, 2017) was announced by the Japanese government as of October 3 rd as follows: 1. General Quota Small red (Adzuki) beans: 13,000 MT Peas and broad bean: 8,000 MT Pegin beans & other beans, excluding small red, peas, & broad bean: 13,000 MT 2. Okinawa Quota Dry beans: 1,600 MT Due Date of Customs: March 31, 2017 5
How to read charts The charts include the following columns: : Harmonized code number : Year and Month for data : Name of xporting Unit: Metric Ton (MT) : Quantity in MT Value in 000 yen Share - % A Price: Average price CNF Japan per kg in yen : Cumulative data for the above on a calendar year basis : 071332010 includes small red beans 071333221 includes kidney beans such as Great Northern and Otebou 071339226 includes other beans such as baby limas Data for the current and preceding year is included for comparison s sake. 6
January 2017 0713.32-010 Small red (Adzuki) beans (Phaseolus or vigna angularis), shelled, dried, for "the Pooled Quota" 2017/01 Import Provisional Data Ascending Order by Code (Value 1,000yen) '0713.32-010 i 201701 TOTAL 990 MT 2517 387165 100 153.82 2517 387165 100 153.82 200.854 104.012 '0713.32-010 i 201701 CHINA 105 MT 1905 291787 75.365 153.169 1905 291787 75.365 153.169 267.567 109.831 '0713.32-010 i 201701 CANADA 302 MT 612 95378 24.635 155.846 612 95378 24.635 155.846 113.943 89.505 0713.33-221 Kidney beans, including white pea beans (Phaseolus vulgaris), excluding rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2017/01 Import Provisional Data Ascending Order by Code (Value 1,000yen) '0713.33-221 i 201701 TOTAL 990 MT 859 119636 100 139.274 859 119636 100 139.274 90.811 92.91 '0713.33-221 i 201701 CHINA 105 MT 78 18076 15.109 231.744 78 18076 15.109 231.744 50.994 90.47 '0713.33-221 i 201701 MYANMAR 122 MT 13 1358 1.135 104.462 13 1358 1.135 104.462 - - '0713.33-221 i 201701 CANADA 302 MT 501 68818 57.523 137.361 501 68818 57.523 137.361 156.847 99.403 '0713.33-221 i 201701 USA 304 MT 77 7844 6.557 101.87 77 7844 6.557 101.87 24.02 31.421 '0713.33-221 i 201701 PRU 407 MT 18 5004 4.183 278 18 5004 4.183 278 80.334 106.513 '0713.33-221 i 201701 BOLIVIA 408 MT 7 1847 1.544 263.857 7 1847 1.544 263.857 - - '0713.33-221 i 201701 BRAZIL 410 MT 39 7886 6.592 202.205 39 7886 6.592 202.205 61.909 - '0713.33-221 i 201701 ARGNT 413 MT 106 7270 6.077 68.585 106 7270 6.077 68.585-73.494 '0713.33-221 i 201701 THIOP 538 MT 20 1533 1.281 76.65 20 1533 1.281 76.65 - - 7
0713.39-221 Pegin beans (Phaseculus calcaratus), excluding rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2017/01 Import Provisional Data Ascending Order by Code (Value 1,000yen) '0713.39-221 i 201701 TOTAL 990 MT 122 11026 100 90.377 122 11026 100 90.377 62.007 155.121 '0713.39-221 i 201701 THAILND 111 MT 42 5620 50.97 133.81 42 5620 50.97 133.81 36.204 100.447 '0713.39-221 i 201701 MYANMAR 122 MT 80 5406 49.03 67.575 80 5406 49.03 67.575 239.309 357.303 0713.39-226 Other beans (Vigna spp., Phaseolus spp.,), excluding pegin beans (Phaseculus calcaratus), and rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2017/01 Import Provisional Data Ascending Order by Code (Value 1,000yen) '0713.39-226 i 201701 TOTAL 990 MT 679 75004 100 110.462 679 75004 100 110.462 72.498 68.032 '0713.39-226 i 201701 CHINA 105 MT 109 24632 32.841 225.982 109 24632 32.841 225.982 222.934 297.596 '0713.39-226 i 201701 MYANMAR 122 MT 346 21523 28.696 62.205 346 21523 28.696 62.205 76.543 389.698 '0713.39-226 i 201701 USA 304 MT 182 24264 32.35 133.319 182 24264 32.35 133.319 37.742 28.368 '0713.39-226 i 201701 PRU 407 MT 42 4585 6.113 109.167 42 4585 6.113 109.167-42.003 8
0713.20-020 Chickpeas (garbanzos), excluding those rendered suitable solely for sowing by chemical treatment, shelled, dried 2017/01 Import Provisional Data Ascending Order by Code (Value 1,000yen) '0713.20-020 i 201701 TOTAL 990 MT 91 14462 100 158.923 91 14462 100 158.923 93.46 114.063 '0713.20-020 i 201701 (. U) 991 MT 1 1079 7.461 1079 1 1079 7.461 1079-100.466 '0713.20-020 i 201701 BANGLA 127 MT 2 371 2.565 185.5 2 371 2.565 185.5 - - '0713.20-020 i 201701 ITALY 220 MT 1 1079 7.461 1079 1 1079 7.461 1079-100.466 '0713.20-020 i 201701 TURKY 234 MT 2 407 2.814 203.5 2 407 2.814 203.5 - - '0713.20-020 i 201701 CANADA 302 MT 42 6450 44.6 153.571 42 6450 44.6 153.571 93.927 187.555 '0713.20-020 i 201701 USA 304 MT 21 3698 25.57 176.095 21 3698 25.57 176.095-69.186 '0713.20-020 i 201701 AUSTRAL 601 MT 23 2457 16.989 106.826 23 2457 16.989 106.826 98.084 356.604 9
January 2016 0713.32-010 Small red (Adzuki) beans (Phaseolus or vigna angularis), shelled, dried, for "the Pooled Quota" 2016/01 Import Fixed Annual Ascending Order by Code (Value 1,000yen) '0713.32-010 I 201601 TOTAL 990 MT 2024 372232 100 183.909 2024 372232 100 183.909 142.041 79.278 '0713.32-010 I 201601 CHINA 105 MT 1403 265670 71.372 189.359 1403 265670 71.372 189.359 192.662 88.005 '0713.32-010 I 201601 CANADA 302 MT 621 106562 28.628 171.597 621 106562 28.628 171.597 92.405 65.649 0713.33-221 Kidney beans, including white pea beans (Phaseolus vulgaris), excluding rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2016/01 Import Fixed Annual Ascending Order by Code (Value 1,000yen) '0713.33-221 I 201601 TOTAL 990 MT 856 128765 100 150.426 856 128765 100 150.426 189.146 85.489 '0713.33-221 I 201601 CHINA 105 MT 94 19980 15.517 212.553 94 19980 15.517 212.553 69.52 105.894 '0713.33-221 I 201601 CANADA 302 MT 418 69231 53.765 165.624 418 69231 53.765 165.624 399.348 74.643 '0713.33-221 I 201601 USA 304 MT 176 24964 19.387 141.841 176 24964 19.387 141.841 130.832 86.375 '0713.33-221 I 201601 PRU 407 MT 19 4698 3.649 247.263 19 4698 3.649 247.263 - - '0713.33-221 I 201601 ARGNT 413 MT 149 9892 7.682 66.389 149 9892 7.682 66.389-231.284 10
0713.39-221 Pegin beans (Phaseculus calcaratus), excluding rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2016/01 Import Fixed Annual Ascending Order by Code (Value 1,000yen) '0713.39-221 I 201601 TOTAL 990 MT 62 7108 100 114.645 62 7108 100 114.645 110.82 101.196 '0713.39-221 I 201601 THAILND 111 MT 41 5595 78.714 136.463 41 5595 78.714 136.463-79.655 '0713.39-221 I 201601 MYANMAR 122 MT 21 1513 21.286 72.048 21 1513 21.286 72.048 23.589-0713.39-226 Other beans (Vigna spp., Phaseolus spp.,), excluding pegin beans (Phaseculus calcaratus), and rendered suitable solely for sowing by chemical treatment and certified as seeds for the sowing vegetables in accordance with the provisions of Cabinet Order, shelled, dried, for "the Pooled Quota" 2016/01 Import Fixed Annual Ascending Order by Code (Value 1,000yen) '0713.39-226 I 201601 TOTAL 990 MT 772 110248 100 142.808 772 110248 100 142.808 98.624 73.115 '0713.39-226 I 201601 CHINA 105 MT 59 8277 7.508 140.288 59 8277 7.508 140.288 16.749 38.104 '0713.39-226 I 201601 MYANMAR 122 MT 63 5523 5.01 87.667 63 5523 5.01 87.667 27.191 49.273 '0713.39-226 I 201601 USA 304 MT 565 85532 77.581 151.384 565 85532 77.581 151.384 218.825 74.54 '0713.39-226 I 201601 PRU 407 MT 85 10916 9.901 128.424 85 10916 9.901 128.424 367.666 351.11 11
0713.20-020 Chickpeas (garbanzos), excluding those rendered suitable solely for sowing by chemical treatment, shelled, dried 2016/01 Import Fixed Annual Ascending Order by Code (Value 1,000yen) '0713.20-020 I 201601 TOTAL 990 MT 85 12679 100 149.165 85 12679 100 149.165 218.19 89.725 '0713.20-020 I 201601 (. U) 991 MT 1 1074 8.471 1074 1 1074 8.471 1074 - - '0713.20-020 I 201601 MYANMAR 122 MT 5 812 6.404 162.4 5 812 6.404 162.4-122.844 '0713.20-020 I 201601 INDIA 123 MT 8 1320 10.411 165 8 1320 10.411 165-90.597 '0713.20-020 I 201601 ITALY 220 MT 1 1074 8.471 1074 1 1074 8.471 1074 - - '0713.20-020 I 201601 CANADA 302 MT 23 3439 27.124 149.522 23 3439 27.124 149.522-74.583 '0713.20-020 I 201601 USA 304 MT 41 5345 42.156 130.366 41 5345 42.156 130.366 97.59 79.574 '0713.20-020 I 201601 AUSTRAL 601 MT 7 689 5.434 98.429 7 689 5.434 98.429 206.287-12