Japanese Agricultural Policies Towards 2000: Swimming with the Tide
Japanese agricultural policy has undergone substantial change in the last year. Since the completion of the Uruguay Round, the rice market has been partially opened, import quotas on agricultural products have been replaced by tariffs and there has been a general shift away from consumer funding of agricultural programs to funding by taxpayers. These changes are making Japanese agricultural policies more transparent and more open to scrutiny. There is now recognition in Japan that the changes are irreversible and that agriculture will be faced with increasing competition from imports.
The Expansion of Japanese Food Processors in the Asia-Pacific Region
Japanese food processors have been faced with internal and external squeezes in recent years. Internally, the industry is faced with an overall demand ceiling due to Engel's law and a rapidly changing demand structure due to the "westernisation" of the Japanese consumers' taste. Externally, the industry is faced with increased import competition as a result of the liberalisation of the Japanese import market for agricultural and processed food products. Under these pressures, performance of the Japanese food processors in terms of productivity and profitability, is found to be below average, compared with Japanese manufacturing as a whole. Associated with the deteriorating productivity and profitability performance, Japanese food processors have stepped up their foreign direct investment (FDI) activities in the Asia-Pacific region. This development provides both challenge and opportunities for Australian producers and food processors. As most of the Japanese FDIs are either domestic market or export oriented, they are likely to pose serious competition for Australian firms. At the same time, through joint ventures with Japanese firms, the Australian food processors may acquire the inside knowledge of the Asian market which would enable them to capitalise on the enormous opportunities in the Asian food market.
Is the Japanese Distribution System Really Inefficient?
This paper investigates the efficiency of the Japanese distribution system, measured by the distribution margin. Most of the discussions on the Japanese distribution system have so far relied on institutional descriptions and anecdotal evidence, failing to substantiate the case. The present paper will show that the Japanese and U.S. distribution sectors are about the same in terms of value added and distribution margins. Therefore, it is not true that the distribution sector adds up unnecessary distribution costs or earns monopolistic operating profits. This paper will not address a question whether the distribution system is acting as a non-tariff barrier. Thus, even if the distribution sector in Japan is judged to be "efficient," it leaves open a possibility that the distribution system works as a barrier to potential new entrants from both home and foreign manufacturers.