Magazines Archives - 2011 December

3/11 Recovery & restoration - Regaining consumer confidence
Story 10 - Cover Story

It is now nine months since the devastating March 11 (3/11) nine-magnitude earthquake struck Sanriku Coast in north-eastern Japan, triggering a massive tsunami that caused a nuclear crisis as well as widespread destruction, loss of lives and disruption to the supply and export of food products. Retail Asia’s team of reporters find out how the triple disaster has impacted businesses specialising in Japanese food products in Asia …

As Japan continues to recover and rebuild from the March 11 (3/11) catastrophe, there is good news from around the region. Importers are delivering food supplies again; Japanese food products are back on supermarket shelves; Japanese restaurants in the region are drawing diners again; and tourists are returning to Japan.

The 3/11 triple-whammy set off a chain reaction, notably the disruption in the export of Japan’s agricultural products and food exports as other countries stepped up their regulations on the importation of Japanese foodstuff, leading to a dramatic decrease in the volume and value of food exports in April and May with year-on-year decreases of 10.3% in April and 16.6% in May, according to the Japan External Trade Organization (JETRO).

The Japanese authorities, in response to the accident at Fukushima Daiichi nuclear power station, lost no time in putting in place safety measures for the inspection of radioactive substances on food exports to allay the concerns of overseas markets.

Japanese agricultural produce and food exports had been consistently on the increase from 2004 to 2007, exceeding the ¥500-billion mark in 2007. The Lehman Shock (the epic failure of Lehman Brothers, the New York-based global financial services firm which went belly-up in September 2008) halted the growth but by 2010, export values had recovered to reach ¥492 billion.

The strong food exports can be attributed to the growing popularity in Japanese cuisine as well as Japanese food products and ingredients that are being sought after by consumers the world over.

Asia, with its large population base and growing affluence, has become Japan’s largest market, accounting for over 70% of all food exports, with the main markets being China, Hong Kong, Taiwan and South Korea. Countries in South-east Asia are also big into Japanese food products and cuisine.

One advantage that Japan’s food export industry has vis-à-vis Asian countries is the proximity of these fastgrowing markets which ensures produce and seafood delivered to supermarkets, gourmet stores, restaurants and catering institutions remain fresh and appealing. Indeed, Japanese produce make some of the most attractive food displays seen in shops throughout the region.

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