NEWS in Japan　　

by Rice Databank co.,ltd.

-Aug.11.2008-

◆WTO negotiation broke down, but strengthening of competitiveness is important

The WTO negotiation broke down. It is said that early resumption of the negotiation is hard, however, it is expected to be severe development for Japan even if the negotiation would be resumed, as the proposal by the director-general, Pascal Lamy (the number of agricultural product’s important items provides for 4 percent in principle and 2 percent is possible to be added with some conditions) was far away from the insistence by Japanese government(8 percent). So, strengthening of competitiveness on domestic rice is important.

As far as rice, even if the chairman’s proposal would be adopted, it is hard to predict that rice would be out of important items. Also, it is hard to be thinkable that overseas rice price including tariff (even if tariff would be cut by 20−50 percent from 341 yen per kilogram, the current tariff rate) could compete against domestic rice, too.

However “Rice price is possible to fall sharply, different from wheat and soybean” (one trading company) and if Japan keeps the high tariff rate, import amount of MA rice comes to increase in it ’s place, so import rice over a million tons at least was expected to be forced.

While restraint of rice export has been done, there is a question whether import increase over 300,000 tons is possible, however, the influence was considered no less.

In the staple food industry, there was an opinion that had been expected “Adjustment using mark-up may be done, but the rate of import rice at SBS bids may increase from a common sense point of view, too”. As of staple food use, although export of domestic rice equivalent to import rice is requested by the Diet’s decision, impact to demand of low-priced rice is inevitable if the amount of import rice results in increasing.

Sales increase of MA import rice for the processing industry and feed use will lead to decrease of domestic rice demand finally. Indirectly, the tariff rate of rice processing products is a question, too. If import of half-processing products on rice snack food will increase, the impact will bounce to demand of domestic raw rice. Although the negotiation is postponed, we can’t be optimistic all the way.

Announcement of the first SBS bid in FY 2008 hasn’t been done. Some trading companies request early holding of the bid because “Commercials hope it”.

◆Continued import rice rising

Trade of SBS import rice has been brisk. Price of Chinese polished rice, whose trade volume is large, has been rising gradually since this spring and it was 225 yen per kilogram, last week. U.S.A. rice was over 230 yen as well.

The reason of foreign rice price rising is shortage of domestic low-priced rice. There is rare domestic rice below 13,000 yen per 60 kilogram except for Central American rice, etc. and rice at over 13,000 yen comes from only Hokkaido and Kyushu, and 2005’s rice.

As to 2007’s rice, price of Koshihikari rice, etc. has been overheated out stndingly, but price of Kanto and Fukushima Koshihikari 1st-grade was about 14,000 yen a year ago. Now ,“Low-priced rice” and 2005’s rice are about 14,000 yen, so all the rice is nearly rising.

-Jun.10.2008-

◆U.S.A. rice planting is likely to decrease.(the meeting for opinion exchange between MAFF and trading companies)

The outline of“The meeting for opinion exchange on the information of international food supply and demand”between the Ministry of Agriculture, Forestry and Fisheries(MAFF) and some trading companies held in MAFF in May was concluded.

As to grain price in future, there was no optimistic view like recovering to cheap price just as it was before and the need that should be noticed various changing factors such as weather risk, etc. was recognized.

As to rice, the opinions are as follows:

▽it is self-sufficient grain and it is needed that the trade rate is lower than the other agricultural products. Under the situation that change of supply and demand in one rice production country could offer large effect trade and international price, at present, export regulations by export countries have been carried out.

▽Australia had suffered disastrous defeat due to drought in the last two years, so water can’t be used for rice, a miner crop in the country, and rice production has decreased substantially and reserve for export has disappeared.

▽U.S.A. has been progressing to shift rice to the other crops which don’t need water by reselling water concession, therefore, there is possibility of decreasing rice planting. Moreover, short breed rice production could go down after this because middle breed rice price and short breed rice price have been the same

level.

▽Although China has been trying to increase rice production positively, there is possibility not to reach the level that reserve for export can be obtained.

▽The earthquake in Sichuan province, China and the damage of the cyclone in Myanmar could affect rice supply and demand.

The attendees were seven companies which consist of Itochu Corp., Kanematsu Corp., Sumitomo Corp., Toyota Tsusho Corp., Marubeni Corp., Mitsui & Co., Ltd. and Mitsubishi Corp.

-May.7.2008-

◆There was no knocked down rice.(MA normal import at the tenth bid)

The Ministry of Agriculture, Forestry and Fisheries (MAFF) held the tenth bid for MA normal import rice in FY 2007 on April 22nd, and it resulted in no knocked down rice. It seems that the high grain prices in the world markets have impacted the bid.

The summary was: of 62,502 tons for planned amount, 41,502 tons for unsuccessful amount and 21,000 tons for unknocked down amount.

As to the bids in FY 2007, the planned amount wasn’t knocked down all through March in the year, so the leftover amount was carried over to the next year.

Normally, the first bid in new fiscal year comes to be held in May, but the result seems to give a large impact how the bids in FY 2008 should be.

-Apr.1.2008-

◆MA normal rice in FY 2007 has been left without knocking down all within the year.

Although MA normal import rice in FY 2007 has been left without knocking down part of its planned amount, the information hasn’t been announced to trading companies as of the morning on March 28th and knocking down isn’t expected.

The accumulative knocked down amount for MA normal import rice until the ninth bid was 530,550 tons. About 580,000 tons (the actual results in two consecutive years in the past) except for 100,000 tons at the SBS bids was imported for normal rice, so about 50,000 tons is seen to have been remaining. A factor being delayed knocking down is rise of rice price in the international market.

As to the leftover amount, one trading company said on the severe situation, “Thai rice may be treated, however, sellers know our situation, so they could take advantage of us”. The Ministry of Agriculture, Forestry and Fisheries (MAFF) said “There are some double or triple-crops in Thailand, so it could be thought to look at the trend that new rice will be marketed”. Therefore, it seems that the plan after this hasn’t been decided yet.

-Mar.14.2008-

◆At the fifth SBS bid, no knowing down of Chinese rice and 70 percent of knocked down rice was U.S.A. glutinous rice.

At the fifth SBS bid in fiscal year 2007 held on March 5th, 3,000 tons was applied to Chinese rice, but there was no knocking down to it.

Meantime, as to U.S.A. rice, application was 9,000 tons and knocking down was 2,700 tons, which accounted for 86 percent of the planned amount, and the positions between Chinese rice and U.S.A. one were reversed.

The poisoning matter caused by Chinese frozen food in Japan resulted in no knocking down to Chinese rice, and it showed how large the impact was.

Also, it seems that the reason of no knocking down to Chinese rice was a high price for buying and that Chinese rice was pushed out by U.S.A. one.

Moreover, at the bid, the leftover amount of broken polished rice was filled with normal rice, so whole of the planned amount was knocked down. About SBS bids in fiscal year 2007, all of 100,000 tons, the planned amount, was knocked down.

-Feb.6.2008-

◆Chinese polished rice was 248 yen per kilogram at the fourth SBS bid.

At the fourth SBS bid in fiscal year 2007 held on January 18th, of 29,908 tons, its planned limit amount, application amount was 40,808 tons and knocking down amount was 26,728 tons. The bid was done with the leftover amount at the second SBS bid, however, knocking down amounts for normal rice and broken polished rice didn't reach their planned limit amounts respectively.

As to about 3,000 tons, the leftover amount, the Ministry of Agriculture, Forestry and Fisheries (MAFF) said “We have not decided whether the fifth SBS bid will be done or the leftover amount will be included into the Minimum Access amount for normal rice”.

For normal rice, its planned limit amount was 26,918 tons and application amount 39,000 tons. There was strong demand as leftover, but knocking down amount was cut due to the price set up by MAFF.

The delivery price of Chinese un glutinous polished short breed rice was 248 yen per kilogram(6 yen up compared with last bid). Its markup decreased to 82 yen(5 yen down), but buying price increased to 165 yen(11 yen up). The price increase is seen to have added 13 percent on export tax and 5 percent on tariff.

-Jan.11.2008-

◆The fourth SBS bid will be held on January 18th.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) will hold its fourth SBS bid in this fiscal year. Although it is a month behind compared with last fiscal year, MAFF said “We hold it in the light of various situations, but it has been held in January before. Since it will be held after mid-January, participants like trading companies and wholesalers won’t be confused.”

Its planned amount is 29,908 tons including the unknocked down amount at the second bid, and of the amount, 26,918 tons is for normal rice and 2,990 tons is for broken polished rice. The amount for broken polished rice increases by 490 tons, however, there was no knocking down for broken polished rice at the third SBS bid. Even the fourth bid, it is likely to remain without knocking down all, so it is taken notice including the whole demand whether knocking down will be filled with normal rice or not.

The time limit for shipment is until February 18th, this year (March 31st for payment by government subsidies) and the time limit for delivery is until March 18th (May 9th for payment by government subsidies). In a normal year, imports on the fourth bid often have been shifted in April and May, so buying from commercial side will respond observing sales resumption of government-controlled domestic rice.

-Dec.9.2007-

◆Australian 2008’s rice production is expected to be 15,000 tons, equivalent to one percent of two years ago.

Australian Ricegrowers Co-Operative Limited announced its release relating to drought recently.

In the announcement, Gary Helou, who is a Chief Executive Officer(CEO) of the Ricegrowers, said“2008’s　rice planting completed virtually. Harvest is expected to be about 15,000 tons (husks base), the lowest since 1928”.

The amount is based on the survey to producers and is revised downward from about 50,000 tons estimated by the crop report of Australian Bureau of Agricultural and Resource Economics (ABARE) in October.

As to Australian rice production, 2006’s rice was nearly one million tons scale, 2007’s rice was 150,000 tons due to impact of drought, and 2008’s rice is expected to be 15,000 tons, down to nearly one percent of two years ago.

Also, according to the release, the Ricegrowers decided to close down two rice mills at Deniliquin and Coleambally temporarily by next April and to change the working system at Leeton mill from three shifts to two shifts a day.

-Nov.9.2007-

◆A high-grade “Ristorante”is holding “Calrose Fair”.

As reported already, USA Rice Federation has been propagating California Calrose actively to the distribution market in Japan including restaurant business since this September.

The Federation has been developing new “Proposal of rice cooking” different from the so-called Japanese food“ Boiled rice” as concept, and as its part, at “Ristorante Luxor Marunouchi” (Tokyo), a Calrose Fair is being held for a month, from November 1st through 30th.

At the Ristorante, for every week’s lunch, different taste of “Risotto” is provided, and for dinner, seven kinds of dishes with dessert can be enjoyed as special menu.

-Oct.10.2007-

◆2008’s rice planting is expected to be about 6,000 ha. (Australia)

In Australia, 2008’s rice planting area, which is being planted now, is expected to be even lower than the previous year due to the impact of the drought in two consecutive years. According to the report by Australian Bureau of Agricultural and Resource Economics (ABARE), rice planting area in New South

Wales is predicted to decrease by 63 percent than the previous year to 6,000 ha and harvest is predicted to decrease by 70 percent to about 50,000 tons (husks base).

Last year also, at the beginning, 45,000 ha of planting area and about 50,000 tons of harvest had been predicted, however, part of planting area was abandoned on the way, and finally, harvest resulted in about 15,000 tons (husks base).

Australian Ricegrowers Co-Operative Limited said “Water shortage is worse than expectation. At present, we expect about 60,000 tons of harvest, and of it, a little of short breed is included”.

-Oct.3.2007-

◆Organic rice will be exhibited at the organic EXPO.(Fukuoka Nosan)

Fukuoka Nosan Co. Ltd. (Tagawa county, Fukuoka prefecture) will exhibit its brand foods at“ BioFach Japan −Organic EXPO” held on October 10th to 12th. Its exhibition place is a hall of the west exhibition building at Tokyo Big

Site.210 companies in 21 countries are planning to participate in the EXPO and Fukuoka Nosan is ready to exhibit many items of organic food centering on California Landburg Farm produced Akita-komachi that is a standardized brand “Organic Guild” at the food-agri zone in the EXPO, too.

“Organic Guild” is a standardized brand of organic food set up by 17 food makers including Fukuoka Nosan, Itoham Foods, Kibun Foods, etc. in September. The brand foods are sold at large-scale food stores such as Izumiya, Uny. At present, 30 items of the brand foods are arranged to sell and it is planned to enlarge to 100 items in 2 or 3 years.

-Aug.6.2007-

◆“Calrose”will be introduced centering on restaurant business on September 1st.

Last month, U.S.A. Rice Federation announced at its press conference held in a hotel in Tokyo that it appealed large-scale introduction of “Californian Calrose” into the private rice market in Japan.

The Federation proposed new fashion to be considered Calrose as new cooking material to make it free itself of “The feeling of staple food” as before, introducing international rice cooking methods such as“ Salad”,“Rizzoto”,“Doria” as menu.

Also, it appealed that Calrose could be widened the selection range by Japanese consumers in creating the potentiality of new food material and could be extended rice consumption finally.

Meantime, the Federation unveiled that its rival feeling against Chinese rice which is about to invade into the share of U.S.A. export rice and explained that it could be competed enough against Chinese rice on price.

Moreover, it showed its extraordinary eagerness to win back the share of U.S.A. export rice to Japan combining Koshihikari, Akitakomachi, etc. produced in U.S.A. which have been exported to Japan so far.

-July.6.2007-

◆Due to deadlock of WTO, bilateral negotiations will be main part.

In the negotiations of World Trade Organization (WTO), the G4(U.S.A., EU, Brazil and India) ministerial meeting broke down, and as the result, the possibility of its resolution became much less within this year.

As the election of the U.S. President is in the coming year, it is forecasted that the actual negotiations will be resumed two years later.

Trade negotiations after this will focus on bilateral ones such as FTA and EPA. Japan has already begun bilateral negotiations with South Korea, India, Vietnam, Australia and Switzerland. In those bilateral negotiations, argument that seeks to provide the upper limit of tariff on all items could be avoided and any country that exports a large quantity of rice and exerts a decisive influence on the rice market in Japan could not be found among those countries, so a risk that domestic rice in Japan could suffer serious damage from import rice has got away for the time being.

-June.20.2007-

◆Chinese polished rice didn’t fall to the price that buyers wanted, only 15yen down compared with last bid.

The first SBS bid in FY 2007 was held on June 8th and the whole contractual planned amount, 25,000 tons was knocked down. About the bid, it is said “As there was no new Australian rice, spirit lacked” (one trading company), however, the application amount for normal rice was 53,000 ton, above the first bid or the fourth bid in the previous fiscal year, indicating the strength of demand to cheap rice. The offering price of Chinese polished rice was below last bid (the fourth bid in FY 2006), but it didn’t reach the price that buyers wanted.

As to Chinese unglutinous polished short breed rice, which was the main part at the bid, its delivery price was 257 yen per kilogram(15 yen down compared with last bid). One rice wholesaler said “We saw the mark-up to be around 90 yen, but it seems that the mark-up below 100 yen wasn’t realized”. Its buying price was 3 yen up compared with last bid due to exchange rate, etc.

Meantime, the delivery price of U.S.A. rice was 245 yen, 33 yen down compared with last bid as its buying price was 16 yen down. It is said “The buying price has been increasing at the spot market, so those who had left their long-term contracts knocked down the rice”.

-May.11.2007-

◆About 10,000 tons will be delivered after April. (the SBS bids in FY 2006)

The time limit for delivery on the fourth SBS bid in FY 2006 was until May 1st, however, some dealers didn’t receive the residual rice by the end of March, and about the rice that was delivered after April, the Ministry of Agriculture, Forestry and Fisheries (MAFF) said “There were some dealers who brought the rice at the last moment of the time limit, and judging from the number of the applicants, the delivery amount will be around 10,000 tons.” The amount corresponds to 10％ of the annual import rice in SBS bids and it seems to meet shortage of leftover rice ,etc. after spring.

Also, although the date of the first SBS bid in FY 2007 hasn’t been decided yet, if there is no uncertain factor, it should be held on a day between late May and early June. As the sales of government-controlling domestic rice have been continuing, it seems that treatment of overseas rice doesn’t have to be hurried.

-May.1.2007-

◆Commercial Exports of Japanese rice in FY 2006 as of the end of December were 810 tons.

Commercial exports of domestic rice from Japan from April to December in FY 2006 totaled 810 tons, above 760 tons, the previous year’s amount.

In the background of economy development in the East Asia including Taiwan, Hong Kong and Singapore, rich people have been increasing and Japanese food has been spreading in the area.

According to the survey by the Ministry of Agriculture, Forestry and Fisheries (MAFF), it reported that, in Taiwan, 156 tons of Niigata Koshihikari (760-820 yen per kilogram) had been sold for retail sale or box lunch at supermarkets for food processing and that 5.6 tons of Shimane’s agricultural chemical-less, healthy, fine rice(750-800 tons) had been sold for well-off people at department stores.

The survey also said that, in Hong Kong, 27 tons of Niigata Koshihikari and Fukushima Hitomebore, etc. (1,000 yen per kilogram) had been sold at department stores and that, in the U.S., 39 tons of Tochigi Koshihikari(550 yen per kilogram) had been sold for local consumers at large-scale stores.

-Apr.5.2007-

◆Opening of the second creative rice cooking contest (USARF)

U.S.A. Rice Federation (USARF), which has been endeavoring spread and enlightenment of U.S.A. rice, will carry out a menu contest on creative rice cooking, this year also, following “Californian-style‘ SUSHI’Master contest”held last year. The aim of the contest is to provide the way to pleasure in U.S.A. rice and to encourage the demand of the new rice in spreading the opportunities of rice cooking in Japan.

The second contest looks for novel and creative cookery of the rice adding not only Californian short breeds (Koshihikari and Akitakomachi) but also the original Japonica middle breed“Calrose”newly.

The persons who are engaged in cooking or opening up of menu, etc can participate in the contest and they compete in two categories, Creative SUSHI category and Calrose category.

For“SUSHI Master”and“Calrose Master”, the most excellent works, the reward of 100,000 yen and travel to California will be provided and for the others, gold, silver and copper prizes are prepared respectively.

-Mar.26.2007-

◆Harvest of 2007’s Australian rice will be about 100,000 tons.

Harvest of 2006/07 Australian rice has already been beginning at early area. Due to shortage of irrigated water, planting area has fallen to 12,000 ha and the crop report released by Australian Bureau of Agricultural and Resource Economics (ABARE) predicted “Harvest will decrease by 90 percent compared to the previous year to 106,000 tons (husks base)”.

Also, Australian Ricegrowers Co-Operative Limited said “It is sure to be around 100,000 tons. Most of the rice is middle breed and short breed is about 2 percent of the whole. That means short breed is 2,000 tons level at most.

The short breed is dominant to Australian domestic demand and we are considering how much to be distributed.”, so it is still uncertain whether there are reserves to Japan or not.

As to 2006’s Australian rice, 6,898 tons of short breed has been imported at SBS bids and 33,080 tons of middle breed has been knocked down for normal MA rice, so the limit amounts will be inevitable to be cut.

-Mar.5.2007-

◆Cancellation of SBS rice importers has progressed.

The number of rice importers for SBS bids during FY 2007 to 2009 has decreased by 8 to 28 compared to FY 2006. As the number during FY 2004 to 2006 had decreased by 4 to 39 compared to FY 2003. This year, the decrease number became more than the previous year and cancellation of importers which deal in SBS bids has progressed.

The minimum lot for knocking down at each SBS bid is 34 ton and any importer which has knocked down once is qualified. However, it was reported that some importers didn't apply for the qualification although they knocked down at SBS bids in FY 2006, and they cancelled their applications whatever the qualification requirements were.

On the contrary, only one importer didn't knock down at any SBS bid in FY 2006. The relation between each importer and its knocking down amount seems to fix mostly, and even importers whose knocking down amounts were small seem to have obtained the qualification to keep their sellers.

Also, in FY 2000, the qualified importers had increased to 49, but since then, the number has been decreasing.

-Feb.13.2007-

◆41 companies in the world announced negation on GM rice.

41 companies such as exporters, importers, processors and sellers being engaged in the rice industry in the world announced that they wouldn’t treat genetically modified (GM) rice.

It was stated in“The market report: the crisis of rice market” released by the international environmental group,‘Greenpeace’on February 6th, and in it, the major 41 companies in Japan, Switzerland, France, Hong-Kong, Germany, Australia, Thailand, India, Brazil, Spain, Canada and Britain announced their statements.

As to the Japanese companies, Aeon (supermarket), Seven-Eleven Japan and Ministop (convenience store), Sumitomo, Tomen (Toyota Tsusho, now), Marubeni, Tokyo Boeki, Iwatani International (trading company), Izumi-Seika(food) and Murase(rice wholesaler) put their statements in the report.

Responding to the survey by Greenpeace International, they showed their principles in respective position, answering “We are against commercialization of GM rice”,“We won’t treat it until the problem between safety and environment could be solved”,“We don’t have any plan to use it now or even in future” and so on.

Also, the report put that there was a record-breaking fall of 150 million dollars a day on the rice futures market because GM rice developed by Bayer Crop Science in U.S.A. last August was distributed and that an expert predicted U.S. rice exports for 2006/07 would decrease by around 16 percent and so on.

-Feb.6.2007-

◆Commercial planting area of GM crops in the world was over 100 million ha.

According to the research report announced by International Service for the Acquisition of Agri-biotech Applications (ISAAA) on January 18th, the number of countries which have planted genetically modified (GM) crops was 22 in 2006 and the commercial planting area of GM crops was 102 million ha all over the world, over 100 million ha for the first time.

In comparison with 2005, the planting area increased by 12 million ha (13 percent) and Slovakia was included in 2006. The country that planted GM crops the most was 54.6 million ha by U.S.A., followed by 18 million ha by Argentina, 11.5 million ha by Brazil and so on. By crop, soybean accounted for 57 percent of the whole GM crops area, followed by corn, cottonseed and so on. Rice was planted only in Iran that has planted it since 2005.

The research report predicted that the planting area would be 200 million ha by 2015 and that the number of farmers who plant GM crops would be 20 million. Also, if GM rice is possible to commercialize fully, 80 million equivalent to one-third of 250 million rice growers all over the world now will try to plant GM rice.

In Japan, while National Institute of Agrobiological Science (Tsukuba-city, Ibaraki prefecture) and the other institutes have been testing to put practical use on “Rice to alleviate pollinosis”, etc, planting test also has been done in Niigata prefecture and Hokkaido. However, about GM crops, there are many cautious and opposite opinions, too, so complications to practical use are expected.

-Jan.11.2007-

◆2007’s harvest will be over 100,000 tons. (Australia)

Planting area of 2007’s rice in Australia seems to be the lowest level in the past 55 years due to water shortage.

According to the crop report by the Ministry of the first industry in New South Wales, rice planting area is estimated to be less than 12,000 ha, and even the crop report in the first week of December announced by Australian Bureau of Agricultural and Resource Economics (ABARE), planting area is predicted to decrease by 81 percent than the previous year to about 20,000 ha, and yields of 6.3 tons per ha and production of 126,000 tons (husks base) are predicted.

After all, harvest is expected to be over 100,000 tons, which is likely to be around 10 percent of the previous year’s production, nearly one million tons.

Australian Ricegrowers Co-Operative Limited said “Because of large decrease, we don’ t know how short breed rice comes. Considering yields of Koshihikari as 7 tons per ha as a normal year base, we have planted short breed rice which could be expected to get 2,000 tons at present, but as water is short, whether the water supply for agriculture could be lasted until the end is opaque”. It seems whether the rice could grow until harvest or not is uncertain conditions.

-Dec.15.2006-

◆ Impact to domestic agricultural products by Japan-Australia EPA will be 800 billion yen. (MAFF)

Considering negotiations for Japan-Australia Economic Partnership Agreement (EPA), the Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on December 1st that the estimate of impact to four items, wheat, sugar, dairy products and beef, the main imports, could be about 800 billion yen decrease as production of domestic agricultural products could decrease due to their disadvantageous price if the tariff was abolished.

The estimates by item are: wheat＝120 billion yen, sugar＝130 billion yen, dairy products＝290 billion, beef＝250 billion yen.

Rice hasn’t been noted, but the objects for negotiations are reported to be　all items, so impact will come about if the tariff is to be abolished. Even if　rice becomes out of the items, impact to the measure for management stability crossing items will be inevitable if the tariff of wheat is to be abolished.

Production of Australian rice is one million tons (husks base) in 2006 and is　expected to decrease to 400,000 ton in 2007 when water shortage is noted, so the　production level ranges from 400,000 ton to 1,200,000 tons although it varies　year by year.

In the rice market in Japan, as the first SBS bit will overlap with marketing of domestic early rice, it seems that impact to domestic rice is inevitable if low-cost Australian Koshihikari comes into Japan.

-Nov.27.2006-

◆The fourth SBS bid will be held with the planned amount of 25,000 tons on December 15th.

The fourth SBS bid on overseas rice in this fiscal year was decided to hold on December 15th. Its contractual planned amount is 25,000 tons(22,500 tons for normal rice and 2,500 tons for broken polished rice). The date is based on a normal year. The time limit for shipment is until February 16th and the time limit for delivery is until March 16th, next year.

For the bid, dealers can choose “payment system for the national treasury dept” in which the broken down rice can be delivered next fiscal year, and in that case, the time limit for shipment is until March 26th and the time limit for delivery is until May 1st.

Due to shortage of domestic leftover rice, inquiries to import rice are strong. If all the planned amount of the bid will be broken down there, the planned amount of the SBS bids during this fiscal year, 100,000 tons will result in contract.

-Nov.9.2006-

◆U.S.A. import rice doesn't contain GM. (the final report)

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced the results of the examination whether genetically modified (GM) rice was contained in the government’s holding U.S.A. import rice or not on October 30th.

Since September 27th, the Ministry has done the examination whether unapproved rice is contained or not, however, the final report made clear no containing as well as the first report.

The examination has done on 163 samples (including the first report), 1,107,699 tons for unglutinous unpolished, polished and broken rice from fiscal year 2000 to 2005.

-Oct.11.2006-

◆U.S.A. rice stock doesn’t contain GM (the first report by MAFF)

Relating to the question of unapproved genetically modified (GM) rice(LLRICE601),the Ministry of Agriculture, Forestry and Fisheries (MAFF) examined whether the government’s holding U.S.A. rice sock contained the GM rice.

According to the first report “The results of the examination to the government’s holding U.S.A. rice stock on containing of GM rice”, all the 12 lot samples which have been stocked the most by import year and class were examined, not containing unapproved LLRICE601.

The stock of the 12 samples totals 95,000 tons, accounting for 9 percent of all the U.S.A. rice stock(1,108,000 tons). The remaining 151 samples will finish examination at the end of October, and then, the whole results will be announced.

Sep.29.2006-

◆2007’s rice planting is expected to be 45,000ha （Australia)

In Australia, 2007’s rice planting is expected to decrease largely as the rainfall in this winter was a record littleness.

According to the crop report by Australian Bureau of Agricultural and Resource Economics (ABARE), even if the rainfall during spring is average, 2007’s rice planting area is expected to be 45,000 ha, which comes to fall to about 40 percent of 105,000 ha, the previous year’s planting area. Harvest is expected to be about 400,000 ton, less than half of the previous year’s harvest, nearly one million ton.

Australian Rice growers Co-Operative Limited noted “Because of before planting, it will depend on rainfall after this. But short breed rice to Japan won’t change much.”

-Sep.11.2006-

◆Chinese unglutinous polished rice settled to 245 yen.(the second SBS bid)

The second SBS bid in fiscal year 2006 on overseas rice was held on August 25th and all the contractual planned amount, 25,000 tons(of it, normal rice was 24,678 tons) was knocked down.

The knocked down average price of Chinese unglutinous polished short breed rice was 245 yen per kilogram, 5 yen lower compared with last bid in May. Like the Chinese rice, response to U.S.A rice whose new one was dealt was prosperous and the knocked down average price of U.S.A. unglutinous polished short breed rice was 248 yen(3 yen lower compared with last bid).

There was an indication“Consulting this time, Chinese old rice was knocked down considerably”(one trading company). Arrived of new rice will be“Within the year if early, usually in next January” and arrival of old rice“Can be in early October”. Meantime, it seemed there was an aggressive approach to old rice by a rice wholesaler in the Western Japan.

The time limit for shipment of the knocked down rice is until December 22nd and the time limit for delivery is until February 16th, next year.

-Aug.11.2006-

◆Australia obtained the quota of 9,000 ton a year to South Korea.

The Australia Rice Growers Co-Operative Limited obtained the right of long-term access to the rice market in South Korea. With the revision of the rice market policy in South Korea, the Co-Operative was allotted 9,030 tons a year for the next 10 years. Consequently, the Co-Operative can keep the quota at the bids by the South Korean government.

According to the Co-Operative, the main export rice to South Korea is middle breed and also short breed can be allotted at some degree. The first supply of 2006’s rice to South Korea will be in November.

In South Korea, last November, as a ratification draft to negotiations for suspension of the rice tariff was approved, the suspension was postponed for 10 years until 2014. Therefore, the quota will be expanded from 225,000 tons in 2005 to 408,000 tons in 2014.

Also, although the import rice was used for processing and the aid to North Korea so far, in 2005, 10 percent of the quota had to be imported and sold as staple food, and in 2014 ,more than 30 percent of the quota will have to be treated in this way. In the rice market in South Korea, California rice has been sold as staple food since this March and also Chinese rice since this May.

-June.30.2006-

◆Shipment period of new U.S.A. rice may be extended due to delay of supply.

In California,　U.S.A., as this year’s rice planting was delayed three weeks to a month due to the effect of heavy rain, trading companies and demanders who deal with contractual cultivation worry about progress of new U.S.A. rice treatment.

One trading company who visited its production area early in May is doing activity to explain the situation to the Ministry of Agriculture, Forestry and Fisheries(MAFF). Judging from the time limit of shipment period so far, its supply will not be in time for the second SBS bid which is expected to be hold in August and the supply period is expected to be late.

Another trading company intends to tell the information to MAFF actively pointing out “It is natural that we take measures responding the situation”.

MAFF has an idea to try collecting the information and says “We have a plan to cope with it flexibly (if necessary )” about setting up of extending the time limit of shipment period.

-June.8.2006-

◆1,800 ton of the knocked down rice was Opus.

At the first SBS bid in the fiscal year 2006 held on May 26th, 5,826 ton of 2006 ’s Australian new rice was knocked down. Of the rice, it seems that about 4,000 ton was Koshihikari and the remainder, about 1,800 ton was Opus.

The knocked down amount of Opus was slight at every bid so far, but under the circumstance of the short domestic leftover rice, the bid on May 26th seems to have evaluated“The balance between price and taste was not bad compared with Chinese rice”.

According to Australian Ricegrowers Co-Operative Limited, production of Koshihikari is about 12,000 ton and Opus is about 8,000 ton(both are husks base) ,and as to the available supply amount to Japan after next bid,“There is demand of Australian short breed rice in inland of Australia, Hong Kong and Europe as well as Japan. It depends on market price when bid will be held, but the combined amount of Koshihikari and Opus will be around 1,000 ton at most”.

-June.1.2006-

◆Chinese unglutinous polished rice rose to 250 yen.

The first SBS bid in this fiscal year on overseas rice was held on May 26th and all of the planned amount of 25,000 ton was knocked down at the bid.

The knocked down average price of Chinese unglutinous polished short breed rice was 250 yen per kilogram, 11 yen up(4.5 % UP) compared with last bid(in January). The buying price by Japanese government fell considerably from the forecast by the persons concerned.

Response to Australian rice, whose majority is Koshihikari, was brisk, so nearly 6,000 ton of the rice was knocked down. Its knocked down average price was 25 yen up per kilogram compared with the bid before last(in December). Koshihikari and Opus of Australian rice, whose offering was said to be 4,000 to 4,500 ton, were pointed out their good quality.

As far as hearing from trading companies and rice wholesalers before the bid, there was estimation that it would calm down with small price rising, but trading resulted in being strong reflecting greatly the response to the shortage of domestic leftover.

-May.11.2006-

◆The first SBS bid will be held with the planned amount of 25,000 ton on May 26th.

The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced to importers that the ministry would hold the first SBS bid in this fiscal year on overseas rice on May 26th.

Its contractual planned amount is 25,000 ton, including 22,500 ton for normal rice and 2,500 ton for broken polished rice. Its time limit for shipment is until August 31st and for delivery is until October 16th.

The overseas rice amount that MAFF will import in this fiscal year will be 770,000 ton (brown rice base), the same amount as the previous fiscal year. Of the amount, 100,000 ton will be imported through the SBS bids and the remainder will be imported through the bids on MA normal rice.

-Apr.11.2006-

◆No new participant: 1 company less on normal rice importers and 2 companies less on SBS rice importers (rice and wheat importers)

The Ministry of Agriculture, Forestry and Fisheries announced the results of screening on rice and wheat importers in the fiscal year 2006.

There was no new applicant on normal and SBS import of rice and wheat import in this year. Meantime, the qualification of Tomen Corp. (normal and SBS import of rice and wheat import) was cancelled because the company merged with Toyota Tsusho Corp., and Tokyo Boeki Ltd. gave back its qualification of SBS rice import and wheat import and Sanyo Trading Co., Ltd. gave back its qualification of wheat import.

The numbers of qualified companies as of April 1st:▽normal import of rice＝ 17 companies (1 less than the previous year)▽SBS import of rice＝36 companies (2 less)▽wheat import＝24 companies (3 less)

-Mar.29.2006-

◆Trial of rice futures trading was not approved.

The Ministry of Agriculture, Forestry and Fisheries (MAFF), Nakagawa made clear that the Ministry would intend to not approve trial of rice futures trading on March 28th.Tokyo Grain Exchange (Tokyo) and Kansai Commodity Exchange (Osaka) applied for it to MAFF respectively last December.

The criterion for approval was whether it could be a remarkable obstacle to rice production and distribution or not, however, from the result of overall judgement including questionnaire survey to rice production policy makers and the other policies, it looks like having not been approved, and it also seems to be considered that nowadays is a system reform period such as switchover to a new supply-demand adjustment system, etc.

-Mar.9.2006-

◆Local corporation “Satake India” will be set up.

Satake Corporation will set up local corporation “Satake India Engineering Pvt. Ltd. (SIE)” newly early in March by up-grading the former Satake India branch.

Making the branch of local corporation, the company is capable of procuring materials locally and installation work business which could not be done legally so far, and it also makes from traditional products (unit machine) to plants easy to sell and easy business offices to set up.

Satake India’s business contents are sales of machines and plants relating to grain and food (rice, barley, wheat, corn, lens beans, etc) and its service under warranty to India and its neighboring countries (Pakistan, Nepal, etc).

Its main dealing products are husks rubbing machine, husks selecting machine, rice polishing machine, rice rubbing machine and rice selecting machine by color, being used especially as processing and selecting machines for export rice.

-Feb.23.2006-

◆2006’s Australian rice forecast was revised upward to 1 million ton.

According to Australian Bureau of Agriculture and Resource Economics (ABARE), 2006’s rice production in New South Wales is expected to exceed 1 million ton. In the state, due to spring rainfalls, rice planting area recovered largely to 105,000 hectare compared with the previous year, and in the crop report issued last year, given that yield per hectare is 8.8 ton, production was expected to be 924,000 ton.

After this also, as summer temperatures were lasting at a slightly high level, the crop is improving further, and recent ABARE news predicts “If the high temperatures continue until harvest period which begins in March, yield will be above the average and production will reach 1 million ton”.

However, Australian Ricegrowers Co-Operative Limited forecasts “The increase will be middle breed rice mostly and Koshihikari will be about 10,000 ton”.

-Feb.6.2006-

◆The fourth SBS bid resulted in boosting Chinese unglutinous rice up to 239 yen

The fourth SBS bid in this fiscal year on overseas rice was held on January 27th ,resulting in knocking down all of its contractual planned amount, 26,630 ton.

As rice wholesalers got a move on buying the rice reflecting shortage of domestic leftover, the weighed average knocked down price of the main Chinese unglutinous polished rice got to 239 yen per kilogram, 6.5 percent up compared with last bid(last December). Its mark-up was 89 yen per kilogram, 14 yen up than last bid. The persons concerned responded“Higher price than we expected” with one voice. As wholesalers are anticipating the domestic rice market during the available period of knocked down rice,“We concluded the price could be still sold”(one trading company).

As broken polished rice had been supplied enough at the bids on normal import rice, there was little eagerness to knocking down it through the year. Knocking down of 100,000 ton planned in this fiscal year completed after this bid. The time limit for shipment of knocked down rice is until April 28th and the time limit for delivery is until May 24th.

-Feb.6.2006-

◆2006’s rice harvest is expected to be 920,000 ton.(Australia)

In Australia, due to rainfall last November, shortage of irrigated water was broken off considerably, and 2006’s rice planting area in New South Wales seems to be 105,000 hectare.

According to the report by Australian Bureau of Agriculture and Resource Economics 8.8 ton of yield per hectare and 924,000 of production are expected, and as production in the previous year is about 3 million ton, if such a situation continues, more than 600,000 ton increases.

However, as summer temperatures are continuing at a high level in Australia, influence to rice quality and harvest is worried about.

-Jan.10.2006-

◆The fourth SBS bid was decided to hold on January 27th.

The fourth SBS bid in this fiscal year on overseas rice was decided to hold on January 27th.

Its contractual planned amount is 26,630 ton adding 1,630 ton which wasn’t knocked down on broken polished rice at the first and second bids in this fiscal year. The planned amount was included to the limit amount of broken polished rice and 4,130 ton was set to its upper limit. If knocked down amount doesn’t reach the planned amount, the left over amount is to be allotted to the limit amount of normal rice, which is 22,500 ton. With the introduction of the positive list system, the practice dates of SBS bids since the third one are held behind compared with the previous fiscal year.

The time limit for shipment is until April 28th and the time limit for delivery is until May 24th on the fourth bid.

-Nov.22.2005-

◆The third SBS bid will be held with the planned amount of 25,000 ton on December 16th.

The third SBS bid on overseas rice in this fiscal year was decided to hold with the contractual planned amount of 25,000(22,500 ton for normal rice and 2,500 ton for broken polished rice).

Its time limit for shipment is until March 31s and its time limit for delivery is until April 28th, next year.Compared with the third SBS bid on November 12th in the previous year, it is about one month behind.

Owing to alteration of part of Food Sanitation Law, the positive list system which increases the test items of residual agricultural chemicals is to become effective by May, next year, therefore, the Ministry of Agriculture, Forestry and Fisheries took measures to import adapted rice to the standard.

-Nov.10.2005-

◆Prevention effect of“Rice to mitigate pollenosis”was confirmed with mice.

The research group including National Institute of Agrobiological Sciences(NIAS) (Tsukuba, Ibaraki prefecture) announced in the outline of National Academy of Sciences in U.S.A. on October 31st that prevention effect of“Rice to mitigate pollenosis”using genetically modified engineering was confirmed in experiment with mice.

NIAS is proceeding development of“Rice to mitigate pollenosis”using genetically modified engineering aiming for mitigation of cedar pollenosis in ordinary food life and fed powdered“Rice to mitigate pollenosis”harvested this year to eight mice for four weeks. Then, the institute examined allergic reaction of the mice injecting the pollen to them, however, the mice reduced antibody amount produced by reaction to the pollen to less than one fourth compared with mice fed ordinary rice and also reduced two kinds of proteins relating to allergic reaction, and further, their sneezes reduced to nearly one third, resulting in prevention effect for pollenosis.

After this, safety confirmation tests using rats and long-tailed macaques will be done and clinical tests to patients will be considered next fiscal year.

-Oct.12.2005-

◆O-bento is presented on catalog. （JR East Japan)

East Japan Railway Trading Company's "Train Shop” (mail delivery) began to carry O-bento (box lunch) on catalog.

In the explanation of food material, "We use organic cultivated rice authorized by JAS (Japanese Agricultural Standard) and CCOF (Organic authorization organization in California,U.S.A.)” is stated about using rice.

Presented goods:▽box lunch of roast pork mixed ginger,▽box lunch of roast reddish fish mixed citron, soy sauce, sake and sweet rice wine,▽box lunch of roast pork mixed hot soybean paste (miso).

Their price is 500 yen each and "A sample set” containing four types is 2,000 yen with consumption tax. The catalogs are placed in the cars of Tohoku Shinkansen etc.

-Oct.12.2005-

◆26,000 ton was knocked down at the third bid on MA normal rice.

The third bid on MA (Minimum Access) of normal import rice in this fiscal year was held on September 9th and 26,000 ton of U.S.A. rice was knocked down. At the bid, unknocked down amount at the previous bid on September 2nd was offered.

Its average price for knocking down was 63,843 yen per ton, 56 percent higher than the previous bid. As to knocked down amount by category, unglutinous polished middle breed rice was 22,560 ton and unglutinous broken polished rice was 3,440 ton.

-Sep.8.2005-

◆The second SBS bid’s rice will arrive in Japan in October. (Australia)

At the second SBS bid in the fiscal year 2005, which was held in August 26th, 1,336 ton of Australian rice was knocked down. Most of it was Koshihikari and part of it was Opus.

More amount slightly than expected amount beforehand was knocked down and it seems there was decision to sell it for Japan based on the stock situation of short breed rice, according to Australian Ricegrowers Co-Operative Limited.

The number of the trading companies that knocked down at the bid was about 10 and the knocked down rice will be shipped at the end of September if early and is expected to arrive in Japan in October.

-Aug.31.2005-

◆The price of Chinese unglutinous rice rose to 220 yen per kilogram.

The second SBS bid on overseas rice in this fiscal year was held on August 26th and eagerness to respond on normal rice was strong just as it was last bid, so all of 22,500 ton, the contractual planned amount, was knocked down.

As to Chinese unglutinous polished short breed rice, its delivery price by Japanese government (weighed average) rose by 220 yen per kilogram compared with last bid in June. Its buying price by the government (weighed average) rose by 9 yen per kilogram compared with last bid and its mark-up was 4 yen up compared with last bid.

Chinese unglutinous rice is: “It is evaluated mostly as business use and its recognition is coming to stay” (one rice wholesaler in Kansai district), being accepted in the rice market in Japan. As to competitive domestic low-price rice, there was a viewpoint “Even though a big crop, domestic cheap rice equivalent to Chinese rice won’t be lasted”, so many bids came in. There was another rice wholesaler, who could not knocked down as it thought, saying “Many bids came in than I expected. It was 5 yen higher”.

Overseas glutinous rice is more advantageous than domestic rice in terms of price gap. The rice gains stable evaluation “It is getting into easy price range to use and keeps balance between cost and quality”.

-Aug.4.2005-

◆Rice export for commerce increased by 20 percent to 469 ton (FY 2004).

The Ministry of Agriculture, Forestry and Fisheries totaled that the actual result of registered export on domestic rice in the fiscal year 2004 was 824 ton.

Of the amount, the export for commerce was 469 ton, increasing by 20 percent compared with the previous fiscal year. Its main destination was Taiwan, Hong Kong, Singapore, U.S.A., etc.

In the recent cases, the rice was sold to the higher income bracket and Japanese residents there, and its price was 400-2,000 yen per kilogram.

In East Asia, the rich bracket is increasing in the background of economic development in the area centering on China and Japanese food is being established and spread, so there is likely to expand its export.

-July.11.2005-

◆JA Nishiiwami in Shimane aims for 200,000 ton of rice export to Taiwan.

Nishiiwami Agricultural Cooperative Association in Shimane prefecture (JA Nishiiwami) set up the objective of rice export to Taiwan in this fiscal year to be 200,000 ton on the local produced specially cultivate rice, Koshihikari (with reduced agricultural chemicals and chemical fertilizer). The Association exported over 100,000 ton to Taiwan in the previous fiscal year.

During the middle of July, the Association will plan sampling events for sales promotion at two stores in Taipei and Gaoxiong that sell the rice constantly and will develop its advertisement in obtaining new customers as well as the repeat customers. Also, the Association intends to carry out large-scale events for advertisement with new rice in October.

As to its sales price, with the aim for selling the rice having value at a valuable price, the Association will set up its price to be 420 NT dollars per two kilogram (1 NT dollar＝about 3.5 Japanese yen) at the department store in Taipei.

-June.9.2005-

◆The knocked down price of Chinese unglutinous polished rice rose by 2.4 percent.

The first SBS bid on overseas rice in this fiscal year was held on June 3rd and 98 percent of its contractual planned amount, 25,000 ton was knocked down.

The delivery price (knocked down weighed average) of Chinese unglutinous polished short breed rice rose slightly, 2.4 percent up (5 yen per kilogram) compared with last bid (the fifth bid in the previous fiscal year held in February).

Its reasons were that short feeling of domestic rice appeared and that overseas rice got to be dealt with due to the upward trend of lower-grade rice price.

The application amount of Australian new rice which is expected to be available at wholesalers during the middle or end of July was 5,754 ton, more than the first bid in the previous fiscal year, but“It was driven out by Chinese rice at this bid”(ARG). The knocked down amount resulted in nearly half of 4,000 ton, the knocked down amount at the first bid in the previous fiscal year. Because “The demand concentrated on Chinese rice as business use”(one trading company), Australian new rice seemed to suffer a loss.

-May.23.2005-

◆Around 4,000 ton of short breed rice could be supplied. (Australia)

As to the first SBS bid on June 3rd, Australian Ricegrowers Co-Operative Limited commented “Although harvest is declining due to the impacts by shortage of irrigated water and the cold summer, we can supply our short breed rice as much as last year if there is demand in Japanese market”.

At the first bid, last fiscal year, 3,992 ton of unglutinous polished short breed rice was knocked down, and its majority was Koshihikari and minority was Opus.

Harvest is still being done now in New South Wales, and so, the final harvest amount has not definite. However, yield is declining due to record low temperatures during the first week in February, too, and 2005’s rice production is expected to be around 350,000−380,000 ton.

-May.11.2005-

◆The first SBS bid on June 3rd with the planned amount of 25,000 ton

The first SBS bid on overseas rice in this fiscal year was decided to hold on June 3rd. Its contractual planned amount is 25,000 ton. Annual planned amount of SBS bids in this fiscal year is scheduled for 100,000 ton, the same amount as the previous year.

The practice date is slightly behind than the previous year (May 21st), but it nearly normal. The time limit for shipment is until August 31st, the time limit for delivery is until October 14th and both dates are the same as last year respectively.

About the supply power of Australian rice whose new crop is aimed for the bid, “Export dealers said they could supply more rice than last year”said a director in Ministry of Agriculture, Forestry and Fisheries.

-Apr.5.2005-

◆The accumulated knocked down amount came to an end at less than 585,000 ton (MA normal rice bid)

The Ministry of Agriculture, Forestry and Fisheries (MAFF) held the eleventh bid on normal rice by MA (Minimum Access) in the fiscal year 2004 on March 24th and 7,944 ton of Vietnamese unglutinous polished long breed rice was knocked down at the bid. The amount that had not been knocked down at the previous bid was aimed for knocking down at the eleventh bid. 9 companies participated in the bid and one company of them knocked down its rice.

Bid for normal rice in this fiscal year finished with the bid. The accumulated knocked down amount including 6,000 ton size of unknocked down amount at SBS bids reached 584,744 ton. 770,000 ton (based on unpolished rice) of the annual planned amount for import on MA rice was knocked down.

-Feb.28.2005-

◆Was Chinese unglutinous rice bought for the demand during the summer?

As to the fifth SBS bid on import rice in this fiscal year held on February 22nd, about 70 percent of 20,800 ton (for normal rice) the planned amount for the bid, was knocked down. The time limit for delivery on the knocked down rice is until the end of May.

Although inactivity had been told in the expectation in ahead, placing Chinese unglutinous polished short breed rice, nearly 12,000 ton came to be knocked down at the bid, to the center,“On contrary to the expectation”(one trading company), much amount was knocked down. Its reason is said that rally toward buying trend for the demand during the summer was seen just before the bid.

The knocked down price(weighed average) of Chinese unglutinous polished short breed rice was 202 yen per kilogram, 2 yen lower than last bid (in December), and the buying price by Japanese government was 13 yen lower (weighed average) than last bid per kilogram.

-Feb.17.2005-

◆2005’s Australian rice harvest is expected to be 430,000 ton.

Australian Bureau of Agriculture and Resource Economics (ABARE) forecasts to be 430,000 ton on 2005’s Australian rice production.

The amount decreases by 20 percent compared with 535,000 ton, the final production of 2004’s rice and is close to 390,000 ton, 2003’s rice production. In a normal year, Australian rice is expected to be 1,150,000 ton harvest, however, due to the forecast, a three consecutive years decline of the crop affected by drought is definite.

Meantime, Australian Ricegrowers Co-Operative Limited. forecasts to be a third of an average crop on 2005’s rice harvest, saying it cannot help down scaling its operation. However, the Co-Operative announced in statement that it would maintain its existing facilities including rice mills and over 800 employees for the time of the crop recovery to an average level in future.

Also, the Co-Operative has done a permanent closedown of a rice mill, temporary suspension of a line-up at another rice mill and layoff of about 200 employees.

-Feb.3.2005-

◆The fifth SBS bid will be held on February 22nd.

The fifth SBS bid on overseas rice in this fiscal year was decided to hold on February 22nd. 21,000 ton (for normal rice only) of unknocked down amount at the stage of the fourth bid completion will be treated at the fifth bid. The time limit for shipment is until the end of April and the time limit for delivery is until the end of May.

Also, as to movement of noticeable Australian rice as it is entering new rice period, Australian Ricegrowers Co-Operative Limited suggested its thought “Under the condition of marketing by the end of April, 2005’s rice won’t be in time basically. Its reason is that the most active cropping period of

Australian rice is from March to May and “The rice cropped by the end of March can be marketed at the end of April, but it can’t be collected quantitatively.” There seems no inquiry by trading companies at present, however, the situation can be changed as it takes about a month to the fifth bid

-Dec.28.2004-

◆Import of glutinous rice reached 13,000 ton (the SBS bids in the fiscal year 2004)

Glutinous rice imported from overseas at the SBS bids in the fiscal year 2004 was 13,454 ton, decreasing to 31.8 percent compared with the fiscal year 2003 (42,331 ton) and increasing to 148.3 percent compared with the fiscal year 2002 (9,072 ton).

In 2003, import rice increased at a stroke due to a bad crop of domestic rice. In 2004, although we had a bad crop in Kyushu district etc. a short feeling on domestic rice wasn’t seen nearly, and the increase of import rice supported the spread of overseas rice into Japan.

In future, in case of a bad crop of domestic rice, it is possible to say that measures by demanders (product manufacturing with overseas rice and so on) are ready, and the market price at 30,000 yen per 60 kilogram like 2003’s rice is likely to be a pipe dream no longer.

Import amounts by production country in the fiscal year 2004:▽U.S.A. rice＝8,560 ton▽Thai rice＝138 ton▽Chinese rice＝4,756 ton The amount of U.S.A. rice, in which contractual cultivation is the main part, was almost the same as last fiscal year, and Chinese rice decreased.

-Dec.27.2004-

◆20,000 ton of SBS bid wasn’t knocked down.

The fourth SBS bid on overseas rice was held on December 21st, and the total 23,903 ton (21,347 ton for normal rice and 2,556 ton for broken polished rice) was knocked down.

Of the planned amount of 44,700 ton (normal and broken polished rice) for the bid, almost the half wasn’t knocked down. About the knocked down amount, some people took “For all that, it was smaller than expected” (a trading company).

The knocked down price (weighed average) of Chinese unglutinous polished short breed rice, which was the main part at the bid, was 205 yen per kilogram, going down by 3.6 percent compared with last bid (November 12th).

-Dec.10.2004-

◆The fourth SBS bid is scheduled for December 21st with the planned amount of about 45,000 ton.

The fourth SBS bid, the final one in this fiscal year, came to be held on December 21st. Its contractual planned amount is 44,690 ton to which the unknocked down amount through the third bid in this fiscal year is added.

Because the bid come to be held in the situation that the stock by wholesalers is heavy as before, unknocked down rice is sure to result.

The period for shipment is until February 24th, next year, and if payment by Japanese government is applied, in which knocked down rice is to be delivered next fiscal year, it is until March 25th.The period for delivery is until March 28th, and in case of payment by the government, it is until May 1st.

-Dec.9.2004-

◆Sale of Californian Komachi began at 35 stores such as Universe.

Universe Co., Ltd. and O.K. Co., Ltd.’s Tohoku business division, the regional supermarkets representing Tohoku district, began to sell 2004’s Californian Akita-komachi on December 7th.

The sale of U.S.A. rice at Universe（32 stores in Aomori, Iwate and Akita prefectures) and is being done in three consecutive years and its sale at O.K(3 stores in Miyagi prefecture) is being done in two consecutive years. Both supermarkets plan to sell the rice throughout this rice year also.

-Oct.19.2004-

◆The third SBS bid will be held with the planned amount of 25,000 ton on 12th, next month.

The third SBS bid on overseas rice in this fiscal year was decided to hold on November 12th.

Its contractual planned amount is 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice). The time limit for shipment is until January 31st and the time limit for delivery is until March 15th.

As to the bid, rice wholesalers in Western Japan are reportedly interested in overseas rice, although it is uncertain whether they aim for making up the shortage of domestic low-price rice.

Also, since glutinous rice is possible to be supplied within this year, the request for U.S.A. CALMOCHI is expected.

-Oct.12.2004-

◆517 ton was against Food Sanitation Law. (MA rice in the fiscal year 2003)

The Ministry of Health, Welfare and Labour announced recently the test results of the import rice in the fiscal year 2003.

About 660,000 ton was imported as Minimum Access (MA) rice, and as to the rice against Food Sanitation Law,▽one case (200 ton) of Chinese unglutinous polished rice,▽two cases (10.1 ton) of U.S.A. unglutinous and glutinous polished rice,▽five cases (307 ton) of Thai unglutinous polished rice were detected. Dichlorvos over the criterion was found as to the Chinese rice and outbreak of rot or mold was found as to the U.S.A. and the Thai rice.

Meantime, as to the rice with the secondary tax rate, 260.5 ton was imported, and of it,▽one case(0.5 ton) of Indian unglutinous polished rice,▽ one case (1.2 ton) of Thai unglutinous polished rice were found as breach. Malathion over the criterion was found as to the Indian rice and bromine over the criterion was found as to the Thai rice.

As to MA rice, 517.1 ton was against the Law.

-Aug.31.2004-

◆Price fell substantially, but 8,000 ton wasn’t knocked down. (the second SBS bid)

The second SBS bid in this fiscal year on overseas rice was held on August 27th, and of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice), the contractual planned amount, only 16,563 ton resulted in being knocked down.

Unknocked down rice has appeared since last bid in May and price of each brand rice fell substantially. The effective application amount for normal rice was 4,000 ton less than last bid.

As to the delivery price (weighed average) of unglutinous polished short breed rice by Japanese government, Chinese rice, of which about 8,000 ton was knocked down at the bid, was 212 yen per kilogram, 37 yen down compared with last bid and U.S.A. rice, of which about 2,000 ton was knocked down, was 213 yen, 45 yen down, the same price level as Chinese rice.

-Aug.27.2004-

◆The crop situation index nationally on the expected harvest of 2004’s rice is 103,“Slightly good”.

We projected the crop situation indices by inputting the weather data through the end of July of the metropolis and each prefecture into our estimate program.

According to the program, the crop situation index nationally is expected to be 103,“Slightly good”. In each district, it is expected to be“Slightly good”in Hokkaido, Tohoku, Kanto, Tokai, Kinki, Chugoku, Shikoku and Kyushu, and“Normal year”in Hokuriku and Okinawa.

In each prefecture, it is expected to be 106 or above,“Good”in 5 prefectures of Fukushima, Tochigi, Chiba, Miyazaki and Kagoshima, 102−105,“Slightly good”in the metropolis and 28 prefectures, and 99−101,“Normal year”in 13 prefectures, expecting all prefectures including the metropolis to be normal year crop or above.

The expected harvest of 2004’s paddy rice as of July 31st is expected to be 9,155,000 ton (1,374,000 ton up compared with 2003’s crop) based on the projection of the crop situation and the planting area.

-Aug.9.2004-

◆The second SBS bid will be held with the planned amount of 25,000 ton on August 27th.

The schedule of the second SBS bid in the fiscal year on overseas rice was announced to be on August 27th.

The contractual planned amount is 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice）as same as the first bid.

The time limit for shipment is until November 30th and the time limit for delivery is until January 14th, next year.

-July.12.2004-

◆3,000 ton of Australian rice will arrive in Japan on around July 14th.

Of 4,000 ton of Australian unglutinous polished short breed rice which was knocked down at the first SBS bid in this fiscal year held in May, 3,000 ton is due to arrive in Japan on around July 14th. In about a week, the rice will be delivered to wholesalers.

The delivery price of the knocked down rice by Japanese government is 269 yen per kilogram (weighed average), and judging from the domestic market, the price is a high level. In the situation that the rice market is changing as soft as whole, the wholesalers who will use it for business use seem to want to deal it earlier in their minds.

-Jun.14.2004-

◆JA Shimane carried out a campaign for sale of the prefectural Koshihikari in Taipei.

Shimane prefectural head office of National Federation of Agriculture Co-operative Association (JA) developed a sales campaign of 2003’s Koshihikari produced in Shimane prefecture at Takashimaya store in Taipei, Taiwan for 4 days from June 4th to 7th.

At its party event for sampling and spot sale, 500 packs having 2 kilogram rice each (one pack’s price is 390 NT dollars ＝ about 1,250 yen), on which “Shimane Koshihikari”in Japanese were written, were prepared and then sold out in 2 days. the customers who purchased it were presented goods in connection with Shimane rice.

The head office aims for large-scale sale at department stores etc in Taiwan since 2004’rice and intends to take the party event as a foothold for it.

-Jun.9.2004-

◆In the restaurant industry in April, sales of Japanese-style fast food decreased largely than last year.

The sales of all stores (including new stores) in April of the restaurant industry, which was surveyed by the restaurant industrial group, Japan Food Service Association on its member companies, increased by 2.4 percent compared with the same month in the previous year, turned to plus again from minus in March.

Although the number of customers increased by 0.8 percent, showing slight growth, the sales per customer increased by 1.6 percent, resulting in sales increase.

As to the sales by category, most categories were above the previous year, especially noodles of fast food, bars such as “Pubs and bistros” and coffee shops or tearooms increased by 10 percent or more compared with the previous year.

On the other hand, Japanese-style fast food decreased largely the number of customers (by 24.8 percent) and its sales decreased by 21.2 percent. As to “Boiled rice for take-out and prompt sushi (Kaiten-zushi)”, based on all stores including new stores, the number of customers increased by 7.5 percent and the sales increased by 8.2 percent, too. (The number of stores increased by 0.9 percent and the sales per customer increased by 0.6 percent).

However, according to the data on the existing stores that surveys the stores' management situation and trend, although the sales per customer increased by 3.6 percent, the number of customers decreased by 6.3 percent, resulting in the sales decreased by 2.9 percent.

-May.28.2004-

◆The first SBS bid left unknocked-down amount due to decline of wholesalers' eagerness for supply.

The first SBS bid on overseas rice in this fiscal year was held on May 19th, and of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice), the planned contract amount, 20,764 ton was knocked down and about 4,000 ton was left without knocking down.

The decline of wholesalers' eagerness for supply was revealed certainly from the knocked down amount for normal rice. As to the delivery price (weighed average) by Japanese government of the knocked down unglutinous polished short breed rice, Chinese rice which accounted for over half of the knocked down normal rice was 249 yen per kilogram, 21 percent cheaper compared with last bid (last December) and Australian (2004’s rice) was 269 yen per kilogram.

The features at the bid may be “Littleness of Chinese rice for sale” as well as the poor eagerness for buying. In China, the stock has been decreasing due to a decrease tendency of production, domestic price has been rising and so on, therefore the exist of export restriction is pointed out due to necessity of domestic measures.

U.S.A. unglutinous rice is in the situation that it is quite obvious “there is no rice for sale”. The bid to be knocked down U.S.A. rice will be next (expected to hold at the end of August) when 2004’s rice will come out.

Also, as to Australian new rice, about 4,000 ton was knocked down, most of the knocked down rice was Koshihikari and some was Opus. It will be tested for residual agricultural chemicals etc. there from now on and its arrival in Japan seems to be in July.

-May.17.2004-

◆TV commercial of U.S.A. rice in Fukuoka, the most important point area was decided to broadcast.

U.S.A. Rice Federation decided lately that it would begin its sales promotion and propaganda activities at about 30 stores of normal rice stores in Fukuoka district, Kyushu prior to its national wide development in “Rice shop network of U.S.A. rice” being developed at present and that it would broadcast TV commercial during the middle of June to the beginning of July.

The network has started since February, last year, and it is the assembly of rice stores which sell Californian-Komachi and -Koshihikari all round year. This year, the Federation is expanding its network area and is choosing the metropolitan area and Fukuoka as the most important point area and Keihanshin (Kyoto-Osaka-Kobe) as the important point area and is also developing the network in national wide 6 large area such as Chukyo (Nagoya), Sendai and Sapporo (the total number of member stores is about 100).

In addition to TV commercial in Fukuoka district, the Federation is planning leaflets and advertisement in newspapers, sample distribution, etc., and also in the other areas, it is planning backup with leaflets, advertisement, etc. except TV commercial.

-Apr.30.2004-

◆The first SBS bid will be held with the planned amount of 25,000 ton on May 21st.

The first SBS bid in this fiscal year on overseas rice was decided to hold with the planned amount of 25,000 ton on May 21st. 

The time limits are until August 31st for its shipment and until October 15th for its delivery, and both are the same schedule as last year.

The SBS bids are due to hold with the planned amount of 100,000 ton a year in this fiscal year also.

-Apr.19.2004-

◆Trade negotiations for business use of rice blended with 80 percent of overseas rice.

Ricepia Co., Ltd. is making an effort to sell for business use of rice blended with overseas and domestic rice (grown in Tohoku district), "Global rice” that was introduced at“FOODEX”(rice exhibition) and says "Trade negotiations are likely to settle” among boiled rice dealers and some middle-class demanders.

“Global rice" is rice blended with 60 percent of Japonica breed grown in Anshan, China, 20 percent of Akita-komachi grown in the suburbs of Sacramento, California, U.S.A. and 20 percent of the domestic brand rice grown in Tohoku district.

Also, its retail sale already began at Super Universe being developed in Aomori and Iwate prefectures, too. Its desirable retail price for Ricepia is 1,900 to 2,000 yen per 5 kilogram and the company wants the rice to be treated as spot sale etc. and intends to lead to large-scale sales after autumn.

-Apr.16.2004-

◆The qualified importers on rice and wheat became 17 companies for normal import and 39 companies for SBS import.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced the results of the screening on rice and wheat importers in the fiscal year 2004 through 2006.

The qualified dealers on rice became 17 companies for normal import out of 20 applicant companies (no new applicant). Due to the lack of the amount requirements (over 10,000 ton a year on the average import for the past three years) and merger of companies, the qualified companies decreased by four (Sumikin Bussan Corp., Toshoku, Toho Bussan Kaisha and Nissho Iwai Corp.. These companies except Nissho Iwai Corp. that merged with Nichimen Corp. were qualified for SBS import) compared with the previous fiscal years.

Also, the applicants for SBS import was 39 companies (no new applicant) and all the applicants were qualified, but they decreased by four companies (Kinsho Corp.,Chori, Meiwa Corp. and Nissho Iwai Corp.). Having merged with Nissho Iwai Corp., Nichimen Corp. is due to be screened again as a new company, Sojitz Corp..

-Mar.31.2004-

◆The standard proposal on cadmium changed to 0.4 ppm.(COODEX)

COODEX committee held the committee on food additives and polluting matter in Rotterdam, the Netherlands from 22nd through 26th in March, and decided to change the initial proposal on cadmium content to permit in polished rice of 0.2 ppm to 0.4 ppm and to refer the revised proposal to the general meeting of COODEX that is due to hold in June.

The change is due to the usefulness of the data and the revised standard proposal submitted by Japan last December, and it became acceptable for rice production area in Japan where marketing of rice containing over 0.2 ppm is estimated to be over 3 percent. Although COODEX committee will decide the standard finally after next year, with the revision of Food Sanitation Law in Japan, the standard in Japan is strongly expected to be 0.4 ppm(the current standard is 1 ppm).

Also, on soybeans, the committee excluded considering its standard because absorption of cadmium into human body is contributed little, and so, it became the best result for domestic soybean production area where much cadmium is estimated to contain than any other countries.

-Mar.24.2004-

◆63,800 ton was knocked down at the sixth bid on MA normal rice.

The sixth bid on MA normal rice in this fiscal year was held on March 19th and 63,800 ton, the planned amount for buying by the government, was knocked down all.

The items of the knocked down amount by production country were 35,500 ton of U.S.A., 11,400 ton of Australia and Thailand respectively and 5,500 ton of Vietnam.

The total number of applicant companies was 44 and the number of knocked down companies was 11. Its average knocked down price(weighed price) was 53,034 yen

per ton.

As a consequence of the sixth bid, 770,000 ton, the planned import amount of overseas rice in this fiscal year finished to knock down together with the SBS bids.

Vietnamese long breed rice has been easy to import because it has been cheap compared with Thai and Chinese rice in international market.

-Mar.22.2004-

◆Ricepia sells "Global rice”.

Ricepia Co., Ltd. advertised the rice blended with overseas and domestic(Tohoku district’s) one“Global rice” as the most suitable for business use also at FOODEX (rice exhibition).

The rice is blended 60 percent of Japanese brand rice planted in Anshan, Liaoning province, China, 20 percent of Akita-komachi planted in Sacramento, California, U.S.A. and 20 percent of Japanese domestic rice, and it is imported by SBS bids through the company’s overseas network, appealing for being possible to supply at a reasonable price.

For its safety, residual agricultural chemicals test will be done three times in all, two times by Overseas Merchandise Inspection Co., Ltd.(OMIC) before shipping from China or U.S.A. and one time by the Ministry of Health, Welfare and Labor after arrival at ports in Japan. And then, the rice will be selected at Ricepia’s Sendai factory and shipped.

Ricepia intends to do large-scale sale regarding the FOODEX as opportunity and is noticing retail price at 1,980−2,180 yen per 5 kilogram to supermarkets in Tohoku district and so on. As the inquiry was“There are many requests for business use from factories for cooked rice, restaurants and so on”, “The rice for business use will be shipped soon”.

-Mar.10.2004-

◆Structure of 120 stores in 6 major cities is ready. (American rice’s Rice Shop)

U.S.A. Rice Federation held the press conference of“ American rice’s Rice Shop Network" on March 4th, and explained the sales situation in the first fiscal year, development in the future and so on.

Rice Shop Network is a network of rice stores which started with 45 stores (including 4 stores in Kyoto) to sell U.S.A. rice (Californian) throughout the year and its main points are 1.100 percent U.S.A. rice, 2. polishing at the stores, 3. face-to-face sale, 4. sale throughout the year.

Development in the future is▽to enlarge to 120 stores in 6 major cities across the country▽to make dealt breeds and brands large▽to make distribution channels large.

Enlargement to 120 stores is forecasted to achieve in one or two months, and in Fukuoka and Osaka districts, where the meeting for explanation was held the other day, the rice is expected to put at the stores after one month. Further, it was also announced that about 680 stores across the country had hope for application to join the network.

As to dealt breeds, Koshihikari will be introduced. Sales object in the second fiscal year is 500 ton and it "seems to achieve”, showing confidence. The reasons are: sale in this February was in good condition, three or four times compared with last February, the demand for business use has been active and so on.

-Feb.26.2004-

◆115,500 ton was knocked down at the fifth bid on MA normal rice.

The fifth bid on MA normal import rice in this fiscal year was held on February 20th, and the whole amount of 115,500 ton, which had been planned to buy by the government, was knocked down.

The items by production country of the knocked down amount were 72,500 ton of U.S.A., 10,000 ton of Australia, 6,000 ton of China and 27,000 ton of Thailand. The total number of the applicant companies was 75 and the total number of the knocked down companies was 25. Its average knocked down price was 55,169 yen per ton.

One more normal bid is planned to hold in March, and together with SBS bid, 770,000 ton that is the planned amount of overseas rice import in this fiscal year will be cleared out.

-Feb.17.2004-

◆Thai unglutinous rice was covered with mold-formed foreign substance.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on February 12th that mold-formed foreign substance had been mingled with Thai unglutinous polished rice sold by Japanese government.

MAFF recognized the mingling in a pack (flexible container) sold to demanders as raw materials for processing, and the Ministry is analyzing it currently.

The rice is 5,099 ton that was imported by the government with one ship in April, 2003, and of it, 3,147 ton that is possessed by the government is frozen to move until its safety is confirmed. 1,952 ton that has been sold already is requested to confirm the article to demanders.

-Feb.5.2004-

◆Sales of all stores in the restaurant industry were above the previous year in three consecutive months.

The restaurant industrial group, Japan Food Service Association (JF) totaled that last December’s sales of all stores in the restaurant industry including new stores increased by 1.6 percent compared with the same month in the previous year in the survey on its member companies. The sales were above the previous year in three consecutive months. The number of customers increased by 0.3 percent and the sales per customer increased by 1.3 percent, too.

Meantime, the whole sales based on the existing stores decreased by 3.8 percent (the number of customers decreased by 4.9 percent). In the category of “Take-out boiled rice and prompt sushi (Kaiten-zushi)”,although the number of the stores based on the whole stores decreased by 0.5 percent, the number of customers increased by 9.1 percent and the sales increased by 3.4 percent, too. However, the sales based on the existing stores decreased by 4.7 percent(the number of customers decreased by 4.4 percent), below the same month in the previous year the same as the other business categories.

-Jan.27.2004-

◆2004’s rice is expected to be about 600,000 ton. (Australia)

Due to the influence of the drought and the lack of irrigated water, 2003’s Australian rice dropped to 400,000 ton on its harvest.

On 2004’s rice, although the worry about drought became extinct, as the lack of irrigated water isn’t still cleared up, planting is restricted and it seems that substantial increase on production won’t be realized.

According to Australian Crop Report announced by Australian Bureau of Agricultural and Resource, Economics (ABARE) recently, the planting area of 2004’s Australian rice is projected to increase by 58 percent than last year to 45,000 hectare and its production is projected to increase by 50 percent to about 590,000 ton, however, the production is less a half of 1,340,000 ton, the past five years average harvest.

-Jan.20.2004-

◆The offensive to sell Californian-Komachi has accelerated taking advantage of the bad crop.

According to U.S.A. Rice Federation, following the supermarkets centering on food, Universe Co., Ltd (28 stores in 3 prefectures, Aomori, Iwate and Akita) and Fal Co., Ltd (10 stores in Iwate) sold 2003’s Californian Akita-Komachi, last December, Rice-Shop Network’s member stores of U.S.A. rice (43 stores in the metropolitan area and 4 stores in Kyoto) and the supermarket chain in Kinki district , all stores of Mandai Co., Ltd (133 stores in 5 prefectures, Osaka, Nara, Hyogo, Kyoto and Mie) have begun to sell Californian Akita-Komachi(5 kilogram, 2 kilogram) in order since January 13th.

The end-price at the above-mentioned 2 supermarkets was 2,280 yen per 5 kilogram, but the sales prices at each store that decided to sell the rice, this month, are said to be various.

Also, U.S.A. Rice Federation plans to extend rice network to major 5 cities in Japan in the future and the trend is curious.

-Dec.25.2003-

◆At the fourth bid by MA normal rice, 162,000 ton was knocked down including Chinese glutinous rice also as it had been expected.

The fourth bid by MA normal import rice in this fiscal year was held on December 19th and the whole planned amount of 162,000 ton was knocked down.

The items by production country: 96,000 ton of U.S.A., 23,000 ton of Australia, 6,000 ton of China, 32,000 ton of Thailand and 5,000 ton of Vietnam The total number of applicant companies was 94 and the total number of knocking down companies was 31. Its average knocked down price was 58,868 yen per ton.

Because there was a rise in the international market and much high-valued middle breed rice was knocked down at the bid, the average price was 9.5 percent up compared with last bid at the end of November. For 5,000 ton of Chinese glutinous rice that was bought based on the request by demanders, shipment period in China will be from the end of February to the end of March and demand will be for April to May.

-Dec.16.2003-

◆Additional 5,000 ton of Chinese glutinous rice was decided to import.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on December 12th that it would import 5,000 ton of Chinese glutinous polished rice by MA normal method. Its bid will be included to the fourth bid by MA normal method held on December 19 th.

Normal import of overseas glutinous rice that is to be sold for processing will be the second following the import of 15,000 ton (10,000 ton of Thai broken polished rice and 5,000 ton of Chinese polished rice) at the bid in November.

Their sales period is expected to be after next March and the bid on December 19th is based on sale of broken polished rice, too.

-Dec.10.2003-

◆Chinese unglutinous rice focused on popularity. (the fourth SBS bid)

The fourth SBS bid, the final one in this fiscal year was held on December 5th and the whole planned amount for knocking down of 37,000 ton was knocked down.

Adding the knocked down amount at the bid, the total knocked down amount at the SBS bids in this fiscal year reached 100,000 ton, achieving the import program by the government. The unknocked down amount at the first bid was added to the fourth bid in taking the tight demand for domestic rice into consideration, resulting to expand the limit amount for bid from normal 25,000 ton to 36,902 ton, so, it was taken that competition would ease according to the expectation in advance, but the opinion“Unglutinous rice was higher than I had expected” appeared from a rice wholesaler.

Unlike last bid that was full of orders for glutinous rice, unglutinous rice accounted for 80 percent of the whole knocked down amount at the fourth bid. As to the delivery price (weighed average) of unglutinous polished short breed rice, Chinese rice was 315 yen per kilogram, 5 percent up compared with last bid in October and U.S.A. rice was 333 yen, 9 percent up. Because rice in Hokkaido (the northern island), etc soared due to a poor crop after 10 years, especially, orders focused on Chinese rice, under the circumstances that there were strong inquiries about overseas rice caused by the demand for business use.

Meantime, the knocked down amount of glutinous rice was 8,700 ton, reducing to half compared with last bid, and its price went down slightly. As the rice will be delivered after the largest demand period passed by, its inquiries were dull.

-Dec.2.2003-

◆Rice demand for MA increased by 10 percent to about 18,000 ton. (Awamori)

The rice for MA in the rice year 2003 purchased by Awamori (Okinawa’s liquor) makers was 17,788 ton (98 percent up compared with the previous year).

In the purchase amounts by class, Thai un glutinous polished rice was 6,123 ton (16.8 percent up) and Thai broken polished rice was 11,665 ton (6.4 percent up), both increased. The reasons they increased are due to "There were some factors that the business for vinegar with unrefined sake was favorable and the makers expanded their factories in size, increasing their storage facilities, etc” (one person concerned).

Also, there is no problem about raw materials rice, saying "Although it is being supplied barely, its stocking is caught”.

-Nov.26.2003-

◆As to the bid on normal rice by MA, 15,000 ton of glutinous rice, etc. were knocked down.

The third bid on normal import rice by MA in this fiscal year was held on November 21st and, for the planned amount for buying of 121,800 ton including 15,000 ton of glutinous rice, there were applications of about 5 times the planned amount and the whole amount was knocked down.

Knocked down amounts by production country: 60,000 ton of U.S.A., 12,000 ton of Australia, 6,800 ton of China, 23,000 ton of Thailand and 20,000 ton of Vietnam The total number of applicant companies was 91 and the total number of knocking down companies was 27.

Average price of the knocked down rice was 53,746 yen per ton, about 8 percent above than the last bid in October. The higher price was due to high rate on relatively high-valued glutinous rice and U.S.A. middle breed rice. Glutinous rice is seen to be for the demand in March.

-Nov.18.2003-

◆Import of 15,000 ton of overseas glutinous rice was decided by MA normal rice.

The Ministry of Agriculture, Forestry and Fisheries announced on November 14th that it will carry out import of overseas glutinous rice by MA normal import rice.

The contents:▽Import amount＝10,000 ton of Thai broken polished rice, 5,000 ton of Chinese polished rice, the total 15,000 ton▽Bid date＝November 21st ▽Sales use＝processing use of broken polished rice▽Sales period＝after the end of February, 2004 Further, the plan after this will be decided based on the knocked down results of the fourth SBS bid that is scheduled for December 5th.

◆The fourth SBS bid is scheduled for December 5th with the limit amount of about 37,000 ton.

The fourth SBS bid on overseas rice in this fiscal year was decided to hold on December 5th with the limit amount of 36,902 ton adding the unknocked down amount at the first bid. The fourth bid date is 15 days earlier than the fourth bid date in the previous fiscal year.

The reason that the bid is to be advanced is based on the prosperous demand reflecting the short stock of glutinous rice and the decrease of 2003’s rice production.

-Nov.11.2003-

◆As to organic rice in the fiscal year 2003, domestic was 12,000 ton and overseas was 2,000 ton.

The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced the actual results of grade of organic agricultural products in the fiscal year 2003.

The total graded amount of domestic organic agricultural products was 46,623 ton(138 percent compared with the previous fiscal year), and of that amount, rice was 12,287 ton(158 percent), which accounted for 0.14 percent of its production.

Meantime, imports graded overseas was 117,589 ton(76 percent), and of that amount, rice was 2,031 ton(76 percent).

Organic rice combined domestic and overseas was 14,318 ton(137 percent).

-Oct.28.2003-

◆Applications to overseas glutinous rice rushed as expected (the third SBS bid)

As to the third SBS bid in this fiscal year on overseas rice held on October 24th, all the contractual planned amount of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice) was knocked down.

Due to the higher demand with the tight demand, applications to relatively cheap import glutinous rice rushed, and 16,000 ton of Chinese glutinous rice, 3,300 ton of U.S.A. glutinous rice and 50 ton of Thai glutinous rice, whose total was about 20,000 ton, were knocked down. The bid was so prosperous that nearly all the application amount was knocked down, and the knocked down amount of glutinous rice was nearly 90 percent of the knocked down amount of normal rice.

The price skyrocketed due to the prosperous demand. The delivery price weighed average) of Chinese glutinous rice by Japanese government was 351 yen per kilogram, 59 yen higher than last bid held in August. U.S.A. glutinous rice was 383 yen per kilogram, 26 percent higher than last bid.

As to arrival period to Japan, one trading company says that the knocked down amount last bid will arrive at the end of November, it will be in time for the year-end demand period, the knocked down at the third bid will arrive after next January　and such operations will proceed. Noting "If early, it will arrive in December" on the knocked down amount at the bid, the Ministry of Agriculture, Forestry and Fisheries (MAFF) takes the viewpoint of depending on the treatment by trading companies, saying "If the contracts could be concluded in early November and the contracted rice could come along rapidly”.

-Oct.21.2003-

◆At the bid of normal import rice by MA, 9,000 ton of glutinous broken polished rice was broken down, too.

The second bid of normal import rice by MA in this fiscal year was held on October 17th and all the planned buying amount of 101,000 ton(including 9,000 ton of Thai glutinous broken polished rice) was knocked down.

In the category by rice production country, 34,000 ton of U.S.A., 22,000 ton of Australia, 700 ton of China, 34,300 ton of Thailand and 10,000 ton of Vietnam were knocked down.

The total number of applicant companies was 90 and the total number of companies that knocked down was 26. Its knocked down average price was 49,836 yen per ton.

-Oct.9.2003-

◆August’s sales in restaurant industry decreased by 3.1 percent as cold summer continued.

The restaurant industrial group, Japan Food Service Association (JF) totaled that the sales of all the stores in August in the restaurant industry decreased by 3.1 percent compared with the same month in the previous year.

The number of the stores in the affiliated companies increased by 3.5 percent, but the number of customers decreased by 4,2 percent and the sales were below than last year in two consecutive months as cold summer since July affected and so on.

In the category of“Take-out boiled rice and prompt sushi (Kaiten-zushi)”, although the number of customers decreased by 3.3 percent, the number of customers increased by 5.7 percent and the sales increased by 3.7 percent. The sales based on the existing stores decreased by 7.4 percent in all. (the number of customers decreased by 9.0 percent.)

-Sep.26.2003-

◆July’s sales in restaurant business declined due to cold summer.

According to“The survey of the market trend in the restaurant industry in this July carried out by the restaurant industrial group, Japan Food Service Association(JF) on its member companies, the total sales in all the business were 98.8 percent compared with the same month in the previous year. The number of the stores increased to 104 percent, but the number of customers decreased to 99.1 percent. The Association grasps that the delay of the rainy season’s ending and the cold summer impacted them considerably.

In Tokyo, there were nine more rainy days during this rainy season than last year and consumption of the menu and beverages suitable for summer didn’t expand due to low temperature.

In the situation, the expanded sales were 106.6 percent for Japanese-style fast food (the number of the stores; 110.5 percent, the number of customers ;106.0 percent).Meantime, although family restaurants have been increasing greatly in number of Japanese-style and Chinese-style stores, the sales didn’t expand, being 96.4 percent and 98.1 percent respectively.

As to“Take-out of boiled rice and prompt sushi (Kaiten-zushi)”, the number of the stores decreased to 96.3 percent, but the number of customers increased to 102.6 percent and the sales increased to 101.6 percent. The number of the bistros increased a great deal to 108.2 percent, but the sales were 98.5 percent with the influence of the cold summer.

-Sep.17.2003-

◆The top knocked down by trading companies at the second SBS bid is estimated to be about 5,000 ton.

As to the actual results knocked down by trading companies at the second SBS