NEWS in Japan　　

by Rice Databank co.,ltd.

-Jul.13.2010-

◆English version HP relating to the Sorting and Processing Integrated Center was set up. (Satake)

Satake Corporation (Higashi−Hiroshima City) set up the English version Home-Page relating to the Sorting and Processing Integrated Center. The Home-Page could be checked out information of the Sorting and Processing Integrated

Center, information of features and specifications on Satake’s sorting machines and processing machines, etc. and sorting samples. Also, it could be carried out application of processing test and inquiries on the web site.

The Sorting and Processing Integrated Center was established inside the showroom of Satake’s Hiroshima Head Office on April 1st, 2008. The company said“Since its establishment, receiving our many customers’ request, we have tested various raw materials for food or industrial use. With opening of this Home-Page, we hope our overseas customers to deepen understanding on the Sorting and

Processing Integrated Center further and to promote its utilization further.”The English version HP URL:http//www. senbetsu.com/en/

-Jul.7.2010-

◆Japonica rice production in China is increasing.

According to the May issue of overseas food supply and demand report by the Ministry of Agriculture, Forestry and Fisheries (MAFF), as to world 2010/11 rice supply and demand, production is projected at 459.70 million tons (polished rice base)(4.0 percent up compared with the previous year), consumption projection is 453.40 million tons (2.5 percent up) and trade projection is 31.40 million tons (5.9 percent up), increasing the projection respectively.

Also, as to rice supply and demand in China.▽about 30 percent of production is said to be Japonica rice.▽Japonica rice is produced mainly in North-East district and Jiangsu Province in east coast area, and North-East district’s rice is popular as a brand one and it is traded at high prices compared with Indica rice produced in Middle-South area. Especially, from the beginning of this year, prices of Japonica rice are seen to be rising due to drought in South-West area and its brisk demand, it reported.

Rice situation of each country is as follows:

▽China: production; 137.50 million tons (0.4 percent up), consumption; 135.50 million tons (0.7 percent up) and export; 0.90 million tons (5.9 percent up). Growing is 2−16 days behind due to low temperatures in North-East district. Planting area of Japonica rice is projected to increase.

▽Thailand: production; 20.60 million tons (1.5 percent up), consumption; 9.80 million tons (2.1 percent up) and export; 10.00 million tons (5.3 percent up).

▽U.S.A.: production; 7.60 million tons (10.2 percent up) and consumption; 4.30 million tons (0.9 percent up) and export; 3.30 million tons (1.2 percent up). As of May 23rd, planting is progressing than a normal year and last year, and progress rate is 95 percent. Emergence rate is 80 percent (67 percent on the same date, last year), but in California State, the rate is 15 percent as field work is late due to rainfall.

-May.14.2010-

◆The upper five companies such as Itochu were the same as the previous year. (MA normal rice in FY 2009)

The contractual amounts by each trading company on MA normal import rice bid in FY 2009 were announced. The upper five companies, Itochu Corp.,Sojitz Corp.,Kitoku Shinryo Co.,Ltd.,Toyota Tsusho Corp.and Kanematsu Corp. were the same as the previous fiscal year, and the ranking of the top to the third was unchanged compared with the previous fiscal year.

The contractual amount in FY 2009 was 578,210 tons. As to production country and breed,▽U.S.A. unglutinous polished middle breed rice; 296,500 tons▽Thai unglutinous polished long breed rice; 281,410 tons▽Thai glutinous polished long breed rice; 300 tons.

The share of the contractual amount knocked down by the upper five companies was 65.9 percent in total, 3.9 percent up compared with the previous fiscal year.

The top, Itochu increased to 19.8 percent(4 percent up) and the second, Sojitz increased to 18.2 percent(2.5 percent up). The number of the qualified companies was 16, and of them, 15 companies contracted in FY 2009.

-Apr.12.2010-

◆Hong Kong became No.1 surpassing Taiwan.(rice export amount for commercial use in 2009)

Rice export amount for commercial use from Japan in 2009 was 1,312 tons (1 percent up compared with the previous year), almost the same amount as the previous year.

By destination, Hong Kong occupied 481 tons (41 percent up), surpassing 333 tons of Taiwan (26 percent down) and became No.1. While Taiwan has reached the top of rice import amount and has tended to decrease it, Hong Kong has been increasing its own rice import year by year.

Also, the countries that have been increasing rice import from Japan are Australia, France, England, etc, and on the contrary, the countries that have been decreasing are China, U.S.A. and Russia. Meantime, the sum of the export rice from Japan in 2009 was 545 million yen (15 percent down compared with the previous year).

Originally, the price of Japanese rice is much higher than overseas rice, however, with increase of rice export amount from Japan, we can see export competition of some Japanese rice, which seems to have been affecting the price.

Under the approval by the government on the treatment plan for new demand of 2009’s rice, rice of 926 tons (164 hectares) is provided for export.

-Mar.19.2010-

◆Knocked down amount reached the annual planned amount at the sixth SBS bid.

As to the sixth SBS bid held on March 12th, 8,587 tons, its contractual planned amount was knocked down, and the knocked down amount at the SBS bids in this fiscal year reached 100,000 tons in total, so SBS bid in FY 2009 got to finished.

The knocked down amount of Chinese unglutinous polished short breed rice decreased by 10,000 tons compared with last bid to 4,224 tons and also there seems to be few responses that could benefit if the rice can be knocked down although application may be excluded. The knocked down amount of Chinese unglutinous brown short breed rice decreased largely to 400,000 tons(2,380 tons down compared with last bid).

Meantime, the knocked down amount of U.S.A. unglutinous polished short breed rice was 1,511 tons(1,109 tons down) and its application amount increased in some degree compared with Chinese rice.

The knocked down amount of unglutinous rice was 2,208 tons in all. As to its delivery price, Chinese polished rice was 227 yen (2 yen cheaper than last bid) and U.S.A. polished rice fell from 245 yen at the first bid one after another.

As to glutinous rice, both application amount and knocked down amount were such a small amount of 222 tons respectively that environment could not make up for the slump of unglutinous rice.

-Feb.24.2010-

◆Rice production is expected to be over 175,000 tons, 110,000 tons up compared with the previous year.(Australia)

Australian rice production in 2010/11 is expected to be over 175,000 tons.

According to the crop report released by Australian Bureau of Agriculture, Resource and Economics (ABARE) on February 16th, 2010/11’s rice planting area, yield per hectare and production in New South Wales are predicted to be 19,000 hectares, 9.21 tons and over 175,000 tons respectively.

As to the previous year (2009/10), planting area; 8,000 hectares, yield per hectare; 7.75 tons, production; 63,000 tons, so over 100,000 tons will increase in 2010/11.

Because there were some rainfalls in January and February, and also distribution of irrigation water increased, planting area expanded. Moreover, yield prospect was above the average due to recovery of weather, which led to increase of production.

According to the crop report, if temperatures during February turn to be warm, production is possible to be even higher.

-Jan.18.2010-

◆The fourth SBS bid will be held with the planned amount of 25,000 tons on January 22nd.

The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced that it would hold the fourth SBS bid on January 22nd. Its contractual planned amount is 25,000 tons.

As to this fiscal year(FY 2009), the accumulated amount of 59,719 tons has been decided to knock down from the first to third SBS bid, but at the third SBS bid, about 5,000 tons has been left without being knocked down.

Application amount for the fourth SBS bid is expected to be above the planned amount, too, however, knocking down amount seems to depend on its planned price just as it was done at the third SBS bid.

-Dec.24.2009-

◆The third SBS bid benefited from a rising yen.

At the third SBS bid held on November 27th, 5,281 tons were left without being Knocked down and the delivery price for normal rice was 228 yen per kilogram (9 yen down compared with last bid).

A trading company accepted “The period of a month since last bid was short, so we thought how much amount would be applied, however, the application amount (38,241 tons) was much unexpectedly. As to price, Chinese rice lowered by 10 yen ,however, even though in order to fill the planned amount, the government would not be able to reduce its price extremely, and also, for after this, was the price-down within common sense as result?”. The factor of the price-down was the cut of mark-up and the decline of buying price caused by the rising yen.

After this, about 40,000 tons, which were left after the third bid, are supposed to be treated at next two bids, so “It is a big problem whether the bids will be held in January and February, or in February and March, next year, because of the relation between the time limits for shipment and delivery, etc. We would like the authorities to select the latter”(another trading company).

As to the previous fiscal year (FY 2008), as the bids were held continuously until March, the time limit for their deliveries had been long until the end of September. If it is usual, this year, the time limit for delivery seems to be until around May or June.

-Nov.16.2009-

◆The third SBS bid will be held with the planned amount of 25,000 tons on November 27th.

The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced that it would hold the third SBS bid in this fiscal year on November 27th. Its contractual planned amount is 25,000 tons(the upper limit of broken polished rice is 10 percent). The time limit for shipment is until February 20th and the time limit for delivery is until March 19th, next year.

Although it has past only about one month since last bid, “There is no intention especially and it just goes along the conventional practice pattern”(a person concerned). Combined with the planned amount at the third bid, the planned amount in this fiscal year accumulates to 65,000 tons.

-Oct.21.2009-

◆The second SBS bid is scheduled for October 23rd.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced recently that it would hold the second SBS bid on October 23rd. Its planned amount is 25,000 tons (of it, the upper limit of broken polished rice is 10 percent). Its time limit for shipment is until January 15th and its time limit for delivery is February 26th, 2010.

Also, MAFF announced that import wheat’s delivery price by the government would be reduced by an average of 23 percent from October 16th and that it would be 49,820 yen per ton. By brand name, the price will be reduced by 18−27 percent. Consequently, prices of wheat products such as bread and noodle are expected to reduce and impact on rice consumption is concerned.

-Sep.4.2009-

◆All the planned amount of 15,000 tons was knocked down. (The first SBS bid)

At the first SBS bid held on September 1st, all the contractual planned amount of 15,000 tons was knocked down. Both normal rice and broken polished rice(10 percent of the whole amount) were knocked down as the planned amount respectively.

As to the knocking down of normal unglutinous rice: ▽Chinese polished short breed; 10,708 tons▽U.S.A. polished short breed; 432 tons ▽Thai polished long breed; 126 tons, etc. Delivery price was 238 yen for the Chinese rice and 245 yen for the U.S.A. rice per kilogram, and they rose by 6−7 yen respectively compared to last bid in FY 2008.

As to the knocking down of normal glutinous rice, U.S.A. short polished rice was 1,892 tons. As the knocked down amount of it in FY 2008 was 4,074 tons, the knocked down amount at the first SBS bid in FY 2009 got to account for 46 percent of the knocked down amount in FY 2008. Its delivery price was 240 yen, which was 15 yen cheaper than the second SBS bid in FY 2008(no knocked down amount at the first SBS bid) and 8 yen cheaper than the weighed average knocked down price at the SBS bids in FY 2008. There was no application to Chinese rice.

-Aug.27.2009-

◆Chinese unglutinous rice may be around 230 yen.

The first SBS bid in this fiscal year will be held on September 1st with the contractual planned amount of 15,000 tons (of it, the amount for broken polished rice is up to 10 percent). The date of the first bid is behind compared to May to June until FY 2006, but commercials seem to hold on to the stock of Chinese rice, etc., so tight feeling can’t be felt much.

As to glutinous rice also, although concerns for this year’s crop in Hokkaido, etc. are appearing, consumption of 2008’s rice seems to be not getting along, so there seems no situation to treat it in a hurry.

As to the price of Chinese rice, prediction that "Compared to last bid (the eighth bid held on March 13th), will it be the range from the same level to around 5 yen down per kilogram ?”(one commercial) has been heard.

The delivery price of Chinese unglutinous polished short breed rice at the eighth bid was 232 yen per kilogram. The prediction indicates it will be slightly cheaper than 230 yen at the low level, but it hasn’t been below 230 yen during the last three years. Under the situation that is said "It doesn’t sell at a higher price”, result will be noticed.

-Jul.3.2009-

◆The first SBS bid could be held after the middle of July even if early.

As of July 1st, announcement of the first SBS bid in this fiscal year hasn't been done yet to trading companies’side.

One trading company has accepted it saying “As of the end of June, although there was a rumor of the middle of July each time, there is no atmosphere that commercials are upset about the treatment now. However, it seems to be a problem that the first bid is to be done during September to October.”

According to the current schedule, it is expected to shift after July 17th even if early. As to reason of the delay, it is seen that “It isn't the relation between supply and demand, but reconsideration of the regulation because of last year’s accident rice.”

-Jun.11.2009-

◆“ Calrose” rice is used at Cafe“ news DELI” etc.

According to U.S.A. Rice Federation, some dishes using California rice“ Calrose have been offered at the following two restaurants since June 1st.

【news DELI】This is the restaurant which is developing centering on the metropolitan area and is to sell two dishes of DELI “Chirashi-sushi style seafood-rice-salad” and “Chicken doria” using Calrose. Its five stores offer the two dishes for three months until August 31st and also sell Calrose rice (450 grams) at 400 yen restrictively during the period.

【Ocean Terrace】This is the buffet dining in Yokohama Inter Continental Hotel, and at the dining, various dishes using Calrose are offered from hors d’oeuvre to dessert at its“Yokohama Port Gourmet Buffet” for four months until September 30th.

-May.12.2009-

◆“ Jambalaya”using“ Calrose”has appeared. (Denny’s)

U.S.A. Rice Federation has been introducing “Calrose rice bread” using Calrose (rice) in American Food Fair (April 1st to May 31st) held at Yokohama Grand Inter Continental Hotel (Yokohama city).

Calrose rice bread is baked, after being made from rye in which boiled calrose rice is kneaded. It has Calrose’s feature of tough eating and is cooked with a feeling of rice cake.

Also, in the limited lunch menu at Restaurant Denny’s, “Jambalaya locomoco -style-plate” using Calrose has appeared newly.

-Apr.10.2009-

◆Dishes using“ Calrose” have been appearing at“American Food Fair”.

Dishes using“ Calrose” have been offered at“American Food Fair” held in Yokohama Grand InterContinental Hotel (Yokohama city) from April 1st to May 31st.

Calrose has some features▽light feeling of taste▽easy to absorb fragrance and flavor▽get along with dressing and olive oil, and so on.

At the Food Fair, rice dishes making use of Calrose ’s attractiveness can be enjoyed from hors d’oeuvre to main dish, dessert and bread. There are six or twelve items in menu, each month.

-Mar.9.2009-

◆Knocked down rate was about 90 percent and Chinese polished rice was 230 yen, unchanged .(the sixth SBS bid)

The knocked down amount at the sixth SBS bid held on February 27th was 12,000 tons and its knocked down rate was up to about 90 percent. Treatment of 1,000 tons which wasn’t knocked down on the planned amount is said to be “under consideration” (the Ministry of Agriculture, Forestry and Fisheries).

The planned amount at next bid (on March 6th) is about 14,000 tons, and if around 10,000 tons will be knocked down at next bid as well as this bid, the leftover will remain several thousand tons in total, therefore, after that, there could be a choice that the leftover will be treated at the bid on normal rice.

The knocked down amount in this fiscal year has accumulated to 85,000 tons in total, however, the content of the knocked down amount is much different from the previous fiscal year. The largest feature is substantial increase of knocked down amount on broken polished rice, and at this bid also, all the planned amount was knocked down, totaling over 10,000 tons on it. The reason of the increase is addition of glutinous broken polished rice, etc. and if all the planned amount will be knocked down at next bid, the knocked down amount in this fiscal year will be four times as much as the knocked down amount in the previous fiscal year.

Meantime, normal rice ▽U.S.A. glutinous polished rice; the total knocked down amount is 4,000 tons, 60 percent compared with the previous fiscal year, and knocking down after this won’t be expected to be much judging from the application.▽Chinese unglutinous short breed rice; the total knocked down amount of its polished one, which is its main one, is 45,000 tons, 70 percent compared with the previous fiscal year, but the total knocked down amount of its unglutinous one is 6,000 tons, more than the previous fiscal year.▽Chinese glutinous polished short breed rice; 3,000 tons has been knocked down, increasing by 30 percent compared with the previous fiscal year.▽All glutinous rice; the total knocked down amount including broken polished one is 11,000 tons, increasing by 2,000 tons, etc.

-Feb.9.2009-

◆“Glutinous broken polished rice” was knocked down at SBS bid for the first time.

Glutinous broken polished rice was knocked down at the fourth SBS bid held on February 4th for the first time. So far, the rice was out of the subject due to concern about impact to the supply and demand of domestic rice. Its knocked down amount was 108 tons for U.S.A. rice and 1,040 tons for Thai rice, totaling to 1,148 tons. In terms of price, it could be said that the rice is attractive, different from unglutinous broken polished rice.

The delivery price of Thai rice was 107.8 yen per kilogram, which was 6.6 yen down from the regular sale for January deliveries. Although there is no menu of regular sale on U.S.A. rice, the delivery price of U.S.A. rice was about 16 yen lower than the average knocked down price at the bid for 2005’s glutinous rice held the other day. As the rice is broken polished one, its use appears to be limited only for the food processing industry, so it could impact to domestic glutinous rice markets in the future.

Meantime, 1,098 tons of glutinous polished rice was knocked down at the fourth SBS bid. Although the amount didn’t increase, the knocked down rate to the application amount was 50 percent on U.S.A. rice and 60 percent on Chinese rice, higher than 20−30 percent to their respective unglutinous polished rice. Nearly 100 percent of U.S.A. glutinous rice was knocked down at the third SBS bid and its leftover amount after the fourth SBS bid was 486 tons, which was small, and the cultivation rice amount contracted by some Japanese trading companies in U.S.A. may have been small, too.

The knocked down amount of glutinous rice from the first to the fourth SBS bids was 6,504 tons including broken polished one.

-Jan.14.2009-

◆25,000 tons were knocked down as planned amount.(the third SBS bid)

The third SBS bid in the fiscal year 2008 was held on January 9th and 25,000 tons were knocked down as planned amount at the bid.

The knocked down amount for normal rice was up to 24,000 tons in compensation for the shortage of broken polished rice(the planned amount was 10 percent of the whole planned amount), increasing considerably from 1,000 tons at the previous bid.

Its mark-up was cut to 90.4 yen(11.8 yen down compared with the previous bid) and it could be said that increase of knocked down amount has been effected largely by the discretion of Japanese government.

Although its application amount increased by 4,000 tons compared with the previous bid, it was below 30,000 tons, and the number of contracts was 257, the largest number since the fiscal year 2006. Unexpectedly, use of overseas rice may have spread all over Japan.

So far, the total knocked down amount in the fiscal year 2008 has been 48,000 tons. Leftover of the planned amount is 52,000 tons and the bids for it will be held each in February and March. So, at last, the whole planned amount of 100,000 tons is possible to be knocked down.

-Dec.17.2008-

◆WTO agreement was postponed, but the situation around U.S.A. isn’t expected to alter.

Agreement in this year on WTO agriculture negotiations was passed up. It is because adjustment among every country wasn’t settled and the ministerial meeting wasn’t abandoned to hold in this year. Resumption of its concrete negotiations will depend on the address to the trade policy by Obama’s new administration in U.S.A. that starts next year, but prospects will take much time.

In resumption of the negotiations, the proposal presented by the　chairman on December 6th is expected to be its base. The rate of important items　in agricultural area, which are allowed to exempt from reduction of tariff as exception, provides for 4 percent in principle and important items equivalent　to 2 percent can be added with compensation and terms (enlargement of import　amount and reduction of tariff), hasn’t changed and is far from the proposal　of 8 percent that has been insisted by Japanese government.

In case of settlement with 6 percent, rice can’t be assumed driving out of important items, however, a focus will be whether all of 17 items on rice can be included in important items on the balance of the other items.

If so, in order to minimize the impact to domestic rice, a measure is assumed to enlarge the amount of MA import rice, so it is expected to enlarge from the current 770,000 tons to over a million tons, and the tariff will be requested to reduce from the current 341 yen per kilogram to 180−260 yen (variable in accordance with amount).

-Nov.5.2008-

◆The bid for normal rice on November 7th and the SBS bid on 14th(MA rice bid)

The Ministry of Agriculture, Forestry and Fisheries (MAFF) cleared the schedule of the bids on MA rice.

The second bid for normal rice will be held on November 7th. Its contractual planned amount is 51,000 tons, and its category is normal rice and broken polished rice. Its detail by export country: ▽Thai (long breed); 25,000 tons▽U.S.A. (middle breed); 13,000 tons▽Global tender (middle breed); 13,000 tons

The first SBS bid will be held on November 14th. Its contractual planned amount is 25,000 tons, and its category is normal rice(22,500 tons) and broken polished rice (2,500 tons). The time limit for shipment is until January 30th and the time limit for delivery is until March 6th, 2009.

As to reconsideration of “Commission contract for buying on import rice” which was announced as well, it was the same as that of import wheat which had been changed last month, resulting in sending back with trading company’s payment or dealing as waste, in case of damaged rice, etc. Some trading companies are proceeding with insurance procedure to meet a risk, so it is likely to impact the price at the SBS bids and so on.

-Oct.14.2008-

◆The content of wrapped “Mochi”using U.S.A. glutinous rice has been reduced. （Aeon）

Aeon Co.Ltd., a large-scale store group, has been selling wrapped“ Mochi” (rice cake) as its private brand goods and changed the content of the square-shaped Mochi using U.S.A. glutinous rice to 400 grams (100 grams down). (the survey by Iwatsuki Saty on October 30th and its previous survey was on August 30th)

Its sales price is 358 yen per 400 grams and it is an actual price raise than the previous goods at the price of 398 yen per 500 grams. In FY 2008, a SBS bid has not been held yet, so the matter may have caused the change of the content.

As to Mochi goods using domestic glutinous rice, although there are many other makers which have been raising them since this fall, the content(500 grams) and the price(398 yen) of circular-shaped Mochi made by Aeon, which is its private brand, too, have not been changed.

-Sep.9.2008-

◆The bid on MA normal rice was held on September 5th and the SBS bid will be held on 17th.

As to the bid for import rice, which had been delayed, both the bid on MA normal rice and the bid on SBS bid were decided to hold their first bids in September. The bid on MA import rice was held on September 5th and its planned amount for knocking down was 41,000 tons.

Also, the SBS bid is due on September 17th and its planned amount is 25,000 tons. Of the amount, the amount for normal rice is 22,500 tons and the amount for broken polished rice is 2,500 tons. The time limit for shipment is until December 25th and the time limit for delivery is until February 6th, next year.

-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 bid held on the end of August with the planned knocked down amount of 25,000 ton, it is estimated to be about 5,000 ton for the top, over 3,000 ton for the second, less than 3,000 ton for the third and fourth respectively.

A person concerned in a trading company has got the information from a domestic warehouse company on another trading company which has connection with China knocked down about 3,000 ton in all of unglutinous and glutinous rice.

At the bid, the trading companies which had not got desirable actual results of knocking down last bid are said to have entered their names on the upper list of the actual results.

-Sep.9.2003-

◆Overseas glutinous rice rose to about 300 yen suddenly (SBS).

As to overseas glutinous polished rice at the second SBS bid held on August 29th, as they were expected beforehand, U.S.A. rice was 305 yen per kilogram and Chinese rice was 292 yen, which were up considerably compared with last bid.

Because the supply of domestic rice will be tight, there are many business inquiries for overseas rice, and major rice wholesalers and the like are said to have been busy themselves in obtaining them.

2003’s crop for U.S.A. rice and not only old crop but also 30 to 40 percent of 2003’s crop for Chinese rice are expected to come to Japan, and the 2003’s crop will be imported after the new year.

Chinese rice is lacking in stability of quality compared with U.S.A. rice, but U.S.A. rice is in the situation that has not satisfied the demand in U.S.A.. On the contrary, as Chinese rice has sufficient supply on 2003’s crop, it is expected to be main even at the third bid.

-Sep.2.2003-

◆Chinese unglutinous rice rose suddenly to 272 yen and demand increased due to a bad crop of domestic rice.

The second SBS bid in this fiscal year was held on August 29th.

Due to a bad crop prospect of domestic rice, the conditions that had developed unpopularly until last bid (May) changed completely and resulted in halting “Escaping from overseas rice”once at the time with the applications of 48,025 ton for the planned contractual amount of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice) at the bid.

As to Chinese unglutinous polished short breed rice, the delivery price(weighed average) by Japanese government was 272 yen per kilogram and the price increased by more than 40 yen compared with last bid.

As to the delivery price (weighed average) of glutinous rice, Chinese polished short breed rice was 292 yen and U.S.A. polished short breed rice was 305 yen.

As to the buying price by Japanese government, Chinese unglutinous polished short breed rice was 92 yen, about 10 yen cheaper compared with last bid. On the contrary, glutinous polished short breed rice was 109 yen, 7 yen higher compared with last bid.

-Aug.12.2003-

◆The second SBS bid will be held with the limit amount of 25,000 ton on August 29th.

The Ministry of Agricultural, Forestry and Fisheries announced that it would hold the second SBS bid with the limit amount of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice) on August 29th.

The period for shipment is until November 28th and the period for delivery is until January 14th, next year. The schedule including the bid dates is the same as the previous year. The limit amount is 100,000 a year and the bids are expected to hold four times a year. The limit amount at the second SBS bid was decided to be equal just as it had been done at the first bid.

-Aug.4.2003-

◆As to restaurant business in June, sales of“The other items of first food”increased by above 10 percent.

According to "The survey of the market trend in the restaurant industry” in June carried out by the restaurant industrial group, Japan Food Service Association (JF) on its member companies, the whole sales based on all stores including new stores were 100.5 percent compared with the same month in the previous year, having increased since March.

The sales of first food business were 97.5 percent compared with the same month of the previous year, but including 102.4 percent of family restaurant business, each business sales of pub and bistro, dinner restaurant and coffee shop were above the same month of the previous year. Especially, the large increase of sales were brought about in the business of coffee shop and the other business of first food (curry, ice cream, etc), increased by above 10 percent.

In all, the number of the stores increased (104.4 percent) and the number of customers also increased to 102.2 percent, but the sales per customer were 98.3 percent, below the same month of the previous year. As to take-out of box lunch and prompt sushi(Kaiten-zushi), the number of customers increased to 102.6 percent, but the sales were 99.2 percent and the number of the stores was 96.4 percent. As to family restaurant, the number of customers in roast meat sector increased to 107.5 percent and the large increase in the number of Chinese restaurants (119.0 percent) was outstanding.

-July.29.2003-

◆Temperatures in August in eastern and western Japan were revised downward to “A normal year”.

The Meteorological Agency announced the three months weather forecast from August through October on July 24th and revised temperatures in August in eastern and western Japan from "A normal year or high" of the previous forecast to "A normal year”.

Average temperatures forecast of the three months is "A normal year" in northern Japan and "A normal year or high” in eastern and western Japan.

Problems are delay of rainy season’s ending and that until when will the trend of low temperatures continue ?. On 25th, Sendai territory weather station announced "The sixth issue of Tohoku district weather information concerning low temperatures and daylight shortness. "Although low temperatures and daylight shortness will continue for about one month, being expected to continue at least about one week, management of crops was appealed.

As to August forecast, the weather in northern Japan will change, but it will have unsettled periods due to the influence of fronts and low pressures. Temperatures will be a normal year in northern, eastern and western Japan. In September, there will be periods of the heat of late summer in eastern and western Japan. Temperatures will be a normal year or high nationally. In October also, temperatures will be a normal year or high nationally.

-July.23.2003-

◆Is the weather similar to the 1993’s cold-weather damage ?

In the rice sales industry in Japan, the worried opinion that the weather in northern Japan may be similar to the 1993’s weather when was a very poor crop is increasing.

According to the survey by the Meteorological Agency, due to the weather after July, it is low temperature in Kamikawa territory, Hokkaido, and extreme lack of daylight is occurring along the Pacific Ocean coast in Tohoku district .

Although a rice dealer said "As of last week at least, a mood of big crop was strong”, he also said "It is very cold a few days. There is a risk of cold-weather damage”.

Meantime, “Yamase” (a particular cold wind) is blowing along the Pacific Ocean coast in Tohoku district and cold-weather damage is worried there. However, in the rice production area, "Low temperature along the coast is worried a bit, but so much serious influence hasn't come out in the inland "an official of agricultural cooperative association in Iwate prefecture) is seen.

According to the weather data, the lowest temperature isn’t so low as 1993, but a problem is extreme shortness of daylight. Disease damage rather than cold-weather damage may have to be looked out.

-July.15.2003-

◆A sampling party will be held with invite of 500 parents and children.(USARF)

U.S.A. Rice Federation will invite 250 pairs (500 people) of parents and children at Shinagawa Prince Hotel at Minato ward, Tokyo on July 20th, and will hold a meeting for learning about U.S.A. rice and a sampling party for taste of menu using U.S.A. rice.

They are part of plans for sales promotion aiming to want Japanese consumers to understand U.S.A. rice.

In addition to“ Californian Koshihikari”and“ Akita-Komachi”that are imported to Japan, the sampling party having more than 20 items with menu like American using middle breed rice calrose appeals to consumers.

Also, on the date, the member stores of the rice-shop network that sell U.S.A. rice at present will participate in the meeting and party, and are scheduled to interchange with the invited consumers.

-July.8.2003-

◆Australian new rice will arrive in Japan in the middle of July.

At the first SBS bid in the fiscal year 2003, about 1,300 ton of Australian new rice was knocked down and it looks like arriving in Japan in the middle of July.

Every year, Australian new rice begins sale at stores early July, but this year, because its harvest has been delayed due to the influence of drought, its sale in Japan will start after the end of July.

Most of the knocked down rice at the bid was “Koshihikari”and its part was “Opus” .The harvest has decreased, but the quality is not very bad.

-July.1.2003-

◆“Heat of late summer will be severe "the Meteorological Agency), and toward a mood of big crop.

The Meteorological Agency announced the three months weather forecast from July through September, when is the most important for development of rice on June 25th.

July forecast of northern Japan is revised upward from "A normal year or below" in the previous forecast to "A normal year”, and so, the three months average temperature is likely to be high nationally and predicts" Heat of late summer will be severe". The crop of paddy rice field is getting to a mood of big crop gradually.

▽July: Weather will change periodically in northern Japan. In eastern and western Japan, it will be many rainy days due to the influence of low pressures and seasonal rain fronts just as a normal year during the first half period, and many fine days covered with high pressures during the second half period. Temperature will be a normal year nationally.

▽August: It will be many fine days just as a normal year. There will be cloudy and thundershower periods. Temperature will be a normal year in northern Japan and a normal year or above in the other regions.

▽September: Weather will change periodically, and heat of late summer, especially the first half of the month, will be severe. Temperature will be a normal year or above nationally.

-June.18.2003-

◆Sales in restaurant industry in April were below last April due to weather.

According to "The survey of the market trend in the restaurant industry” in this April carried out by the restaurant industrial group, Japan Food Service Association (JF) on its member companies, the sales based on the whole stores including newly opened sores were 99.1 percent as a whole, below the same month in the previous year after two months.

The number of the stores increased to 104.5 percent compared with the same month in the previous year, while the number of customers was 100.8 percent and didn’t increase as the stores increased. And the sales per customer still decreased to 98.3 percent.

The reasons are that economic condition hasn't been improved, individual consumption is sluggish and that more rainy days this April than last April and lower temperature than a normal year also were reflected.

Among them, as to the category of roast meat by the family restaurants, the sales recovered from the influence of the BSE(bovine spongiform encephalopathy) incident brought about the year before last and the sales increased by over 10 percent (111.9 percent). As to coffee shops centering on self-service, as the number of stores increased (110.9 percent), the sales were 106.9 percent, far above the previous year and expanded the market in the category. As to “Take-out boiled rice and prompt sushi(Kaiten-zushi)”, the number of the stores was 96.1 percent compared with the previous year, but the number of customers was 105.5 percent and the sales were 104.1 percent.

-June.09.2003-

◆Raw materials rice is felt to be tight as demand of vinegar with unrefined sake has increased. (Okinawa)

The first bid in the fiscal year 2003 on normal import rice by MA (the whole amount was Thai rice), which is for Okinawa such as“ Awamori” use, was held over a month earlier than the fiscal year 2002.

Although the demand of raw materials rice for“ Awamori” tends to increase slightly, vinegar with unrefined“Sake”that is re-used the raw materials rice used for“ Awamori” has been more popular than it, and so, the raw materials rice is felt to be tight.

Some demanders hope more amount than the planned amount proposed to the food office, but the situation is that additional amount cannot be got as they hope.

As the whole prefecture of Okinawa, the stock is expected to be short during August based on the situation, and the knocked down rice is expected to arrive at the ports in Okinawa at the end of July, but early treatment is hoped there.

Also, 200 ton of glutinous polished rice was knocked down. Annual demand of Thai

glutinous rice in Okinawa prefecture is about 400 ton, and last bid (the fourth bid in the fiscal year 2002), the amount for the annual demand was obtained, but from the first bid in this fiscal year, the import has ceased as a whole and has been changed two times a year.

-June.03.2003-

◆The first SBS bid was inactive, 6,000 ton of glutinous rice was knocked down and Chinese unglutinous rice was less than 230 yen per kilogram.

The first SBS bid in this fiscal year on overseas rice was held on May 30th, and of the contractual planned amount, 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice), the knocked down amount remained 50 percent.

This is because the knocked down amount of normal rice was inactive as it had been expected, over 14,000 ton, and the delivery price (weighed average) of Chinese unglutinous polished short breed rice, whose demand is confirmed as business use, was 229 yen per kilogram, 4 yen up compared with last bid the final bid in the previous year).

As to glutinous rice whose domestic demand is tight, 6,000 ton was knocked down and the price rose. The price of Chinese glutinous polished short breed rice was 2 percent up compared with last bid.

In comparison with the first SBS bid in the previous year on the amounts of applications, Chinese unglutinous polished short breed rice was about 40 percent, U.S.A. unglutinous polished short breed rice decreased to half, and Australian unglutinous polished short breed rice was a third.

-May.29.2003-

◆There are something lacking in the spirit and a wait-and-see attitude toward the first SBS bid.

The first SBS bid in this fiscal year will be held on May 30th, but there is no spirit toward the bid at present.

Some trading companies have already contacted rice wholesalers to pair at the time two weeks before and one trading company said“We don’t know till just before the bid, but there is no spirit. The atmosphere and pattern are followed just as last year"(one company),“The atmosphere may be getting worse than last year”(another company)was pointed out.

Meantime, the wholesalers also emphasized the future uncertainty such as“We cannot recognize the image of the period that cash rice will be imported (after the middle of July)”, “Domestic market price cannot be got”(one wholesaler in Kanto district) and the like. There is a possibility that import rice will cause to be behind in stock, therefore, there is also a wait-and-see attitude such as“One had better not get near to risk”.

-May.22.2003-

◆FTAs with East Asia will be more menace than WTO.

As to World Trade Organization (WTO) agricultural negotiations, the ministerial meeting held in Mexico in this July is likely to be a large turning point, but as to diplomatic negotiations, the negotiations toward FTA (Free Trade Agreement) with Asian countries rather than WTO is getting to be a large menace to rice production area in Japan.

Last November, EPA （Economic Partnership Agreement) between Japan and Singapore came into effect, and as to FTA between Japan and Mexico, talks have been conducted every month among the persons in charge of both countries. Through FTA between Japan and Mexico, it is estimated that Japan is 0.1 percent up and Mexico is 4.2 percent up in the respective real GDP.

After Mexico, Thailand is the most important for Japan. Thai Prime Minister, Thanks in is scheduled to visit Japan next month and negotiations are thought to start fully. If FTA with Thailand would be concluded, there is every probability that Thai rice would be free to be available at 40 to 60 yen per kilogram, which would be a great shock to the raw rice industry in Japan. Of 770,000 ton of MA rice that Japan has currently bought, a considerable part will be converted into no customs import of Thai rice by the private sector in Japan.

The FTAs with Singapore, Mexico and Thailand are only the beginning of the FTA strategy by Japan. Last November, Japanese Government signed the agreements that enable free trade with ASEAN (Association of Southeast Asian Nations) and China within 10 years.

“FTAs with East Asia will create the biggest additional profit through further opening of trade” In taking customs rate, simple average customs rates are: U.S.A.; 3.6 percent, EU; 4.1 percent, China; 10 percent, Malaysia; 14.5 percent, Korea; 16.1 percent, Philippine; 25.6 percent and Indonesia; 37.5 percent, and Japanese products are imposed the highest customs in East Asia, where is the highest sum in trade ”（“Our nation’s FTA strategy "by the Ministry of Foreign Affairs）

The trade between Japan and East Asian countries accounts for 40 percent in sum in the whole trade by Japan and the trade is more important than the trade with U.S.A. (30 percent) and EU (15 percent). It cannot be forgiven for the industry in Japan to delay the trade policy in this area than the other countries. For all that, if rice export to Japan becomes no customs, as Thai government and producers, which have been negative toward growing Japonica breed rice so far, will make efforts to plant short breed rice fully, the influence will not remain only raw rice for processing.

-May.12.2003-

◆Extension to Japan by a Chinese rice cracker maker will be a menace.

A food maker in China that has been making rice cracker is reportedly planning extension to Japan.

Although the maker was about to register this month, it was postponed till this autumn due to the influence of SARS (Severe Acute Respiratory Syndrome) etc., however, rice cracker makers in Japan are feeling it as a menace.

The industrial group, Rice Cracker Manufactures Association of Japan observed the rice cracker and rice flour factories centering in Shanghai, China, and was astonished at the high level of the facilities etc.

Although the amount of rice cracker imported from China to Japan in 2002 (January− December) was 1,327 ton, about one third of the amount imported from Thailand, in comparison that the amount from Thailand decreased than the previous year, the amount imported from China showed a sharp increase at 253 percent. If the Chinese food maker makes an effort thoroughly to sell them in Japan, it is a problem not only in the rice cracker industry in Japan, but it also affects the rice supply side.

-May.7.2003-

◆The first SBS bid will be held with the limit amount of 25,000 ton on May 30th.

The Food Agency announced that it would hold the first SBS bid in this fiscal year on import rice on May 30th.

Its planned amount for knocking down is 25,000 ton and its whole amount in this fiscal year is 100,000 ton, unchanged from the previous year, and the bids are planned to hold four times a year evenly.

The first bid date in this fiscal year is the same period as the first bid (May 31st) in the previous fiscal year. At the first bid in the previous fiscal year, because the problem of safety concerning wrapping container arose and the import rice tended to be undelivered, the Food Agency carried out the bid in putting down the planned amount to 20,000 ton.

At the first bid in a normal year, trend of new Australian rice is paid attention to, but this year, influence to harvest by drought is pointed out, and it is paid attention to how the influence will be reflected in the bid. The number of applicable importers in this fiscal year is 43 companies, decreased by one company compared with the previous fiscal year.

-Apr.28.2003-

◆The support rice of 10,000 ton to Iraq will leave Nagoya port on May 5th.

Shipment of the support rice of 10,000 ton to Iraq via World Food Program (WFP) by Japanese Government(2,400 ton of domestic unglutinous polished rice and 7,600 ton of Thai unglutinous polished rice) is being done at Nagoya port. The ship arrived at the port on April 23rd, began loading on 25th and is scheduled to leave port on May 5th.

-Apr.21.2003-

◆Competition by new Carrefour stores and large-scale stores will influence to rice wholesalers. (Kansai district)

Since a Wal-Mart (U.S.A.) style store has expanded in Saga prefecture, sensation such as opening stores newly, discount competition and so on has been spreading around the large-scale stores in Kyushu district, and just as the situation, even in Kansai district where opening of some Carrefour (France) store in this autumn is waited, movement of competition is heard.

As Carrefour is scheduled to open new stores in Higashi-Osaka city, Minoo city and Amagasaki city (Hyogo prefecture), Izumiya that is based in Osaka and the companies that are developing throughout the country like Aeon, Ito-Yokado, etc. hurry to cope with it.

Each company is planning to open 2 to 5 stores newly from this year through next spring, and so, rice wholesalers including the existing dealers are expected to need the arrangements.

-Apr.15.2003-

◆ The support to Iraq by Japanese Government was decided to be 7,600 ton of Thai rice and 2,400 ton of domestic rice.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) decided 10,000 ton by support of government stock rice on the food aid to Iraq. Its items by production country: are 7,600 ton of Thai rice and 2,400 ton of Japanese rice.

Having long breed rice (Minimum Access rice) being main considering eating habits of Iraqi people and being based on accordance with international rules such as face-to-face aids and World Trade Organization (WTO) , etc., MAFF added domestic rice partially. The support rice will be shipped from Nagoya port by the middle of May.

-Apr.7.2003-

◆Because Sunrice closed down, the qualified companies decreased by one for normal rice and SBS respectively. (Rice importers) 

On March 28th, The Food Agency announced the results of screening on rice importers in the fiscal year 2003. As to rice, because The Sunrice Inc. closed down at the end of March, the number of the qualified companies decreased by one for normal rice import and SBS import respectively.

Sunrice was a joint venture that had been set up in investing of 50 percent each by Australian Ricegrowers Co-Operative Ltd. and The Mitsuhashi Inc., a rice wholesaler in Kanagawa prefecture, in July, 1994.

The president, Katsunori Sakano explained the circumstances of the company’s closing “Our company was set up to have Japanese market recognized　Australian　rice, and as it reached an actual result for continuous delivery at large-scale stores, etc, we think it finished its role. Last December, two parent companies decided to give up renewal of the joint contract and we had proceeded its closing toward the end of March.”.

-Mar.31.2003-

◆The first store of Wal-Mart style, Seiyu Kose store opened.

The first store of Wal-Mart style, the world largest U.S.A. retailer , Seiyu Kose store opened on March 21st.

The store opened as a nucleus in SC“Mallage Saga”developed by Nissho Iwai Corp., and although it is a Seiyu’s store, it is regarded as the domestic first store of Wal-Mart virtually in terms of the policy for commodities and the operation.

As to delivery of polished rice for goods, the major rice wholesaler in Kobe, Shinmei Co., Ltd. is in charge of, and so, with the traditional arrangements of goods in Seiyu style, the goods provided at low prices every day are combined.

-Mar.24.2003-

◆The business of U.S.A. made“ O-bento”has been strengthened.

The subsidiary of East Japan Railway Co., Nippon Restaurant Enterprise Co., Ltd. (NRE) introduced U.S.A. made frozen box lunch“O-bento”made of carefully selected materials at the exhibited booth in“International Food and Drink Exhibition (FOODEX）”that was held till March 14th and attracted the attention of demanders who visited the booth.

“ O-bento”is a box lunch that is made use of 100 percent organic cultivated Akitakomachi and that is produced by NRE World Bento Co., Ltd. in California, U.S.A., and its material rice is supplied by Lundberg that is a distinguished marker of organic agricultural products in U.S.A..

The sales objective of the U.S.A. made box lunch is 10,000 meals per day in Japan and foreign countries together. Until now, they have been restricted to sell at certain kiosks in railway stations, but after this, the company will make an effort to extend the sale on retail stores including supermarkets, staff cafeterias, school cafeterias, karaoke rooms, tearooms with comic books, amusement parks, supper for employees and so on.

-Mar.18.2003-

◆Due to the forecast "Normal summer ”, it is going ready for above a normal crop year.

The Metro logical Agency announced on March 10th that the weather forecast during warm period from April to September and forecasted the summer average temperature from June to August as“A normal year across the country”.

Its factors :1. El Nino phenomenon is forecasted to end during the period in spring, and so, the influence to the summer weather in Japan caused by El Nino will be small, 2. The temperature of seawater in the torrid zone of the Western Pacific Ocean, which is highly correlated with the summer average temperature in Japan, is forecasted to be a normal year and the stretch of high pressure in the Pacific Ocean around Japan is forecasted to be a normal year are given.

“The phenomenon will not change into La Nina (the opposite of El Nino phenomenon)" and a neutral normal condition will transit in this summer. Especially, we forecast there will be no influence caused by El Nino phenomenon. The temperature of the seawater in the torrid zone of the Western Pacific Ocean is approaching from high level to the standard, too. A normal year rather than extreme high or low is forecasted." the weather information division) is commented.

As to the the years when the phenomenon ended, "No weather factor can tell a tendency." the division) Since 1951, the rice crops in the paddy field of 13 times in the years when the phenomenon ended resulted in being various, such as good harvest and bad one. In the forecast, this time, there will be much precipitation in Northern Japan and Hokuriku district during the rainy season from June to July, and further, it is one of the features that there will be unsettled period of weather centering in Northern Japan because high pressure in the Sea of Okhotsk will be stronger. In the districts, management of agriculture products should be paid attention to.

-Mar.11.2003-

◆At Wal-Mart Saga store, Shinmei will deliver rice.

The domestic first store（in Saga prefecture in Kyushu） by Wal-Mart Stores, Inc. (U.S.A.) that will be pre-opened on March 19th is attracting the notice of the food industry including rice wholesalers.

As to arrangement of sales counters by Wal-Mart against huge capital and being partnered with Seiyu Co. Ltd., being anticipated competition with domestic stores throughout Japan, beginning of Kyushu market,“Apart from the appearance, frankly we are concerned about it considerably. Because there is the previous instance of Carrefour (France) that is struggling, we are interested in ingenious merchandising and appearance of sales counters such as display of goods ”(one large-scale store) is heard.

As to polished rice as its goods, Shinmei Kyushu branch is planned to deliver.

-Mar.3.2003-

◆Member rice stores are aimed to be a total of 100 stores. (U.S.A.RF)

U.S.A. Rice Federation announced at a hotel in Tokyo on February 26th that it will set up a U.S.A. rice shop network with the aim to attempt recognition, spread and enlightenment on U.S.A. rice in Japan.

The Federation has been done propaganda at large-scale stores with broadcast of TV commercial films, sampling at stores and the like, so far. However, due to the situation that consumers’ uneasiness concerning food safety and import food has been rising, the Federation has shifted its target to rice stores that are rice sales professionals and has planned to appeal good quality U.S.A. rice directly to consumers through rice stores that center on face to face sale.

At the beginning, the total 44 stores, 40 stores in the metropolitan area and 4 stores in Kyoto, Osaka and Kobe area will join the plan. The plan is to develop various sales promotion and propaganda, and as the second step, member stores will be extended in 7 big cities. Further, the same kinds of activities are intended to practice at urban high-grade supermarkets and the like.

-Feb.18.2003-

◆About 232,000 ton was knocked down at the sixth bid on normal rice by MA.

On February 7th, The Food Agency held the sixth bid on normal import rice by MA in this fiscal year and 231,592 ton was knocked down. Of its planned amount for knocking down, 13,892 ton failed to knock down.

The items by production country: U.S.A.; 115,784 ton, Australia; 20,000 ton, China; 20,200 ton, Thai; 45,808 ton and Vietnam; 29,800 ton The total number of the applicant dealers was 164 companies and the dealers that knocked down at the bid was 46 companies. Its average price for knocking down was 39,693 yen per ton.

Also, on February 13th, the seventh bid on normal import rice by MA was held and 14,000 ton (the whole amount was U.S.A. rice) that had not been knocked down at the previous bid was knocked down.

So far, all of 770,000 ton(based on unpolished rice), the annual planned amount for import, completed to knock down. The knocked down amount on SBS dealing for staple food at the four bids so far remained half of 100,000 ton, the planned amount, and so, the leftover was applied to the bids on normal rice for processing.

-Feb.10.2003-

◆The restaurant business in December hasn't rallied even year-end due to recession.

According to "The survey of the market trend in the restaurant industry” in December, last year, carried out by the restaurant industrial group, Japan Food Service Association (JF) on its member companies, it is remarkable that the number of customers and the sales of "Roast meat at family restaurants” increased by 30 percent compared with the same month in the previous year.

As well as in November, the increase was due to a reaction after dropping caused by influence of the BSE incident. In December, as to the existing stores, the sales per customer were 101.1 percent compared with the same month in the previous year as a whole, the same level as the previous year, but the number of customers dropped to 93.5 percent, so the sales were inactive to 93.6 percent. As to the factors that the number of customers decreased, lack of rally in year-end demand due to recession, the snow over the weekend and that it was a day fewer for Saturdays, last December, than the previous year are given.

Especially, at family restaurants， “Pubs and bistros”， restaurants for dinner and etc., the decrease of customers from evening through night brought sluggish sales. The sales of "Take- out of boiled rice and prompt sushi (Kaiten-zushi)” were 93.5 percent (the number of customers was 94.5 percent).

-Feb.4.2003-

◆Has the prolonged drought expanded the influence to rice? (Australia)

In Australia, the influence of the prolonged drought is expanding.

According to the report announced on December 2nd by Australian Bureau of Agriculture, Resource and Economics (ABARE), production of summer grain such as rice was 1,970,000 ton, decreased by 59.1 percent compared with the previous year, the lowest record in 20 years.

The price of grain soared, and it seems to be the condition that the country cannot help importing wheat, corn and the like for the first time since 10 years ago.

As to rice, production in 2002/03 is estimated to be 380,000 ton (30 percent compared with the previous year) in contrast with 1,290,000 ton in 2001/02.

-Jan.27.2003-

◆About 70 percent of U.S.A. broken polished rice was for "Sake” use. (SBS)

At the SBS bids in the fiscal year 2002, leaving the inactive demand for normal rice behind, the applications for broken polished rice were over its limit amount.

Its delivery price was 114 yen to 117 yen per kilogram weighted average) as to U.S.A. broken polished rice that occupied over 60 percent. The rice isn’t relatively cheap compared with the one that is sold for processing use, and of the broken polished rice knocked down at SBS bids is said "Special broken rice has increased" trading company sources).

It is said "The rice is polished at the maturity of 80 to 90 percent there and we bring it after breaking. “Sake "Japanese alcohol) use is 70 to 80 percent ”. Furthermore, as to Chinese rice, the similar one comes into Japan, too.

-Jan.22.2003-

◆As to import business of rice and wheat, applications will be accepted from February 3rd to 17th. (the Food Agency)

The Food Agency will accept the screening of importers, which are the partners of the commission contracts in buying on import rice and wheat, from February 3rd to 17th. As to rice, the criteria for selection of both normal import and the contracts for special buying and selling (SBS) are unchanged.

The main requirements for the qualification: 1. above 10,000 ton at annual average in last three years for normal import (above 20 ton for SBS) as to actual result of export and import on rice (including trade among three countries), 2. the concerned corporation is set up in Japan and its own capital is above 1 billion yen (above 0.1 billion yen for SBS), 3. to have engaged in export and import business on rice for above three years (above a year for SBS), etc.

Last year, there was no new application. The current qualified dealers are 22 companies for normal import and 44 companies for SBS.

-Jan.14.2003-

◆In China, Kameda Seika will operate its factory and produce rice crackers in December, 2003.

Kameda Seika Co., Ltd. (in Niigata prefecture) will set up its corporation in China, which is expected to be approved around on January 14th, and produce rice crackers (“Senbei”,“Arare”and“Okaki”), importing them into Japan.

The outline of the company▽Company’s name: Qingddao Kameda Foods Co., Ltd

▽Capital: 5 million US dollar (about 600 million yen); Kameda Seika Co., Ltd. finances 4.60 million US dollar(92 percent) and Mitsubishi Corp. finances 0.4 million US dollar (8 percent)▽Site area: about 43,000 square meter▽Schedule for

operation: December, 2003 ▽Object of annual sales (after operation): about 50 million yuan (about 750 million yen)

The production is intended to begin with“Arare”and to add the other items in the future. Also, for sales routes in China, a survey is being proceeded.

The sales of rice crackers by the company in Japan is over 60 billion yen, but the production in China has no influence on the production in Japan.

Furthermore, the overseas base for production will be third after U.S.A. and Australia (both sales are about 3.5 billion yen altogether).

-Dec.17.2002-

◆Commercialization of genetically modified (GM) rice was abandoned. (Aichi-ken Agricultural Research Center)

Aichi-ken Agricultural Research Center announced recently about it own research of genetically modified (GM) rice that it would not apply the safety examination to the Ministry of Health, Welfare and Labor which is necessary for its commercialization because customers and the like are uneasy about GM rice.

The center has been conducting the research to create herbicidal resistance on “Matsuribare”(brand rice) using the technique of GM rice by Monsanto Company (U.S.A.) in the collaborative research with Monsanto Japan Ltd. since 1997 as effective measures to eliminate weeds for spread of direct planting without tillage which is an epoch-making, low-cost cultivation technique in paddy rice field are necessary, and after 6 years’research has been done, it has reached prospect to create a hopeful system, and so, it is to finish the collaborative research with Monsanto Company at the end of March in 2003.

However, coping with the spread of opposition movement centering on consumer groups, the center decided the beginning measures.

-Dec.3.2002-

◆Roast meat restaurants rallied, increasing by 30 percent compared with last year. (October)

According to“ The survey of the market trend in the restaurant industry” in this October carried out by the restaurant industrial group, Japan Food Service Association(JF) on its member companies, the increase in sales compared with last year was remarkable for“Roast meat at family restaurants”.

The sales based on the existing stores were 132.2 percent compared with last year(the number of customers: 133.7 percent). Even the figures based on the whole stores including the new stores, the number of stores increased by 6 percent compared with last year and the sales were 144.5 percent(the number of customers: 147.1 percent). The recovery from falling down caused by the influence of BSE incident was remarkable.

Except the category, based on the existing stores, sales increase was “Japanese style of fast food” and the sales were 114.2 percent compared with last year (the number of customers: 118.5 percent). Even based on the whole stores, the sales were 125.0 percent (the number of customers: 130.4 percent).

As to“Take-out of boiled rice and prompt sushi (Kaiten-zushi)”, the sales based on the existing stores decreased to 92.3 percent and the number of stores decreased to 96.5 percent compared with last year.

-Ｎｏｖ.26.2002-

◆U.S.A. glutinous polished rice fell below first 200,000 yen per ton, breaking its cheapest record.

At the third SBS bid in this fiscal year held on November 8th, the delivery price of U.S.A. glutinous polished rice fell below 200,000 ton per ton (weighted average, 200 yen per kilogram) for the first time.

In the fiscal year 2001, it had kept above 250 yen per kilogram (at the second, third and fourth bids), but at the first bid in this fiscal year, its price was 235 yen, the cheapest in the past, and at the second bid, it was 213 yen, breaking its previous cheapest record.

The knocked down amounts of glutinous rice by production country at the third bid were following: U.S.A.; 1,442 ton, Thai; 78 ton, China; 306 ton and the total; 1,826 ton The sum from the first to the third bids was 7,620 ton and it has already exceeded the amount knocked down in the fiscal year 2001 (5,713 ton). Of 7,620 ton knocked down in this fiscal year, U.S.A. glutinous polished rice increased by about 20 percent from the fiscal year 2001 (4,581 ton).

Californian glutinous rice cannot be expected great extension as its demand is limited, but its fixed demand has been obtained, and so, purchase of the rice seems to have been proceeded depending on price.

-Ｎｏｖ.18.2002-

◆Rice harvest decreased by 20 percent due to drought. (Australia)

In Australia, drought that seems to be influenced by El Nino has occurred in various parts of the country and the damage to agriculture and livestock products is expanding.

The damage in New South Wales, where is main production area of rice, is large, and so, the influence to 2003’s rice is worried.

In a normal year, harvest between about 1.2 million and 1.3 million ton is expected, but under the situation that allotment of irrigated water is restricted, it is certain that 2003’s rice harvest will be below it.

Even in the official prediction by Australian Bureau of Agriculture, Resource and Economics(ABARE) announced in September, 2003’s rice harvest is expected to decrease by 20 percent.

Rice-planting in Australia is done for a long period from October to December, and so, the planting area of 2003’s rice is not fixed yet, but the destinations of the rice contracted by Australian Ricegrowers Co-Operative Limited reach over 70 countries and its minimum amount of 750,000 ton is necessary as annual export amount.

The prospect of 2003’s rice harvest can not be predicted, and so, of 1.2 million ton harvested this year, the possibility that carry-over may be done has come out.

-Ｎｏｖ.12.2002-

◆Polished U.S.A. rice was 210 yen per kilogram, 10 yen cheaper than last bid.

The third SBS bid on overseas rice in this fiscal year was held on November 8th, and of its contractual planned amount, 25,000 ton, the knocked down amount remained over 60 percent, 13,421 ton. A large quantity of contractual leftover occurred following the bids in May and August. There seem to have been many wholesalers that passed knocking down.

The delivery price of Chinese non-glutinous polished short breed rice by Japanese Government (weighted average), which is main, was 226 yen per kilogram, 3 yen cheaper than last bid.

Meantime, as to U.S.A. non-glutinous polished short breed rice, it was noticeable that the buying price by the Government (weighted average) was beyond 102 yen and the delivery price by the Government (weighted average) was 210 yen, 18 yen cheaper than last bid, 16 yen cheaper than the Chinese rice, and so, the difference in price between the two expanded further from 10 yen, last bid. The difference in price on mark-up between the two also expanded to 28 yen from 23 yen, last bid.

-Ｎｏｖ.6.2002-

◆101,000 ton was knocked down at the third bid on normal rice by MA.

The third bid on normal import rice by MA in this fiscal year was held on October 25th and 101,000 ton was knocked down.

As to the breakdown by production country of the knocked down rice, U.S.A.: 46,000 ton, Australia: 20,000 ton, China: 15,000 ton and Thai: 20,000 ton. Its application was 108 companies and its knocking down was 25 companies.

The average price of the knocked down rice was 40,080 yen. The knocked down amount at the bids on normal import rice by MA in this fiscal year summed to 111,000 ton.

-Oct.28.2002-

◆The survey on restaurant industry in September tells a full recovery from BSE incident isn’t yet.

According to“The survey of the market trend in restaurant industry”in this September carried out by the industrial group, Japan Food Service Association (JF) on its member companies, the whole sales based on the existing stores were sluggish at 94 percent compared with the same month in the previous year. Although its sales per customer were about the same as the same month in the previous year, the number of its customers was 93.9 percent. However, in the case of some companies, each company’s figure was beyond the same month in the previous year respectively and there were differences between the companies.

As to fast food, especially the number of customers in Japanese-style sector decreased greatly and its sales remained about 80 percent. As to“Roast meat at family restaurants”, the number of customers was 90 percent and the sales were 88.9 percent, and so, a year has past since the occurrence of the BSE incident, but a full recovery from its influence seems to be not yet. As to“Take-out boiled rice and prompt sushi(Kaiten-zushi) of fast food”,the sales were 95.4 percent (the number of customers was 93.4 percent).

Meantime, based on the whole stores including the new stores, the whole sales were 102.0 percent, extending the market size. The number of the stores was 106 percent. The eagerness to open new stores including 121.6 percent of“Chinese restaurants among family restaurants”has been vigorous.

-Oct.22.2002-

◆5,000 ton was knocked down for Awamori use at the second bid on normal rice by MA.

The second bid on normal rice by MA in this fiscal year was held on October 18th and 1,400 ton of Thai non-glutinous polished long breed rice and 3,600 ton of its non-glutinous broken polished rice, the total of 5,000 ton was knocked down as raw materials of Awamori (alcohol) for Okinawa. Both rice seem to have been broken down by the same trading company.

Furthermore, the schedule of the third bid will be announced soon and the rice produced in the countries except Thailand will be shown. As to last fiscal year, each country’s production rice had been shown since the bid on October 19th.

-Oct.16.2002-

◆The fourth store in Japan opened as Saitama-Sayama store on October 16th.(Carrefour)

Being taken notice of the development in the future, Carrefour whose parent company is in France opened Sayama store (Sayama-shi, Saitama prefecture) as its fourth store in Japan on October 16th.

As to delivery of polished rice, three rice wholesalers, Kitokushinryo group (Kitokushinryo Co. Ltd. and Kitokushiga Co. Ltd.), Nihon Matai Co. Ltd. and Kofuku beikoku Co. Ltd. seem to take charge of.

The existing three stores at Chiba-Makuhari, Tokyo-Minamimachida and Osaka-Koumyoike are spread to be in a hard competition, and so, in the rice industry, alteration about arrangements of goods including rice at the new store is taken notice.

The rice counters at the stores are moving in the direction of reduction on size, and so, even at Chiba-Makuhari store, the rice counter at present is less than half of the size at its opening period. Alteration at the rice counters have been attempted step by step on merchandise, and as a whole, change from a single brand rice to blended rice is a feature.

-Oct.7.2002-

◆According to the survey on consumers, 95 percent answered“Rice in no need of washing is good”.

The Information Center for Rice in No Need of Washing announced recently the result of the second survey on consumers tied up with Satake Corp. following the survey on consumers carried out in Tokyo and Osaka in this June.

The survey was carried out with the method that samples were passed out to 1,000 housewives across the nation and that they answered to questionnaires after tasting.

According to its total, as to“ Taste”of rice, in case that it was boiled with the same amount of water as usual, the housewives who answered“Good”or “Unchanged compared with the rice that I always eat” reached 82.6 percent.

Also, as to“ Smell” after boiling, 86.0 percent answered“Unchanged compared with the rice that I always eat”, and as to convenience, 82.5 percent judged rice in no need of washing as the winner. To the question that“Do you recognize that rice in no need of washing is good?”, truly 95 percent answered “I recognize that ”. Consequently, the survey concludes that it has won the high support of housewives from the view point of not only convenience but also good taste.

-Oct.1.2002-

◆Opening of large stores on Kaiten-zushi contributed to increase of sales. (August sales by restaurant business)

According to "The survey of the market trend in restaurant industry" in August carried out by the restaurant industrial group, Japan Food Service Association (JF) on its member companies, the whole sales based on the existing stores were 94.6 percent compared with the same month in the previous year. They were improved considerably compared with July though the difference varies by contents of business or companies.

As to "Roast meat in family restaurants" which had been affected by BSE incident, the number of customers was 90.5 percent and its sales recovered to 86.7 percent. As to number of customers, “Japanese-style fast food” was 64.0 percent due to the reaction that beef-meat bowls with rice had been reduced in price in August, last year, and that the number of customers had increased greatly in the month.

Meantime, the whole sales based on the whole stores including new stores were 102.2 percent. The number of their customers was 100.9 percent, expanding a bit, and the sales per customer were 101.3 percent, increasing after the past five years. "Take-out boiled rice and Kaiten-zushi(prompt sushi)" were taken notice.

The number of their stores was 98.7 percent, the number of their customers was 121.9 percent and their sales expanded to 113.4 percent. As to Kaiten-zushi, which is in competition, some companies opened their new large stores, contributing to the sales.

-Sep.24.2002-

◆August sales amount was 301,000 ton. (non-glutinous rice for staple food use)

The Food Agency announced on September 20th that August sales amount of domestic non-glutinous rice for staple food use was 301,000 ton.

One problem is that 168,000 ton is still short in the total. In this rice year, the rest is another two months. Due to 2002’s delayed rice of growing, a delicate change that has been coming up, however, unless 771,000 ton does not sell during September to October (386,000 ton a month in total of new and old rice), it does not catch up with last year’s result.

-Sep.17.2002-

◆The top was 1,944 ton by Andre. (The second SBS bid)

The amounts knocked down by each trading company at the second SBS bid in this fiscal year held on August 30th became almost clear.

The top on the whole amount was Andre Fareast Inc. which knocked down 1,944 ton.

The following were 1,059 ton by Toho Bussan Kaisha Ltd., 954 ton by Toukou Kosen Corp., 912 ton by Mitsui & Co. Ltd., 856 ton by Kitokushinryo Co. Ltd..

Although the bid was held with the planned limit amount of 30,000 ton and remained much leftover without knocking down, eventually the features of the bid were that it shifted to U.S.A. rice, the ratio of broken rice was raised and that, also, glutinous rice increased, etc.

-Sep.9.2002-

◆July sales of restaurant industry decreased greatly owing to decrease of holidays and coming of typhoons.

According to the survey of the market trend in July in restaurant industry carried out by a restaurant industrial group, Japan Food Service Association(JF) on its member companies, the whole sales based on the existing stores was minus 10 percent, showing great decrease.

It was because the number of Saturdays, Sundays and holidays in July, this year, decreased to 8 days from 10 days in July, last year, and because the bad weather caused by the big typhoons resulted in decreasing the number of customers to 93.0 percent.

The number of customers was 95.3 percent at the stores for“Take-out of boiled rice and prompt sushi(Kaiten-zushi)”and 75.4 percent for“family restaurants’roast meat”that the influence of BSE still remains, showing large decrease.

Meantime, based on the whole stores including new stores, viewing the whole market trend, the whole sales were 97.4 percent compared with the same month in the previous year, showing below the same month in the previous year since February, last year.

Besides the above factors, it is thought that the sluggish individual consumption, the affairs in connection with food and etc. have influenced it somewhat, too.

-Sep.3.2002-

◆Less than 20,000 ton was left without knocking down at the second SBS bid.

The second SBS bid in the fiscal year 2002 was held on August 30th with the planned contract amount of 30,000 ton and its knocking down amount was only 10,596 ton.

The leftover without knocking down followed last bid at the end of May, and although it had been expected beforehand, with the result that it was too enough to guess the demand for overseas rice at present, some trading companies were surprised at much leftover without knocking down.

The delivery price (weighted average) of Chinese non-glutinous polished rice which is main was 229 yen per kilogram, 9 yen cheaper, and its buying price was 4 yen cheaper than last bid. Its mark-up was 6 yen cheaper compared with last bid. As to U.S.A. non-glutinous polished short breed rice, its buying price was 12 yen higher and its delivery price was 18 yen cheaper than last bid.

-Aug.26.2002-

◆The supermarket, Ralse sold 2 ton of Australian Koshihikari in 4 days.

The supermarket of foods, Ralse Company Ltd. (Sapporo-shi, Hokkaido) began selling new rice of Australian Koshihikari, this year, just as it did last year.

In four days from July 12th to 15th, the company sold 400 packs of a 5 kilogram pack (1,780 yen).

As to domestic new rice, the company has sold at 1,980 yen of a 5 kilogram pack on Miyazaki Koshihikari since the end of July and is scheduled to sell the rice until the end of August.

-Aug.13.2002-

◆The second SBS bid will be held on August 30th with the limit amount of 30,000 ton.

The second SBS bid in this fiscal year will be held on August 30th with the planned limit amount of 30,000 ton (27,500 ton for normal rice and 2,500 ton for broken polished rice). Its shipment period is until November 29th and its delivery period is until January 15th, next year.

The SBS bids in this fiscal year are being done with the annual planned limit amount of 100,000 ton and the first bid was held with the limit amount of 20,000 ton in consideration of accumulation of undelivered goods owing to the influence of occurrence of unqualified packing containers for import, and so, at the second bid, an extra 5,000 ton is added.

-Aug.5.2002-

◆June sales by family restaurants etc. decreased because of the soccer world cup.(the survey of restaurant business)

According to the survey of the market trend in restaurant industry carried out a restaurant industrial group, Japan Food Service Association (JF) on its member companies, this June’s sales by family restaurants, pubs, bistros, dinner restaurants and etc. have dropped greatly because of the influence of staying-home with the game watching on TV of the soccer world cup held in this June.

The June’s sales by the family restaurants based on the existing stores were 92.0 percent (the number of customers: 94.8 percent) compared with the same month in the previous year.

Among them, as to "Take-out boiled rice and prompt sushi (Kaiten-zushi)”, the sales were 100,2 percent and the number of customers was 101.0 percent, keeping the figures in the previous year. As to roast meat by the family restaurants which is continued to point out the delay of recovery owing to the influence of the BSE (bovine spongiform encephalopathy) incident, the sales were 79.3 percent and the number of customers was 80.1 percent, being dull.

The whole number of stores increased to 104.7 percent compared with the previous year. As to Chinese cuisine’s family restaurants which show their vigorous eagerness to open new stores, the number of stores increased to 120.9 percent compared with the previous year.

-July.30.2002-

◆The offensive by the taste event with invited 500 consumers (U.S.A. Rice Federation)

On July 29th, U.S.A. Rice Federation held "American Rice−The Big Taste Party", which invited about 500 consumers centering on housewives in Japan, at Radisson Miyako Hotel Tokyo in Minato ward, Tokyo, with the theme "Affection toward rice can not be defeated against Japan" under the sponsorship of the U.S.A. Embassy.

The participants were 500 consumers who had been selected by drawing lots out of 3,500 persons 'applications after bulletins on some newspapers. The party followed the one which had been done in Kinki district the year before last and the aim is to have U.S.A. rice known.

At the party, including video show, the dishes using fourteen kinds of U.S.A. rice were spread closely, and some domestic TV broadcasting companies were drawn in.

Also, seven consumers were collected on the stage and they carried out the blinded taste test with domestic four breeds (Niigata-koshi, Ibaraki-koshi, Akita-komachi, Kirara) and five Californian-komachi breeds, and the taste evaluation was showed up various results although they may differences in liking.

-July.22.2002-

◆The Big Taste Party with invited 500 consumers (U.S.A. Rice Federation)

On July 29th, U.S.A. Rice Federation will hold "American Rice-The Big Taste Party" in which Japanese 500 consumers will be invited at Radisson Miyako Hotel Tokyo in Minato ward in Tokyo under the sponsorship of U.S.A. Embassy.

The party is for enlightenment and spread of U.S.A. rice in Kanto district, this time, following the party held in Kinki district the year before last. With Californian Akita-komachi and Koshihikari, the Federation will have the dishes from a cold one in which taste and quality can be discerned well to a warm one with boiled rice tasted. Also, a blinded taste test etc. is planned.

Furthermore, at the hotel, "American Rice Fair” will be done from the party day through September 1st. The offered dishes will be eight articles including box lunches with broiled eel, salad roll sushi of lobsters, and bowls of rice and beefsteak etc..

-July.15.2002-

◆Typhoons may hit Japan than a normal year?

This week, marketing of the super early rice produced in Kouchi and Miyazaki Prefectures in Kyushu will start.

Although harvest of "Short-term intensive type" rice in Miyazaki prefecture etc. is expected, worry is typhoons. The sixth typhoon in this year swerved, but the seventh and eighth one have occurred after it.

The occurrence number of typhoons from July to September is four to six per month in a normal year, and of them, the approach number to Japan is one or two per month.

In recent years, the affection into 1999’s rice (the fifth and seventh one at the end of July affected the early cultivation and the eighteenth one at the end of September affected Kyushu) was remarkable. This year, typhoons may hit Japan than a normal year.

-July.8.2002-

◆The inspection amount of normal rice in FY 2001 was 487,000 ton.

The Food Agency recently added up the inspection amounts by category, production place and breed, and the average amounts by inspection item of normal rice by MA in the fiscal year 2001.

The inspection amount was 487,218 ton in all (84.7 percent vs. the previous year). Its details were: 38,074 ton of unpolished rice (28.5 percent), 378,657 ton of polished rice (103.6 percent) and 70,487 ton of broken polished rice (92.5 percent).

The unpolished rice was all non-glutinous middle breed, 24,051 ton of U.S.A. Californian and 14,023 ton of Australian.

-July.1.2002-

◆The top was 1,425 ton by Toho Bussan.

The outline of the amounts by each trading company on each export country at the first SBS bid in this fiscal year held on May 31st became almost clear.

The top of the whole knocking down amount was 1,425 ton by Toho Bussan Kaisha Ltd. The following were 1,276 ton by Andre Fareast Inc., 1,149 ton by Mistui &　Co. Ltd., 1,074 ton by Toukou Kosen Corp.and 924 ton by Sumitomo Corp..

Meantime, according to the amounts by each country, as to Chinese rice,　1,074 ton knocked down by Toukou Kosen was all Chinese one. Nichimen Corp. (756 ton), Toho Bussan (744 ton), Mitsui & Co. (558 ton) and Itochu Corp. (520 ton) followed.

As to U.S.A. rice, Andre Fareast (936 ton), Iida Co. Ltd. (740 ton), Yuasa Trading Co. Ltd. (586 ton) lied in the upper places, but thoroughly the other trading companies knocked down amounts between 100 ton and 400 ton respectively ,too, as well as Chinese rice.

As to Australian rice, just as before, Sumitomo and The Sunrice Inc. knocked down outrunning the other companies.

An eccentric thing was that Kitokushinryo Co. Ltd. knocked down 540 ton of Thai rice. There is a view of evidence that the company has steady sales routes to restaurants etc. of Thai cuisine.

-Jun.25.2002-

◆“Normal year’s summer" forecast is unchanged (the Meteorological Agency)

On June 20th, the Meteorological Agency announced that the three months’ forecast from July to September and it forecasted "Normal year’s summer”, the same as before.

The probability that El Nino phenomenon, which is said to bring cold summer, will occur in this summer has increased, but the Agency has forecasted that the probability of normal year’s summer and high temperature in Northern, Eastern and Western Japan and the Southwest Islands (Nansei-Shotou) is high because the power of the high pressure in the Pacific Ocean has not weakened.

In September, much rainfall is forecasted in Northern Japan and whether rice harvest will be influenced is worried. On the other hand, the probability of higher temperature than the three months' forecast announced last time is expected to be high and the possibility of obstructive cold-weather damage which becomes a factor of sharp decrease in rice harvest has decreased.

-Jun.18.2002-

◆El Nino phenomenon to occur in this summer if early.

The Meteorological Agency announced the news flash of El Nino observation on June 10th.

The difference from the standard of the sea surface temperature in the observed sea area in May was plus 0.6℃ and it has been tending to increase since this year, and so, if the seasonal wind continues keeping weaker condition than a normal year, El Nino phenomenon is probable to occur in the early stage during the forecast period(June-December), and therefore, the probability that“The prospect of its occurrence after this summer”may be made earlier has come out.

As it is a phenomenon that tends to influence summer weather in Japan, three months’weather forecast announced next time is taken notice.

-Jun.11.2002-

◆500 ton of Thai fragrant rice was knocked down and "The required amount was obtained with increase of the demand”.

At the first SBS bid in this fiscal year for overseas rice held on May 31st, there was a bit of over 500 ton of Thai non-glutinous polished long breed rice (fragrant rice) and the amount was almost knocked down with a certain level of mark-up.

This is because rice wholesalers who are strong in rice sale for restaurant business made efforts to obtain the required amount for Thai cuisine restaurants, wholesale dealers of food materials and counter sale at supermarkets.

One wholesaler who knocked down at the bid said "The demand is increasing a little recently" and intends to respond the bids observing the stock situation after this, also the wholesaler stressed "High quality goods" as to quality.

-Jun.5.2002-

◆At the first SBS bid in FY 2002, 5,000 ton was left without knocking down because the planned price was not met.

The first SBS bid in the fiscal year 2002 for overseas rice was held on May 31st with the contractual planned amount of 20,000 ton, 14,680 ton was knocked down.

The delivery price weighted average) of Chinese non-glutinous polished short breed rice which was the bid’s main one was 238 yen per kilogram, 12 yen cheaper than the bid in January, this year. The buying price weighted average) of Chinese non-glutinous polished short breed rice was 9 yen higher than last bid, beyond the buying price of U.S.A. non-glutinous polished short breed rice.

The delivery price of the U.S.A. non-glutinous polished short breed rice was 20 yen per kilogram cheaper than last bid, and its application amount decreased sharply compared with the first bid in the previous fiscal year as it had been expected. The delivery price of Australian non-glutinous polished short breed rice was about 5 yen cheaper than last bid. Its application amount was nearly the same as the first bid in the previous fiscal year.

The application amounts have decreased to half compared with the first bid in the previous fiscal year on normal rice and broken polished rice respectively, and at the same time, the big difference between the Food Agency’s planned price and the price wished by wholesalers and demanders caused 5,000 ton to leave without knocking down.

About it, the Food Agency pointed out that disposal of the stock has been left behind because of the influence that lead beyond the standard had been detected from the wrapping containers and that the demand for overseas rice has slightly decreased. The Agency stressed the purpose for the operation of bid, "We explore the trend of the demand”.

-May.27.2002-

◆“Normal year’s summer "is forecasted. by the Meteorological Agency from June to August)

On May 20th, the Meteorological Agency announced the three months 'forecast from June to August and showed that it would be normal year’s summer.

Owing to increase of the possibility that occurrence of El Nino phenomenon will be delayed after this summer, against the forecast announced in this spring, as to Northern, Eastern and Western Japan, and the Southwest Islands (Nansei Shoto), keeping normal year’s probability of 50 percent, the probability was changed from 30 percent to 20 percent for low temperature and from 20 percent to 30 percent for high temperature. July’s forecasted temperature in these regions was changed from "A normal year” to "High”.

Because of a big change such as high temperature across the country from March to April and May’s low temperature in the Pacific Ocean side of Northern and Eastern Japan (over １℃ higher than a normal year throughout the country) and existence of El Nino, there were many opinions that have worried about unusual weather in this summer, however, the possibility above normal year’s summer has increased.

-May.20.2002-

◆Carrefour in France embarks radical reform.

Developing Makuhari store (Chiba), Koumyoike store (Osaka) and Minami-machida store (Tokyo), Carrefour Japan whose parent company is in France will introduce a manual suitable for Japanese market on service to customers, arrangement of sales counters and etc. after July.

Although the company has been carrying forward its own arrangement of sales counters and service providing since it extended its business to Japanese market, the sales of the existing three stores seem no increase as much as expected, and so, the company will embark radical strengthening of business activities.

As to rice sale, the problems such as insufficiency of goods and that the shelves had been covered with dust were pointed out, and furthermore, even the voice“the clerk was unkind”(Osaka) has come out.

-May.13.2002-

◆Was Chinese rice bran imported in Niigata port？ Interest has been taken.

According to the trade statistics by the Ministry of Finance, during this year, the rice which is supposed to be Chinese import rice bran has been imported 400 ton in January, 480 ton in February and 560 ton in March, increasing month after month.

Every rice was imposed import duties in Niigata port and its price per kilogram　 s about 45 yen, which is over three times higher than the market price of domestic rice bran, and interest by the persons concerned is taken “Who has imported for what use？”

There was a period when bran oil makers etc. imported such rice bran in the past, but it is stopped at present owing to falling of the domestic market price, and so, the price level is not suitable for feed or the other uses.

Although it is a general view that they are not raw rice, but products, even the guesses such as “They may be similar to rice powder” , “They may blend with broken rice” and etc. have come out.

-May.8.2002-

◆The first SBS bid in FY 2002 to be held with the planned amount of 20,000 ton on May 31st.

The first SBS bid in this fiscal year was decided to hold with the planned amount of 20,000 ton (of it, 2,500 ton for broken polished rice) on May 31st (Friday).

The schedule is the same as last year. Meantime, last year, with the growing of the demand for“ Awamori” (alcohol in Okinawa) use, the first bid for normal rice by MA was held over a month earlier than a normal year, but, this year, from the situation of rice stock in Okinawa prefecture, the bid is expected to hold on the same schedule (June) as a normal year.

-Apr.30.2002-

◆Seiyu intends to open its stores concentrating in the center of the Metropolis in this fiscal year.

The Seiyu, Ltd. which has made a comprehensive tie-up with the world’s largest retailer, Wal-Mart Stores, Inc. recently has laid stress on food

supermarkets about its store plan after this fiscal year.

The planned stores are to open in the center of the Metropolis where the company is good at opening and they are planned to open in 23 wards in the Metropolis and the densely populated area in in the suburbs such as Chofu-shi (city).

At the food supermarkets located in the Metropolis, with the fair wind of

regaining population, a good sale has been concentrating and each large-scale store company has made an effort for the business. The company has been carrying forward its stores concentrating in the center of the Metropolis.

At new business "Food magazine Roppongi store" Tokyo), despite small space, rice in no need of washing, etc will be placed efficiently with being supplied by Yamatane Corp..

-Apr.22.2002-

◆Misfortune of rice processing makers.

It is a long time since consumptive decline of beverages and foodstuffs made from rice such as “sake" Japanese alcohol),"senbei”and“ arare” (Japanese cracker),“ mochi”(rice cake),“miso”(soybeans paste), etc has been pointed out. Its reason is said that consumers ’taste has changed, but is it the only really？

For example, the consumption of alcohol in the fiscal year 2000 decreased greatly, 20 percent decrease for beer, 22 percent decrease for sake compared with five years ago, on the contrary, 20 percent increase for“shochu “(Japanese alcohol).

In the meantime, the consumption of alcohol such as low-malt beer increased nearly seven times. It cannot be thought that taste of Japanese people has changed into liking shochu and low-malt beer more than before. In the background of the depression, the demand has just been shifting to low-priced goods on and on.

In the case of raw rice, in the past five years, the price of Thai broken polished rice has fallen by 28 percent, U.S.A. rice has fallen by 17 percent and Niigata Gohyakumangoku has fallen by 20 percent.

However, in the falling of such a level, it is hard to create epoch-making goods to cope with the depression such as low-malt beer replacing beer and shochu replacing sake, and because there is a import barrier, overseas production is hard, too. The food processing industry in Japan is getting fatigued.

-Apr.15.2002-

A reception was held for spread of Thai cuisine. (Royal Thai Embassy)

The reception hosted by Royal Thai Embassy "Thai cuisine’s evening" was held on April 9th.

Yamamori Inc. introduced the retort food products (four kinds of Thai Curry and Tum Yum Kung) which the company produces at its factory in Thailand and imports in Japan, and their sampling was done in the reception.

However, there are 318 restaurants of Thai cuisine in Japan. Even though it is used there, about 5,000 ton a year is necessary. We would like to spread it more not only for rice cakes and soybeans (miso), but also as table rice”.

-Apr.8.2002-

◆The inspections for residual agricultural chemicals of rice and wheat resulted that import rice contained much bromine.

The Food Agency recently announced the results of the inspections for residual agricultural chemicals of 2001’s domestic rice and wheat, and the fiscal year 2001’s import rice and wheat.

The inspections covered 73 items for domestic rice and 123 items for import rice. The results have been summarized" Any domestic rice and wheat, and any import rice and wheat don’t exceed the standards of residual agricultural chemicals which are provided by Food Sanitation Law”.

Apart from whether they are safe or not on Food Sanitation Law, the problem of residual agricultural chemicals tends to be a cause of dispute as to" Which is safer, domestic rice or import one?”.

-Apr.1.2002-

◆In the large-scale stores industry, the age of three strong groups such as AEON will come.

Owing to it, in the distribution industry, after this, the view that "It enters into the age of three strong groups, AEON, Ito-Yokado and Wal-Mart Stores alliance, and whether The Daiei, Inc. under reconstruction of management can follow them to what extent or not is a focus. The middle-sized large-scale stores except the top ten companies may be combined into these big three" the person concerned in one department store).

About the alliance of Wal-Mart Stores and Seiyu, at the announcement of their tie-up, the executives of both companies showed careful attitude with “We study Japanese market thoroughly, and then”, however, domestic reorganization will be expected from the following remarks:▽We study deeply the distribution form by way of wholesalers in Japan and enable consumers to get the most valuable goods.▽We structure an efficient distribution system.▽Taking the tie-up as an axis, we would like to embark on absorbing and merging supermarkets in Japan, and etc.

“Wal-Mart Stores’ basic strategy is to realize low cost in buying a large quantity "the same person), and therefore, notice is required. AEON and Ito-Yoked which are in competitive position against it intend to take their active extension strategies. Especially, having expecting the extension by Wal-Mart Stores since several years ago, AEON has been carrying forward the structure of nationwide numerous stores network.

-Mar.26.2002-

◆The focus of the Exhibition for international food was“ Organic”.

At the Exhibition for international food and drink(FOODEX), the treatment of “ Organic" was in the front of it.

Among the trading companies,“ Organic food leads generally "was given to Nissho Iwai Corp.. In the company’s exhibition booth, this year also, the treatment on the organic cultivation rice by Lundberg Family Farms in U.S.A. was introduced.

The organic rice was authorized by the registration authority organization, OCIA Japan, and Lundberg exhibited the goods with Organic JAS (Japanese Agricultural Standard) mark. The company is carrying forward the treatment for extension of the organic rice market in Japan and introduced the polished rice, main goods such as“Akita-komachi Organic" which is for staple food

involving for business use at restaurants,“S102”which is raw materials for processing, and glutinous rice.

-Mar.18.2002-

◆The influence of buying of Seiyu by Wal-Mart in U.S.A. on the rice　industry in　Japan.

Wal-Mart Stores, Inc. in U.S.A., the world’s largest retail store, enters into Japanese market with buying The Seiyu, Ltd.. On March 14th, their comprehensive tie-up on both capital and business was announced.

Wal-Mart’s present investment ratio is 6.1 percent, but in future, it enables raise up to 66.7 percent. In December, 2002, Carrefour in France has extended to Japanese market, and therefore, the first and second largest retail stores results in gathering in Japanese market.

What has been worrying the rice industry in Japan is business style, terms and whether the wholesalers for supply will be changed or not. Because it is the feature that Wal-Mart brings down buying prices showing its buying power as arms and that it asks for its advantageous terms, the industry’s caution is strong.

However, there is another view, too:“Carrefour which aimed for direct business with makers at the beginning is worrying over its severe sales and supply of goods at present because of its high-handed attitude and ambiguity of its merchandising strategy, too. Wal-Mart ought to have studied the difficulty of Japanese market, and so, to begin with, it may make use of Seiyu’s property such as stores and business connections "the management planning division of one large-scale store).

-Mar.14.2002-

◆To change packing the import rice of the packs in question, wholesalers are probable to pay.

The trading companies which want to expect the surest treatment in safety and confidence decided not to buy the packs at the manufactures which have manufactured the packs in question, showing "We don’t bring the materials whose contents will be doubted" another trading company) and intend to pay scrupulous attention as to the treatment.

-Mar.6.2002-

◆The average of the crop situation indexes in the paddy field in the years of El Nino occurrence is 96.

There is much possibility of occurrence of El Nino phenomenon (the temperature of seawater around the equator in the Pacific Ocean gets high, and thereby, it brings about unusual weather. It occurs once for several years and continues for a half year or a year and a half), this year.

It tends to be cold summer in the years of the phenomenon occurrence, and for example, the average of the crop situation indexes in the paddy field in thirteen years when the phenomenon occurred out of the past fifty years is 96, falling by 5 points than the whole average of 101, etc, and the phenomenon has influenced the crops a great deal. 1993’s rice, when the rice panic has happened owing to the big bad crop, corresponds to the case, too.

As to 2002’s rice, the production adjustment at the largest size in the past is planned to continue. Domestic old rice stock of 2 million ton is being overproduced, but the situation changes greatly with the production of new rice.

Please note the flash of next observation on El Nino and" Warm period forecast” which estimates this summer’s weather announced by the Meteorological Agency on March 11th.

-Feb.26.2002-

◆At the bids of normal rice by MA, U.S.A. rice occupied 50 percent, this year also.

The sixth bid (the final one) of normal import rice by MA in this fiscal year was held on February 19th and 167,000 ton was knocked down. Its average knocked down price was 40,319 yen per ton.

The knocked down amounts by each production country were 95,000 ton by U.S.A., 19,000 ton by Australia, 9,000 ton by China, 39,000 ton by Thailand and 5,000 ton by Vietnam.

The normal import rice in this fiscal year reached about 580,000 ton in total, and as to the knocked down amounts by each production country, U.S.A. rice was 299,000 ton and occupied 50 percent as usual.

As to the knocked down amount of broken polished rice, its unglutinous one was 67,000 ton in total. The import amount of MA rice reached 67,000 ton based on the initial planned unpolished one.

-Feb.18.2002-

◆The sixth bid of normal rice by MA in this fiscal to be held on February 19th.

Its planned amount is 166,976 ton (an actual weight base). Owing to it, the total amount in this fiscal year will be 579,969 ton (the same base).

Although its practice is to be delayed, the Food Agency says“We would like to carry out the bid without affecting domestic rice, also”.

-Feb.12.2002-

◆“The market size for rice in no need of washing is about 155 billion yen” (National Association of Rice in No Need of Washing)

According to National Association of Rice in No Need of Washing(Zenkoku Musenmai Kyokai), the sales amount of rice in no need of washing in December, last year was 32,400 ton and it amounted to 390,000 ton in terms of a year. The market size based on consumers’end prices was 155.5 billion yen, increased by about 50 percent compared with the previous year.

-Feb.5.2002-

◆Sale of import rice has been freeze because lead was found as an ingredient of rice packs. (the Food Agency)

The Food Agency announced that it freeze sale of all the import rice possessed by the Government because resin packs which contain lead beyond the criterion were found in part of rice packs of U.S.A. rice among import rice, and at the same time, the Agency asked the rice sellers to“Freeze sale of all the import rice”through the government office concerned until safety is verified as to the import rice which is distributed in the market. On January 29th, sales freeze of Australian rice was canceled, but U.S.A. and Thai rice etc. have been still freeze.

-Jan.28.2002-

◆The top, Andre Fareast knocked down 2,600 ton. (the fourth SBS bid)

The results of knocked down amounts by each trading company at the fourth SBS bid (the final one in this fiscal year) held in January 9th became almost clear.

Of the whole knocked down amount, the top was Andre Fareast Inc. which knocked down 2,600 ton. The following were Mitsui & Co. Ltd. (2,257 ton), Nissho Iwai Corp. (1,872 ton), Kitokushinryo Co. Ltd. (1,722 ton), Tomen Corp. (1,556 ton), Mitsubishi Corp. (1,548 ton), Toho Bussan Kaisha Ltd. (1,474 ton), Nichimen Corp. (1,188 ton), Marubeni Corp. (1,112 ton) and Toukou Kosen Corp. (1,057 ton).

Of the knocking down of U.S.A. rice, remark was two companies, Nishimoto Trading Co. Ltd. (810 ton) and Andre Fareast which was in the first place on the whole, also. Most the other companies knocked down between scores ton and the 200 ton mark, and so, the above-mentioned two companies were prominent.

Also, as to Australian rice, Sumitomo Corp. which has the achievements was the top just as it had been thought and the other four companies only knocked down the rice. Its new rice is now in sales season. There is little sales vigor at this time, and so, its knocked down amount was 364 ton, being extremely little.

-Jan.22.2002-

◆New prices about normal rice by MA have been applied since January 1st.

Since January 1st, 2002, the delivery prices of overseas rice by MA (Minimum Access) have been revised and applied as follows.

The decline in price per ton: U.S.A. Californian medium grain unpolished rice▲2,434 yen; Its polished rice ▲2,683 yen; Australian unpolished rice ▲383 yen; Its polished rice▲ 416

yen; Chinese north-eastern unpolished rice ▲7,184 yen; Thai polished rice▲934 yen.

-Jan.15.2002-

◆The delivery price of Chinese polished short breed rice was 250 yen per kilogram. (the fourth SBS bid)

The fourth SBS bid, the final one in this fiscal year, was held with the planned amount for contract of 25,000 ton (22,500 ton for normal rice for staple food) and 2,500 ton for broken polished rice for processing) on January 9th.

As to Chinese unglutinous polished short breed rice which is main, its delivery price by Japanese government (weighing average) was a little over 250 yen, about 6 yen cheaper than last bid and about 2 yen cheaper than the fourth bid in the previous year.

As to features of recent SBS bids, the number of applications has been decreasing while the number of contracts has been increasing. One trading company says“The bids have not overheated as before”.

-Dec.25.2001-

◆About practice of the SBS bid at the beginning of the new year,“It won’t affect rice wholesalers”.(one major rice wholesaler)

Although the fourth SBS bid in this fiscal year will be held at the beginning of the new year, one major rice wholesaler thinks“It won’t affect rice wholesalers”.

The wholesaler thinks“Best is another week later” giving that the bid at the beginning of the new year makes understanding of the market prices of domestic rice difficult, the sales situation at the end and that the delivery situation of surplus rice and unplanned traded rice etc. are difficult to take, but there seems no worry in the situation on the supply and demand of domestic low-price
rice and the situation that knocked down rice at the SBS bid has been delivered without being late, and so, the wholesaler takes there is no specific affection caused by that the practice day is to be later than usual.

Decision whether the wholesaler participates in a bid or not is done just before the bid every time, but, this time, the wholesaler intends to judge from the situation of the bid on domestic rice held on December 21st.

-Dec.17.2001-

◆The fourth SBS bid is to be held on January 9th.

-Dec.10.2001-

◆The sales of restaurant food in October decreased greatly owing to the disturbance of mad cow disease.

According to“The survey of the trend on the restaurant food industrial market”in October, this year held by the restaurant food industrial group, Japan Food Service Association (JF) on its member companies, the influence of the disturbance of mad cow disease(BSE: Bovine Spongiform Enceihalopathy) from the latter half of September expanded further in October.

-Dec.3.2001-

◆At last sales promotion began in the metropolitan area. (U.S.A. rice)

The Federation set the capital and 6 prefectures, Tokyo, Kanagawa, Chiba, Saitama, Gunma, Tochigi and Ibaraki as the object area, and it began the sales promotion for the business of supermarket (rice counter, daily-dish counter), convenience store and daily-dish marker etc. on November 23rd and will develop the sales promotion for a long period until next April.

Also, the Federation will carry out sales enlargement by making anew“The mark for recommendation of SBS rice”which appeals its safety, quality and taste to consumers.

-Nov.26.2001-

◆The sale of overseas rice for Awamori increased to 16,000 ton.

-Nov.19.2001-

◆The top was Andre and Kitokushinryo was in the upper place, too. (the third SBS bid)

-Nov.12.2001-

◆The summary of 2000’s rice: the share of Uonuma Koshihikari decreased and rice having no need of washing increased. (large-scale stores)

According to the interview with some rice buyers of large-scale stores about the sale of 2000’s rice, the features that the share of Uonuma (in Niigata Prefecture) Koshihikari decreased compared with the previous year's rice just as 1999’s rice did, the rice having no need of washing increased and etc. were heard.

The sale of 2000’s rice has almost finished at each store in the middle of October, and at present, 2001’s new rice is taking the place of it except some breeds. Although the sales data are in the course of total, impressions were heard as follows:

▽Uonuma Koshihikari dropped its share just as it did in the previous year. Its main reasons are quality progress of the other breeds and keeping away from high price rice. It sold a large amount with practice of the special sale in the measures for sales promotion, but it dropped its brand image.

▽Rice having no need of washing has been extending its share for three consecutive years. It can be expected after 2001’s rice, too.

▽The sale of blend rice is getting steady.

▽The central price range of popular rice is almost fixed between 2,080 yen and 2,180 yen per 5 kilogram, and so, raise of buying price easily without relation to the rice market price can not be

Among the impressions, notice is the comment on refusal of raise: Common sense is that“Rice can be bought at about 2,000 yen per 5 kilogram”in the image by consumers and the fact can not be changed any longer. After all, because the sales price at which rice sells certainly is necessary, the level of buying price will be decided naturally. (one large-scale store in Osaka)

-Nov.6.2001-

◆Owing to the disturbance of mad cow disease, the number of customers for roast meat has decreased by 10 percent compared with the previous year. (The survey of restaurant food)

The restaurant food industrial group, Japan Food Service Association (JF) summarized“The survey of the trend on the restaurant food industrial market” in September on its member companies.

The influence of the disturbance of mad cow disease (BSE: Bovine Spongiform Enceihalopathy) disclosed in the first half of September has come out in the business of roast meat and steak etc. since the latter half of the month, and so, the number of customers to roast meat family restaurants has decreased to 89.2 percent compared with the same month of the previous year and the sales have been a large down to 87.9 percent.

-Oct.29.2001-

◆The crop situation index, 103 has not changed and the expected harvest is 9,047,000 ton.

On October 26th, the Ministry of Agriculture, Forestry and Fisheries(MAFF) announced the crop situation index as of October 15th in the paddy rice field in 2001 as 103,“ Slightly good”. The index has not changed compared with last time, as of September 15th, and the expected harvest per 10 are at national average, 532 kilogram is the same as last time, too.

-Oct.22.2001-

◆The third SBS bid will be held on November 9th.

One trading company predicts“Rice wholesalers are getting hard because the price is high, and so, they are requesting surplus. There is the situation that surplus of domestic unplanned traded rice rarely comes out, and so, their interest will be directed to import rice”.

-Oct.15.2001-

◆The range of the registration system was extended. (the exchange meeting of Japanese policy and opinion on rice)

The Food Agency held the exchange meeting of opinion for Kanto block concerning overall and drastic review on Japanese rice policy at Kasumigaseki (Tokyo) on October 11th.

The director-general of the Food Agency, Ishihara etc. explained the original plan and some agricultural groups, National Federation of Agricultural Co-operative Associations (JA) and the persons in charge of the administration etc. said their opinions and questions, and their discussion focused on the problems of rice production side.

As to the question concerning the rice distribution system, the only one “How will the revolution of the registration for rice sellers be？”(the person in charge of the Tokyo Metropolitan administration) was given.

As to the reply to the question, the Food Agency mentioned“We want the competition between the planned traded rice and the unplanned rice to be fair.

We study the registration by each item whether it is necessary or not and want to free the items to reconsider”,and further, the Agency showed two points: １.Extention of the registration period (from 3 years to 5 years) ２．The range of the registration system is to be extended.

-Oct.9.2001-

◆The planting area of Koshihikari is the top for 23 consecutive years and the area of Koshihikari breeds has exceeded 80 percent share.

The Food Agency announced the situation of planting area by each breed of 2001’s unglutinous rice in paddy field recently.

The first place is Koshihikari, which has gained the top for 23 consecutive years and has been breaking the record in the history of rice growing after it broke“ Nihonbare”in 1979.

In recent years, owing to the influence of development of next and the third generations of the original Koshihikari, the so-called new breeds with Koshihikari and strengthening of planting area reduction, the increase rate of the planting area of Koshihikari is declining, but its share of the whole planting area has a 36.3 percent share, 0.8 percent up than the previous year (the planting area: 540,000 hectare).

New breeds descended from Koshihikari have rushed one after another since 1990’s as if to follow the popularity of Koshihikari, and so, it is the feature that the share of Koshihikari breeds is rising at a stroke. During recent decade, Koshihikari breeds(the breeds mingled Koshihikari by the time of the third generation’s ancestor ago) have increased from above 60 percent share to above 80 percent share greatly. Of the 2001’s breeds, the top 20 breeds have already occupied a 83 percent share.

-Oct.1.2001-

◆The crop situation index:103“ Slightly good”(as of September 15th, by MAFF)

On September 27th, The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced 103,“ Slightly good”at national average about the crop situation index as of September 15th in the paddy rice field in the fiscal year 2001.

The planting area (before deduction of thinning area) is 1,711,000 hectare, decreased by 57,000 hectare compared with the previous year. The expected harvest in paddy rice field at present is 9,100,000 ton.

The expected harvests in each district are as follows: In the district of the Pacific Ocean side in the Northern Japan, owing to low temperature and daylight shortage after early in August ripening is slow, and so, the indexes: Hokkaido“ 100”, Tohoku“ 102”(Aomori 99), and in the other

area, obstruction caused by the weather after July is small, and so, the indexes: Hokuriku, Kinki, and Chugoku“ 104”, Kanto, Tokai and Kyushu“ 103”and Shikoku“ 102”are expected.

The crop situation indexes at present are felt higher than the opinions from production place, and about it, the viewpoint of political situation“ Because reduction of planting area is in operation, normal year’s crop can not be said now”(a person concerned in the rice industry) has come out, but judging from this year’s weather transition, Japanese rice has the harvest pattern that the indexes to be announced will lower as time goes by.

However, as a good harvest in the Western Japan has been definite, a sharp fall of the index at national average can not be thought. It may be getting close to normal year’s crop.

-Sep.25.2001-

◆One million ton of stock level. Buy and sell by the Food Agency to be　flexible.

The Food Agency explained the aim of study on the rice policy to the Liberal Democratic Party recently, and about the rice stock administration, the Agency announced“To avoid increase of the financial expense and influence to price of voluntarily marketed rice, how the rice stock administration by the Government such as reduction of the stock level and flexibility of the method on buy and sell should be reviewed considering stable supply to consumers” and showed more concrete figures and methods as follows:

The stock level is reduced than the expected 1,300,000 ton, and further, as to bid, the Agency has taken a step forward from“Study of right or wrong on participation in the bids”to“Study of benchmark price forming”.

-Sep.17.2001-

◆Marubeni was the top with knocking down amount of 2,373 ton. (the second SBS bid)

The situation of knocking down by each trading company at the second SBS bid held on August 31st almost became clear. The trading company with the most knocking down amount at the bid was 2,373 ton by Marubeni Corp.The following companies were Toshoku Ltd. (2,220 ton), Mitsubishi Corp. (1,939 ton), Toho Bussan Kaisha Ltd. (1,664 ton), Mitsui & Co., Ltd. (1,564 ton) and Kitokushinryo (1,522 ton).

Of rice wholesalers, a great effort by Kitokushinryo which listed its stock for the first time in over the counter issue(JASDAQ) on July 18th was noticeable.

-Sep.10.2001-

◆It is questionable whether Calhikari will circulate into Japanese market.

In breeds of U.S.A. rice, a comparatively new comer is“ Calhikari”. One trading company which knows the local information in U.S.A. very well says although its taste level is not so bad, its quality such as generation of crack rice is a problem.

According to the trading company, at the second SBS bid,“(Advantageous) offer price came out”, but“New marketability could not be got”and a question somewhat against circulation into Japanese market is brought out.

As to the whole U.S.A. unglutinous rice,“None except for certain contractual cultivation rice, and even if it comes out, it is a small amount. Spot sales rice out of rice polishing factories is limited”is shown.

-Sep.4.2001-

◆Chinese polished rice at the second SBS bid was 249 yen per kilogram.

The second SBS bid in this fiscal year was held with the planned amount for knocking down of 25,000 ton (22,500 ton for normal rice and 2,500 ton for broken polished rice for processing) on August 31st, and as to Chinese rice, normal rice of 15,540 ton was knocked down and the amount occupied about 70 percent on the whole.

-Aug.27.2001-

◆Bromine or parathion was detected in import rice in the fiscal year 2000.

The Ministry of Health, Welfare and Labor announced the inspection results on import rice in the fiscal year 2000 (its import period: from April in 2000 to March in 2001) on August 20th.

It reported: as to MA rice, of 784,852.5 ton, rotting or molding in violation of article 4 of Food Sanitation Law was 21 cases, 579 ton, and as to import rice of 125.8 ton with payment by the secondary customs rate, inadequacies of ingredient standards of bromine or parathion in violation of article 7 of Food Sanitation Law was 2 cases, 5 ton (its import rice was 5 ton from China and 10.8 kilogram from Spain). The problem rice was taken measures such as scrapping and so on anyway.

Also, in addition, the inspection results on residual agricultural chemicals and mold’s poison (aflatoxin) were shown, and bromine exceeding the standard was detected in import rice from Spain with payment by the secondary customs rate.

-Aug.20.2001-

◆Indisposed polished rice for beer-use

Decline of the demand for raw rice for beer-use is remarkable. In the first half of this year, the demand for beer had fallen through the influence of the depression and low-malt beer, and so, the total supply of Asahi beer (Japanese beer) from January to June in this year decreased by 10.3 percent compared with the previous year and the supply of Kirin beer (Japanese beer) for each month during the same period is almost estimated to decrease by about 10 percent compared with the previous year although its detailed figure is not definite.

The demand for beer is expected to recover somewhat due to the strong heat in July, but decreasing of the demand is probable to come to stay as middle or long-term trend. Through the influence, as to broken polished rice for beer-use, disposal to beer makers for long-term contract is delayed than usual this year and“The amount which had been scheduled to supply in this spring has not been disposed”.(one polishing dealer)

-Aug.6.2001-

◆At the second bid on normal rice by MA, U.S.A. broken rice was knocked down by Kitokushinryo.

As to the trading companies which knocked down at the second bid on normal rice by MA in this fiscal year held on July 19th, U.S.A. broken polished rice for processing was knocked down by Kitokushinryo and Thai rice for“Awamori” (Okinawa’s alcohol) was knocked down by Nichimen Corp.

Further, at the first bid on normal rice by MA, Thai rice for“ Awamori”was knocked down by Sumitomo Corp.

-July.31.2001-

◆At the second bid on normal rice by MA, 5,277 ton was knocked down.

The second bid on normal import rice by MA in this fiscal year was held on July 19th, and 5,000 ton of Thai rice and 277 ton of U.S.A. rice were knocked down. 43 companies participated in the bid, and of those, 3 companies knocked down. (As to 2 kinds of Thai rice, the same company knocked down)

As to the knocked down Thai rice, unglutinous polished long breed was 1,700 ton and broken polished rice was 3,300 ton. The Thai rice is all for“ Awamori” (Okinawa’s alcohol) and reflects prosperous demand. The amount of the knocked down Thai rice is 10,000 ton altogether the amount knocked down at the first bid held in May and another 5,000 ton is planned to knock down after this. 5,000 ton of the knocked down Thai rice is expected to import during September with a ship.

-Jun.25.2001-

◆Sale of Australian new rice at large-scale stores is expected to be the latter half of the first week in July. (One wholesaler)

One rice wholesaler treats Australian rice which finished an inspection after it arrived at Yokohama Port and thinks the rice during this period is primarily for large-scale stores. As to beginning of the sale at large-scale stores, the wholesaler expects“It may be in time for the latter half of the first week in July”.

Local large-scale stores prepare for sale of Australian new rice in earnest, too. One large-scale store in Hokkaido which has been showing overseas agricultural products is interested in Australian new rice since it estimates Kyushu’s rice will be the latter half in July as to sale of domestic new rice. As the store has regular customers for Australian rice, it is scheduled to treat the rice, this year, too, and it is in the stage that the store is waiting for a notice from the rice wholesaler dealt with.

-Jun.18.2001-

◆Nichimen was the top of Chinese rice. (the first SBS bid)

The knocked down amounts (flash) by each trading company at the first SBS bid in this fiscal year were collected.

As to the knocked down amounts of Chinese rice whose unglutinous polished one is the cheapest, Nichimen Corp. was 1,872 ton at the first place and Toukou Kosen Corp.’s 1,340 ton, Itochu Corp.’s 1,080 ton etc. knocked down over 1,000 ton. The following were Nissho Iwai Corp. (972 ton), Toho Bussan Kaisha Ltd. (744 ton), Kawasho Corp. (702 ton) etc., which occupied the upper places.

-Jun.11.2001-

◆The delivery of Australian new rice is expected to be the end of June. (One wholesaler)

-Jun.4.2001-

◆Chinese polished rice was 260 yen per kilogram, increased by 9 yen compared with last bid in the previous fiscal year. (the first SBS bid)

The first SBS bid in the fiscal year 2001 was held on May 30th with the planned amount for knocking down of 25,000 ton (the upper limit of 2,500 ton for broken polished rice) and Chinese rice occupied 46 percent of the knocked down amount on normal rice.

The delivery prices to Japanese Government of short breed unglutinous rice per kilogram were 260 yen of Chinese rice, increased by 3.5 percent compared with last bid, the fourth bid (December) in the last fiscal year, 268 yen of U.S.A. rice and 267 yen of Australian rice.

-May.28.2001-

◆ Harvest of 2001’s Australian rice is estimated to be about 1,600,000 ton.

With the first SBS bid in this fiscal year in this week, as to the trend of remarkable Australian rice, the crop of 2001’s rice is good and its harvest is expected to be about 1,600,000 ton(husks base), the largest in the past.

The estimated amount was told by Mr. Milton Bazley (the person in charge of Asia and the Pacific Ocean regions), Senior Business Manager of Australian Rice growers Co-Operative Limited who had visited Japan and he told“The harvest work that had begun since the end of February is almost in the completing stage, and we had favorable weather till its harvest period and there was a record harvest beyond expectation”.

As to amounts classified by breed, middle breed seems to have increased, and long and short breeds seem to have decreased respectively. Especially, the harvest of 2001’s Koshihikari of short breed seems to be about a half of its 2000’s one, decreased to 12,000 ton(husks base).

About the reason, he explained“The sales business of Koshihikari was very hard in Japanese market, last year, and so, acquisition was small. Actually, it is hard for Koshihikari to cultivate and its production costs much. The present situation is that it does not pay when its price has gone down so much”and told “But, as we would like to keep the connection with the trading companies and the wholesalers which have treated Australian rice so far, we would like to go on producing it. Also, there is no change that Japan is a major market for Koshihikari, but we have just approached countries other than Japan, too”.

-May.21.2001-

◆ The first SBS bid is taken by one wholesaler as price-up factor only.

However, another trading company points out difference in quality like “Discolored rice can be seen to mingle”, etc. The company also emphasizes there is difference in quality between the sample rice and the actual supplied rice, and suggests its pairing wholesaler at the bid that it had better treat after knowing the present condition.

One wholesaler intends to treat Australian rice just as it did last year, but it decides its amount being based on the terms of price, etc saying“High price rice does not sell. If cheap, we will suffer a loss”.

-May.14.2001-

◆ Unloading of Uruguayan long breed rice for normal import on MA has been completed.

About 5,000 ton of Uruguayan long breed rice broken down by Kanematsu Corp. at the final bid (on January 30th, this year) for normal import rice on MA in the fiscal last year, its unloading has been completed at Tokyo port on May 9th.

However, as to its long breed rice, the evaluation that it is good in quality by comparison with the other countries’rice has been given by some trading companies and there are some trading companies which intend to show it to rice wholesalers, too.

-May.1.2001-

◆ New rice of Australian Koshihikari is“ good, this year”.(one importer)

For the first SBS bid in this fiscal year, the quality of 2001’s Australian rice is one of the attention points.

One registered importer got unpolished Australian Koshihikari by air soon after its harvest, and when the importer tasted the rice, it pointed out“It tastes good and smells new rice. It has stickiness proper to Koshihikari and sweetness, too”.It also gave high evaluation saying“Crack is scarce, this year and the rice is fairly good”.

However, it added“If we could sell it at present, it would be profitable goods” and said it is a problem that the rice will be available after July.

The voice of“If discrimination sale can be done, one wants to treat it”and the inquiry of how much it should be and so on have been given by some large-scale stores from the view point of competition with other stores.

-Apr.23.2001-

◆“The proposal plan on reduction of MA is fair”was argued against the report by the U.S. Government. (Japanese Government)

On April 17th, Japanese Government coordinated the argument (comments) by the Government against the report on foreign trade barriers in 2001 announced by the Office of the United States Trade Representative (USTR) on March 30th and notified it to the U.S. Government (the U.S. Embassy in Tokyo, Japan).

As to agricultural relation, about rice, the U.S. Government pointed out “The proposal plan with agricultural negotiations on WTO is against the agreement which aims for reduction of barriers toward market access”, but Japanese Government insisted fairness saying“ Under the agreement rules in which agricultural negotiations are to be done being based on the experience having been carried out with Uruguay Round, we aim for improvement of the present rules”.

Also, against the pointing out“In spite of the effort by the U.S. industry to respond Japanese consumers’need, market access for U.S.A. rice has not been attained fully. Much of imported U.S.A. rice is blended with Japanese rice or is exported as food aid. Under practical use of the present SBS bids, there is few opportunity that Japanese consumers choose high-quality and cost competitive U.S.A. rice”by the U.S. Government, Japanese Government argued“It is to be carried out under WTO agreement including change of the customs measure in April, 1999, and normal and SBS imports are to be operated in accordance with the agreement, and so, we recognize there is no concern about rice between Japan and U.S.A..

Market access for U.S.A. rice can be attained in consequence of competition with the other countries about breed, quality and price of rice suitable for Japanese market, and if U.S.A. hopes further expansion of import, such efforts are necessary”.

-Apr.16.2001-

◆ The annual limit for SBS bids has been reduced by 20,000 ton and the attention at the first SBS bit will be also Australian rice.

The limit of annual planned amount for knocking down at SBS bids in this fiscal year was reduced by 20,000 ton, and so, it became 100,000 ton for the year. One trading company takes the SBS bids as“It is bad business on effect against cost”and because the limit has been reduced, it is said“There are possibilities that some trading companies which have been developing active business in overseas producing countries such as China expecting expansion of the limit in the future may change their business policies”.

Also, as to Chinese rice, there is one wholesaler which regrets“In the previous fiscal year, we over presented cheap offering prices”. To avoid the situation that profit can not be obtained, there is a possibility that offering prices may be formed at a high level ,this year, too.

As to the so-called“ Contractual cultivation”on U.S.A. rice whose attention has been viewed to lower, to carry out the contracts,“Unreasonable” bids are regarded to have been done so far and the thing has been given as the factor of pushing up the mark-up. Recently, contractual cultivation seems to have been shrinking owing to the drastic reduction of contractual amount by each

trading company. One trading company recollects it had been pulled into carrying out the contracts for 1999’s rice for a long time.

-Apr.9.2001-

◆ 5 companies decreased as to normal rice and 4 companies decreased as to SBS bid. (qualification for rice importers)

The Food Agency announced the results of screening on rice importers from the fiscal year 2001 to 2003, on March 30th.

As the screening was renewal, this time, it was done including new application, and the companies which obtained the qualification became 22 as to normal rice (5 companies decreased in comparison with the previous fiscal year) and 44 as to SBS bid (4 companies decreased as the same).

As to normal rice, there was no new application and 24 companies applied for the renewal. Of those, 2 companies did not meet the requirements and 5 companies in total (Kinsho Corp., Tokyo Boeki Ltd., Toukou Kosen Corp., Nomura Trading Co. Ltd. and Meiwa Corp.) decreased.

As to SBS bid, 45 companies including a new applicant applied, but the new applicant did not meet the requirements and 4 companies which did not apply (ARAI SHOJI CO., LTD., Imperial Corp., Daewoo International (Japan) Corp. and Fuji Trading Co. Ltd.) decreased.

-Apr.2.2001-

◆ Campaign will be a nationwide development in next fiscal year. (U.S.A. Rice Federation)

-Mar.26.2001-

◆The limit amount of SBS bids was decided to 100,000 ton, reduced by 20,000 ton

On March 23rd, the sub meeting for staple food under the Council of Food, Agriculture and Rural Area Policies (It has replaced the Rice Price Council) was held, and discussed the basic proposal plan on rice and decided it. Having been studied, the limit amount of SBS bids in the fiscal year 2001 became the proposal plan with 100,000 ton, reduced by 20,000 ton than the previous fiscal year and it is to be decided officially.

As to the treatment of 30,000 ton which is an increase in production based on the final situation of the harvest in 2000, it is being adjusted toward piling up in special adjusted storage (240,000 ton at present) and it is planned to set 270,000 ton in total finally.

-Mar.19.2001-

◆SBS bids in the fiscal year 2001 is being discussed aiming at the limit of 100,000 ton.

The Food Agency is aiming at 760,000 ton for unglutinous rice, 10,000 ton for glutinous rice and 770,000 ton in total about the prospect of import amount in the fiscal year 2001 in its basic proposal plan, and furthermore, it showed the same plan as the previous fiscal year’s one saying“ SBS bids (Simultaneous Buying and Selling Tender System) will be practiced equally about four times a year with the limit amount of 120,000 ton in total”, but the Agency is adjusting the plan because it received the remark“ It should be reduced to 100,000 ton”by the members at the Subcommittee for Agricultural Basic Policy of the Liberal Democratic Party. The Agency could not make it clear on account of the budget.

-Mar.12.2001-

◆ Price down of domestic rice is influencing overseas rice. (one large-scale store)

Owing to price down of domestic rice such as Niigata-Koshihikari, Akita-Komachi, Hokkaido-Kirara and etc. in the sale of 2000’s rice, treatment of overseas brand rice is getting difficult.

One major large-scale store is entering the period of closing accounts and in a hurry for its sales policy in next fiscal year, and as to polished rice, “How should the treatment of Australian-Koshihikari etc. be is a topic”(the goods section) as well as rice with no need for washing.

The sales prices of Californian-Komachi and Australian-Koshihikari at large-scale stores are centering on between 1,780 yen and 1,880 yen per 5 kilogram and the present situation is“The prices are just overlapping with the special sales prices of 2000’s Akita-Komachi and Hokkaido-Kirara”(the section).

Owing to the influence▽Reducing the prices of overseas rice▽Reducing the limit of the planned sales amount▽Studying sale of brand rice such as Chinese rice which is possible to sell at around 1,500 yen per 5 kilogram▽Planning improvement of the way of sale (advertisement) and etc. are being discussed.

-Mar.5.2001-

◆Because of a rich crop, the expected production has modified upward to 1,500,000 ton. (Australian rice)

According to the survey by Australian Rice Growers Co-Operative, the expected rice production has modified upward to 1,500,000 ton, increased by 90,000 ton in comparison with 1,410,000 ton expected in the previous month (on January 22th).

-Feb.26.2001-

◆New application for importer on SBS has come out

The main qualification requirements on SBS, (1) Actual results on rice export or import of 20 ton or more at an annual average for the past three years (trade among three countries can be included), (2) A corporate company which was established in Japan and its self-capital is 100 million yen or more, (3) A company which has been engaged in rice export or import business for one year or more and etc.

-Feb.19.2001-

◆2001's rice is expected to be a rich crop, but short breed will decrease. (Australian rice)

According to the survey by Australian Rice Growers Co-Operative, the rice production during 2000/2001 in Australia will be 1,410,000 ton (husks base), being expected to be 30 percent increase than the previous fiscal year.

-Feb.13.2001-

◆Campaign for consumers from March (U.S.A. Rice Federation)

The campaign is to be done in Kinki district (Osaka, Hyogo, Kyoto, Shiga, Nara and Wakayama prefectures) where the commercial film is being broadcasted and its practice period is two months from March 1st till April 30th. Its presentation goods are unblended 100 percent U.S.A. rice.

In case of applying with a notice seal on the rice pack, 10,000 yen for first prize (100 persons) and 5,000 yen for second prize (200 persons) are be presented 300 persons in all.

-Feb.5.2001-

The sixth bid (the final one) for normal rice in the fiscal year 2000 was held on January 30th and 125,039 ton was knocked down. The average price of the knocked down rice was 32,075 yen per ton.

The bids for normal import rice in this fiscal year have finished with this bid and the total knocked down amount in this fiscal year was 573,039 ton, increased by about 40,000 ton than the previous year. As to U.S.A. rice, 284,000 ton was knocked down and the ratio occupied by U.S.A. rice of whole knocked down rice shared in 49.6 percent, a little smaller than the previous fiscal year of over 50 percent. The total knocked down rice of broken polished rice was 71,970 ton.

-Jan.29.2001-

◆Trial bid system for the countries which have no actual results at the bids for normal rice import with MA.

-Jan.23.2001-

◆Treatment of Japanese breeds rice is a problem because Chinese breeds rice is getting majority. (the SBS bids)

After this, if Chinese rice becomes majority at the SBS bids, the treatment (cost reduction etc.) by the factories in China and the strict survey of the original rice and etc. become important. Also, it is a important point whether the treatment of Japanese breeds rice is possible or not.

-Jan.15.2001-

◆The top was 3,900 ton by Cargill Japan. (the fourth SBS bid)

The top was 3,900 ton by Cargill Japan Ltd. which knocked down a large amount of U.S.A. broken polished rice. The next was followed by Nichimen Corp. (2,263 ton) which knocked down almost Chinese polished rice mainly, and Tomen Corp. (2,246 ton), Toho Bussan Kaisha Ltd. (1,704 ton), Sumikin Bussan Corp. (1,620 ton) and Marubeni Corp. (1,566 ton) followed.

-Dec.25.2000-

◆Knocking down of broken polished rice was over 10,000 ton. (The fourth SBS bid)

The fourth SBS bid, the final one in this fiscal year, was held with the planned limit amount of 30,000 ton on 15th, this month, and 19,000 ton (of it a little less than 3,000 ton for glutinous rice) for staple food rice and broken polished rice of 10,000 ton were knocked down.

At the previous bid, Chinese rice was overwhelmed by U.S.A. rice, but at this bid, the weighed average price of buying was 2 yen cheaper than it of the previous bid. One trading company takes“The mark-up expanded in cutting down cost and competitive power was restored”.

-Dec.18.2000-

◆The sales counter of polished rice is two or three times as large as the existing stores. (carrfour)

The sales counter of polished rice at carrfour Makuhari store (Mihama ward in Chiba prefecture) which has been taken notice as its first store in Japan consists of three areas divided into almost equally by three wholesalers of Kitokushinryo Co., Ltd, Nihon Matai Co.,Ltd and Shinhokushokuryo.

As the store itself is large (its sales area only is 17,000 square meters), the sales counter for polished rice is two or three times as large as the standard stores such as Daiei and Jusco.

As to the way of showing of goods, 10 kilogram packs on the bottom showcase, and 5 kilogram and 2 kilogram packs and glutinous rice are placed on the middle and upper showcase, and so, the way is not different from it of the existing supermarkets, and as to sales price also“The rice is not so cheap as our original expectation”.(one person concerned about one major department store)

However,“After all, we are overwhelmed by the volume. Although it is not a progressive sales counter like its original reputation, if the sale is to realize at its many stores with this scale, the store is a formidable rival of the existing supermarkets”(one person concerned about one major department store) is evaluation in the industry.

-Dec.11.2000-

◆As to the fourth SBS bid, the focus is extension of the shipment period.

Trying to sound the situation through trading companies, one rice wholesaler is waiting for their immediate replies, showing interest“We are expecting. We are confirming the growth. We feel that it may be difficult to receive Australian new rice at the very limit in extension of the shipment. Its sizable amount will not probably come out”. One trading company has replied calmly“It is difficult in time and there may be no need to deliver unreasonably”.

The focus is whether the shipment at the places is in time or not, and that even it is in time, whether the amount that demanders hope is obtained or not. “The risk that the rice does'’t come out”(one person concerned) is also pointed out and the response of trading companies, wholesalers and demanders will be taken notice.

-Dec.4.2000-

◆The final SBS bid will be on December 15th and its shipment can be postponed.

The fourth SBS bid (the final one) in this fiscal year will be held with the planned amount of 30,000 ton on December 15th. In consequence, the planned amount in this fiscal year of 120,000 ton finishes.

The shipment period is by February 25th, next year and the delivery is by March 31st, however, the focus is that the shipment period can be postponed by March 25th if there is a demand. The wholesalers whose closing accounts are March don’t want to have stock rice and hope the delivery after next fiscal year, and therefore, extension of the shipment period is a measure against it.

-Nov.27.2000-

◆ Over 3,000 ton was knocked down by Nichimen and Cargill Japan respectively. (The third SBS bid)

Nichimen Corp. which knocked down 3,281 ton centering on Chinese rice was the top. Cargill Japan Ltd. which knocked down 3,128 ton asking for U.S.A. polished rice and its broken rice was the second place, and Andre Far east Inc. (2,474 ton), Itochu Corp. (2,211 ton), Sumitomo Corp. (1,808 ton), Mitsui & Co. Ltd. (1,519 ton) and Nissho Iwai Corp. (1,126 ton) followed. The feature was that Chinese rice occupied overwhelming amount.

“ It is a countermeasure because shortage for various use is expected. In addition, the factor that generation of crashed rice had been small raised the ratio of broken rice ”(one person concerned) is this bid’s feature, too.

-Nov.20.2000-

◆ 7,000 ton of U.S.A. broken polished rice was knocked down. (the third SBS bid)

The third SBS bid in this fiscal year was held with the planned limit amount of knocking down of 25,000 ton on November 10th.

The knocking down amount of Chinese unglutinous polished rice which is popular as staple food remained only about 8,000 ton. Furthermore, the feature is that the knocking down amount of Australian unglutinous rice was also the same even as that of U.S.A. unglutinous rice, and one trading company takes that under the condition of the limit amount of 25,000 ton,
the situation of U.S.A. rice whose old one is wanted to dispose and the eagerness toward knocking down by the persons concerned on Australian rice caused the cheap offers.

As to delivery price per kilogram of short unglutinous polished rice, Chinese rice was 252 yen, Australian rice was 263 yen and U.S.A. rice was 262 yen, and the prices restored the level of the first SBS bid. 

The shipment period for the knocked down rice is by the end of next January and the delivery is by next March 15th.

-Nov.13.2000-

◆Daiei sells the second Chinese rice in November.

The sale of Chinese rice for staple food by the company becomes the second time after this July (the period from July 6th to July 31st). Although its price and planned sales amount, etc. are being adjusted, the price is expected to be about 1,500 yen per 5 kilogram just as last sale.

“As to the first sale in July, we sold it with restriction in Kanto and Kansai districts, however, as we could sell the planned amount of 500,000 ton, the second sale has been planned”(the headquarters) is said and the company intends to expand the sales area, this time.

Last time, with the goods name of“Banri-no-sato”, some 1999’s raw rice were used and it was sold at 174 stores in Kanto and Kansai districts at 1,580 yen per 5 kilogram. The supply of the raw rice was done by Marubeni and the rice polishing was done by Shinmei and Mitsuhashi.

-Nov.6.2000-

◆ Concern about quality of Chinese new rice has been erased. (one trading company)

As to U.S.A. rice that suppliers want to sell its new rice, the feature on this bid is that the pressure by suppliers is expected to force, too, and one trading company estimates“ The competition between U.S.A. rice and Chinese rice will be more serious than last bid”.

Another trading company which has steady sales outlets is also looking out saying“ If the mark-up is too high, it is severe”, and on the other hand, the company estimates the price will be the same level as last bid although hopeful expectation may be contained.

As to quality of Chinese new rice taken notice, the talk that cracks on sample rice in some districts have been seen is mentioned, but other trading company which is well acquainted with the situation in the place says“Because there was no rainfall, we had concern about quality at the beginning, but at present when the harvest has finished, the concern has been erased”.

Since there is no concern about quality of Chinese rice, as to this SBS bid, other trading company says“ It will be Chinese rice overwhelmingly”and estimates Chinese rice including its broken polished rice will be 15,000 ton of the planned amount for knocking down of 25,000 ton.

-Oct.30.2000-

◆The crop situation index of 104 and the estimated harvest of 9,474,000 ton.(MAFF)

The Ministry of Agriculture, Forestry and Fisheries(MAFF) announced the crop situation index of the paddy rice field in 2000 as of October 15th as 104, “Slightly good”.

The planting area is 1,763,000 hectare, 17,000 hectare decrease than last survey, and the estimated harvest is 9,474,000 ton and the amount is expected to be 315,000 ton increase than the previous year’s harvest.

-Oct.23.2000-

◆The third SBS bid will be held at the limit amount of 25,000 ton on November 10th.

The third SBS bid in this fiscal year was decided to hold at the planned amount (the limit amount of knocking down) of 25,000 ton on November 10th. Its shipment period is by the end of next January and its delivery is by next March 15th.

-Oct.16.2000-

◆ U.S.A. glutinous new rice will arrive at ports in Japan at the bottom of this month.

Having been knocked down at the second SBS bid, U.S.A. glutinous polished rice is 4,113 ton. Of the rice, there is a great deal of 1999’s rice which has not been disposed by the first bid and 2000’s rice seems to be about 30 percent of the knocked down rice.

As to quality, the trading company says“We have not looked at itself, but we have heard it is good”,and as to domestic rice, one person concerned has evaluated because Kyushu rice is bad in these two years and Tohoku rice is unfavorable, U.S.A. rice is more stable. However, it is natural on the condition that its price is cheaper than domestic rice.

-Oct.10.2000-

◆The restaurant industrial party, JF holds its meeting for study on taste of Uruguayan rice.

The restaurant industrial party concerned, Japan Food Service Association (JF) holds“ Meeting for study on taste of Uruguayan rice”at the conference room in JF Center on October 12th.

-Oct.2.2000-

◆The campaign to be continued in Kinki district (U.S.A. Rice Federation)

Having developed activity for sales promotion centering on TV commercial in Kinki district (Osaka, Hyogo, Kyoto, Shiga, Nara, Wakayama and Tokushima prefectures) as important area, U.S.A. Rice Federation also carries out the campaign just as it did last year in this fiscal year.

-Sep.25.2000-

◆Measures for supply and demand coming to the very end

The point is the buying as government-marketed rice that becomes isolation from the market, however, against the administration that is insisting on strict observance of the stock management rules, agricultural groups are requesting enlargement of the limit buying amount on government-marketed rice (650,000 ton scale) as a special case, and a tug of war between both parties is being done.

-Sep.19.2000-

◆The crop situation index by MAFF is 103 and overproduction will be between 200,000 ton and 300,000 ton.

The Ministry of Agriculture, Forestry and Fisheries announced the crop situation index of the paddy rice field in 2000 as of September 1st as the national average 103,“Slightly good”.

As to crop, although there are some areas in Hokkaido, Tohoku and Hokuriku whose husks are slightly small amount, weather is just about favored after July and they are a normal year or slightly numerous in general. Rising temperature is developing favorably, too. According to the crop index of each agricultural region, Kanto is 106,“Good”, and Tokai and Chugoku are 104, Hokkaido, Tohoku, Kinki, Shikoku and Kyushu are 103, Hokuriku is 102, and they are “Slightly good”respectively. Okinawa is 99,“A normal year”.Fluctuation after this may occur, but a rich crop is definite.

-Sep.11.2000-

◆The top was 3,700 ton by Nichimen. (the second SBS bid)

According to the outline of the total knocked down amount by each trading company on the result at the second SBS bid in this fiscal year held on August 29th, the top of the total knocked down amount was about 3,700 ton by Nichimen Corp.. Toshoku Ltd. (2,800 ton), Cargill Japan Ltd.(2,400 ton), Andre Far east Inc. (2,100 ton) and Itochu Corp. (2,000 ton) followed.

As to U.S.A. rice, although the number of trading companies which knocked down the rice at the bid was fairly more than that at the previous bid, the trading companies which knocked down over 1,000 ton were only two, Cargill Japan (about 2,000 ton) and Sumikin Bussan Corp. (1,800 ton).

As to Australian rice, Sumitomo Corp. (1,100 ton), Itochu(600 ton) and The Sunrice Inc. (500 ton) knocked down a lot of amount.

-Sep.4.2000-

◆Chinese polished rice was 230 yen per kilogram decreased by 21 yen than the previous bid. (the second SBS bid)

The delivery price per kilogram of short breed unglutinous polished rice was 230 yen for Chinese rice (decreased by 21 yen than the previous bid held in May), 245 yen for Australian rice (decreased by 24 yen) and 247 yen for U.S.A. rice (decreased by 14 yen). Chinese and U.S.A. new rice are contained in the knocked down rice. The time limit for its shipment is November 30th and the time limit for its delivery is January 15th, next year.

Meantime, as to Australian rice,“The offer price has been made anew to one with a competitive power”is the conversation by one trading company. Against its mark-up of 160 yen level per kilogram has been kept, the opinion“ Overdoing”(the trading company) was given continually.

At the bid, the effective knocked down amount was 50,120 ton (38,288 ton for normal rice and 11,832 ton for broken polished rice). The number of applications was 787 (656 for normal rice and 131 for broken polished rice) and the number of contracts was 267 (210 for normal rice and 57 for broken polished rice).

-Aug.28.2000-

◆The supply of Chinese new rice is expected to increase at SBS bids.

-Aug.21.2000-

◆80 percent of the knocked down rice at SBS bids passed through the customs in June. (Australian unpolished rice)

Of the amounts, as to Australian rice which seems to have been knocked down at the SBS bid in May, unpolished rice is 1,517 ton (79.2 percent compared with its knocked down amount), polished rice is 1,293 ton (27.4 percent) and broken rice is 36 ton (22.2 percent).

Further, Chinese polished rice is 929 ton (49.4 yen).

-Aug.7.2000-

◆The second SBS bid will be coped with willingly, too. (one wholesaler in Kansai)

The wholesaler’s target is Chinese and U.S.A. rice which have fixed demand for business-use. The wholesaler copes with the bid being based on its stock and says that it wants to obtain 1,000 ton certainly at least at the bid also.

-Jul.31.2000-

◆Daiei High Company sold Californian rice at it's all stores.

Daiei High Company extended the sale of Californian rice to it's all 36 stores (except one store in Okinawa) during four days from July 20th to 23rd.

The sales rice were Californian Koshihikari and its Akitakomachi, and their end-prices were both 1,880 yen (5 kg). The company attempted sales promotion with sampling also at its 15 stores during two days from 22nd to 23rd.

-Jul.25.2000-

◆Daiei is deliberating continuous sale of Chinese rice.

About continuous sale of Chinese rice“Banri-no-sato(homeland of the Great Wall)”, the Daiei, Inc. showed the point of view“The sale can not be said to be favorable, but we think it is selling well as its first sale”(the public relations section). The company also takes the sale of 500,000 ton which is the planned sales amount during July is possible, and adjustment for the continuous sale till after this autumn is being done.

The rice has been sold at 1,580 yen per 5 kilogram at its 174 stores in Kanto and Kinki districts since 6th, this month. Special sales promotion etc. at the stores is not been done and only point of purchase advertising is done, and the situation is“There was a little worry, but we have received the report that it is selling so-so by the manager at the stores”(the section).

Therefore, this is not decided yet, but on the assumption of the second sale, the company is adjusting among Marubeni, Shinmei and Mitsuhashi. In that case, sale at the stores in the whole country will be deliberated, too, however, because“Its harvest place is almost unfamiliar to customers”, the company gave the expansion of recognition after this and the obtaining of repeating customers as important problem.

-Jul.17.2000-

◆Additional rice support of 150,000 ton toward North-Korea is being discussed.

For the reopening of negotiations to normalize the diplomatic relations with the Democratic People’s Republic of Korea (North-Korea), Japanese Government is discussing under the policy to do additional rice support in August, if early. Its amount is supposed to be the scale of 150,000 ton.

As to the rice support to North-Korea, the Government decided 100,000 ton in March, this year and the accumulated amount has reached about 670,000 ton (MA rice and domestic old rice) since 1995. If the additional support is decided, the total of the support becomes five times.

-Jul.10.2000-

◆Daiei is selling Chinese rice at its 174 stores.

Daiei is selling Chinese rice for home-use at its group’s 174 stores from July 6th.

The rice consists of 1999’s plural breeds which were knocked down by Marubeni at the first SBS bid in 2000 and its sales price is 1,580 yen per 5 kilogram. The company sets up 50 ton for its planned sales amount and sells it at 174 stores till the end of July.

Daiei explains“We have been planting short breed rice which is the same as domestic rice willingly for recent years in three provinces (Liaoning, Jilin and Heilongjiang) of the north-eastern district where are the granary in China.

The rice that we sell this time is polished from good quality unpolished rice in Liaoning especially and it gained high points such as about 80 points in the taste examination”(the public relations section) and emphasizes improvement of quality with the planting instruction by major trading companies etc..

-Jul.4.2000-

-Jun.26.2000-

-Jun.19.2000-

-Jun.12.2000-

-Jun.5.2000-

-May.29.2000-

◆Chinese rice occupied 40 percent of staple food and Australian rice was dull. (SBS)

Australian rice was 6,638 ton and dull, and the amount decreased by 2,659 ton than the first bid in the previous fiscal year. About the result of the knocked down amount, the impression“Unexpected”was given by one major trading company. It has been expected that the market price for 2000’s domestic early rice will be bear, and so, it seems that the influence has retained only the demand by large-scale stores.

-May.22.2000-

One wholesaler (A) points out the closing accounts of trading companies and that there is no wish for knocking down by users (customers) a parting from price, this time, and takes them as reasons to suppression. Meanwhile, some trading companies say“Bids in absence of wholesalers”“No future”etc. about the change of the knocking down prices and insists the correction to the price level to be originally.

-May.15.2000-

-May.1.2000-

-Apr.24.2000-

-Apr.17.2000-

◆Australian new rice is at its highest harvest now and one million ton is estimated.

According to Mr. Kageyama, the business manager who is the representative of Australian Rice Growers Co-Operative in Japan, the planting area for 2000’s Australian rice is 123,500 hectare, 27,500 hectare decrease (18 percent decrease) compared with the previous year.

After seeds planting from the end of May to October, last year, although the weather was bad for a time in March, it improved in April and the rice grew favorably. Several days ago, 2,000 truckloads of the rice per day (one truckload equals to a little over 20 ton, a little over 40,000 ton per day) was harvested and over 400,000 husk ton has been already harvested.

Eventually, although the harvest amount in this year will not reach last year’s actual result (1,381,820 husk ton) which is the highest harvest so far, about one million husk ton is estimated.

-Apr.10.2000-

◆The rice support to North Korea is 100,000 ton and there is a possibility of addition.

Japanese Government decided the rice support of 100,000 ton to the Democratic People’s Republic of Korea (North Korea) on March 7th. It is to be done through World Food Program (WFP). The support to North Korea is the fourth one.

◆The marketability for a new breed“Cal-Hikari”in California is being paid attention.

As to a new breed in California“Cal-Hikari”, trading companies can not evaluate it because they have not touched it yet and have not got certain information.

◆Rice production in 2000 is estimated to decrease by 20 percent and delay of rice growing is possible, too. (Australia)

According to one trading company which visited the place to observe, the growing of new rice in Australia is delayed about half a month than normal year as of the beginning of February, but the weather is favorable, the rice is growing well, and so, a poor harvest does not have to be worried in the present condition.

In the research of the change during these last thirty four years from 1965 to 1998,“Although the consumption amount was decreasing every year, the decrease rate compared with the previous year was becoming less at a nearly fixed rate, and it tended to reach a bottom and to reverse someday”are shown. It had predicted that the period which the consumption amount of rice reaches a bottom would be from 1999 to 2000.

However, although it was going to“A bottom” till 1993 favorably, after the bad harvest in 1994, the decrease rate expanded for three consecutive years from 1996 to 1998. The consumption amount in 1999 is estimated to be the first half of 99 percent compared with the previous year.

-Sep.27.1999-

Owing to the fall of rice price in recent years’consecutive rich crops, rice physical market has been unstable circumstances even under the enforcement of the Law for Stabilization of Supply, Demand and Prices of Staple Food, and therefore, the Exchange aims “Since need of hedging is rising, we take the situation of rice distribution that is changing rapidly in advance”.

◆The second SBS bid: Chinese rice occupied 60 percent and its mark-up decreased by 21 yen.

As to the second SBS bid (held on August 27th) in this fiscal year, knocking down of Chinese rice occupied 60 percent and Chinese rice (old crop) surpassed U.S.A. rice.

-AuG.23.1999-

◆The names of retail dealers are to be informed with the first TV commercial film. (U.S.A.)

U.S.A. Rice Federation decided that it will broadcast its commercial film centering to Kinki district from this November. The plan made the campaign “Taste it, American rice” which has been done for three years progress one step.

It is being paid attention whether the rational sales strategy with a large budget will work well or not.

◆Australian organic cultivation Koshihikari began to sell from August 20th. (Daiei)

The Daiei, Inc. is selling “1999' s Australian organic cultivation Koshihikari” at its stores only in Kanto district from august 20th. Its price is 2,380 yen at 5 kilogram and the planned sales amount is 100 ton. The sale is about one month later than the previous year.

The rice was grown by the farmers of Australian Rice Growers Co-Operative in New South Wales and it has been approved by the organic cultivation authorization organization “NASAA”.

-AuG.9.1999-

◆The second SBS is to be held on July 27th with the limit amount of 40,000 ton.

Being expected“U.S.A. rice will be a center”,the second SBS in this fiscal year is to be held on 27th, this month, obtaining the limit amount of knocked down of 40,000 ton.

Furthermore, the time limit for shipment at the place is the end of November like last year. As to Chinese new rice, too, the Food Agency takes“We think a part of the rice will be in time”like last year.

-AuG.2.1999-

◆The sum of rice transactions in the 23rd term’s closing accounts; 3,811,200 million yen, 93 percent compared with the plan. (JA)

National Federation of Agricultural Co-operative Association (JA) held the 23rd members’ general meeting at Hotel Pacific Tokyo on July 30th and approved all the agenda such as the fiscal year 1998’s business report and ets. As proposal.

As to the actual result on the fiscal year 1998’s business, the rice transaction amount decreased owing to a poor crop after five years’crop and etc., and it was less than the plan owing to decrease of buying amount for government-marketed rice, and furthermore, because of the sluggish demand for combination feed and the like and lowering of its price and etc., the sum of the transactions was 3,811,200 million, 93 percent compared with the planned sum.

Meanwhile, as to the term’s profit, cut of the expenses and etc. with various rationalization measures led to 1,125 million yen, beyond the planned 800 million yen. As to improvement of the organization, it was reported that 326 JA offices, over 60 percent of the plan, have merged as for July 1st concerning merge in large area and that the number of JA offices has been 1,566.

-July.27.1999-

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The Ministry of Agriculture, Forestry and Fisheries announced the information on growing of 1999’s rice in the paddy field as for July 15th ,on July 22nd.

After its planting, weather is almost favorable, and so, as to the growing situation of rice cultivation for normal period,"Good” is for Hokkaido, “Slightly good”for 19 prefectures,"

Average”for 26 prefectures and the metropolis, and all are better than average or average.Although heavy rain during the end of June and the middle of July caused deluge in a part of Japan, the influence to growing was little.

Meanwhile, the growing of early rice cultivation in Kouchi, Miyazaki and Kagoshima prefectures is“Slightly good”and the appearance period of ears is three or four days earlier than normal year and the number of all husks in Miyazaki and Kagoshima prefectures is slightly many. Also, the degree of maturity is progressing as normal year and the rice crop is expected to be “Slightly good".

-July.23.1999-

◆Australian organic cultivation Koshihikari will be sold this year also. (Daiei)

The Daiei, Inc. sells“Australian organic cultivation Koshihikari”just as it did last year. Its sales unit and price have not been decided yet.

According to the store,"We sold the rice making a monopoly of it and obtained a good reputation, last year. Its price for this year is likely to be a little higher than 1998’s one."(the public relations section) Last year, the company sold the rice at 1,980 yen of 5 kilogram during the period from July 2nd and July 31st. Its sales amount was 185 ton at 780 stores of the group companies such as The Maruetsu, Inc., Seifu Co.,Ltd. and etc. Its suppliers were Shinmei and The Mitsuhashi, Inc. by way of The Sunrice Inc., and the plan for this year is the same as last year.