archives

-Feb.23.1998-

◆Rice support toward Indonesia was decided. 200,000 ton of MA and 300,000 ton of domestic rice are expected.

At the Special Committee for Measures of Trade on Agriculture, Forestry and Fisheries Products of Liberal Democratic Party which was held on 20th, this month, about the matter of rice support toward Indonesia, a policy by the party was put together and the practice of rice support toward the country was decided virtually as follows.“About food support from the point of new view”: �@ Making use of rice (Minimum Access rice and domestic rice) which has been stocked in Japan, �A Practicing without resulting in payment with Foodstuff Control Special Account, �B therefore, establishing“International framework for new support”, and etc.
It has been made clear that there was the support demand by President Suharto of Indonesia officially on 17th.

Because of drought damage in unusual weather and suspension of rice import in money crisis, it seems to be forecasted that shortage of rice will reach between 3,000,000 ton and 4,000,000 ton.

As to concrete method, amount, fiscal payment for the support, and etc., discussion has been proceeded. According to the Ministry of Foreign Affairs, its immediate about 500,000 ton is being discussed, and having the plan with about 200,000 ton of Minimum Access rice and about 300,000 ton of the left domestic rice which are possible to export soon, the Ministry is reported to be negotiating with the Ministry of Agriculture, Forestry, and Fisheries.

In case that the plan is decided, the stock of domestic government-marketed rice comes to fall off, and 1998'rice, which is not expected to buy, can be afforded. Therefore, domestic supply and demand will be influenced not a little. Moreover, it is said that the first sea mail for the support will be done during this March.

-Feb.16.1998-

◆1998's Koshihikari: about 20,000 ton (Australia)

According to Australian Rice Growers Cooperative, as to 1998's Australian rice whose harvest begins from the latter half of this month, its planting area is 135,000 hectare and its harvest including chaff is estimated to be between 1,100,000 ton and 1,200,000 ton.

The reason why the planting area of this year has decreased from 160,000 ton of the previous year is due to that acquisition of irrigation water was worried and that beforehand adjustment was done.

As to the expectation of harvest by breed, short grain of Japonica: 20,000 ton, short grain of arborio:16,000 ton, middle grain of japonica: between 800,000 ton and 820,000 ton(millin: 110,000 ton, amaroo : between 470,000 ton and 480,000 ton, namaga(a new breed):between 220,000 ton and 230,000 ton) long grain of Japponica:220,000 ton, long grain of Indica: 30,000 ton, and long grain of fragrance: 30,000 ton.

Among these breeds, although short grain breeds are Koshihikari. At the FOODEX 98 which will be opened next month, sampling for new rice of Koshihikari, and millin is scheduled.

-Feb.9.1998-

◆U.S.A. glutinous rice of fiscal year 1998 was discussed to contract about the same amount as fiscal last year.

U.S.A. glutinous rice increased its contract amount sharply under the SBSs in fiscal year 1997, but it is said that its use is only rice powder because there is no domestic demand in U.S.A., and so market situation of the country seemed to influence the purchase by Japanese trading companies.

Last year, there was no stock in the market, but the year before last, the rice could be got in the market. Therefore, the amount between 80 and 90 percent of the treatment in fiscal year 1997 by one trading company was contractual cultivation.

As to the plan of fiscal year 1998, conclusion is necessary by the end of March due to rice planting, and toward the conclusion, the situation of domestic rice is, of course, being taken into consideration.

As to 1998's domestic rice, increase of producing amount and price drop due to it are expected, and under the present situation, it seems that“As mark-up is decreasing, the price of this year will not be the same as last year. There is no problem if the contract amount is the same as fiscal year 1997 and we may increase it a little”.

-Feb.2.1998-

◆Simultaneous renewal of import dealers: Acceptance of its application is from February, 2nd to 13rd.(the Food Agency)

The Food Agency accepts application of qualification for import dealers which become commission contractors of trade about rice and wheat import by the Government.

This year is its simultaneous renewal period and the existent dealers (normal: 27 dealers, SBS: 43 dealers) also need to apply renewal. As to rice, the points for selection of normal import dealers on Minimum Access and import dealers on Simultaneous Buying and Selling Tender System (SBS) are the same as those of the previous year respectively.

The main requirements for qualification are: �@ export or import of rice (including trade among three countries) is at least 10,000 ton per year average for the past three years (SBS: at least 20 ton), �A a corporation established in Japan and its own asset is at least 1 billion yen (SBS: at least 100 million yen), etc.

Last year, two dealers, Andre Fareast Agency Inc. and Pacific Corp. among four new applicants on normal import, and five dealers, Iida Co.Ltd., Kowa Trading Co.Ltd., Daewoo International Japan Corp., Chori Co.Ltd. and Nichiyou Co.Ltd. among six new applicants are qualified.

This year also, some new enterprises seemed to make inquires, but whether they will apply or not is unknown. Because of simultaneous renewal, announcement of selection result will be in March.

-Jun.26.1998-

◆Test with U.S.A. glutinous rice, contractual cultivation depends on its result(Rice Cracker of Niigata)

Rice Cracker Manufacture's Association of Niigata Prefecture knocked down about 100 ton of U.S.A. glutinous polished rice under the fourth SBS. The rice will come in its hand around March, and manufactures which have wanted to buy it are to practice tests manufacturing, Saying“We can not dislike overseas rice any more and as to raw materials, we can not help coping with the world-wide trend”, the Association inspected the rice polishing factory etc. at Sacramento in U.S.A. for about a week, last October, Although the Association manufactured rice cracker(Arare) with the rice which had been bought for sample at that time, and evaluation of taste was“Not bad, we will test it further”, which caused the Association to manufacture this time.

As to its price, sales price(weighed average) was about 272 yen per kilogram and knocked down price was said to be below the sales price, but even if the knocked down price were the same as the weighed average price, its acquisition was important this time.

Its actual evaluation will be resulted by test of each manufacture, however, as the degree of its polishing is not inferior to domestic rice, if there is any demand contractual cultivation will be taken into consideration. If contractual cultivation is adopted, a fixed amount will be expected and therefore choice by manufactures becomes not only wide, but also the thing will influence demand of domestic rice.

-Jun.19.1998-

◆“GOOD TIMES”of Nippon Shokudo uses U.S.A. rice during a year.

U.S.A. Rice Federation is carrying out the sales campaign“Please taste it, American rice ”now just as it did last fiscal year and the American restaurant“GOOD TIMES”of Nippon Shokudo, adjoining to the south gate of Shinjuku railroad station, intends to use U.S.A. rice (short breed, Japanese breed) during a year.

As the amount which has been knocked down under the SBS is increasing year by year, the use of it for menu such as curry and rice, pilaf, and etc. during a year became practicable.

There is no feeling of increasing remarkably about its amount. However, the Federation is investing its budget in it and infiltrating its use step by step centering on business use, and after this, there is also a possibility of increasing such a same case.

-Dec.26.1997-

◆Started with joining of 10 companies.(Internet trade by Itochu Corp.)

Itochu Corp. has completed the rice trade system by Internet“Kome-net”and as its members, about 10 companies, such as rice wholesalers, Itochu related companies and etc. has already joined, and the trade among the members has also been started.

For the members, information supply by E-mail has been started. Use of the system is only the members and it is for supply side, such as each agricultural cooperative association, large farmers and producing corporations, and distributors, such as wholesalers. Of voluntarily marketed rice and unplanned traded rice, the latter seems to have been traded.

Its settlement has been done among the members and quality control has been self-responsibility. The system interests agricultural cooperative associations and etc. highly and aims role of a mediator for 100,000 ton per year at its first stage.

-Dec.22.1997-

◆The successful bids remained 13,921 ton (the fourth SBS)

The fourth SBS (Simultaneous Buying and Selling Tender System of import rice), the final one in the fiscal year 1997 was held on 16th December. Of its limit of 20,000 ton, the amount of successful bids was 13,101 ton (185 cases) of normal rice, 820 ton (13 cases) of broken polished rice, the total was 13,921 ton and therefore, the limit was not filled just as last bid.

The total amount of applications was 17,136 ton (normal rice: 15,884 ton, broken polished rice: 1,252 ton). Of the successful bids, glutinous rice was 4,821 ton, which occupied 37 percent of normal rice. Its markup reduced by about 20 yen compared with last bid.

-Dec.15.1997-

◆Californian rice and glutinous rice were begun to sell at about 200 shops of Daiei.

U.S.A. Rice Federation Carried out the sales campaign“Please taste it, American rice”as it did last year, and as its first step, the Federation began to sell 100 percent American rice at about 200 shops (Kanto, Kansai, Chubu and Kyushu area) of the Daiei, Inc. on 11th December.

Its sales rice is two items, Californian rice (5 kilogram) at 1,680 yen and glutinous rice (1 kilogram) at 398 yen, and advertisements in newspapers, sales promotion at shops, and etc. are also done.

The Federation's main activities in this year (from this December to the end of next May) are: �@ Survey on consumers' consciousness and follow-up = to study strategy on American rice by consumer survey, in next April or May, �A Sales promotion for retail and restaurants on 100 percent American rice, �B FOODEX 98 International Food Exhibition = from next March, 10th to 13th, �C A trade seminar and sampling party = in next March, details are not decided yet, a test on the method of use for American rice is to be carried out, and data announcements and opening of a sampling party.

Its budget is about 500,000 dollars.

-Dec.8.1997-

◆Overseas rice for staple food remains around 30,000 ton in two years' continuation.

The Actual sale for staple food of overseas rice in the rice year(RY) 1997(from November, 1996 to the end of October, 1997) remained 33,000 ton. As to its recent actual result, RY1994: 1,435,000 ton, RY1995: 112,000 ton, RY1996: 35,000 ton.

In the situation that domestic rice is oversupplied and its market price is going down and therefore, the actual result is decreasing. The supply amount in RY1997 is 820,000 ton including 310,000 ton of stock and left-over since RY1996 and 510,000 ton of import in the fiscal year(FY) 1996. Of the supply amount, as 430,000 ton including rice for the above staple food, processing and support was sold, stock at the end of this RY became 390,000 ton. The left 290,000 ton was treated as stock for feed and etc. without influencing supply and demand of domestic rice, and its stock under the demand plan is 100,000 ton.

The supply amount in RY1998 is 700,000 ton including 600,000 ton of import amount in FY1997. Big change for staple food can not be expected, and so, its main object is for processing and support. But, for processing, domestic left-over rice is aiming to take part in. Will overseas rice be applied to stock for feed again?

-Dec.1.1997-

◆Demand for MA rice is 370,000 ton and Thai rice is 65 percent (soybean paste manufacture)

Demand for MA rice in the rice year 1998 of the soybean paste manufacture is 370,000 ton, which diminishes 19,000 ton compared with the previous year.

Of its export countries, Thai rice which had occupied 80 percent so far reduced to 65 percent, and U.S.A. and Australian rice increased to 35 percent. As to Chinese rice, there is scarcely any demand, only 300,000 ton per year. As to the SBS, inquiry on desire of organic cultivation rice to foreign countries is to be done after this and by its result the manufactures intend to participate in bids.

However, their participation is after next year. On the other hand, as to domestic rice, old rice of the Government is not planned to sell and therefore by desire of increase on rice for processing, 6,000 ton of MA rice (increase by 500 ton compared with the previous year) is to be distributed, but its demand goes up between 6,500 ton and 7,000 ton and additional about 500 ton will be distributed. Moreover, if demand increases, the manufactures request supply of 1995' rice to the Food Agency.

Further, rice producing for processing next rice year is to increase by 50,000 ton, and if so, as the supply comes to be more than the demand, necessity to cut down its price further is understood.

-Nov.25.1997-

◆290,000 ton of MA rice becomes stock for feed and etc.

As to treatment of Minimum Access rice, 290,000 ton of the rice which has not sold in the rice year 1997 (the rice which has been left for more than a year after import) came to be treated as stock for feed (stock of barley for feed is to be reduced) without influencing demand and supply of domestic rice.

◆Daiei strengthens sale of Australian rice about 1998' rice.

The Daiei, Inc. plans to strengthen sale of Australian rice in continuation about 1998' rice. Before planting of 1998' rice, the buyer in charge of rice at its head office visited the rice farmers at the place, Leeton and told them“Our request of rice producing suitable for Japanese taste”. The request is much detailed such as method of cultivation, flavor and etc. and “Flavor suitable for Japanese consumer's mouths further”is aimed.

-Nov.17.1997-

◆Rice export to Singapore by Yamagata Keizairen is the second year.

Yamagata Keizairen exported this year' rice to Singapore. As its first sea mail, 1.5 ton of“HAENUKI”was shipped from Tokyo port on 7th November. On 14th, 1.62 ton of “HAENUKI”and “DOMANNAKA”was shipped. The Keizairen estimates if the rice is shipped at a pace between 1.5 ton and 2 ton a month, its total amount can be expected more than 20 ton.

This year adjusting to the standard of the place on its quantity, a package was changed to 2.5 kilogram which is convenient to buy, and special packages for export were also made. On each package, the name of importer as well as Japanese indication was showed. They will be sold at Takashimaya where the rice was sold last year, Isetan, Sogo, Daimaru, some supermarkets and etc. The Keizairen continues its sale and attempts to establish it.

◆Aomori Prefectural Product Association exports rice to Singapore and Hong Kong.

Aomori Prefectural Product Association exports its prefectural rice “TSUGARU-ROMAN”and“TSUGARU-OTOME”to Singapore and Hong Kong. The rice toward Singapore is for“Aomori-Fair”which will be held at Isetan in January, next year, and it is the second year.

The rice toward Hong Kong is for the product exhibition in overseas“Aomori-Fair”which will be held at some supermarkets of management by Japanese in January, next year, and it is the third year. In Singapore, ordinary sale is also being done. As to the export amount of this year' rice, about 8 ton like 1997' rice is expected.

Aomori Prefectural Product Association becomes a exporter and sends it to the importer in the place by sea mail.

-Nov.10.1997-

◆Buying of government-market rice on condition that management rules: LPD framed the gist of measures

The Liberal Democratic Party held its subcommittee for agricultural basic policy on 5th November and discussed to reconsider rice policy. The basic principle on the gist of measures is;1. measure for production adjustment, 2. measure for management stability of rice growing, management for planned distribution rice system, and these three items are synthetic and effective measures.

They have two points; the upper limit of rice stock by the Government is 2 million ton and besides, the period of measure for production adjustment which has been 3 years in principle up to now is shortened to 2 years and its reconsideration by each year is included, and management rule of buying and selling amount on government-marketed rice is laid down.

As to 1998’s rice, an agreement between the Government and the Party in which adjustment for strengthening of rice field reduction to about 170,000 hectare is to be carried forward has been achieved, but it is not fixed by trend of harvest, production and consumption ,and its further strengthening is possible under the present system next fiscal year.

In the gist of measures, as to the management for planned distribution rice system, the property at early stage on stock level is mentioned first and its practice is to be aimed at the end of October, 2000 at farthest.

Therefore, in the basic plan, selling amount of government-marketed rice is to be set up more than its buying amount and in the case that its actual sale is not achieved, the management rule in which buying amount is to be cut down by its unsold amount is established, and the rule is to be applied from buying of 1998’rice. About buying amount of 1997’s rice which is cut down to 700,000 ton under the first allotment, its planned amount based on between 1,200,000 ton and 1,300,000 ton is to be purchased on condition that the management rule.

-Nov.4.1997-

◆Disposal as feed of domestic rice stock is negative.(the Food Agency)

The Food Agency showed negative view about the opinion of separate disposal as feed on part of domestic government-marketed rice stock, because a large sum of financial expenses of 300,000 yen per ton(300,000 million yen for one million ton) is necessary and the financial resources allotted to positive policy expenses such as measures for management stability become less.

Moreover, about buying price by the Government in which the method calculating change rates of voluntarily-marketed rice price and its production cost by equal weight has been adopted, the Agency showed two views as to 1998’s rice: 1. calculation reflecting a substantial cut in voluntarily-marketed rice price further, 　2. its present calculation form not from the viewpoint of short-term, but from the viewpoint of stable price management. The Agency proposed the plan of a further cut in rice price so that addition by politics and etc. could be prevented.

-Oct.27.1997-

◆New rice of“ HAENUKI”produced in Syohnai, Yamagata Prefecture will be shipped to U.S.A. this year as well as last year.

Syohnai Keizairen exports new rice of“ HAENUKI”produced in Syohnai to U.S.A. as it did last year, aiming at enlargement of its overseas market and its advertising.

The amount of shipment is 20,000 ton. Packages of 4.5 kilogram of last year are changed to 1,000 packages of reasonable 2 kilogram this time and they will be shipped to a shop of the supermarket“ MARUKAI” in Los Angeles and four shops of the supermarket“KOYAMA-SYOHTEN”in Chicago altogether 5 shops.

The Keizairen tries to penetrate the rice into Japanese residents in the places. On 20th this month, at Syohnai Keizairen polished rice center in Hirata-machi, its departure ceremony was held and the rice will be exported from Tokyo port at the end of this month. At the places, its sale will be started early in this November and its main sale is planned at the Christmas holidays and the New Year.

Syohnai Keizairen is expecting the further improvement of consciousness on production activities of the farmers.

-Oct.20.1997-

◆14,220 ton was contracted, but limit amount was not filled (the third SBS)

The third SBS(Simultaneous Buying and Selling Tender System of import rice) of the fiscal year 1997 was held on 15th this month and for its limit amount of 25,000 ton which was a maximum in the past, the total amount of applications was 23,271 ton (21,960 ton of normal rice and 1,311 ton of broken polished rice).

Moreover, its markup was at least 85 yen as to normal rice and less than 100 yen as to U.S.A., Chinese and Australian rice. Although their prices were reduced between 20 yen and 48 yen than last SBS, the amount of successful bids was 13,950 ton of normal rice(206 cases), 270 ton of broken polished rice (4 cases),14,220 ton of total amount(210 cases).

Of its rice, as to glutinous rice, 4,681 ton of U.S.A. and Chinese rice was knocked down, but its markup was 170 yen and it was reduced about 3 yen as to unpolished rice and was reduced about 6 yen as to polished rice than last SBS. The total amount of successful bids was 41,220 ton, adding the amount of the first and the second SBS.

-Oct.13.1997-

◆The Cabinet meeting decided rice support of 67,000 ton toward North Korea.

On 9th this month, the Cabinet meeting officially decided food support of about 3,300 million yen to the Democratic People’s Republic of Korea through the World Food Program(WFP) of the United Nations.

With the fund,WFP purchases 67,000 ton of rice from the Japanese Government (purchase at international market price and payment of its markup with the Foodstuff Control Special Account of the Japanese Government) and sends it to North Korea. The support rice will be adjusted to about 30 percent of 1996’s government-marketed rice and about 70 percent of Minimum Access rice.

◆LDP takes the large amount of stock on MA into consideration.

The subcommittee for agricultural basic policy of the Liberal Democratic Party(LDP) added an item that“Taking the large amount of stock on Minimum Access(MA) rice into consideration”to its interim report on rice measures and after this, it discusses whether the budget for Uruguay Round can be used or not.

As to MA rice, 440,000 ton of stock is expected at the end of this fiscal year, and adding 600,000 ton of import rice during this fiscal year, supply amount over one million ton has fixed during the rice year 1998. In the situation that a direction of measures on domestic rice such as introduction of a new system and strengthening of production adjustment is being decided, discussion for disposal of the MA rice will be done earnestly.

-Oct.6.1997-

◆The view that“The limit amount was expanded, but all of it will not be filled”(the third SBS)

As to the third bid under SBS(Simultaneous Buying and Selling Tender System) whose limit amount was expanded to 25,000 ton, its maximum in the past, although it will be held on 15th this month, the view that“We welcome its expand, but its disposal amount, which will be influenced by its cut of markup, will be 20,000 ton at most. If the announcement by the Food Agency is true, its rice will be left undoubtedly”(a major trading company) is strong.

One of the reasons is the leftover of the contract cultivation rice which is said among trading companies. It also comes from“The leftover of short rice, Koshihikari, Akitakomachi and the like (Japanese rice) is about 8,000 ton and the leftover of glutinous rice is only about 2,500 ton. Australian rice is nearly zero and Chinese rice which can be suffered for Japanese demand is just only 10,000 ton.”That is its disposal amount is estimated at about 20,000 ton.

Furthermore, the company affirmed“Even though there is a little cut in its price, as it will influence the disposal of overseas rice which the Food Agency has now, bids for wholesale will not be less than 200 yen(per kilogram)”and it is obstruction that“There is no attractiveness in estimating the market prices of domestic rice at present and import period”,etc..

The intention that the stock is wished to dispose at a stroke without increasing it can be understood, but the company guesses “At this bid, the limit amount will not be filled and at the next bid (it is expected at the end of December), the limit amount will be reduced conversely.”

-Sep.29.1997-

◆The second minimum access of the fiscal year 1997: 116,000 ton of normal import rice was knocked down.

The Food Agency announced on 19th September the result of second bid on normal import rice about the minimum access. This time, of 390,000 ton applied by 48 companies, 116,000 ton was knocked down to 22 companies.

Its weighed average price per ton was 70,097 yen. Its production countries were three, U.S.A., Australia and Thailand as well as the second bid of the fiscal previous year and Australian rice increased more than its actual result of the fiscal previous year.

As to glutinous rice, 700 ton of Thai polished long rice was knocked down, but any glutinous broken polished rice was not. As to normal rice, adding 39,000 ton of the first bid (all amount was Thai: 28,500 ton of unglutinous polished long rice and 10,500 ton of unglutinous broken polished rice), its total amount ran up to 155,100 ton.

◆LDP discussed request to the Foreign Minister for food support problem.

The Liberal Democratic Party held a joint meeting with its division group related to foreign affairs and its special committee for trade measures of agriculture, forestry and fisheries products on 19th September and they discussed food support problem toward North Korea.

At the joint meeting, about the request submitted to the Foreign Minister before, whether they approve it or not was talked and various opinions such as“Although we are willing to agree to support, we would like the Government to carry out it prudently”“We would like the Government to insist reasonable opinions in Japanese position”and their discontent toward response of North Korea to the 500,000 ton of rice support that the Government has practiced until now were given out. They are to continue discussions to adjust their opinions for request. The possibility that their request will be changed is high.

-Sep.22.1997-

◆The limit amount for the third SBS : 25,000 ton 　It will be held next month.

The Food Agency announced that it would hold the third bid of the fiscal year 1997 under the Simultaneous Buying and Selling Tender System(SBS) within the minimum access at a conference room in the Voluntarily Marketed Rice Price Forming Center on 15th October. Its planned contract amount is 25,000 ton at a maximum in the past. The classification for contract is normal rice and broken rice. Its markup is expected to reduce.

Under the policy that“To dispose of the minimum access rice by sell steadily, the use of SBS which brings about its demand and whose competitive rate is high should be attempted”, as to the fiscal year 1997, the Agency copes with increase of limit amount compared with last year’s actual amount, 22,000 ton (three bids were held in August, November and December) , and accordingly, its planned amount is 7,000 ton in May, 20,000 ton in August, 25,000 ton in this bid and those total amount will reach 52,000 ton.

The time limit of loading is 31st January and the time limit of delivery is 10th March, but early rice will be imported during December. In the fiscal year 1997, four bids are planned to be held equally and its fourth bid is planned to be held in December and its amount will be reflected by the result of this bid.

-Sep.16.1997-

◆The most amount of successful bids was 2,350 ton by Mitsui & Co, Ltd.(the second SBS)

The amounts of successful bids by each trading company under the second Simultaneous Buying and Selling Tender System(SBS) were made clear.

The most amount was 2,350 ton by Mitsui & Co, Ltd. Of the amount, glutinous rice was over 1,400 ton which occupied about 60 percent (its almost is polished rice, but unpolished rice is included), and Chinese rice and U.S.A. short rice followed.

The number of contracted wholesalers was 29 and the most was also by Mitsui & Co.Ltd.. The feature of those bids was that glutinous rice occupied considerably in all and a total of 23 trading companies knocked glutinous rice. The trading companies which knocked down much amount after Mitsui & Co, Ltd. were as follows.

▽ Okura & Co,Ltd.: 1,772 ton (the number of contracted wholesalers: 18 )▽ Kitoku Co, Ltd.: 1,400 ton (7)▽Nichimen Corp.: 1,260 ton (13)▽ Itochu Corp.: 1,224 ton (15)▽Nissho Iwai Corp.: 1,216 ton (17) ▽ Mitsubishi Corp.: 1,205 ton (22)▽ Nishimoto Trading Co, Ltd.: 1,008 ton (7) ▽ Kanematsu Corp.: 970 ton (12) ▽ Sumitomo Corp.: 792 ton (10)

-Sep.8.1997-

◆Temporary shops for Niigata rice will be set up at two overseas places.

The export promotion council for Niigata rice and its process food which is organized by Niigata prefecture and the central council of Agricultural Cooperative Association, etc. decided setting up rice shops to open overseas markets just as it did last year.

The shops will be set up from October,29th to November, 2nd in London (London Yaohan Plaza, etc.) just as they were set up last year and the shop will also be set up newly in Singapore (the Singapore Daimaru) where there are many Japanese residents and rice is not produced, from February, 13th to 18th, next year.

At the shops, exhibitions and spot sales for rice and its process food, business negotiations with the local distributors, and support for its overseas business will be held. Moreover, consumption trend and concern around the places will be surveyed by questionnaires.

-Sep.1.1997-

◆About 3,700,000 ton of rice stock at the end of this fiscal year (the Food Agency)

According to“The present conditions of production and distribution on rice”which the Food Agency reported to the subcommittee for agricultural basic policy of the Liberal Democratic Party on 27th August, as to the rice stock at the end of this October, it reported that domestic government marketed rice will be 2,500,000 ton, voluntarily marketed rice will be 800,000 ton, import rice under the minimum access will be 400,000 ton and that its total amount will be about 3,700,000 ton.

But its prerequisite is that each 100,000 ton of domestic government marketed rice is sold every month from August till October. The special disposals of 1994’s and 1995’s rice have no merit about the left brands or the expected price, and their successful bids are decreasing gradually. By the special disposal of 1996’s rice which is being rumored and the discount on expected price of 1994’s and 1995’s rice, how much can it be piled up ? Its little discount can not be solved the problem because the market price of new rice is cheap.

Also, in the item of“The trend of government marketed rice”, as to the sale and stock of domestic government marketed rice by each year at the end of this June, it explained that the total sales amount from last November till this June was 500,000 ton and that the stock from 1994’s rice till 1996’s rice at the end of this June was 2,900,000 ton. In the data it explained that“For management of precise stock, both constant sale and purchase are important, and for decreasing the stock, sales amount above purchase amount is necessary”and that there is a possibility which the purchase of 1997’s rice as its plan (1,200,000−1,300,000 ton) is difficult.

Moreover, in the circumstances that even its flexible sale (discount), there are some brands which have not sold at all, the reconsideration of classification by brand has been decided after 1998’s rice and the way on purchase of government marketed rice gets to be studied further.

-Aug.25,1997-

◆5,000 ton of glutinous rice was knocked down (the second SBS)

The second bid under Simultaneous Buying and Selling Tender System (SBS) in the fiscal year 1997 was held on 20th August and 18,909 ton of normal rice,1,091 ton of broken polished rice ,the total of 20,000 ton was knocked down.

Its application amount in all was 32,928 ton(the number of application: 404)and its competitive rate was 1.6. As the result,225 auctions of normal rice,16 auctions of broken polished rice, 241 auctions in all were knocked down.The profit by difference between selling price and import price (marking up)was between 130 and 178 yen per kilogram as to normal rice, and it was less 20 yen at its minimum and less 40 yen at its maximum than the last bid, and it was the lowest level in the past. Meanwhile, the amount of broken polished rice which was knocked down was above 1,000 ton in continuation. Its marking up was between 40 and 55 yen and it was less about 10 yen than the last bid.

As to glutinous rice, 720 ton of unpolished rice,4,558 ton of polished rice, the total of 5,278 ton was knocked down and the glutinous rice took about 30 percent in normal rice allocation as well as the last bid. All the amount was U.S.A. rice and 60 percent of the application amount was knocked down.Its delivery price was between 280 and 290 yen per kilogram, and it was less 5 yen at its minimum and less 15 yen at its maximum than the last bid.There were 400 ton of sales applications on Chinese, Thailander, and Indonesian glutinous rice, too, but they were not knocked down.

According to one trading company, it is said“As to U.S.A. glutinous rice, crop of about 33,000 ton on husk basis in the fiscal year 1997 is expected and in the case of polished rice, about 18,000 ton is expected. Of the rice, as about 10,000 ton will be consumed in U.S.A., its left for export will be about 8,000 ton.”Moreover, it is said ,as the exact crop amount will not be fixed by the end of September, the applications judging from its allowance have been done.

As to the reasons which there were many successful bids of polished rice,“Two points: Its yield which is 75 percent compared with unglutinous rice is bad and its polishing cost is a half of that in Japan”are given.Furthermore, there is another reason that inferiority of its quality after polishing is less than unglutinous rice. In the circumstances that domestic glutinous rice tends to be short, two more bids under SBS in this fiscal year are scheduled and the left amount of U.S.A. glutinous rice is around 3,000 ton. After this, the target is expected to shift to Chinese and Thailander rice.

-Aug.19,1997-

◆Focus on U.S.A. glutinous rice: second bid under ＳＢＳ

The second bid under the Simultaneous Buying and Selling Tender System（ＳＢＳ）of the fiscal year 1997 will be held on 20th, this week. At the first bid, 1,733 ton of glutinous rice (all is U.S.A. rice) was knocked down, but how will it be at the second bid? U.S.A. glutinous rice“Karumochi”will be taken notice.

The supply shortage of domestic glutinous rice is expected and therefore the opinion that the limit of import rice should be 10,000 ton has been presented. The selling price (weighted average value) of glutinous unpolished short rice at the first bid under the ＳＢＳ which was held in May, this year was about 289 yen per kilogram, but at the second bid, a buyer is expecting that its price will become about 270 yen.

The buyer is saying“As to unglutinous rice, its import one until now has not sold well and we have sold it at a sacrifice. The riskless rice around this November when the contract rice at the second bid will be imported is only glutinous one.” The amount of expected contract rice at this bid is 20,000 ton which is its maximum in the past.

-Aug.11,1997-

◆Crop situation index is 103 and the index is a good harvest in four years ’continuation：Crop prediction of the paddy rice field at the end of July(by Rice Data Bank)

Rice Data Bank practiced the crop prediction of the 1997’s paddy rice field(as of 31st July). The Data Bank predicted by the crop calculation program inputting the weather data until the end of July and according to its prediction, the crop situation index of the whole country is 103, which is“Slightly good”, and a good harvest in four years’continuation is expected.

Predicting from every metropolis and prefecture,“Good”which is from 106 up of the index is 4 prefectures of Hokkaido,Tochigi, Saitama,and Shizuoka.“Slightly good”which is between 102 and 105 is 23 metropolis and prefectures.“Average”which is between 99 and 101 is 17 prefectures.“Slightly bad”is 3 prefectures of Hiroshima, Saga and Nagasaki. The crop prediction per 10 are is 521 kilogram and 10,144,000 ton of the total amount is predicted.

This year is the second one of the new production adjustment promoting measure and as the reduction object of rice field was deferred last year, the achievement rate of the whole country basis is expected to be 100 percent or almost 100 percent, and 1,948,000 hectare of the paddy rice field(99 percent compared with the previous year) and 9,000 hectare of the dry rice field (96 percent) and the total is 1,957,000 hectare (99 percent),which is expected to be almost a normal year.

The crop prediction of this year’s rice including the paddy rice field and the dry rice field is 10,164,000 ton. The stock at the end of the rice year 1997 (the end of this October) including non glutinous and glutinous rice is predicted to be approximately 4,200,000ton (3,600,000 ton of the domestic rice from 1994 to 1996 and 600,000 ton of the minimum access) which is above 1,000,000 ton than the basic plan. About 15,000,000 ton of the total supply practicable amount on the rice year 1997 including 600,000 ton of the minimum access on the fiscal year 1997, while the total demand amount on the year is between 9,800,000 ton and 10,000,000 ton (predicted by the Data Bank) and the stock at the end of October, next year is expected to expand between 5,000,000 ton and 5,200,000 ton.

Unless rice export for overseas food aid, the third disposal of surplus rice is indispensable and reinforcement of large-scale production adjustment on 1998’s rice can not be avoided.

-Aug.4,1997-

◆The number of retail dealers which are correspond to the requirement of tender system is approximately 50.

The Voluntarily Marketed Rice Price Forming Center held its steering committee on 31st July and decided formally the frame of 1997's rice tender system.

Its standard price is the weighted average value of the last three bids' indexes on 1996's rice and its price limit is the standard price ±13 percent at a maximum. The center also permitted the participation of each agricultural cooperative association as a seller (the requirement is to list the brand in every area by itself or with the other associations) and each retail dealer as a buyer (the requirement is to be expected to purchase at least 4,000 ton of unpolished rice per year on the planned marketed rice).

It seems that the number of registered retail dealers which are correspond to the requirement is approximately 50, centering on large-scale retail dealers and co-ops.

Moreover,“Limit order”(the apply for bid at a minimum price), about which the opinion of continuation has been submitted by sellers, is remained only in 1997's rice tender tentatively.

But the calculation rule of its minimum price which was“The governmental purchase price + the distribution cost - the grant for voluntarily marketed rice”untill now is excluded and “The sellers offer their requests to the center a month beforehand and the steering committee decides its judgement”, and therefore the tender system can not be used easily.

Furthermore, as to the amount of brands listed by every term and month which the center had decided, the frame that the sellers can offer arose, but the check whether it is appropriate or not is carried out based on the actual result of its sale and the center can direct its change.

-Jul.29,1997-

◆Cold summer forecast in continuation (the Meteorological Agency)

The Meteorological Agency announced the three months' forecast from August to October on 22nd July. The Agency continued cold summer forecast just as it had forecasted before, saying as to the average temperature during the period“There are large possibilities that it will become as a normal year in the northern part of Japan and that it will become low in the eastern and western part of Japan.

”Judging from the circumstances that occurrence of Elnino is certain, the Agency is expecting that cold atmosphere will south down in August and corrected its September's forecast from a normal year into low temperature except the northern part of Japan.

By the effect of high temperature in June and July, it is almost certain that the crop situation if early rice will be above an average crop, but the point after this is the temperature on early in August which is the coming out period of ears for ordinary cultivation. The Climate Prediction Division is expecting that westerlies will not south down until early in August, and at the time, if there is no problem, the possibility above an average crop will become high. The number of typhoons is so far 9 this year and is usually.

Occurrence of typhoon is tend to be fewer during occurrence of Elnino, but there is no feature as to approach of typhoons to Japan.

-Jul.22,1997-

◆Nippon Syokudo sold box lunches with U.S.A.Akitakomachi

Nippon Syokudo began selling the formal western-style“American box lunch”in which U.S.A.rice was used on 20th this month. The company uses U.S.A.Akitakomachi as to rice. The sales places are four stations, Tokyo, Ueno,Shinjuku and Omiya and at the beginning, the sale is limited to 500 boxlunches a day. The price is 1,200 yen.

The company is scheduled to sell them as the main box lunch for Nagano shinkansen (super express train) which is opened in October and expects to sell 1,000 box lunches a day at its peak.100 gram of polished rice is used for a box lunch.

The American restaurant,“GOOD TIMES”in the railroad yard of Shinjuku station has already begun using U.S.A.Akitakomachi. The annual amount for use of the brand is promised to be about 18 ton in the case of 500 box lunches a day and about 12 ton at“GOOD TIMES”.

◆Australian rice has not sold well.

In the Kanto area, this year’s Australian Koshihikari has been sold centering on large-scale retail stores since early in this July, but the brand is not good enough to be sold.

Mycal Corp. began selling at 820 yen of 2 kilogram and 1,980 yen of 5 kilogram as to the brand at its 20 stores in the Kanto area, but it said“On the contrary, the other domestic Koshihikari,for example, at 2,500 yen of 5 kilogram has been sold well”.

Also, the Daiei, Inc. began selling the brand at 1,980 yen of 5 kilogram in the Kanto area on 3rd July and announced“The brand is being sold as almost scheduled”,but its actual sale is not good. Although its merit is“ More early than domestic early rice”, the brand has not penetrated into consumers in Japan yet.

-Jul.14,1997-

◆To setting up a sales promotion team for adjustment stock rice etc. (JA)

National Federation of Agricultural Co-operative Associations(JA) will set up a sales promotion team for adjustment stock rice etc. On 1st August and will begin its study soon. The matter was shown at its director meeting which was held on 7th July and its plan is to set up the team at the head office and to station staffs in the division in charge of staple food at the two branches in Tokyo and Osaka.

As the rice which has not contracted is 510,000ton (570,000ton of stock and adjustment stock is excluded) on 11th July and actual left-over promises to increase substantially, its disposal is pressed.

The concrete contents for the business in charge are �@ development of sale for big business, enlargement of sales channels (direct sale for business use, sales promotion to large-scale retail dealers), sales promotion for enlargement of use etc. �A development of brand, �B making of sales plan for stock and adjustment stock and sale for those -and so on.

If JA which is holding a large quantity of voluntarily marketed old rice promotes its sale by itself, one related person is anxious saying“I think it is natural the friction between wholesalers and retail dealers arises. This affects sale of voluntarily marketed rice future. A vicious circle goes forward more and more.”

-Jul.7,1997-

◆The requirement for bid of retail dealers is at least 4,000 ton (The study group of voluntarily marketed rice)

On 3rd July, the final report by the study group of voluntarily marketed rice was concluded. As to the improvement of bid scheme on this year's rice which had become the point of contention, the report was as follows.

▽The standard price = the average value of the index prices of the last three bids on the previous year's rice. It can be changed on the request of sellers.

▽The limitation of annual price range = the standard price ±10 percent. As to within this year, in case of the brand whose index price is within 0.5 percent of the limitation of annual price range, at most two times, its next limitation of price range increases by ±1.5 percent of the limitation and the first limitation in new year is the limitation of annual price range of the last bid in this year in principle. As to within this year, the limitation of annual price range based on the previous bid is not set up, and in new year, the limitation of ±5 percent is applied.

▽The bids for the last year's rice = in case there is lots of its rice, the bids for its rice are held simultaneously with the bids for this year's rice. Its index prices are formed by market evaluation.

▽The number of lists = at least one third.

▽The amount of application = the limitation of each wholesaler is abolished in principle.

▽The number of bids = at least once a month within this year and after that, at least once every other month. As soon as its preparation is completed, the bids are held in Tokyo and Osaka simultaneously and moreover a bid at each company is studied.

▽The participants to bids = each agricultural cooperative association divides its area and lists its brand. The annual purchase amount by each retail dealer is at least 4,000 ton of unpolished rice. By each brand, each purchase amount is determined in proportion to the application amount by wholesalers and retail dealers --- and so on.

-Jul.30,1997-

◆Large-scale retail stores increased rice sale centering Private Brands.

【The Daiei, Inc.】Its rice sale was over 50,000 ton The rice sale of the fiscal last year by the Daiei, Inc. was estimated to be over 50,000 ton. Compared with the sale at the same time of the previous year,it increased by about 26.5 percent and was much beyond the expectation at the be ginning. The sale resulted from the big contribution of the Pivate Brand（ＰＢ）“Kuramai”and after this time, 35,000 ton of rice is the goal of annual sale.About the sale of the other ＰＢs, the company is saying“Thinking over the surroundings of our stores, we aim at preparation for the ＰＢs that our customers want.”

【The Seiyu Ltd.】The company is confident by the rice sale of about 10 Billion yen and its amount of 26,000 ton.The Seiyu Ltd.is much confident of rice sale, because its actual result of 1996 was good.Starting the full business of rice sale when the law for stabilization of supply, demand and price of staple food was enforced last year, the company,as the result that the rice sale was about 10 billion yen and its amount was 26,000 ton (191 stores in all the country) which increased by 8 percent compared with that of the previous year, said“Rice sale by the large-scale retail stores became established among individual consumers”and intends to promote actively rice sale after this time,also. The rice wholesalers which the company is dealing with are Yamatane Corp. and the other 6 companies.

【Mycal Corp.】26 percent increase by influence of ＰＢs The rice sale of the fiscal 1996 by Mycal Corp. was 9 billion yen and the sum increased by 26 percent compared with that of the previous year. As the result,the company is insisting the influence of ＰＢs, saying“It is a main reason that the ＰＢs’ sales strategy which has been put into practice since the Autumn in 1995 gained the support of our customers.”The main ＰＢs were“Super-price Koshi”which consists of Koshihikari(one brand)in every area, and“Seikatsubizin”and“Akitakomachi”which are tied up with JA(Agricultural Cooperative Association）Akita Prefectural Keizairen. Lots of the packages are 2 or 5 kilogram for taking-out. After this time, the company intends to deal in rice in all the food counters of our new stores.

-Jun.23,1997-

◆A Setting-up preparatory committee confirmed early setting up of rice physical market at its first meeting.

The National Severation of Rice Marketing Cooperative Associations and Japan Rice Wholesalers Association are promoting the work to set up a physical market under collaboration and the first meeting of the setting-up preparatory committee was held at Tojo Kaikan in Chiyoda Ward, Tokyo at PM 2:30 on 18th June.

As the administrative organs (the Food Agency and so on) are firmly objecting its setting up, the principle of the committee is becoming“We promote the work without stimulating them as much as we can.”(the related person) and therefore the contents of its first meeting have not been announced at all.

But,according to the interim report, the result of questionaries to the rice wholesalers shows there are lots of same opinions that the setting up of“unplanned distribution rice market” and its price formation are absolutely neccessary. At the first meeting,it seems that the participants confirmed the aim of its early setting up with their resolution.

The chairman Amano of Japan Rice Millers Association presided and the participants decided that they hold a meeting of the committee at the rate of once in a month and that they elect a chairperson at its second meeting.After that,the discussions are held taking communication between the committee and the officials in charge and by the end of August, the committee frames an original plan which is to propose a concrete shape of rice physical market.

As the meeting on 18th was its first one,“Although it seemed that we just meet one another this time, unexpectedly,incisive discussion was done. 『Crystal Rice』 was given as one example plan about the image of the market and the opinions, such as hearing to the main rice wholesalers and JA(Agricultural Cooperative Association) Keizairen is neccessary and so on, came out”said the related person.

At the first meeting,a strong rice wholesaler was already taking the leadership and Its result is expected to come out early. Its second meeting will be held early in July.

-Jun.16,1997-

◆Owing to the occurrence of El Nino, warning of poor rice harvest this year?

On 10th June, the Meterological Agency announced there is much possibility that El Nino which affects greatly the summer weather of Japan is occurring after four years’disappearance.

The Agency mentioned“the state of the sea and atmosphere including the water temperature of sea surface and the ocean current around the equator on the Pacific Ocean is showing features of the beginning of El Nino” and suggested starting of the phenomenon.

Owing to its occurrence,as the settling down of high pressure weakens or is delayed, there are some tendencies,such as 1.the finish of rainy season is delayed 2.the temperature becomes low 3.the precipitation increases, and so on. In the last El Nino,the crop situation index of the paddy rice field (the rice harvest in 1993) was 74 and a poor rice harvest struck.

By the going down of rice price this year, the wholesalers and the retail stores of rice are buying only the immediate requisition since the beginning of this year. There is no problem of the relation between supply and demand, because the amount of stock rice is getting near to four million ton. But by the harvest of this year, the switch of business activities, such as the treatment of stock rice toward this autumn and new rice, will be neccesary.

According to the long-range weather forecast, the outlook for this July and around the month is low temperature. In fact, from the latter part of May to early in June, cold winds from the north,which are called“Yamase”, are blowing on the northern part of Japan. Owing to the low temperature or the lack of daylight, a part of rice is being delayed of growing at the beginning stage and the rumor of poor harvest is already coming out.

But the delay at this time can be recovered enough, and the weather of this July and August is important,because those months are the young panicle formatiom stage, the boot stage and the flowering stage. Attention to the information of harvest should be paid after this.

-Jun.9,1997-

◆Stock of import rice in Japan will be over One Million ton next year
7,000 ton of import rice was traded on 28th May under the Simultaneous Buying and Selling Tender System(SBS) by Food Agency, Ministry of Agriculture, Forestry and Fisheries(MAFF), and“New Year”of import rice in Japan was started.

The fiscal 1997(from April,'97 to March,'98) is the third year since the minimum access has begun and the planned amount of import rice in this year is 600,000ton (unpolished rice base). By the agricultural negotiations of Uruguay Round, the amount of import rice reached 920,000ton in the past two years. Of the import rice, about 200,000ton has been sold over by this May, but over 700,000ton has been left as the stock of the Government. At present, although Food Agency is carrying out the various selling promotion plans including its discount with the aim of increasing the amount, all the effort is focusing on domestic rice, and the selling promotion of import rice is being left behind. It is a little improvement that the first trade under SBS was held in May, this year, because it had been held in July in 1995 and 1996. However, it seems that the basic policy of MAFF has not changed yet and therefore domestic rice has taken precedence on selling of the stock.

The 600,000ton of this year's import rice expires at the end of March, next year on the customs formalities and at the time, it is certain that the stock of import rice by the Government will be over One Million ton.