Organic food in domestic supply chains
Businesses producing and handling organic food products in Japan must pass an examination by third-party auditors accredited by the Ministry of Agriculture, Forestry and Fisheries (MAFF). Only certified products are allowed to be labeled as “organic” (yuuki) and bear the “Organic JAS” logo on the packaging, the official certification for organic foods in Japan. In the last decade, the Japanese government worked on opening the market to foreign businesses, with the trade being secured by bilateral equivalency agreements. Organic certified foods imported to Japan are eligible for the Japanese grading labels and can be distributed within the domestic market under the Organic JAS system. Recognized certifications under bilateral equivalency agreements include the systems of major trade partners like the United States, the European Union, Canada, and Taiwan among others.However, despite the diversification of supply chains by opening trade routes, the demand within domestic food-related industries remains low. High prices and unsteady supply volumes are challenges wholesalers are facing in procuring organic produce, with retailers and food processors voicing similar concerns.
Organic trends
The Japanese government has been making an effort to raise awareness of the organic food sector by enforcing strict labeling regulations to prevent misleading advertisements. To further stimulate domestic demand, MAFF launched the “Japanese Organic Supporters” platform for businesses actively handling organic food. But despite the promotion activities and rising awareness levels, only a minority of consumers understand the added value of the Organic JAS logo. While the health food sector has been benefitting from the growing demand for a healthy lifestyle and healthy eating habits, the organic food segment is challenged with distinguishing itself from the conventional food segments.On the other hand, organic non-food products are attracting consumer interest. Consumer goods apart from foodstuff are not subjected to the Organic JAS regulations, resulting in the rise of new market segments like organic cosmetics and organic cotton. While organic cotton is not eligible for organic certifications, it can still be marketed as “organic” and has gained popularity as a sustainable material in the fashion industry.
