TOKYO (Nikkei)--Spurred on by government payouts, farmers have been sharply boosting production of rice for use as an ingredient in processed food, beverages and animal feed. Data from the Agriculture Ministry shows that the yield of such rice jumped roughly 80% on the year to 320,000 tons in 2010. The government aims to increase the volume to roughly 1.6 million tons in a decade.
This type of rice is used for making snacks, sake and feed for pigs and chickens, as well as rice flour.
Rice used for making feed grew the most last year, more than tripling to 81,237 tons. That of rice for producing rice flour doubled to 27,796 tons. In fiscal 2010, the ministry started paying farmers that cultivate rice for these uses a grant at the rate of 80,000 yen per 10 ares. This amount is more than five times the 15,000 yen for the rice that serves as a staple of the nation's diet.
Production of rice for use as a food and beverage ingredient also rose sharply, up 50% to 218,324 tons. This increase stemmed from the planned introduction of a new regulation in July that will require food-processing companies to display the origin of the rice used in their products derived from rice. In preparation for this rule, many makers of snacks and other food products have moved to increase their procurement of Japanese-grown rice.
As demand for rice continues to decline, the government has been urging rice farmers to reduce output by switching to other crops or by simply not planting rice. Still, output of normal-use rice stands at 8.24 million tons or so. It is estimated that the 2010 crop exceeded demand by about 130,000 tons.
Encouraging production of rice for processing and for animal feed will likely help ease the glut of normal rice. But this may place more of a burden on already-precarious government finances. If the ministry's goal of 1.6 million tons of annual output is met, government subsidies for those types of rice would jump 700% from what is estimated for the current fiscal year to reach roughly 130 billion yen.
Source:The Nikkei Mar. 3,2011
Rice futures trading, which began in Japan in the 18th century, could return after a 70-year hiatus.
The Tokyo Grain Exchange plans to apply to begin listing trades on rice futures on a two-year trial basis, but the nation's powerful agricultural cooperatives are cautious. Agricultural cooperatives fear they would lose their long-held clout over the price of rice. They also say speculators could have too much sway over prices.
The latest move comes after the Ministry of Agriculture, Forestry and Fisheries rejected the exchange's previous application made in late 2005 to list rice futures contracts. At the time, the ministry said the move would disrupt its policy of adjusting rice production, apparently paying consideration to the demands of agricultural cooperatives.
In futures trading, the seller and buyer agree to trade a specific commodity at a set price on a future date. Exchanges around the world offer trading in gold, precious metals, grains and crude oil futures. The Tokyo Grain Exchange handles futures trading in corn, soybeans and other crops.
The proposed trial trading in rice futures would study trading volumes for the commodity and measure the effects on production and distribution before the ministry decides on whether to allow the market to list trades on rice futures.
Rice futures trading first started at an exchange in Osaka's Dojima district in the Edo Period (1603-1867). It is widely considered the world's first futures trading market.
Rice futures trading continued for about 200 years, taking place at many places in Japan before World War II. But the wartime government terminated the markets in 1939 to tighten controls on the state economy and food distribution.
Rice futures trading again became legal after the revised food control law took effect in 2004. The Tokyo Grain Exchange decided to revive trading after major shifts in the country's rice industry since the Democratic Party of Japan took power in 2009.
The ruling party is creating a mechanism by which rice prices would be set by the market. Last year, it introduced an income compensation program for rice farmers. Under that program, rice-farming households are compensated on condition that they cooperate with the government's rice production adjustment policy, which is designed to stabilize rice prices. Rice distribution channels have diversified in recent years since more farmers began selling rice directly to consumers, a departure from past practices. Calls have emerged from the agriculture ministry and ruling party for a benchmark rice price in response to the changing market.
Source:Asahi Shimbun March 3,2011
The steel industry might have to shoulder an increase of 42 billion yen to 43 billion yen in tax payments for fiscal 2011 if a fierce battle between ruling and opposition blocs over a set of fiscal 2011 budget-related bills eventually results in the current oil and coal tax breaks expiring at the end of this month, according to industry sources.
The country's farmers and fishermen will also likely have to pay a total of 3.7 billion yen in additional fuel costs in that event. There are growing concerns that the increased tax burden to be imposed on the steel, farming and other sectors will be eventually passed on to consumers in the form of a rise in retail prices, adversely affecting people's everyday lives.
The passage early Tuesday of the fiscal 2011 budget through the House of Representatives paved the way for its enactment by March 31 on the strength of a constitutional stipulation. This states that an annual budget will be enacted within 30 days of being sent to the House of Councillors following the lower house's approval, even if the upper house rejects it or does not hold a vote on it. However, this rule does not apply to budget-related bills.
Stalled Diet deliberations on the budget-related bills have led to growing concern that the tax breaks will expire at the end of this month. One of the bills calls for extending by two years the tax break for steelmakers under the Petroleum and Coal Tax Law. Under the system, steelmakers will be exempt from paying oil and coal taxes they are required to pay when they import coal used for steel production.
If the tax break expires at the end of the current fiscal year, however, steelmakers would be asked to pay 700 yen in tax per ton of imported coal. In that case, the steel industry is projected to pay an extra 3 billion yen to 4 billion yen in tax per month.
The petroleum and coal tax has no tax refund system. Therefore, even if the bill passes through the Diet in April or later, tax that has been paid by that time would not be refunded in principle. Eiji Hayashida, chairman of the Japan Iron and Steel Federation, expressed a sense of caution regarding the current situation. "Our concern is whether tax breaks under the Petroleum and Coal Tax Law will expire at the end of March," Hayashida said at a press conference on Feb. 23.
If budget-related bills failed to clear the Diet by the end of this month, the current tax break and tax refund system for A-type heavy oil would also expire. Such oil is used by the agriculture, forestry and fisheries industries, for boilers to heat vinyl greenhouses and as fuel for fishing vessels, among other uses. The Agriculture, Forestry and Fisheries Ministry projects that the expiration of the tax break at the end of March will mean that a green pepper farmer would have to spend about 47,000 yen more per year.
Meanwhile, it is estimated that squid fishermen operating at night on boats using lights as lures would be faced with an increase in their annual fuel bill of about 179,000 yen. The Diet impasse is also likely to affect the aviation industry. If tax breaks for aviation fuel expire at the end of March, aviation fuel tax on flights to remote islands will be raised from the current level of 19,500 yen per kiloliter of fuel to 26,000 yen, beginning in April. The increase might be passed on to consumers in the form of higher airfares on such routes, industry sources said.
Source: The Yomiuri Shimbun Mar.2, 2011
TOKYO (Nikkei)--Rising sales of health foods, such as supplements, diet foods and drinks, are helping shore up the bottom lines of Japanese food makers, which are struggling with sluggish demand in the domestic market as the population ages and the birthrate shrinks.
Suntory Holdings Ltd., the country's largest supplement maker, forecasts sales at its health food unit to rise 6% on the year to 56.3 billion yen in the year ending December and expects its operating profit to rise as well. Its mainstay health products -- including its Sesamin supplement, made from concentrated sesame, and its Kurozu Ninniku black vinegar and garlic supplement -- are selling well.
In the year through December, Asahi Breweries Ltd.'s health food unit rang up 47.1 billion yen in sales, up 7% from a year earlier, and saw its operating profit double to 2.1 billion yen, thanks to strong sales of diet foods and supplements. The company expects a 6% increase in sales from the unit this fiscal year.
Lion Corp. and Fancl Corp. are cranking up marketing efforts for their supplements. Lion hopes to boost sales of such products by 30% to about 5 billion yen by introducing new products this summer.
As for health drinks, House Foods Corp.'s Ukon no Chikara is selling well. In the year to March, the firm's operating profit from its health food operations is expected to rise 19% on the year to 4.1 billion yen, excluding goodwill amortization expenses.
Last April, Kirin Holdings Co. began selling a drink that contains Ornithine, an amino acid said to enhance liver function. The product generated 8 billion yen in sales for the nine months through the end of December, exceeding the company's target by 3 billion yen.
Source:The Nikkei Mar. 1,2011
TOKYO (Nikkei)--UCC Ueshima Coffee Co. is expanding Asian procurement of coffee beans, looking to avoid market risks and ensure stable supplies by diversifying away from Brazil.
The firm will set up an office in Ho Chi Minh City, Vietnam, on March 11 to inspect local coffee beans for quality and gather information on coffee production in other Asian countries. This will mark UCC Ueshima's second foreign office, joining one in Brazil. It is expected to begin operating in April.
UCC Ueshima now procures around 10,000 tons of coffee beans a year from Vietnam. By opening the new office and deepening ties with local producers and exporters, it aims to increase purchases by 20-30% by the year ending March 2013 and as much as 50% in the long run.
At the same time, the company will begin supplying China, Taiwan and South Korea from Vietnam instead of Brazil and other Latin American countries. This will enable it to more closely manage coffee bean imports and exports in Asia and help reduce shipping costs.
UCC Ueshima will also start working to develop new production regions in China and Laos.
Source:The Nikkei Mar. 1,2011
TOKYO (Nikkei)--The government is working to raise people's environmental awareness by introducing visible measures to curb household emissions of greenhouse gases. In April the Ministry of Economy, Trade and Industry will expand its carbon footprint scheme. At present 74 consumer products, from sausages to pens, have a carbon footprint on their labels showing how much carbon dioxide was emitted in their production.
METI will introduce a new carbon footprint label to show how much CO2 emissions have been cut in making a product, compared with older versions of the item. A "carbon-neutral" logo for companies that purchase emission credits will also be introduced.
The Ministry of the Environment, for its part, will set up a Web site in March that calculates CO2 emissions from utility bills. To motivate people to go green, the ministry will rank customers by how much they reduce their greenhouse gas output. Emission rankings by region will also be published.
The site will provide consumers with tips on how to cut their emissions. Reducing one's viewing of an LCD TV by one hour can cut CO2 emissions by 20 grams, for instance and lowering the TVs brightness can also reduce emissions. Information on how much CO2 emissions can be reduced using the latest appliances will also be posted on the site.
Households lag behind businesses in their efforts to reduce CO2 emissions. In fiscal 2009, industry slashed CO2 emissions by 20% from 1990 levels, while household emissions rose 27%.
Source:The Nikkei March 7
Japanese companies are ramping up mergers and acquisitions in the rest of Asia, eager to ride the region's dynamic growth. And Asian firms are returning the favor, for their own reasons.
Acquisitions of Asian businesses by Japanese firms surged 83% on the year, to a record 274 deals, in 2010, according to Thomson Reuters of the U.S. These deals accounted for 52% of all overseas M&As, including investments, by Japanese companies - the highest level in seven years.
On a value basis, Japanese M&As in Asia increased 3%, to roughly 890 billion yen. Faced with a shrinking domestic market due to the declining birthrate, corporate Japan hopes to tap into Asia's brisk consumer spending. Among recent deals: Kirin Holdings Co. obtained a stake in a Singaporean soft drink company; Nippon Paper Group Inc. invested in a Chinese paperboard company; and Toyo Tire & Rubber Co. bought a Malaysian tire manufacturer.
Rengo Co. is scheduled to snap up a trio of Vietnamese companies in the paperboard field. So far this year, Japanese companies have conducted 32 M&A deals in Asia. At the same time, a growing number of cash-flush Asian firms are buying Japanese businesses. Such M&As in 2010 increased 24% on the year, to a record 73, while the value of the deals surged 87%, to 117.9 billion yen.
Many of the buyers are targeting Japanese firms' technologies and brand recognition as fodder for further business growth. Real estate purchases in Japan by Southeast Asian investors are also conspicuous, including an acquisition of a Hokkaido resort by a Malaysian firm. In February, Panasonic Corp. said it will sell a nickel-metal-hydride battery business to a Chinese battery maker.
Source:The Nikkei Weekly Feburary 28,2011
TOKYO (Nikkei)--Chinese and South Korean solar cell makers are stepping up efforts to cultivate the Japanese market for household solar cells, attracted by its high growth potential courtesy of government subsidies.
Many foreign solar cell makers began full-scale sales of their products for Japanese homes in 2009. Foreign solar cells accounted for 10.9% of overall domestic shipments in 2009. The figure went up by 1.8 points to 12.7% in 2010. With Chinese and South Korean solar cells competing mainly on price, the average per-kilowatt price of home-use solar cells has slipped under 600,000 yen, down from roughly 620,000 yen in 2009.
Still, Chinese and South Korean manufacturers have often pocketed higher profit margins in Japan than in Europe and their home markets because they have been able to charge higher prices, thanks partly to government subsidies. Attracted by profitability and growth potential, more Chinese and South Korean solar cell firms are now eyeing the Japanese market.
ET Solar Group Corp. is gearing up to begin Japanese sales of its household solar cells in April through Toyotsu Machinery Corp., a Toyota Tsusho Corp. (8015) subsidiary. The midtier Chinese solar cell maker plans to set its Japanese prices 10-20% below those of major Japanese rivals.
China's Yingli Green Energy Holding Co., the fifth-ranked solar cell maker in the world, is considering opening up a Japanese office, with an eye toward boosting sales of low-priced products.
Second-tier South Korean conglomerate Hanwha group aims to start selling low-priced home-use solar cells in Japan via a domestic company around June.
China's JA Solar Holdings Co. plans to establish a Japanese unit around September. Ranked sixth in the world in terms of output volume, the company will offer high-quality solar cells that feature an energy-conversion rate as high as 19%, through the Japanese unit.
JA Solar has been selling its products to Japanese solar panel makers via Mitsubishi Corp. (8058) since 2009. It intends to lift sales to about 8 billion yen by 2012. Domestic shipments of solar cells came to roughly 990,000kw in 2010, according to the Japan Photovoltaic Energy Association, doubling for a second consecutive year.
Source:The Nikkei Mar. 3,2011
TOKYO (Nikkei)--Some of the most promising Japanese companies are virtually unknown outside the niche markets they serve, but their success on the global stage is a testament to the country's manufacturing prowess.
To identify firm that are potent global players, Nikkei Veritas selected those that generate more sales overseas than at home and are expected to log record profits this fiscal year.
Naikai Zosen Corp. focuses on constructing small ships, a field that major shipbuilders do not bother with. It generates 95% of its total sales abroad. Comprehensive materials producer Nitto Denko Corp. calls itself a global niche company, with overseas markets accounting for 67.6% of its overall sales. It expects to post a pretax profit of 87 billion yen this fiscal year, and will likely double its annual dividend to 80 yen a share.
A number of businesses have solid market shares in
relatively small fields. These include Sysmex Corp., a major manufacturer of blood testers and similar devices; Kubotek Corp., whose main business is inspection equipment for LCDs and other types of flat panels; Chugoku Marine Paints Ltd., the domestic leader in nautical paints; and Mani Inc., which exports surgical needles to more than 100 countries.
Manufacturers are not the only players active in niche markets. Trust Co. exports used automobiles to Africa and Latin America, while UKC Holdings Corp. and Tomen Devices Corp. are both trading houses that specialize in semiconductors.
At many of the firms on this list, demand grows in line with economic expansion in emerging markets. Nissei ASB Machine Co., which makes molding machines for plastic bottles, generates more than 90% of its sales overseas. It has a production site in India and generates 58% of its operating profit in Asia outside Japan.
Zuiko Corp. is a major producer of machines for making such goods as sanitary napkins and diapers. Overseas markets account for 55.2% of its worldwide sales, with Asia outside Japan contributing 29% and Europe making up 15%. The list also includes Towa Corp., an LED production equipment maker, and Dainippon Screen Mfg. Co., which makes devices for washing silicon wafers.
Source:The Nikkei March 7
The nation's cargo container terminals at major ports operate only eight hours per day--compared with around-the-clock facilities overseas--so a pilot project keeping terminals open later that have shown to increase volume is expected to push Japan's container terminals toward 24-hour operation. The pilot project keeping cargo container terminals operating later into the night at the nation's six major ports has proved highly effective in boosting shipment volume, according to the land and infrastructure ministry.
The six ports that participated in the pilot project are Tokyo, Nagoya, Kobe, Yokohama, Osaka and Yokkaichi, Mie Prefecture. Domestic container terminals are allowed to handle cargo between 8:30 a.m. and 4:30 p.m. in principle. A great majority of the world's large container terminals, in contrast, operate around the clock, according to the Land, Infrastructure, Transport and Tourism Ministry. To study the feasibility of extending operating hours, the ministry has been experimenting keeping terminals at the six major ports open until 8 p.m. Trials were launched in May 2009 at the Nagoya, Kobe and Yokkaichi ports, in March 2010 at the Yokohama and Osaka ports, and in July 2010 at Tokyo Port.
The number of cargo containers dealt with during the 4:30 p.m.-8 p.m. period at Nagoya Port in December 2010 was 2.3 times higher than the figure a year earlier, the ministry said. Corresponding figures at Yokohama and Osaka ports were about five times higher, though the number at Tokyo Port remained almost unchanged, according to the ministry.
Since major container terminals overseas are usually open 24 hours, the nation's business circles have been calling for this nation's terminals come up to speed with global standards. Based on the results of its trials, the ministry said it plans to prod terminal operators to gradually switch to 24-hour schedules. Terminal operators, however, have resisted making the change out of fear their personnel costs would increase, the ministry said.
Ministry officials said many manufacturers have been reviewing production and shipment plans in light of the ministry's experiments, while trucking companies have also been considering adjusting their schedules to cut costs. "Using container terminals both day and night will really improve the efficiency of the distribution system. And a lot of shipping companies have become aware that nighttime use of the terminals will save them money," a ministry official said.
Source:The Yomiuri Shimbun Feb. 28, 2011
TOKYO (NQN)--Japan's seasonally adjusted unemployment rate remained unchanged from the previous month at 4.9% in January, the Ministry of Internal Affairs and Communications said Tuesday.
The number of people without jobs totaled 3.09 million, down 140,000 on the year and marking the eighth straight monthly fall. Of those, the number of people who were asked to leave their jobs due to bankruptcy and other business reasons declined by 200,000, while those who left their jobs voluntarily increased by 60,000.
A total of 62.04 million people had jobs, down 90,000, marking the first decline in two months.
Source:The Nikkei Mar. 1,2011
TOKYO (Nikkei)--Companies that provide nursing care products and services for Japan's rapidly growing ranks of senior citizens are starting to explore opportunities in China.
Longlife Holding Co., an Osaka-based firm that manages nursing homes for the elderly, will become the first such Japanese company to enter the Chinese market in October, when it plans to start operating a 27-story retirement home in Qingdao, Shandong Province through a joint venture with a Chinese firm.
China's population is also rapidly aging as a result of the government's one-child policy. People over the age of 60, for example, now account for roughly 20% of Shanghai's total population.
Longlife sees solid potential demand for its expertise in China, given that a growing number of Chinese senior citizens are seeking fulfilling post-retirement lifestyles, especially affluent beneficiaries of the country's explosive economic growth. This know-how includes Longlife's experience with installing large kitchens in communal dining halls shared by residents in retirement homes.
One official at a Longlife retirement facility in Toyonaka, Osaka explained that elderly residents who have lost some of their mental faculties can sometimes become distressed in their new surroundings.
However, their anxiety is often eased when they see a familiar environment such as a kitchen, which many people subconsciously associate with reassuring memories of their mothers, the company representative said.
One of Longlife's key approaches to elderly care is to allow nursing home residents to live their lives as they wish. Residents are permitted to cook for themselves, for example, even though Longlife facilities serve three meals per day.
The company is targeting modest sales of 30 million yen in the first year at the nursing home in Qingdao. But it views the launch of this facility as an initial step toward opening 50 such retirement homes in China by 2020. It also plans to eventually operate facilities in Hawaii and Bali, Indonesia.
Meanwhile, Kawamura Cycle Co., Japan's biggest wheelchair maker, has already started focusing on China. The firm, based in Kobe, Hyogo Prefecture, is promoting a new model with enhanced safety features in a bid to reduce accidents involving wheelchairs. For example, unlike conventional wheelchairs, the hydraulic brake for this new model is constantly engaged, unless the user manually releases it.
Demand for the new model has been rising because 90% of the rental charges are subsidized by the nursing-care insurance system. The wheelchair is available for lease for roughly 7,000 yen per month, but users only need to pay 10% of this amount.
Approximately 29 million people in Japan are 65 years or older. About 4.7 million of these people are certified as requiring nursing care, including an estimated 510,000 people who use rental wheelchairs. As the number of people in the country over the age of 65 is expected to reach 38 million in 2040, demand for wheelchairs is likely to further increase.
Kawamura Cycle began selling its products in China last year. Wheelchairs priced between 2,000 yen to 3,000 yen are widely used in China, but Kawamura's cost between 30,000 yen and 40,000 yen.
Although the company's wheelchairs are significantly more expensive, wealthy Chinese consumers have expressed interest in its models at trade fairs, a company executive said. Demand also rose after Kawamura added the word "Japan" to its company name, underscoring Chinese demand for high-quality Japanese products.
Source:The Nikkei Veritas March 6
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th