The Inter-Relation Between Food Industries and Domestic Agriculture in Japan under the Economic Internationalization

Abstract

This paper aims to examine the changes in the Japanese food chain with particular reference to the inter-relation between food industries and domestic agriculture. The consumption of processed foods and food services as a percentage of all food consumption has increased from 41% in 1955 to 63% in 1988. Therefore, the length of food chain, that is distances from the upperstream of farmers' production to the downstream of consumers' final food consumption is being extended.
The farmers' share of the final price has decreased from 40% in 1960 to 20% in 1985, whereas the share of final food price to food manufactures, food distributors, food services and food imports has increased from 60% in 1960 to 80% in 1985. To consider the food supply for the consumer, the roles of these food industries has grown more important.
So, we propose to expand the studies of agricultural economics to the studies of food economics, and to expand the object of study from agriculture to food chain.
Looking at the increasing recent food imports under the economic industrialization, we can point out the probrem of mismatch in Japanese food chain. Although the increases in processed food and food services consumption, Japanese farmers produce rice and fresh groceries mainly. In Japan, the raw materials of food manufactures and food services are offered by products below some certain standard for fresh groceries market, or the products from overproductions. So, firms of food manufactures and food services have raised thier raw materials imports, as yen rate has appreciated in the 1980's.
If Japanese farmers continue this attitude, Japanese food chain will be cut off, and agriculture in Japan will be reduced. Today's subject of Japanese agriculture and food industries is to correct this mismatch of food chain.