The Utilization and Challenge of Derivative Products in Japanese Agricultural Field

Abstract

Japanese food problem has reached a turning point. With the decline of food self-sufficiency, the government sector recognized it as a pressing policy problem. Also in the private sector, food safety is growing concern. We have experienced many significant changes in agriculture field; however the management for agricultural field should make more progress. Derivatives products become popular hedging tool for the past years in various fields and Japanese corporation uses it well, but people do not use derivatives in agricultural sector in Japan. The reason for this is mainly due from low productivity in Japanese agricultural sector. As a case study, this note deals of Japanese rice derivatives and make it clear why Japanese rice farmers have so little use of derivatives products. And then I propose the need for further development of the Japanese agricultural (rice) derivatives fields.