Farmed shrimp from India are expanding their market share in Japan.
Until recently, imported vannamei shrimp served in casual conveyor-belt sushi restaurants and used for Chinese dishes have largely come from Thailand. But some supermarket chains have begun handling Indian products this autumn because of their size and price.
Indian vannamei are replacing those from flood-hit Thailand and competing with larger and more expensive black tiger shrimp.
Supermarket chain operator Aeon Co. started selling Indian vannamei shrimp at its outlets in September. The company said it has decided to handle the large but relatively cheap Indian products to offer more choices for customers. Inageya Co. was to start adding Indian vannamei to its shrimp lineup in December.
Gov't promotion
India used to grow black tiger shrimp, but the government has been promoting a shift to vannamei, a leading shrimp variety resistant to diseases and easy to culture. Five years of experimental farming made it possible to produce the shrimp on a commercial basis. Farm operators switched to vannamei last year.
Vannamei shrimp usually weigh 13-15 grams per piece, about 10g lighter than black tiger. But Indian vannamei is almost the same size as the bigger variety mainly used for deep-fried dishes.
Farmers have reduced the volume of young shrimp grown in ponds by 50% so they can take in more oxygen and grow bigger. Vannamei shrimp from India are sold at ฅ29-39 per piece in supermarkets in and around Tokyo, about 10% cheaper than black tiger.
In Japan, vannamei has long been sold to retailers and black tiger to restaurants. But marine products trading house Nosui Corp. plans to propose that restaurants use Indian vannamei.
About 100,000 metric tons of vannamei shrimp are consumed annually in Japan. Thailand is the biggest supplier, with imports amounting to 54,000 tons last year. Japan's black tiger shrimp consumption is about 60,000 tons a year. The main suppliers are Vietnam and Indonesia.
Flooding in Thailand
The floods in Thailand have disrupted distribution and raised concerns about falling vannamei shrimp supplies. On the other hand, Indian production is expected to increase from 18,000 tons in fiscal 2010 to over 50,000 tons in fiscal 2011.
Supply to Japan was just around 300 tons in the last fiscal year, but the volume hit 500 tons August alone. The full-year figure is projected to be around 2,000 tons. Indian vannamei may increase their presence in Japan even further during the year-end demand season.
(The Nikkei Weekly December 12 edition)
TOKYO (Nikkei)--Japan is preparing to revise its trademark law to broaden the scope of protection to include the sounds and movements of logos used in corporate ads.
Such moves have already been made in the U.S. and Europe, largely in response to the spread of the Internet, which has led to a big increase in the use of sounds and moving logos in online ads.
Also, Japan's planned participation in the Trans-Pacific Partnership free trade talks is spurring the government to step up efforts to protect the intellectual property rights of domestic firms. The Japan Patent Office aims to submit a bill covering the planned revisions to the Diet in 2013.
Current Japanese trademark law covers letters, graphics and signs. The revisions are also expected to apply to the layout of corporate logos on products, product colors and holograms. Hisamitsu Pharmaceutical Co. (4530) has trademarked the sound that plays when its logo appears in ads in about 20 countries, including the U.S. and those in Asia.
Currently, if Japanese firms want to trademark sounds and movements used in their TV and online ads overseas, they have to file separate applications for each country. But once the revised law takes effect, they will receive global protection simply by going through the Japan Patent Office, thanks to an international trademark registration system.
(The Nikkei Dec. 13 evening edition)
TOKYO (Dow Jones)--Japan's economy grew less than initially estimated in the third quarter of 2011, the government said Friday, as the strong yen proved to be a greater drag on business investment than previously thought.
Japan's gross domestic product grew a price-adjusted 5.6% in annualized terms during the July-September period, revised data released by the Cabinet Office showed, compared with an initial reading of 6.0% growth released last month.
The revised number was stronger than the median forecast for a 5.2% gain in a survey of economists by Dow Jones Newswires and the Nikkei.
"The data confirmed that business sentiment has been dampened by a stronger yen and uncertainties about the global economy," said Satoshi Osanai, economist at the Daiwa Institute of Research. He said that the numbers were largely as expected.
GDP grew 1.4% from the previous quarter, the data showed, down from the initial reading of a 1.5% rise.
The revised data still confirm that the Japanese economy rebounded in the quarter as a surge in exports and production after supply chains had been restored following the March 11 earthquake and tsunami helped pull the economy out of a post-disaster slump.
But in what economists said was a warning sign for future growth prospects, capital spending was unexpectedly revised downward to a 0.4% on-quarter decline, from a preliminary 1.1% rise. Capital expenditures are considered a key driver of future growth since they spur additional economic activity.
Instead, much of the gain came in a rise in inventories, which contributed a revised 0.3 of a percentage point on a quarterly basis, from the initially estimated 0.2 of a percentage point. Higher inventories suggest lower economic activity ahead since higher stocks will normally lead to a reduction in fresh production.
Mizuho Research and Consulting senior economist Norio Miyagawa said "the outcome is unfavorable" because the data showed that capital spending as well as personal consumption were weaker than initially thought, adding that the rise in inventories was "worrisome."
A Japanese government official briefing reporters said that the numbers showed that the economy is picking up after the sharp downturn that followed the March earthquake, but that the pace is moderating.
Private consumption, which accounts for about 60% of the nation's GDP, was revised down to a 0.7% on-quarter rise, from an initial estimate for a 1.0% rise.
Some economists expect Japan's growth to slow or even turn negative in the October to December quarter as the ongoing European sovereign debt crisis, slowing overseas economies and the yen's persistent strength could weigh on Japanese exports and production.
(The Nikkei Dec.9 th edition)
TOKYO (Nikkei)--The government on Saturday decided on a tax reform package for fiscal 2012, including a 150 billion yen reduction in the automobile tonnage tax.
The tax, which is levied on new-car purchases and car registration renewals, and the automobile acquisition tax have been a major point of contention in tax reform discussions.
The ruling Democratic Party of Japan, the Ministry of Economy, Trade and Industry and the auto industry demanded the abolishment of both taxes. But the Finance Ministry and the Internal Affairs Ministry resisted since their elimination would translate to a loss of around 1 trillion yen in annual tax revenue.
In the end, the government and the DPJ agreed on a compromise deal of eliminating in phases 300 billion yen of the tonnage tax, with 150 billion yen to be cut in fiscal 2012. They intend to reduce the auto acquisition tax down the road to coincide with a hike in the consumption tax.
In addition, the government and the DPJ agreed to extend the existing eco-car tax breaks, slated to expire at the end of April, for three years under tougher requirements.
They also decided to earmark roughly 300 billion yen in the fiscal 2011 fourth supplementary budget for subsidies aimed at encouraging purchases of electric vehicles and fuel-efficient gasoline vehicles. The subsidies will kick in as early as this fiscal year for a period of about a year and will likely come to 50,000 yen for minivehicles and 100,000 yen for larger vehicles.
(The Nikkei Dec. 10 morning edition)
TOKYO (Nikkei)--The tax reform package approved Saturday by the cabinet features various measures to boost corporate investment.
For small and midsize firms, the scope of capital investment tax breaks covering machinery and software is expanded to include testing equipment used for quality control. This measure allows small businesses to count 30% of their capital investments as depreciation expenses in the first year and claim 7% as corporate tax credits.
The package includes a two-year extension of a temporary measure that gives increased tax credits to businesses for their expenses to develop new technologies and services.
Also included is a three-year extension of a measure that enables firms to defer tax payments on profits stemming from selling business properties to buy new ones. This deferment applies only when the properties sold had been owned for at least 10 years.
A scheme that allows businesses to count as expenses loss reserves for investments in high-risk endeavors, such as overseas resource development projects, will be extended by two years.
Furthermore, the tonnage tax for ships will be broadened to cover foreign-registered vessels owned by Japanese shipping firms. At present, the tax only applies to Japanese-registered vessels.
(The Nikkei Dec. 10 morning edition)
TOKYO (Nikkei)--Japan, China and South Korea will likely start negotiating a free trade agreement as early as next summer, The Nikkei has learned.
Prime Minister Yoshihiko Noda (center), Chinese Premier Wen Jiabao (left) and South Korean President Lee Myung-bak pose for a photo at their November summit in Indonesia.
A joint study team for an FTA is expected to soon suggest a plan to start negotiation talks, with an official go-ahead on the matter predicted to be given at a summit meeting scheduled in the spring. The seventh round of joint FTA study sessions comprising members of industry, government and academia will be held in Pyeongchang, South Korea, for three days from Wednesday. The group is expected to recommend the early start of the negotiations, in a report to be issued on the final day. Following this, Tokyo, Beijing and Seoul are set to discuss at working-level meetings how to proceed with negotiations and craft a schedule. The three countries are expected to officially agree to the start of FTA negotiations at a summit meeting to be held in China in the spring. The negotiations will likely begin as early as summer.
Japan hopes to promote an economic partnership in the Asia-Pacific region through an investment agreement and with an FTA accord with China and South Korea. However, such smooth implementation is still in doubt given that China remains reluctant to lower tariffs on industrial products to foster its domestic industries.
Japan aims to boost exports of cars and electronics in particular through a new economic partnership, but China is seen as unlikely to make such a big concession in this regard.
Starting Wednesday, Japan, China and South Korea will discuss an investment pact that will ease regulations on investment activities by foreign firms. The three are expected to reach an agreement by the end of this month. The pact will likely be signed at the summit meeting in the spring and take effect by the end of next year.
Alongside the tripartite FTA talks, Japan plans to promote bilateral trade negotiations. It is working to resume talks for an economic partnership agreement with South Korea for the first half of next year.
Prime Minister Yoshihiko Noda plans to discuss the issue with South Korean President Lee Myung-bak during Lee's two-day visit to Japan from Dec. 17. Talks on a Japan-South Korea EPA have been suspended since 2004.
(The Nikkei Dec. 11 edition)
TOKYO (Dow Jones)--Japan's foreign reserves hit a record high in November, the Finance Ministry said Wednesday, after aggressive efforts by the government to weaken the yen through market intervention boosted the country's dollar holdings.
The country's foreign exchange reserves rose $94.88 billion from the previous month to a record-high $1.305 trillion, the finance ministry said. The amount of increase was also the highest on record.
Japan's foreign reserves are still dwarfed by China's, which stand at around $3.2 trillion. The increase in November was mostly due to Tokyo's recent forays into the foreign exchange market. Japan sold a monthly record of Y9.092 trillion between Oct. 28 and Nov. 28 in the hope of weakening its persistently strong currency and relieving the pressure on the country's key export sector, a major driver of economic growth.
Analysts say the government likely spent around Y7.5 trillion on Oct. 31 alone, after the dollar fell to a fresh record low of Y75.31, and then continued to step into the market in the following days to prevent any rebound in the yen.
As of 0223 GMT, the dollar was at Y77.72.
A strong yen makes Japanese products less competitive abroad, reduces the yen value of profits sent home and drives manufacturers to shift operations abroad to reduce exchange-rate risks.
(The Nikkei Dec.7 edition)
Distrust rife despite contamination levels well below government limit
By JUN HONGO and MIZUHO AOKI
Staff writers
Mothers with young children, and the overall dairy industry, were quick in reacting Wednesday to news of cesium-tainted baby formula being sold in markets, even though the reported contamination levels were well below the government-set limit.
Although experts stressed that such levels would not harm the health of babies even if they continued drinking the contaminated dry milk product, Meiji Suteppu (Meiji Step), mothers with young kids weren't ready to breathe a sigh of relief yet ต instead expressing a sense of distrust in dairies.
"The amount of cesium may be small but babies drink such products every day, some more than five times each day," Ai Tatsuno, a mother of four ต including a 2-year-old ต told The Japan Times.
Tatsuno moved from Yokohama to Okinawa in April with her family following the meltdowns at the Fukushima No. 1 nuclear power plant. And now - with news of radioactive cesium of up to 30.8 becquerels per kilogram being found in the Meiji Co. baby formula - many questions are surfacing, Tatsuno said, including the level of cleanliness where such products are being made.
"I've been careful in purchasing baby formula manufactured before March 11. Now I might quit and use soy milk and other products for my children," Tatsuno said. Meiji tested samples from 35 cans recently produced and found four of them to be contaminated with radioactive cesium-134 and -137 totaling between 22 and 30.8 becquerels per kilogram, a level below the government's allowable limit of 200 becquerels per kilogram. "You don't need to feel stressed even if you gave your children this powdered milk," said Hirokazu Miyoshi, an associate professor of radiation chemistry at the University of Tokushima.
An adult male weighing 60 kg usually contains radioactive potassium-40 of 4,000 becquerels. Based on this figure, a 3-kg baby would always have roughly 200 becquerels of the same radioactive material in its body, Miyoshi said.
"Given that, you can say 30 becquerels per kilogram (in powdered milk) is small" and would pose no harm to a baby, Miyoshi said.
For babies 3 months old or younger, the 30.8 becquerels of cesium would translate to roughly 0.0007018 millisieverts of exposure to radiation.
According to the International Commission on Radiological Protection, exposure to 100 millisieverts increases the cancer mortality risk by about 0.5 percent. This means the risk for babies that ingested the Meiji product is extremely small.
Talks to set a new limit for baby food products are ongoing in the health ministry, since infants and young children are especially vulnerable to effects of internal radiation exposure.
However, despite the limited risks, the news made headlines and fanned parents' fears. Manufacturers vowed to beef up the level of inspection in production lines to ease customers' worries.
Meiji has said there is a high likelihood that the products in question were contaminated when outside air taken in through filters was used to dry the skim milk at the factory inKasukabe, Saitama Prefecture, from March 14-20.
The contamination "is considered a level that does not have an effect on health even if (the product) is used everyday," Meiji said on its website, pledging to conduct checks on their products every day, with updated results online. Production lines will be halted if high levels of contamination within the factory area are found, they said.
Wakodo Co., another major baby formula manufacturer, has posted a statement on its website assuring consumers that necessary tests ต including the origins of milk and the level of water contamination ต are being conducted to guarantee product safety.
Norio Ishibashi, a spokesman for Japan Dairy Industry Association, said baby formula manufacturers generally use similar processes when making their products. However, he said, the radioactive contamination of Meiji products doesn't automatically mean other formulas may contain such materials as well, since multiple reasons, including geographical factors, could factor into the contamination.
JDIA, which consists of all the country's major dairy products firms, conducted an inspection in July and found that no baby formula products being sold to be contaminated with radioactive isotopes. "We will consider conducting regular screenings" throughout the industry following the contamination of Meiji's products, he said.
(The Nikkei Dec.8 th edition)
TOKYO (Nikkei)--Food companies are likely to take less of a hit from higher raw materials costs this fiscal year than previously expected, thanks to a retreat in grain prices and some help from the strong yen.
Cooking oil maker Nisshin OilliO Group Ltd. (2602) had reckoned that higher prices of soybeans, canola and other raw materials would undercut profit by 15.4 billion yen in the year ending next March. It now sees a smaller impact of 8.1 billion yen. Not only have grain prices eased, but the company has also revised its exchange-rate assumptions to reflect the strong yen.
Until the summer, grain markets had been soaring on emerging-market demand and speculative investment. Since autumn, however, they have been losing altitude, in part because of the European debt crisis.
J-Oil Mills Inc. (2613) now expects higher grain costs to take a 2.2 billion yen smaller toll on profit than originally forecast. Instant noodle maker Toyo Suisan Kaisha Ltd. (2875) sees the impact easing by 1.5 billion yen, while snack foods company Calbee Inc. (2229) expects the blow to lighten by 900 million yen.
Still, as raw materials costs go down, retailers step up pressure on food makers to cut prices. Nisshin OilliO and J-Oil Mills reckon they will not be able to push price hikes as far as initially planned. They are leaving their full-year operating profit forecasts unchanged, despite the relief on the cost front.
(The Nikkei Dec. 7 morning edition)
TOKYO (Nikkei)--Nikkei Inc.'s Consumption Forecasting Indicator for November came in at 84.7, mostly level on the previous month in reflection of a stalled recovery in consumer spending.
The November indicator inched up just 0.4 point from October as Europe's debt crisis, along with the strong yen and weak share prices discouraged consumer spending.
The indicator is computed from a survey of adults in the Tokyo metropolitan area, looking at six factors such as willingness to spend on durable goods and the pace of increase in household income. The percentage of respondents reporting a year-on-year rise in household income rose 4.1 points from October, while those citing better prospects for finding work compared with a year earlier rose 3.6 points. Willingness to spend on durable goods and cultural outlays increased slightly.
But respondents' view of their employers' profit outlook for the next year tumbled 7.5 points, while their propensity to spend on travel and leisure dipped 2.4 points.
The forecasting indicator tends to show trends for audiovisual products, leisure and other optional expenditures roughly six months in advance.
(The Nikkei Dec. 11 edition)
Restaurants, clothiers take on world taste as home market stalls
More retailers and restaurant groups are adding locations, and at a faster pace, overseas than in Japan, revealing a clear trend toward foreign expansion in two traditionally domestic industries. Among leading domestic convenience store chains, net growth in the number of stores abroad will exceed expansion in Japan by 50% this fiscal year. Fast Retailing Co., the parent of clothing retailer Uniqlo Co., will open more new stores in foreign markets than in Japan for the first time. Restaurant group Watami Co. is also breaking new ground abroad.
The focus of the overseas expansion of Japanese retail and dining firms has been the Asia-Pacific region. Japan's participation in the Trans-Pacific Partnership or other free trade initiatives in East Asia could provide a tail wind for this movement, helping boost farm exports as well.
The five leading domestic convenience store operators will have a total net growth of about 1,600 stores in Japan this fiscal year. That compares with a net growth of about 2,500 stores overseas for the four that have a presence abroad: Seven-Eleven Japan Co., Lawson Inc., FamilyMart Co. and Ministop Co. The overseas count only covers stores managed by local units with capital ties with Japanese firms.
Ministop plans to add 257 stores overseas this fiscal year on a net basis, compared with 57 in Japan. Its overseas store count will overtake its domestic total as early as the first half of next year.
Bigger pies
Ministop already has locations in South Korea and aims to move into three Southeast Asian countries within two or three years, according to President Nobuyuki Abe. It expects to have 5,000 stores overseas and 3,000 in Japan by the end of fiscal 2015.
Fast Retailing will open 108 Uniqlo stores abroad in the year ending next August, a record high. It launched a flagship store in New York City in October and one in Seoul in November.
"To be the world's top casual clothing store, we have to step out into growing Asia," says President and Chairman Tadashi Yanai.
Watami plans to have 26 more restaurants overseas in 2011 than it did last year. It started its first-ever overseas franchise chain in Malaysia in August and plans to expand in South Korea and Thailand. The company is looking to open about 200 restaurants abroad by 2016.
Beef bowl chain Yoshinoya Holdings Co. plans to add more than 1,000 restaurants in foreign markets by the year ending February 2016, compared with the addition of about 800 in Japan. Domestic retailers and restaurant operators face shrinking markets at home. Retail sales in 2010 totaled about 135 trillion yen ($1.73 trillion), down 7% from its peak in 1996, according to the Ministry of Economy, Trade and Industry.
The dining-out market shrank about 20% from 1997 to 2010, according to the Food Service Industry Survey and Research Center. By contrast, Asian markets are growing on the back of an expanding middle classes.
(The Nikkei Weekly December 5 edition)
When it comes to purchasing a pair of eyeglasses, there is a growing polarization of buying behavior among Japan's fashion-savvy young and senior bespectacled consumers from budget-wise shopping to luxury purchases.
Japan's eyeglasses market totaled roughly 460 billion yen in 2009, down more than 20% from the 1990s when it was mostly worth upward of 600 billion yen, according to an industry estimate. The shrinkage is attributable to the economic downturn; consumers are replacing their glasses over a longer time cycle than before. Per-customer spending has also dropped sharply.
A growing number of new eyeglasses chain stores have sprung up that sell fashionable, cheap models for less than 10,000 yen for lenses and frame. Outsourcing production in China and South Korea made the low prices possible.
Under 10,000 yen
Younger consumers who like to own two or more pairs to use in rotation patronize such low-cost stores to keep their budget under control. They have ushered in a stylish new breed of bespectacled boys and girls - called megane-danshi and meganekko in Japanese, respectively. One 25-year-old company worker bought two pairs at a Jins eyewear shop near Tokyo Station in the capital's Chiyoda Ward, on his way home. "I bought the two pairs for less than 10,000 yen in total. I can enjoy wearing glasses the way I change clothes," he said.
Jins operator JIN Co. plans to expand its store count from the current 100 or so to roughly 300 in the next five to 10 years. "We will stick to our current price range of less than 10,000 yen," said President Hitoshi Tanaka.
Another low-priced eyewear store chain Zoff also plans to expedite store openings. At present, the Tokyo-based firm runs about 100 outlets.
Made in France, Italy
But not all the young consumers are so budget-conscious. "We see more and more customers in their 20s and 30s who used to buy cheap ones but now are more selective in their purchases," said an official at major eyeglasses seller Megane Top Co.
Popular among such customers are luxury private-brand specs manufactured by three consigned makers in France and Italy. The models are created by local designers. A pair that uses crocodile skin for the temple arms costs over 25,000 yen. Sales of such high-end offerings continue to be 10% higher than the company expected.
Paris Miki Holdings Inc.'s Kimpo-do luxury optical store chain is seeing brisk sales of glasses offered at 80,000 yen to 100,000 yen per pair for people in their 50s and 60s. Currently, most Kimpo-do stores are housed in department stores in greater Tokyo.
(The Nikkei Weekly Dec.5 edition)
The USB Attaka (warm) Slipper Dual3 by Thanko Inc. features built-in aluminum heaters that quickly warm the feet when plugged into a USB port.
The 28cm sole heats to about 50 C (122 F) to warm the feet and the entire body. The heaters are detachable for washing the slippers. After heating, the 1.65meter USB cable can also be detached for walking around.
Price: 1,680 yen.
Thanko Inc.: 4-7-3 Soto-Kanda,
Chiyoda-ku, Tokyo.
Tel.: 03-3526-4710; www.thanko.jp/
(The Nikkei Weekly December 5 edition)
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th