Export
Issue No. 53 - June/July 2010
Japan: happy to pay for ‘clean’ produce
by Mr Paul Smith
Recent food safety scares in Japan, including mad cow, pickle and dumpling safety issues, have created opportunities for Australian food exporters.
Paul Smith, Chair of the Japan Australia Business Council SA says ‘consumers are now demanding to know exactly where their food has come from, right down to the region where it was produced and the time of harvest. Australian food has increased in popularity thanks to our ‘clean water, clean air’ image and higher food safety standards than some of Japan’s closer neighbours. Japanese consumers are very willing to pay for quality, providing the perfect market for Australian producers.’
Traditional market sectors for Australian businesses, such as resources and agriculture continue to be reasonably strong however, over 20% of Japan’s population is aged 65 plus and according to Paul, ‘this ageing population is creating new opportunities in the aged care, tourism, information technology and entertainment industries. With fewer young people to care for their ageing compatriots, and restrictive immigration policy preventing an influx of younger labour, services targeted towards this cashed-up demographic would be well received.’
As with most markets, the financial crisis has had an impact on the Japanese economy sending them into technical recession in 2009. Despite this, many Japanese firms are in a reasonable cash position, having held wages down and reduced staff numbers over the past 15 years. Such firms are now taking the opportunity to pursue investment targets, whether for joint ventures or for purchase. This provides a significant opportunity for small-to-medium size Australian companies looking to expand or for entrepreneurs with good ideas to secure a source of capital.
Paul believes one of the major barriers Australian businesses face when trading with Japan is the common misconception that Japan is an expensive country with which to do business. ‘This impression is at lea...
