CROP DIVERSIFICATION IN JAPAN - Masa Iwanaga*

* Director, Biological Resources Division, Japan International Research Center for Agricultural Sciences (JIRCAS), Tsukuba, Japan.

1.1 Japan's Rapid Evolution to an Industrialized Country

During the post-war era, Japan has experienced a drastic change in its economic status and in the role of agriculture in the society. Its economy has grown to the second largest in the world. This change has been accompanied by social changes in the area of agriculture and food systems in Japan. For example, the grain self-sufficiency ratio on a calorie basis declined to 40 percent in 1998. This is the lowest among the OECD member countries. The relative importance of agriculture as an industry has also declined. The agricultural population represented only 4.5 percent of the total population in 1997, significantly down from 13 percent in 1961. Rice consumption per capita declined to 65 kg per capita per year in 1998. It was 118 kg in 1962. These changes are major driving forces in crop diversification efforts in Japan.

1.2 Characteristics of Agriculture in Japan

Agriculture is an industry producing foods using the natural ecosystem, and specific forms of operation are largely influenced by geographic conditions. Farming styles also vary considerably in different countries and regions depending on the economic conditions there.

The major characteristics of agriculture in Japan are as follows:

· In Japan, located in the Asian monsoon zone, rice farming has been operated nationwide as a key planting system suitable for its hot and rainy summer season. Some regions on the Pacific Coast with a dry winter and low rainfall operate a double cropping system by using winter (secondary) wheat.

· Mountainous areas account for 61 percent of the total national land area and there is only limited flat land available in Japan. Consequently, competition exists in land use. Under these circumstances, the ratio of farm land is about 14 percent of the total national land area, and the cultivated land under management per farm household is small at about 1.6 hectares. This contrasts with other industrialized countries such as the USA, UK, Germany and France which have average farm sizes of 176.1 ha, 70.1 ha, 30.3 ha and 38.5 ha, respectively.

· As a result of the ongoing improvement of irrigation infrastructure for the further development of paddy field farming, the ratio of irrigated area to all agricultural land is 56 percent, one of the highest figures in the world. Paddy fields are effective in preventing damage caused by continuous cropping, thick weeds and soil erosion, leading to stable agricultural production. Rice, highly stable in production and rich in nutrition, has supported the large population living in a limited land area, and helped to build the world's most densely populated society in the early 18^th century.

· The small size of farming operations and difficulties in controlling water use at the individual farm level required collective control and use of water, facilitating the formation of farming communities. Community rules established to ensure smooth operations had a considerable influence in fostering the spirit of mutual aid and creating and passing on traditional rural cultures.

2. CROP PRODUCTION AND ECONOMICS SCENARIO

The food self-sufficiency ratio in Japan showed sharp decreases during the period from 1965 to 1998, down from 73 to 40 percent on a calorie supply basis and 62 to 27 percent on a grain basis (Figure 1). From a long-term standpoint, one of the major factors behind this declining trend is a fundamental change in Japanese dietary patterns, as reflected in the increasing consumption of animal products and fats and oils, which are largely dependent on imported feed grains and oilseeds, due to the restraints on national land area and ever decreasing rice consumption (Figure 2).

In recent years, both trends as mentioned above have shown a slowdown, while the domestic production of wheat and soybeans has continued to decline. This is a key factor behind the declining self-sufficiency ratio in the short term.

As the world food supply/demand situation could be tight in the mid- and long-term, the Japanese people are now showing great concern over the future food supply in Japan, characterized by very low food self-sufficiency (Figure 1). France, UK and Germany have improved their self-sufficiency ratios over the last 30 years while the Japanese ratio declined. The national government assumes great responsibility in assuring the availability of the food supply to its people. Since there are certain limitations on stockpiling and importing, it is important to increase domestic agricultural production as much as possible in order to secure a stable food supply.

The food self-sufficiency ratio is an effective and easy to see indicator for verifying the extent to which domestic agricultural production could satisfy national dietary requirements. Thus, the aims of the Basic Plan for Food, Agriculture and Rural areas is to identify the issues to be dealt with (by farm operators, consumers and food industries), and then to set up specific targets of food self-sufficiency ratio under the new Basic Law (see later).

In the Basic Plan developed in March 2000, major target food self-sufficiency ratios (2010 as target year) were set up, namely: 45 percent on a calorie supply basis, 30 percent on a grain basis, and 62 percent on a grain for staple foods basis. Although it is essential that more than 50 percent of all calories supplied by food should be covered by domestic production, these ratios were determined in light of their attainability by 2010 and possible effects on the promotion of efforts and measures by relevant parties.

The top 30 most widely grown crops in 1997 are listed Table 1. Rice still dominates in terms of acreage and production value, but there are many vegetables, fruits and other crops that are significantly contributing to the farm economy.

Japan is the largest importer of foods and agricultural products in the world. In 1998 it spent 7.5 trillion yen, approximately 70 billion US dollars, for food imports. Foods constitute about 21 percent of all imports to Japan. Wheat, maize, soybean, meats, and vegetables constitute the major imports. Agricultural exports from Japan were 0.36 trillion yen, equivalent to only 4.8 percent of the food imports in the same year.

Table 1. Thirty Most Cultivated Crops in Japan in 1997

Crop	Cultivated Area (ha)	Yield (t)	Value (× 100 million Yen)
1. Paddy Rice	1,953,000	10,030,000	27,094
2. Wheat	157,500	573,000	856
3. Potato	103,000	3,394,300	1,322
4. Soybean	83,200	145,000	377
5. Sugar Beet	68,500	3,685,000	665
6. Orange	66,000	1,553,000	1,660
7. Other Cereals	57,450	-	-
8. Tea	51,800	401,000	1,136
9. Radish	49,800	2,020,000	1,208
10. Apple	49,300	993,000	1,192
11. Sweet Potato	46,500	1,130,000	1,053
12. Cabbage	37,900	1,504,000	965
13. Young Corn	31,600	302,000	380
14. Chestnut	30,000	32,900	99
15. Onion	27,200	1,256,000	751
16. Persimmon	27,100	301,200	425
17. Spinach	26,100	330,900	1,111
18. Leek	24,700	549,300	1,146
19. Chinese Cabbage	24,400	1,135,000	508
20. Carrot	23,200	714,800	532
21. Grape	22,800	250,900	1,179
22. Taro	21,400	269,900	418
23. Lettuce	21,400	532,700	725
24. Plum	19,100	136,200	387
25. Pear	18,500	404,200	1,149
26. Water Melon	18,500	613,900	848
27. Pumpkin	17,100	244,700	249
28. Cucumber	16,400	797,700	1,754
29. Melon	15,800	359,300	1,316
30. Egg Plant	14,000	474,900	1,156

3. PATTERNS OF CROP DIVERSIFICATION

The main struggle that Japan has faced within the post-war era is rice production. Rice is the staple food in Japan and having a sufficient rice supply was the main objective at household and national levels for some years after the Second World War. Improvement of cultivation techniques and adoption of improved cultivars, together with supportive governmental policies, allowed Japan to meet its rice supply needs. Changes in life style and social structure, driven by drastic economic growth, resulted in a reduction in rice consumption in the mid-1960's. Average consumption of rice declined from 115 kg in 1960 to 95 kg in 1970 and to 66.7 kg in 1997. Table 2 shows changes over time in the relative importance of crops and livestock (including milk production). Rice, wheat, pulses, and sericulture have declined, while vegetables, fruits, flowers and livestock have increased in relative importance in the farm economy.

Table 2. Change of Relative Importance (%) of Agricultural Products Based on Farm-Gate Value

Year	Rice	Wheat	Pulses	Roots & Tubers	Vegetables	Fruits	Flowers	Sericulture	Livestock
1960	47.4	5.5	2.5	3.0	9.1	6.0	0.5	3.0	15.2
1970	38.3	0.6	0.8	1.4	16.2	7.1	0.9	1.6	25.9
1980	32.9	1.9	0.9	1.7	18.1	8.1	2.0	0.7	27.2
1990	30.1	1.1	0.8	2.3	21.9	8.5	3.8	0.2	25.2
1997	28.1	1.1	0.8	2.1	22.9	8.6	4.5	0.0	26.2

4. CROP DIVERSIFICATION AS A STRATEGY

4.1 Use and Consumer Demands

Crop diversification takes places not only for production reasons but also, often more importantly, for use and consumption demands. The drastic increase in annual income was accompanied by demand for diversification of diet by consuming more vegetables and fruits, as well as increased demand for ornamental plants and higher quality products. The transition to modern lifestyles influenced the status of nutritional quality. Figure 3 shows the change of nutritional uptake in terms of sources of calories. The increasing consumption of fat is evident and it has already passed the upper limit (25 percent) for a desirable diet for a Japanese. The average Japanese now spends 25 percent of total food expenditures on eating-out and processed foods. The importance of better education of the general public on nutrition concerns is recognized. Development of nutritional products attractive to the young generation is important and crop diversification efforts should be in line with this.

4.2 Multi-Functionality of Agriculture

The traditional role of agriculture is the production of food. The social recognition of the role of agriculture has expanded to the multiple function of agriculture. A crop diversification strategy should be in line with this view of multi-functionality. This means that food production should not be the only concern or objective of crop diversification efforts. For example, paddy fields should be well conserved not only for food production reasons but also for their ecological and social value. Cultivation of crops such as wheat and soybean using paddy fields should contribute to the conservation of the rice-based farming system.

4.3 Environmental Externalities of Japan's Paddy Fields Farming

Located in the Asian monsoon zone, Japan has an annual precipitation of 1,800 mm, almost twice as high as the world average. The country is confronted with the substantial risks of flood and water shortage mainly because of the relatively steep river gradients caused by the mountain range of 2,000 - 3,000 m elevation running through the centre of the main island, and seasonal torrential rainfalls such as the summer rainy season and typhoons, as well as the strong water demand required to supply the 124 million population living in a small country.

Against such a background, paddy field farming has been built up as a key system that plays a major role not only in food production but also to mitigate the severe geographical and climatic conditions and preserve the environment which has prevailed throughout the country's history of more than 2,000 years.

While there are more than 2,200 years of climatic background in the country's long history, it has been widely recognized by the public, that, without making major demands on natural resources, paddy fields are highly effective in preventing floods and fostering water resources (as effective as dams). In addition, the terraced paddy fields are highly effective against soil erosion on the steep hillsides.

Farm areas which are composed of paddy fields provide landscape, sightseeing and recreational sites. Furthermore, paddy fields also provide a circulating soil system and purify NO₂ and SO₂ in the air.

Moreover, in contrast to uplands, paddy field farming is in line with sustainable agriculture. As proven through centuries of practice, it is free from the damage resulting from repeated cultivation and accumulation of salinity and is less harmful in terms of ground water contamination. According to calculations by the substitutive cost method (Table 3), the total value of environmental externalities provided by paddy fields is estimated to reach 4,600 billion Yen (this is approximately US$45 billion at the exchange rate as per May 31, 2000).

Table 3. Estimated Value of Paddy Fields According to the Substitutive Cost Method (Billion Yen)

Function	Benefits	Estimated Value (Yen)
Function of Preventing Flood	Mitigating the damages caused by floods	1,952.7
Function of Fostering Water Resources	Supporting steady water flow and inexpensive ground water supply	739.8
Function of Preventing Soil Erosion and Landslide	Mitigating the damages caused by soil erosion and/or landslides	47.2
Function of Soil Purification	Reducing the cost of waste treatment such as food leftovers	4.5
Function of Preserving Rural Landscape and Recreational Amenities	Value of visits by urban inhabitants	1,711.6
Function of Air Purification	Absorbing contaminants and purifying the air	171.7
Total Environmental Externalities		4,627.5

The values of Table 3 are based upon “Research on the Environmental Externalities of Paddy Fields”, Mitsubishi Research Institute, March 1991, and estimated again with a consideration to changes of the unit cost and the other data after the publication of the above-mentioned research.

5. CHALLENGES, OPPORTUNITIES AND PROSPECTS OF CROP DIVERSIFICATION

During the last decades, policy makers and agricultural scientists have struggled to develop policies and technologies to meet Japan's transformation in its socio-economic structure. A forward-looking strategy for crop diversification is needed for this evolving society and rapidly integrating world economy.

5.1 Food Industry

An overview of the food supply system from farmers to food industries indicates that the agriculture and fisheries market of 16.2 trillion Yen recorded 80.4 trillion Yen in the final consumption stage after gradually adding to its value over the course of time from the processing stage to the distribution stage. In more specific terms, 20 percent went to perishable foods, 50 percent to processed foods, and 30 percent to eating out meals. While the percentage of perishable foods has been declining, those of processed foods and eating-out have been increasing.

The food industry and agriculture have been closely inter-linked through the supply and demand flow of raw agricultural products. In recent years, however, food imports for the food industry have sharply increased. Consequently, domestic agriculture should improve the production and supply system to meet the food industry's needs.

The agriculture sector should work closely with the food industry and contribute to a harmonious relationship by proving raw materials that fit well with industry needs and consumer preference and concerns, such as food safety.

5.2 Trends in Farmers and Agricultural Workforce

The total number of farm households was 3,239,000 as of January 1, 1999, 53,000 less (down 1.6 percent) than the previous year. Of this figure, the number of commercial farm households was 2,475,000, down 1.9 percent from the previous year. The number of full-time farmers with male worker(s) at productive age involved showed a 2.4 percent decline, while the number of full-time aged farmers has continuously increased.

The population of those mainly engaged in farming as of January 1, 1999 was 3,845,000 (including both male and female workers), down 1.2 percent from the previous year, but that of those aged 65 years old and over showed a 2.1 percent increase. As a result, the ratio of aged workers of 65 years old and over accounted for 51.3 percent, more than half of the total farming population. Agricultural production systems including choice of crops to be grown will be influenced inevitably by this population structure.

5.3 Production of Wheat, Soybeans and Feed Crops in Paddy Fields

The production of wheat and soybeans in paddy fields has not been extensively implemented, because planted areas change considerably along with the changing size of the production adjustment of rice. Higher profit, however, could be gained because of the higher efficiency enabled by group farming and integrated land use of core farmers, as well as quality improvement. Disseminating the best practices nationwide may be effective in promoting this type of farming.

Wheat and soybeans produced in paddy fields vary considerably in terms of yield and quality, and a system to supply homogenous products in a large quantity, in response to consumers' needs, has not been fully established. To improve this situation, it is necessary to demonstrate basic farming techniques on farms, develop varieties reflecting end-users' evaluations, and improve and stabilize yield and quality by securing the required quantity.

In the area of feed crops, efficient production should be encouraged through field grouping, while promoting close cooperation between cultivated plant farmers and livestock farmers. Further research is needed for the identification of proper feed crops and varieties in meeting with demands.

Land extensive farming based on a paddy field farming system is essential to increase domestic production under the new Basic Law. Expectations are growing that producers nationwide should make efforts to extensively produce wheat, soybeans and feed crops and work for sustainable agricultural development and increased self-sufficiency ratio through the realization of highly profitable paddy field farming.

5.4 Varietal Diversity and Consumer Needs

Crop diversification efforts should not be limited to crop species choice. Genetic differences within the same crop species make an important contribution in meeting different production constraints and consumer needs. There is a strong interest among consumers in new products, especially in relation to novelty and better health.

The emphasis on productivity and profitability tends to reduce the number of varieties grown in farmers' fields. In the case of wheat, rice, soybeans, potatoes, sweet potatoes and apples, the top five varieties dominate more than 50 percent of areas grown to those species. The tendency of over-dominance of a few major varieties is escalating in many crops.

New types of crop variety are needed to meet new markets. For example, the Ministry of Agriculture, Forestry and Fisheries initiated a new project on the development of novelty rice varieties, creating new demands in 1989. The project has developed many interesting and useful findings and varieties, including rice varieties with very high or very low content of amylose. Amylose is the key factor for determining cooking quality and adaptability for processing. Aromatic rice and coloured rice with adaptation to Japanese growing conditions and consumer preferences were also successfully developed. The introduction of a rice variety with low allergen for those allergic to rice and a rice variety with low protein for those with kidney problems were especially welcomed by society. Through similar efforts, glutinous wheat was recently developed, with the major selling point of higher quality for noodles.

6. GOVERNMENT POLICIES AND STRATEGIES FOR CROP DIVERSIFICATION

The Cabinet has adopted The Basic Law on Food, Agriculture and Rural Areas. The objective of this Law is to stabilize and improve people's lifestyle and to develop the national economy through comprehensively and systematically implementing policies on food, agriculture and rural areas. This will be accomplished by establishing basic principles and basic matters for realizing them and clarifying the responsibilities of the state and local governments. It has four basic principles, namely securing stable food supply, fulfillment of multifunctional roles, sustainable agricultural development, and development of rural areas.

The Japanese government gives due importance to assisting developing countries for their socio-economic development. Japan has been the largest supplier of Official Development Assistance (ODA) in the last several years. Japan has contributed 38 percent of foreign aid in the area of agriculture and food in the world (Figure 4) reflecting its view of agriculture as the key engine of socio-economic stability and development.

International cooperation in the food and agricultural fields is very important in dealing with food problems, relieving poverty in developing countries, and realizing sustainable development. Japan, as one of the world's leading contributors to foreign aid, should further promote various forms of cooperation and partnership among government agencies, as well as make effective evaluations of project efficiency, with the view of carrying out more effective and efficient international cooperation. It is important here to engage in such activities in line with the WTO agricultural negotiations.

7. CONCLUSIONS

The Japanese socio-economic system, thus far pursuing material wealth under rapid economic growth, is now at an important turning point as the new century is approaching.

With increasing public awareness of limited global resources, environmental problems and possible food crises, people around the world are now beginning to reassess their values and lifestyles and develop new values and a civilized way of life with greater emphasis on harmony, coexistence, health, and comfortable and peaceful living. Food, necessities for our “daily living and life”, and agriculture and rural areas, fundamentals for food production, are also being viewed in a new light, and expectations are growing as to their roles as the basis for our safety and security.

In response to such growing expectations, the Basic Law on Food, Agriculture and Rural Areas, as promulgated and enforced on July 16, 1999, thoroughly reviews the post-war agricultural policies under the Agricultural Basic Law and sets up a new policy making scheme under the new principles. This new Law should be a guideline for policy making on food, agriculture and rural areas in the coming century. Governments at all levels (national, local and municipal), farmers, consumers and any other relevant parties should work together under the proper role sharing to implement specific measures developed under the new Law.

Figure 1. Change of Self-Sufficiency Ratio on a Calorie Supply Basis during 1965 to 1998 in Japan

Figure 2. Change of Rice Productivity (kg/0.1 ha, in left scale) and Rice Consumption per Capita per Year (kg, in right scale) during 1960 to 1997 in Japan

Figure 3. Calorie Consumption and Breakdown by Type of Nutrient

Figure 4. Aid Provided by Major Countries in Foods and Agriculture in 1996