2. RECENT TRENDS AND CONSTRAINTS

2.1 Akoya Pearls

For the decade leading up to January 1995, the annual production of Akoya cultured pearls in Japan was stable, at approximately 18,000 to 20,000 kan. (Table 1) autumn of 1995, the mortality of the oysters started to increase due, among other things, to pollution and detonation of the fishery ground. It is believed that the fatal hit was caused by other events that still continue. Definite conclusions have not yet been reached, but there were two reasons thought to be the chief cause of the oysters' demise.

One reason was the poisonous Formalin used to kill parasitic worms on the globefish being farmed nearby. After it was used, Formalin was drained into the sea, and caused immense damage to the oyster beds. The second reason was the virus brought in by the Akoya oysters imported from China.

As indicated in Table 1, the total production of pearls during these three to four years greatly decreased. The pearl industry in Japan may cease to exist within a few years if proper remedial steps are not taken.

Regarding the mortality rate, hatchery breeding is being studied from the genetic variability perspective. Hatchery inbreeding has caused higher mortality, as parent stocks are weakening. In Japan approximately 80% of the oysters are being bred in a very limited space in the EHIME prefecture. For more than 20 years, collected spats and the hatcherybred spats have been bred at the same location, and it is believed that there are no more natural oysters existing in that area. It is hoped that the crossbred oysters produced will not be inferior from the perspective of genetic variability.

Three to four years ago, Chinese Akoya oysters were imported and are now being bred in the same area. Naturally crossbred oysters will again appear, but whether these oysters will be able to produce better quality pearls is not yet known. The crossbred oysters produced at the hatchery farm have a thicker shell with more than 13 plump expansions, so the farmers who planted nuclei in these newly bred oysters are very optimistic. The results of the next harvest will determine the quality of the pearls.

Table 1. Production of Japanese Akoya Pearls

Kan = 3.75 kg (10,000 Kan = 37,500 kg)
1996: Only during December 1996 to January 1997

2.2 Silver Pearls

In 1954, a Japanese company started to cultivate pearls at the Mergui Islands, Myanmar, which was one of the firsts to operate after World War II. It had its ups and downs but has since become stable, and its characteristic pearls are highly valued. The production of silver pearls has enjoyed an extremely favourable result these past ten years, with Australia being the largest producer (Table 2). Though Indonesia rose to be Australia's biggest rival for a time, from 1992 the mortality of the oysters gradually increased from Aru Islands throughout the Indonesian area.

Why had this high mortality increase occurred in Indonesia without any effect on Australia?
The contrast between these two countries may offer some answers, and some ideas on how these businesses should be operated.

Table 2. South Sea Pearls: Import into Japan from Producing Countries (without half pearls)

1,000 momme = 3750 gr.

Perhaps the biggest difference between the two countries was in the oysters utilised in cultivating pearls. Australia relied solely on wild oysters, whereas the Indonesian oysters were 80% hatchery bred. Most pearls farmed in this vast area were supplied with oysters bred at the Aru Islands. At the hatchery, close proximity of the oysters to each other ensures maximum fertilisation rates, but as time elapses the inevitable inbreeding may create oysters with superior qualities or inferior ones. (A selective breeding program to intensify the selection of improved oysters is being implemented.) Also, hatchery breeding produced more oysters than needed, and this may have caused overcrowded pearl beds that can be linked to high mortality.

As stated, Australia has been using only wild oysters, and authorities have restricted their use by supplying them on a quota basis. This has protected the farming sites and oysters from over-stocking. Furthermore, although the production of Australian silver-lipped cultured pearls may have had limited quantity, under this good environment, high quality pearls were produced. This, together with their scarcity value, established a high standing. Recently, Australia has authorized the use of hatchery-bred oysters, and since last year, seed planting has started.

Indonesian pearl fishery grounds have gradually recovered, and in another two or three years, the total production may be about 1,000 kan, which is 1.5 times greater than recent production. The interest for silver pearls in Japan and other Asian countries is for the smaller sizes: 9 mm to 11 mm. These were scarce because they have not been produced up this time to avoid competition with the Akoya pearls, and because the Australian producers are pursuing the large-size pearls that can be produced by utilizing oysters which can withstand two, or sometimes three, growing cycles.

At this point, the silver-lipped cultured pearls are getting scarcer and costlier, partly because of the buying frenzy that occurred that also elevates the price, but if production can be balanced to the demands of the market, the increase of the total production can easily be absorbed.

About 50% of silver pearls imported to Japan were re-exported in 1997 (Table 3). Table 4 indicates that about 40% of world production of silver pearls are marketed in Japan alone.

2.3 Half Pearls

The production of spherical pearls in Mabe winged pearl oyster is still the technical objective of many pearl growers. Some producers were successful in producing spherical pearls, but not enough to compete on a large business scale. The seeding technique is very difficult compared to other oysters, and after two to three years of cultivation, the colour of pearl is still too brown to be acceptable. It took more than five years of cultivation before the beautiful characteristic bluish-tinged colour of Mabe was produced, and this long cultivating period was the obstacle to be addressed.

The Mabe half pearl is comparatively new, and was introduced to the market only 20 years ago. Up to that time, producers, having very limited space, were reluctantly using silverlipped oysters, because they wanted to make the silver-lipped spherical pearls that had been so profitable. Silver-lipped oysters were used to produce half pearls as well, and the peak yearly production was about 500,000 pieces. However, when the beautifully coloured Mabe half pearls appeared, naturally the buyers shifted to them. The growers had no alternative but to produce Mabe half pearls if they wanted to continue doing business. Today there are three or four companies in Amami-Oshima, Kagoshima, Japan that are producing Mabe half pearls and the yearly yield is about 200,000 pieces.

Table 3. South Sea Pearls: Exports from Japan 1994 – 1997 (without half pearls)

Table 4. Total Production and Sales of South Sea Pearls
(Silver-and gold-lipped oyster pearls) in 1997

In the case of half pearls, the most important factor is making the composite part durable. Each established company had its own special technique to achieve this durability, and these techniques were strictly guarded secrets. Therefore it is a difficult process for new producers to compete with these companies who already have specialists and abundant budgets.

At present, launching into the half pearl business on a large scale would not be advisable, because the market demand is currently lower than for other pearls. However, since there is an existing market, a minute study of sales routes, fashion etc. could be made, and should affect the scale of any new investment.

2.4 Black Pearls

2.4.1 Pre-war production

In the past, considerable studies and experimentation were undertaken with some results, but practical application on a large scale had not been realized.

Mr. Kokichi Mikimoto (1858–1954) established a pearl farm in 1914 at Ishigaki, Okinawa, which was followed by another in Palau Island in 1923. Both farms succeeded in producing spherical pearls, but unfortunately they were compelled to close in 1940 just before World War II broke out.

2.4.2 Post-war industry in Okinawa

Mikimoto should be given credit for developing the market through their retail outlet in Japan and New York. Before the Tahitian black pearls appeared, Okinawa was the only source of black-lipped cultured pearls, and the production was about one one-thousandth of current production. In 1951, there were nine companies in Okinawa that started experimenting to produce black pearls. However, all but one failed from technical problems and lack of funds.

The farm that survived was the Ryukyu Pearls Co., formerly the Mikimoto farm. Annual production was about 2,000 to 3,000 pieces, and from this production, the 50 to 100 excellent quality pieces were handled solely by Mikimoto and sold at only Mikimoto and Ryukyu Pearls.

Mikimoto in cooperation with Ryukyu Pearls cleverly introduced black pearls to the Japanese market as one of the most exclusive pearls: He used a seductive image of the “romantic” pearls from the southern island of Okinawa, and emphasised their scarcity: it took about three years to make one single strand. These pearls were also displayed at a retail shop in New York. The protective attitude and price policy taken by Mikimoto became the base of the price structure of the black pearl, and when Tahitian black pearls were introduced to the Japanese market, consumers where ready to accept them. (Mikimoto monopolised the market for ten years, and then he handled Tahitian black pearls at the early stages.) From 1975, the Tahitian black pearl gradually took over the market, and Tahiti now is the largest producing country.