Wednesday, 22 May 2013 12:08

TPP could revitalise Japan’s agri sector: Study

Written by 

Fonterra-funded research by the New Zealand Asia Institute says Japan joining the Trans Pacific Partnership (TPP) could potentially trigger a revitalisation of its agriculture sector.

The independent research was conducted by Professors Hugh Whittaker and Rob Scollay from The University of Auckland. They investigated the potential implications of the TPP on the Japanese agricultural sector, which is a proposed free trade agreement under negotiation between 12 countries including New Zealand. Japan only joined earlier this year.

Professor Scollay said: "The Japanese agricultural sector faces a number of challenges. Many small-scale farms are uneconomic while the average age of Japanese farmers and the area of abandoned farmland are both increasing alarmingly."

Meanwhile falling per capita consumption of Japanese farm products combined with large projected future falls in Japan's population underline the need to transform Japan's agriculture into a more competitive sector with export potential.
"Our research found that participation in TPP could actually be the trigger needed to revitalise and transform Japan's agriculture into a more vibrant and productive sector with long-term growth potential."

Economic modelling indicated that increased exposure to competition through participation in the TPP, and increases in the productivity of Japanese agriculture through reform, could play complementary roles in sustaining agriculture and the food processing industries in Japan.

Fonterra's director policy and advocacy, Sarah Paterson, said Fonterra funded the research because it wanted to ascertain from an independent source the potential impacts the TPP might have on the Japanese agriculture industry after previous opposition coming from the sector.

"Importantly, the study highlights that Japan's agricultural sector could be better off as a result of TPP. We also believe that reducing trade barriers not only benefits their agricultural sector but will have flow on effects to the end consumer as well, where they'll be able to enjoy greater choice and more competitively priced food," says Paterson.

To form their research findings, the professors collaborated with agricultural experts based in Japan, met with a variety of New Zealand and Japanese companies in the sector and analysed data published by Japan's Ministry of Agriculture Forestry and Fisheries.

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter