JAPAN: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Osamu Kubota

Email: osamu.kubota@oecd.org

Tel : (33-1) 45 24 95 35 Fax :(33-1) 45 24 18 90

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, barley, rice, sugar, milk, beef and veal, pigmeat, poultry meat, eggs, apples, cabbage, cucumbers, grapes, mandarins, pears, spinach, strawberries and welsh onions. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultry meat, sheep meat, wool, and eggs), provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

The fiscal year (FY) in Japan is from 1 April to 31 March.

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Wheat: Total production of common wheat [1].

Barley: Total production of six-row barley, two-row barley and naked barley, including for beer use [1].

Rice: Total production of rice. Husked basis [1].

Sugar: Total production of beet sugar and cane sugar in refined equivalent. Productions of beet sugar and cane sugar in refined equivalent are calculated by multiplying production of sugar beet by 0.16 and raw cane sugar by 0.955, respectively [1].

Milk: Total production of drinking milk and fresh milk for processing. Fiscal year [2].

Beef and veal, pigmeat and poultry: Total production, carcass weight [3].

Eggs: Total production of eggs [4].

Apples: Value of production divided by production price [10 and 21].

Cabbage: Value of production divided by production price [10 and 21].

Cucumbers: Value of production divided by production price [10 and 21].

Grapes: Value of production divided by production price [10 and 21].

Mandarins: Value of production divided by production price [10 and 21].

Pears: Value of production divided by production price [10 and 21].

Spinach: Value of production divided by production price [10 and 21].

Strawberries: Value of production divided by production price [10 and 21].

Welsh onions: Value of production divided by production price [10 and 21].

II. Producer prices

Wheat: Government purchase price of the first grade for 1986 and the first grade of new group II since 1987, excluding packing charge. Weighted average of Government sale prices for domestic wheat for food use and imported wheat for food and feed use, for calculating consumption price [5, 12].

Barley: Weighted average price for beer and other uses. Price for beer use is the Government notice price. Price for other uses is the Government purchase price of the first grade of group 2 in 1986 and the first grade of new group II since 1987, excluding packing charge. Weighted average of Government sale prices for domestic barley for food use and imported barley for food, feed and malt use (for others), for calculating consumption price [5, 6, and 12].

Rice: The average Government purchase price of the 1st and 2nd grade of the 1st to 5th group, including packing charge for 1986-1995, the average of the Government purchase price of domestic rice and the farm-gate price of voluntarily-marketed rice, weighted by the market quantity of each rice for 1996-2003 and the average of the Government purchase price of domestic rice and the farm-gate price of privately-marketed rice, weighted by the market quantity of each rice for 2004. For calculating consumption price, following prices are used: Government sale price of domestic rice for 1986-1993, weighted average of Government sale prices of domestic and import rice for 1993-1995, weighted average of Government sale prices for domestic and import rice and the farm-gate price of voluntarily-marketed rice for 1996-2003, weighted average of Government sale prices for domestic and import rice and the farm-gate price of privately-marketed rice for 2004 [7, 15].

Sugar: Weighted average of minimum producer prices for sugar beet and sugar cane [1, 16].

Milk: Average producer price of raw milk [8].

Beef and veal: Value of production divided by level of production [3, 9].

Pigmeat: Value of production divided by level of production [3, 10].

Poultry: Average producer price estimated by MAFF [9].

Eggs: Average producer price [4].

Apples: Average price of 'Fuji' received by farmers [21].

Cabbage: Average price of cabbage received by farmers [21].

Cucumbers: Average price of Cucumbers received by farmers [21].

Grapes: Average price of 'Delaware' received by farmers [21].

Mandarins: Average price of 'Unshu' received by farmers [21].

Pears: Average price of 'Housui' received by farmers [21].

Spinach: Average price of spinach received by farmers [21].

Strawberries: Average price of strawberries received by farmers [21].

Welsh onions: Average price of welsh onions received by farmers [21].

IV. Level of consumption

Wheat: Total domestic consumption of wheat for food and feed use. Fiscal year [2].

Barley: Total domestic consumption of barley for food, feed and malt use. Fiscal year [2].

Rice: Total domestic consumption of rice. Husked basis. Fiscal year [2].

Sugar: Total domestic consumption of refined sugar. Fiscal year [2].

Milk: Total domestic consumption of milk. Fiscal year [2].

Beef and veal, pigmeat, poultry: Total domestic consumption of meat, carcass weight [3].

Eggs: Total domestic consumption of eggs. Fiscal year [2].

Apples: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Cabbage: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Cucumbers: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Grapes: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Mandarins: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Pears: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Spinach: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Strawberries: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

Welsh onions: Level of production plus level of imports (or minus level of exports) [10, 11 and 21].

VII. Reference prices

Wheat: Weighted average of government purchase price of imported wheat for food use and imported wheat for feed use for 1986-2002. Weighted average of government purchase price of imported wheat for food use and the price of simultaneous buy and sell transaction of wheat for feed from 2003. [12].

Barley: Weighted average of average Government purchase price of "Australian two-row barley" for food use, feed use and other use (malt). For 1987-1990 the price of food use is estimated based on Australian barley FOB prices, since no data has been available. [11, 12, 13].

Rice:

-- For 1986-1995: import price estimated as follows: P * C * E / Q, where P = average Thai FOB price, C = transportation costs and the insurance adjustment coefficient (1.1), taken into account only when Japan is considered as an importer (1988-1991, 1993-1995), E = Exchange rate, Q = Quality adjustment coefficient (0.66) [14].

-- Since 1996: average import price of rice [15].

Sugar: Calculated by import price of refined sugar and a conversion rate. The conversion rate is a ratio between purchase price of refined sugar by Agriculture and Livestock Industries Corporation and minimum producer prices of cane and beet [1, 16].

Milk: Border prices of butter and skimmed milk powder converted into a milk equivalent border price using technical coefficients minus a processing margin, calendar year. The border prices of butter and skimmed milk powder are the average import prices (cif prices) of butter and skimmed milk powder [11]. The processing margin is calculated as a simple average of the processing margin for the four main exporting countries: Australia, EU, New Zealand and the United States.    

Beef and veal:

-- 1986-91: Australian manufacturing cow price, Queensland, for manufacturing segment, and for the non-manufacturing segment, US price of choice steers 1100-1300 lb., Nebraska, estimated yield factor of 62 per cent [17, 18, 19].

-- Since 1992: Import price estimated by using the tariff rate [9].

Pigmeat: US wholesale price, carcass weight (1986-1994: Omaha, 1995-1997: Pork cut out No.2 and from 1998: Pork cut out) plus the costs of transportations from US to Japan [20].

Poultry: Import price estimated by using the weighted average of tariff rates of "legs with bone" and "boneless and others" [9, 11].

Eggs: Import price estimated by using the tariff rate [9].

Apples: Import CIF price of HS 0808.10000 [11].

Cabbage: Import CIF prices of HS 0704.90000 (period 1986 - 93) and HS 0704.90090 (period 1994 -) [11].

Cucumbers: Import CIF price of HS 0707. 00000 [11].

Grapes: Import CIF price of HS 0806.10000 [11].

Mandarins: Import CIF price of HS 0805.20000 [11].

Pears: Import CIF price of HS 0808.20000 [11].

Spinach: Import CIF price of HS 0709.70000 [11].

Strawberries: Import CIF price of HS 0810.10000 [11].

Welsh onions: Import CIF price of HS 0703.90000 [11].

Sources:

[1] Ministry of Agriculture, Forestry and Fisheries of Japan (MAFF), "Sakumotsu Tokei Sokuho" (Crop Statistics), various years (Oct.).

[2] MAFF, "Shokuryo Jukyuhyo" (Food Balance Sheet), various years (March).

[3] MAFF, "Meat Statistics" (English version), various years.

[4] MAFF, "Keiran Shyokucho Ryutsu Tokei" (Egg and Poultry Marketing Statistics), various years (March).

[5] MAFF, "Bakka ni Kansuru Shiryo" (Statistics on Wheat and Barley), various years (June).

[6] Government notice price for beer use, MAFF, Agricultural Production Bureau.

[7] MAFF, "Beika ni Kansuru Shiryo" (Statistics on Rice), various years (June).

[8] MAFF, "Price indices of Commodities in Rural Areas", various years.

[9] MAFF, Livestock Industry Bureau (LIB). -- Communication with OECD Secretariat.

[10] MAFF, "Seisan Nogyo Shyotoku Tokei", various years.

[11] Ministry of Finance, "Nihon Boeki Geppyo" (Japan imports and exports), various months.

[12] MAFF, "Bei Bakka ni Kansuru Shiryo" (Statistics on Rice, Wheat and Barley), various years (June).

[13] FOB of Australian Barley, ABARE, "Agriculture and Resources Quarterly", 3rd quarter in various years.

[14] FOB, Thailand, Board of Trade, beginning day of various months.

[15] MAFF, FA, -- Communication with OECD Secretariat.

[16] Industrial Sugar Refining Association, "Pocket Sato Tokei"(Statistics on Sugar), various years

[17] Domestic cow beef price, MAFF, "Shokuniku Ryutsu Tokei" (Meat Marketing Statistics), various years -- Communication with OECD Secretariat.

[18] Australian Meat and Livestock Corporation.

[19] USDA.

[20] USDA, "Agricultural Outlook", various months.

[21] MAFF, "Nourinnsuisann toukei geppou" (Monthly statistics of agriculture forestry & fisheries), various months.