Growing Opportunities for US Barley in Japan

Following a week-long trip to the United States, a team of Japanese barley industry leaders confirmed Japan’s long-term interest in purchasing U.S. barley.

This U.S. Grains Council program provided team members with updates about U.S. production and export supplies and enabled team members to meet face-to-face with U.S. barley producers, said Hiroko Sakashita, USGC associate director in Japan.

The team witnessed barley being harvested at Jim Broten’s farm in Dazey, N.D., where they saw U.S. barley production and supply firsthand.

“Grower involvement is critical in building long-term relationships that are important in Asian markets,� said Mark Seastrand, USGC barley sector director.

“I was impressed by the U.S. barley growers’ passion in producing barley, the use of the cutting edge technology and their commitment to world markets,� said Motomu Takamatsu, general manager of Ioten Sangyo Co., Ltd., who traveled with the team. “I was very impressed by the steady and powerful U.S. agriculture.�

Largely used in the feed sector, Japan’s current barley consumption stands at around 1.4 million metric tons (64 million bushels) per year. The country produces about 200,000 tons (9.2 million bushels) of barley per year, and imports the remaining 1.2 million tons (55 million bushels).

In 2008, Japan imported 415,000 tons (19.1 million bushels) of U.S. barley, a market share of 42 percent. However, the U.S. market share dropped significantly the following year to about 2.4 percent, as Japan imported only 28,000 tons (1.3 million bushels). So far this year through June, the market share has increased slightly but is nowhere near the level of 2008.

“The Council continues to work to increase the U.S. market share in Japan and is optimistic for future opportunities depending on the world market,� said Tommy Hamamoto, USGC director in Japan. “Keeping connections between U.S. producers and Japanese end-users is vital to maintaining consistent trade flow.�