The Japanese market is a difficult one for U.S. barley to penetrate, but those attending the U.S. Grains Council 2011 Barley Mission to Japan learned there are some opportunities that could make increasing the U.S. share of the market possible.

“Japan is a price sensitive market and while we can compete with anyone in the world on quality, price is difficult because of shipping costs, available supply and global competitors,� said Tim Dillin, a farmer from Bonners Ferry, Ida., who represented the Idaho Barley Commission on the mission.

“However, it is critically important to maintain key relationships. As shown in previous years, global markets change and the United States can fulfill some of Japan’s barley needs through its simultaneous buy and sell system,� he said.

The mission was attended by three U.S. barley producers in addition to Dillin – Bruce Myllymaki of Montana, Steve Claassen of Washington and Gregory Kessel of North Dakota. Ryan Boese, a grain trader from CHS Inc., was also on the mission, along with Kimberly Karst, the Council’s manager of international operations. The team met with government officials, traders and end-users across Japan and were joined by staff from the Council’s office in Japan.

Opportunities identified on the mission include split cargoes for feed barley and direct contracts with farmers as a way to help grow the feed barley sector in the United States.

More potential may exist for food barley in Japan – although that sector is considerably smaller than on the feed side. Education for consumers and buyers remains key – with an continued emphasis on consumer education to help drive demand for products containing barley.

“While the food barley market may be small, by educating and meeting demand there we can keep the door open for all U.S. barley imports,� said Karst. “There may also be some opportunity to promote the benefits of a barley-wheat combination and specific barley food products. The more people learn and understand, the more the market will grow.�