Chart showing commodity exports from the US to Japan

Supply/Demand Basics

  • Corn use: feed 75%; starch 24%; other food use 1%​
  • #3 import market for U.S. corn and U.S. barley in MY 2020/2021.
  • Feed grain imports remain stable at 16 to 17 MMT/year.
  • Japan imported 457 TMT of U.S. DDGS in MY 2020/2021.
  • Dry milling sector’s U.S. corn market share stays at 100% in MY 2020/2021.

Country Overview

Chart showing information about Japan's population

  • Large government debt and stagnant economy impacted further by COVID-19.
  • Highly subsidized, small agricultural sector; dependent on imported raw materials and fuels.
  • New Prime Minister Fumio Kishida took office in 2021.

Trade and Market Share Overview

  • Aging population and changing consumer preferences mean little growth in total food demand.
  • High health consciousness with relatively high income has led to demand for health-oriented, value-added foods.
  • Still committed to buying from U.S. (volume, reliability, origination investments), however Japanese industry beginning to diversify sources of feed ingredient imports.
  • 217 million gallons of ethanol blended as ETBE, at 1.9% blend rate. The United States can capture up to 66% market share.

Policy Overview

  • U.S.-Japan bilateral trade agreement negotiation should go into Phase 2 for more favorable treatment of agricultural products.
  • Biotech regulatory system both on genetic engineering and PBI is reasonably science based, while may need further simplification.
  • Japan’s biofuel policy has allowed U.S. bioethanol market share at a maximum of 66% due to GHG emission reduction requirement.

Graph showing value of US exports to Japan over time