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Taiwan shipping more rice to Japan, with plans to supply self-defense forces

Taiwan’s rice exports to Japan are rising, with 3,000 tonnes planned this year under WTO quotas. For the first time, Taiwan will supply rice to Japan’s Self-Defense Forces and institutions like hospitals and schools, highlighting its quality. Japan’s rising demand stems from local production challenges and a labor shortage.

Exports of rice from Taiwan to Japan have been increasing in the past few years, and this year it would supply the Japan Self-Defense Forces for the first time, Deputy Minister of Agriculture Hu Jong-i (胡忠一) said on Friday.

Japan has been promoting the consumption of rice in the past few years, increasing demand for the grain.

However, the country is facing a shortage, as rice farmers have struggled to earn a sufficient income amid low prices, while high temperatures have led to poor harvests. Additionally, rural communities lack enough agricultural workers to succeed aging rice farmers.

Hu, who is leading a delegation of Taiwanese rice industry representatives on a visit to Japan, said that as the qualities and types of rice grown in Taiwan are similar to those in Japan, Taiwan has been expanding its rice exports to its eastern neighbor.

Taiwanese rice exporter Okura Enterprise Co, Japanese food importer Kitanihontusho Co, and catering food service companies Nihon Eiyo Shokuhin Corp and Nisso Corp have cooperated to establish a model to supply Taiwanese rice to Japanese group meal services companies, he said.

Taiwanese rice has previously been supplied to Japanese restaurants, Hu said, adding that this year it has for the first time been supplied for meals in Japanese hospitals, elderly care institutions, school lunches and the Japan Self-Defense Forces.

Such institutions have higher standards for the safety and quality of their food ingredients, so being accepted by them means Taiwan’s rice meets their requirements for texture and quality, he said.

With Japan facing a shortage of rice and local rice prices rising, it is good timing for Taiwan’s rice to enter the Japanese market, he said.

To protect its domestic rice industry, Japan has implemented tariff rate quotas under the WTO framework, Hu said, adding that Taiwan’s rice received a quota of 3,000 tonnes, and if rice exports exceeds that quota, a tariff of ¥341 (US$2.38) per kilogram of rice would be imposed, which costs more than the rice itself.

Therefore only 3,000 tonnes of Taiwan rice, mainly the Tainan No. 11 rice, are planned to be exported to Japan this year, and hopefully Taiwan’s rice exports can be expanded further in Japan, allowing Taiwan to not only be the country’s important international ally, but also an important rice supplier, he said.

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Source : Taipei Times

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