Inadequate FDI Confine Japanese Food Processing Sector
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Japan has a progressive food-processing sector, however, the manufacturing companies in it, lack economies of scale and automation both leading to low productivity. The sector is also handicapped by inadequate FDI in packaged goods; its trade is over protected resulting in facing little competition with global best practices. Competition is also low in the domestic side due to local monopolization of the food processing industry. In spite of all these Japan’s food processing industry has a potential to grow by 7% every year. This is in close comparison of 66% of US levels in the next decade. Industrialists believe that the high potentiality of this sector can enable high productivity compromising on domestic consumer demand. Japan has long been a major importer of agricultural products due to lack of arable farmland and high production costs. The same agricultural products are used in the processing industry. United States supplies the largest share of agricultural products to Japan, which amounted to $15 billion in 2004 representing a share of 33% of Japan’s total imports. In an explorative and interesting market research report named “Food Processing Industry in Japan (2005)” prepared by analysts at RNCOS, it tells that while in 2004 the Japanese food processing industry including beverages valued at US $212 billion (23tr Yen) the future increase is expected to be only 4.5%. The report provides suggestions with supporting ideas of new international strategies and marketing plans specifically for Japanese food processing industry. It also has statistical inputs to back business environment, economy and trade balance of the industry in relation to other countries. The market research report explains how the industry’s growth in the country has taken place with the availability or raw materials, changing lifestyles and flexible trade patterns. It also analyzes the appreciation in demand and supply in the region with respect to unit sales while discussing the hindrances to growth opportunities for traders. The report covers the profile of key companies in the food processing sector that includes brief profile, recent financial figures, key management profiles, and companies’ strategic moves/ press coverage for the overall market estimation and its trends To purchase your copy: http://www.rncos.com/Report/FB16.htm For more information please visit www.rncos.com
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