Valeria Rossini Languages and Economic and Legal Institutions of Eastern Asia (Japanese curricula) Department of Studies on the

Eastern and Mediterranean Asia, Ca' Foscari University of Venice Individual Project and Final Thesis Proposal VIU Globalization Program 2011, Spring Semester International Management: Managing Global Value Chains Organic Food in Japan: New Pathways and Opportunities for the Made in Italy The purpose of this paper is to take the case of Made-in-Italy organic foods sold in Japan. Starting from a general review about organic farming and production reality in both countries in the light of the recent blooming of the worldwide organic market, I would then focus on the Italian-Japanese food trade, especially on the organic side of Italian's food exports to Japan. Here, I would provide an analysis about both limits and possibilities of this new aspect of trade, with an eye also on its future development. The aim would be the making of a comprehensive work about Italian organic food in Japan, to give a good understanding of the state of the things, opportunities and difficulties for the "Made in Italy" sector as well as remarking its importance for the country's abroad image and reception. A general review about organic The organic movement has gained nowadays so much attention and concern from a larger part of the worlds population, but its roots can be traced starting from the traditional agricultural practices that evolved over the centuries worldwide. At the beginning of the 20th century, F.H. King (1848-1911) studied those practices in Asia and then published Farmers of Forty Centuries or Permanent Agriculture in China, Korea and Japan (1911), by which he foreseen a new agricultural movement profiting of the experience of those countries which were able to feed a dense population by utilizing and in the same time maintaining their natural resources. The term "Permanent Agriculture" predates "Biodynamic" and "Organic Agriculture", but like them was a response to the currently used practices1. A scientific organic movement began in the1920s, inspired by the thoughts of Rudolph Steiner (1861-1925): his "Anthroposophy" was the foundation of the so-called biodynamic agriculture, but it was also important for the developing of a new critic consciousness about industrial agriculture. At that time, Sir Albert Howard (1873-1947) developed the concept of organic farming, focusing on the idea of soil fertility and its linkages with the health of the plant and animals fed by the soil itself: in 1931, he published The Waste Products of Agriculture which spread his message worldwide. Then, the system of organic agriculture and the term organic farming were first developed by Walter Northbourne (1896-1982) in his book Look to the Land (1940): he
1

Paull, John (2008). "Permanent Agriculture: Precursor to Organic Farming", Elementals: Journal of BioDynamics Tasmania, 83, School of Geography and Environmental Studies, University of Tasmania 2008, pp. 19-21.

thought about a methodology in contrast to what he considered chemical farming, considering the farm as a living whole, as an organism2. His concepts were important for the further impulse to the organic method with the establishment of the early associations such as the Rodale Institute (1947) in the USA by Jerome Rodale, Soil and Health (1942) in New Zealand by Dr Guy Chapman and the Soil Association (1946) in the United Kingdom by Lady Balfour. In the USA, Jerome Rodale (1898-1971) published Pay Dirt (1947) adopting Northbourne's organic farming concept and then he continued his activity by the magazine The Organic Farmer from 1949 to 1953 and the founding of his association. In the UK, Lady Eve Balfour (1899-1990) started the so-called "Haugley experiment" by which she compared organic and non-organic agriculture, and helped to popularized organic farming with the publication of The Living Soil (1943). Then, she established the Soil Association in collaboration with Sir Albert Howard, who also published An Agricultural Testament (1943), which is considered a classic about organic farming, and The Soil and Health: A Study of Organic Agriculture (1947), the work that contributed to spread the new ideas to a wider public. In Switzerland, Hans and Maria Mueller developed the "organic-biological" farming method which was provided scientific basis and was published by Hans-Peter Rusch in the book Bodenfruchtbarkeit (1950) that linked soil microbiology with fertility. The movement took the mark Bioland in the 1970s, giving the start to the organic movement in Germany. Organic was not only a Western phenomena. In Japan, Mokichi Okada (1882-1955) began practicing "nature farming" in 1936, which included both spiritual and agronomic aspects with a view to improving humanity. At the same time, Masanobu Fukuoka (19132008) dedicated himself to a simple form of agriculture, known as the "Do-nothing" farming in which Okada's thoughts flowed and by the 1950 it took the name Nature Farming ( , shizennh). Fukuoka's most prominent work is The One-straw Revolution (1975), in which he shows how nature farming is different also from the organic one, being the production by nature for the benefit of nature while organic is considered for the benefit of humans3. The 1960s are considered the turning point of environmental and modern organic movements4. Following the Second World War, technological advances accelerated the modernization of agriculture in the form of mechanization, fertilizers and pesticides. Rachel Carson (1907-1964)'s book Silent Spring (1962) about the damages caused by the use of DDT, took great attention worldwide about the concern for the environmental consequences of chemical products5.

Paull, John (2008). "The Farm as Organism: The Foundational Idea of Organic Agriculture", Elementals: Journal of Bio-Dynamics Tasmania, 83, School of Geography and Environmental Studies, University of Tasmania 2008, pp. 14-18. 3 Toyoda, Natsuko (2008). "Farmer Philosopher Masanobu Fukuoka: Humans Must Strive to Know the Unknown. What does Natural Farming Mean?", Promenade (Japan Spotlight), November/December 2008, p. 49. 4 FAO (2003). "HISTORY OF ORGANIC CERTIFICATION AND REGULATION". In The Organic Guarantee System. The need and strategy for harmonization and equivalence, pp. 12-15. 5 Paull, John (2007). "Rachel Carson, a Voice for Organics - the First Hundred Years", Elementals: Journal of Bio-Dynamics Tasmania, 86, School of Geography and Environmental Studies, University of Tasmania 2008, pp. 37-41.

An important point in the development and institutionalization of the organic movement is the foundation of the International Federation of Organic Agriculture Movements (IFOAM) in 1972 in Versailles. It is considered as a global, non-profit, independent and nongovernmental organization with the mission as facilitator of the worldwide organic movement, also recognized by many international institutions6. The publication by the United States Department of Agriculture (USDA) of the Report and Recommendations on Organic Farming (1980) and the first legal document about the organic sector, the Federal Organic Foods Production Act or OFPA (1990), were two significant moments in the recognition of the organic movement in the USA. They were then followed in 2002 by the establishment of the National Organic Program (NPO) which is responsible for the official labelling of the USDA Certified Organic7. In Europe, the beginnings of official interest on organic were marked by the publication of the Council Regulation (EEC) No 2092/918, which was repealed by the Council Regulation (EC) No 834/20079 and then this one amended by the Council Regulation (EC) No 889/200810. Moreover, those new regulations were followed by the European Action Plan of Organic Food and Farming Development from 2004 to 2006. An important recognition of the worldwide importance of organic farming was made by the first publication in 1999 of the Codex Alimentarius, a common UN-Program of FAO and WHO which developed guidelines in the purpose of harmonizing definitions and requirements for organic agriculture and labeling worldwide and also protecting the consumers and facilitating international trade. Thus, in those years, organic agriculture has moved into the mainstream revealing itself as the fastest growing food sector11. The background of the attention to the organic movement can be seen as moving from the initial interest showed by its pioneers for healthy soil, food and people to a new stress on environmental sustainability in its modern stage. Recently, other points have been added to the complicated explanation and further development of organic as agriculture, farming and food. Those are food safety, food security, development of poor countries, equal rights for working men and women, fair trade and food education. First, the issue of food safety have arisen to the attention of people worldwide due to recent food scandals as BSE (1996), dioxin crisis (1999 and 2008), avian and swine flu (2009)12. Moreover, cases of food illnesses due to food
6 7

See IFOAM website at http://www.ifoam.org/about_ifoam/status/index.html Heckman, James (2006). Abstract available at http://journals.cambridge.org/abstract_S1742170506000184 8 COUNCIL REGULATION (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs. 9 Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labeling of organic products and repealing Regulation (EEC) No 2092/91. 10 Commission Regulation (EC) No 889/2008 of 5 September 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007 on organic production and labelling of organic products with regard to organic production, labelling and control. This has been amended recently by the COMMISSION REGULATION (EU) No 271/2010 of 24 March 2010 amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards the organic production logo of the European Union. Moreover, it have been approved other two amendments to the Regulation as COMMISSION IMPLEMENTING REGULATION (EU) No 344/2011 of 8 April 2011 (about the use of the UE organic logo) and COMMISSION IMPLEMENTING REGULATION (EU) No 426/2011 of 2 May 2011 (about public organic information displayed on the Internet) 11 IFOAM, FiBL (2009). The World of Organic Agriculture - Statistic and Emerging Trends in 2009. 12 Barilla Center for Food&Nutrition (2010). The Challenges of Food Security.

adulteration in many countries have had a great impact on people's consciousness: movements have started to ask governmental measures to be protected from food borne hazards and to ensure that only safe food of acceptable quality is sold to consumers 13. Secondly, food security and the availability of food for everyone on the planet have become also an important issue as well as the fight against poverty and hunger: providing food for poor people is nowadays considered not enough. Local governments are asked to rewrite their policies with the help of international organizations to support agricultural and farming programs. So, in this way, local farmers lost in the struggle of globalization can help themselves and the local communities decreasing the vulnerability to climate changes and monopolistic attitudes. Fair trade among countries and people is also a remarkable point14. Then, there is the problem of food education: advanced countries have been losing their traditional way of eating or have been adopting eating standards bad both for the environment as well as their citizens' health, so going organic would mean the rediscovering of lost practices in a world where also eating habits seem to be globalized too15. Nowadays, the organic movement has revealed itself as a global phenomenon that is not only confined in remote regions of the world or dedicated to a niche of health-nuts consumers. As well as it becomes globalized, problems have arisen too. Countries trade organic products as they do with common ones: here comes a matter linked to tariffs, prices, harmonization of standards and organic philosophy. Is a global market for organic products possible or it could clash with organic ideals?16 How can an organic market be built through tariffs regulations and standards harmonization? How is the world the state of art? A general overview about organic in Italy Italy has been experiencing its organic growth by the turn of the century, on the wave of the globalized attention to the issue of food security, especially linked to widespread BSE fear. Moreover, Italy itself had experienced other various cases of national food scandals like the case of wine adulteration in 1986 (known as the "methanol wine scandal"), pesticides in vegetables, hormones and dioxin in meat as well as the recent olive oil scandal in 2008 and the blue mozzarella in 2010. The development of organic production and organic market in Italy can be said to have a strong connection with the traditional eating habits of the peninsula, generally known under the name of Mediterranean Diet or Mediterranean Way, which is not only the selection and consumption of food but above all the peculiar way to think about it as well as its cultural significance17. This food model has also a strong symbolic and widespread traditional value, enhancing the importance of the naturalness of the food, the household

13 14

FAO&WHO (2003). Understanding Codex Alimentarius, Third Edition. FAO (2008). Organic Agriculture. 15 Barilla Center for Food&Nutrition (2010). The Cultural Dimension of Food. 16 Pollan, Micheal (2006). The Omnivore's Dilemma: an History of Four Meals, Penguin Press 2006. 17 "The Mediterranean diet is above all a way of thinking about food, even more than a selection of specific foods." Harmon Jerkins, Nancy (2000). "The New Mediterranean Diet Cookbook. A Delicious Alternative for Lifelong Health", in The Excellence of the Mediterranean Way. Barilla Center for Food&Nutrition (2010), pp. 17-20.

timing of meals shared together and the pride of national traditions 18. The importance of the Mediterranean Diet was also underlined by UNESCO in November 2010, when was declared its inscription on the Representative List of the Intangible Cultural Heritage of Humanity19. As part of the European Union, Italy follows the European Community Regulations on the matter of organic farming as stated by the Regulation (EC) No 834/2007 and the Commission Regulation (EC) No 889/2008. The Ministry of Agricultural, Food and Forestry Policies (MiPAAF) is also well aware of the possibilities that this sector can make for the further agricultural and economic development of the country, both in Europe as worldwide, with an eye on PDO (Protected Denominated Origin) and IGP (Protected Geographical Indication) products20. On this basis, MiPAAF also launched the National Action Programme for agriculture and organic products for the years 2005/2007 21, in the context of the more general European Plan on the issue. Italy has been putting a lot of effort on its country-of-origin brand, well known as "Made in Italy"22, which is important for the recognition of its products also in relation with the food sector, besides of fashion and design: in this sense, going organic could reveal itself as a new opportunity for the renovation of the country's image. Nowadays, Italy is the largest organic producing country in the EU and ranks fourth in the world as land dedicated to organic farming, but recent researches have made clear that while the country is a major organic producer, its market is not well developed and most of the production is exported, especially concerning fruit, vegetables and wine. On the national side, milk and dairy products as well as fruit and vegetables figure as the biggest part of the organic national market, while other products as meat, bread and oil are also growing. Production and consumption of organic products show a peculiarity of the Italian case: while most of them are produced in the South and in the Islands (63%), consumers concentrate in the North (70%)23. In Italy there are nine major certification bodies which are recognized by the MiPAAF: Bioagricert, BIOS, CCPB, CODEX, Ecocert Italia, ICEA, IMC, Qc&i, Suolo e Salute24. Those are also clearly shown on the packages with the organic logo of EU or "Euroleaf", which would assured that organic products have been produced in compliance with the requirements set out in Regulation (EC) No 834/2007 and Commission Regulation (EC)

18

Naspetti, Bracchi and Zanoli (2008). "Current Food Habits", in Consumption of Organic Foods from a Life History Perspective: An Explorative Study among Italian consumers, p. 13. 19 See http://www.unesco.org/culture/ich/index.php?lg=en&pg=00011&RL=00394 20 MiPAAF Minister Zaia, Luca (2009). Italian Organic Food Style. Biologico Italiano, Buonitalia and SINAB (2009), p. 22. 21 Buonitalia and SINAB (2009). Italian Organic Food Style. Biologico Italiano, pp. 39-41. 22 D.L. 135, 25 settembre 2009. Art. 16 "Made in Italy e prodotti interamente italiani". Retreived 8 May, 2001, from http://www.parlamento.it/parlam/leggi/09166l_Testo%20coordinato.pdf 23 Abitabile, Povellato (2010). Le Strategie per lo Sviluppo dell'Agricoltura Biologica. Risultati degli Stati Generali 2009, pp. 9-19. 24 Buonitalia and SINAB (2009). Italian Organic Food Style. Biologico Italiano. See also at http://ec.europa.eu/agriculture/organic/files/consumer-confidence/inspectioncertification/EU_control_bodies_authorities_en.pdf, pp. 12-14 (1/09/2010 version). Here, I don't considerate Germany-based certification bodies.

No 889/200825. Italian certification bodies are also recognized worldwide under the IFOAM, JAS (Japan), COR (Canada) and NOP (USA) standards, leading the way to the export of Italian organic products by the companies they certify26. Organic distribution in Italy has its backbone in the form of specialized shops, especially operating as networks by the franchising formula, which one example is provided by Naturas chain. On the side of large-scale retailing there are private organic labels launched by stores as Esselunga, Coop, Carrefour, Rewe Italia, Auchan, Pam and also discounts as LIDL. Then, the whole organic trading sector is shared among five companies as Ecor, Ki Group, Probios, La Finestra sul Cielo and Baule Volante. Other important sectors for the organic market and sales are made of school canteens also on an educational point of view, holidays farms in certain regions of North and Central Italy and organic restaurants27. The importance of the network among different producers is demonstrated by the AlmaverdeBio group which operates on different market sectors thank to its consortium. Recently, organic production has been developing a strong link with the fair trade issue, especially in the re-utilization of confiscated fields and the fight against the Mafia's power on food production, transportation, distribution and trade. On this aspect, notwithstanding is the Alce Nero & Mielizia group, which since 2003 is part of the Libera Terra project. Moreover, Italy is the home country of the Slow Food movement, born in 1986 by Carlo Petrini and which became an international reality in 1989. It operates on different levels in the defense of biodiversity, the rediscovering of the pleasure of eating in an educated and conscious way and in the general assumption of food as "Good, clean and fair"28. Italian consumers are driven in buying organic product by many factors as the search for more "natural" products, the requests for more food safety and the attention to health combined with the pleasure of eating and life29. Still they lament the higher cost of organic if compared to common products, so recently there have been a number of initiatives about food pricing in specialized shops and supermarkets 30, but the growing trend remains a reality for the sector. A review of organic in Japan Organic food in Japan has become nowadays an important issue in the country's everyday life. The background on the renewed interest on food as healthy, produced and packed without use of chemicals, can be seen in many food safety related topics as well as the
25

As in COMMISSION REGULATION (EU) No 271/2010 of 24 March 2010 amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards the organic production logo of the European Union. 26 Bertino, Rosa Maria (2010). "Il Made in Italy si espande sui mercati internazionali", Agricoltura, June 2010, p. 106. 27 Naspetti, Bracchi, Zanoli (2008). Consumption of Organic Foods from a Life History Perspective: An Explorative Study among Italian consumers, pp. 5-7. 28 Source: http://www.slowfood.com/international/2/our-philosophy. Carlo Petrini has also written a recent comment about the new nuance of "fair" attributed to food on the background of the survey about Mafia's activities in the Italian food chain. "A cena con i boss. Perch facendo la spesa, senza saperlo paghiamo la Mafia", Il Venerd di Repubblica, No. 1205, April 22, 2011, pp. 24-29. 29 Naspetti, Bracchi and Zanoli (2008). "Exploring the Development of Organic Consumption in Italy", Consumption of Organic Foods from a Life History Perspective: An Explorative Study among Italian consumers, pp. 3-5. 30 Bertino, Maria Rosa (2008). "Biologico meglio, anche per i suoi valori", Agricoltura, June 2008, pp. 6-7.

various efforts that have been making by both the public and private sectors towards healthier eating habits with an eye on the country's traditions. The industrialization of Japan from 1955 to 1973 was characterized by a series of food scandals, as the so-called Minamata desease (, Minamata-by)31, due to environmental issues that had lead the market to a huge increase of additives and chemicals in food to avoid the problem of food borne illnesses. In 1961, the enactment of the Agricultural Basic Act, Act No 127 (, Ngykihon-h) also promoted the modernization of the sector by mechanization and the use of pesticides and fertilizers. However, by the end of 1960s, Japan has seen a decline of its self-sufficiency rate to the actual 41%, so it has been becoming more and more dependent on food imports32. In fact, the national production is not able to cope with the needs of the population due to the decrease of farm households and the shift from a staple diet based on rice to a more Westernized one, accompanied by an increase of people eating outside more times per day. Recently, there has been great concern about the issue of food safety, especially related to many food scandals, both as import-related and national-related ones. On the side of imports, Japan has experienced as many other countries all over the world the fear of BSE, avian and swine flu, but also it has recently faced another problem: the case of the food poisoning due to imports of Chinese dumplings in 2008. On the other hand, also domestic production has betrayed Japanese faith and conviction about the high-quality standard and equality to food safety attributed to national products and producers: SnowBrand's milk-based poisoned products in 2000, then Fujiya's use of expired milk for dessert production and Akafuku's falsification of bean-jam's expiring date in 200733. Thus, what can Japan do when both national and foreign products seem to have become a threat to the country's health? Go organic and rediscover the country's heritage in eating habits . Japan has a long tradition in farming and fishing from which people has broken away in order to foster the country's economic power, moving to the second and third sector. But a country, as well as a human being, needs food to find the energy to go on. Japan's diet consisting in rice, fish, vegetables and a little of meat and sugar, has been addressed by many as the main reason of the country's long-living standards and good-health old people. The coming back to organic food seems to be the coming back to Japan's roots as well. It must be considered that this phenomena is not only the last trend in the long list of Japanese strangeness, but it is a matter of fact that crosses nation boundaries, in a kind of globalized return to the roots. The Japanese effort in revitalizing its traditional habits, especially the good-for-living eating one, can be found in several examples.

31

Minamata disease is an encephalopathy and peripheral neuropathy caused by daily intake of fish and shellfish highly contaminated by methylmercury. Minamata disease broke out in the Yatsushiro Sea coastal area, particularly around Minamata Bay in Kumamoto Prefecture in 1956. See http://www.nimd.go.jp/archives/english/index.html 32 ICE (2010). Giappone: il Mercato degli Alimenti Biologici. Italian language only. 33 Assmann, Stephanie (2010). "Reinventing Culinary Heritage in Northern Japan. Slow Food and Traditional Vegetables", Japanese Foodways, pp.243-256.

The Basic Law on Shokuiku (, Shokuiku kihon-h, 2005) by the Ministry of Agriculture, Forestry and Fisheries (MAFF), shows strong concerns about the promotion of awareness and appreciation of the traditional Japanese food culture as well as interaction between producers and consumers in order to revitalize rural farming and fishing regions, and to boost food self-sufficiency in Japan: in the law it is underlined the importance of the acquisition of knowledge about food as well as the ability to make appropriate food choices34. Also, as taking the distance from the past policies, the Agricultural Basic Act was abolished in 1999 by the Food, Agriculture and Rural Areas Basic Act ( , Shokury, ngy, nson kihon-h) which is more comprehensive of the matter, referring to a renewed attention about the implementation of food, agriculture and rural areas on the basis of sustainability and respect of tradition35. On this basis there have been various efforts on the guidelines of ecotourism and regional revitalization, promoting the opportunities of interaction between producers and consumers as well as the improvement of the conditions of many rural towns in the country: in 1999, MAFF introduced the Law for Promoting the Introduction of Sustainable Agricultural Production Practices (, Shizokusei no takai ngyseisanhoushiki no dny no sokushin ni kansuru hritsu), which also gives the first definition of ecofarmer ()36. On the side of the private sector, also the great distribution channel is focusing on the renewed attention on food. In 2001, Japan's second bigger convenience store chain Lawson has started to open its Natural Lawson stores, which sell especially organic products. Then, also department stores as Aeon-Jusco,Takashimaya, Mitsukoshi, Miyakoshi have been focusing on this kind of products. Recently, also people have started to open their business about organic food, as Toshiaki Ono and his Yumei Ichiba which has led also to the establishment of Mothers trademark and dedicated shops in the great distribution sector. A curious thing on the side of the spreading and availability of organic food is the growing importance of MosBurger's fast food chain: in contrast with more globally known fast food stores, it has been focusing on quality and use of local and organic products for its hamburgers. As result, products labeled as Organic JAS have been increasing as well as so labeled dishes in restaurants. Moreover, the growth of the

34 35

MAFF (2005). What is Shokuiku (Food Education)?, pp. 1-3. Article 1. The purpose of this Act is to stabilize and improve the life of the citizens and to develop the national economy through comprehensive and systematic implementation of the policies on food, agriculture and rural areas by means of establishing basic principles and basic matters for their realization and clarifying the responsibilities of the national and local governments. 36 11 7 4 12 8 See: http://www.maff.go.jp/j/seisan/kankyo/hozen_type/h_eco/index.html

health-food market (FOSHU and FNFC)37, the so-called "Okinawa boom" phenomena and the use by media of the word LOHAS38 are also key points in showing the concern about health and food by the Japanese. Many associations have also been established, as JONA (Japan Organic and Natural Food Association) which is recognized also by IFOAM and has its own certification (JONA Original Certification) in addition to JAS Organic for products that are not covered by JAS Standards. Since 2000, in Japan there is also one of Slow Food headquarters, in promoting a new way of thinking about food as "Good, clean and fair" with an eye both on health and sustainability. Agricultural and forestry products in Japan are disciplined mostly by the Act on Standardization and Proper Quality Labeling of Agricultural and Forestry Products or Japanese Agricultural Standards Law or in simple words "JAS Law"( , Nrinbusshi no kikakuka oyobi hinshitsu hyji no tekiseika ni kansuru hritsu, 1950). At present it is a combination between the "JAS Standard System" and the "Quality Labeling Standard System" and its label is the visual way to appeal directly to consumers to assure food safety on the MAFF's standards. In 1999, the Codex Alimentarius Commission developed the Guidelines for the Production, Processing, Labeling and Marketing of Organically Produced Foods, which has been revised several times up to now. On these basis, MAFF revised the JAS Law establishing standards also for organic agricultural products and organic processed foods: those standards came into effect in 2001, so finally the organic labeling came to legally require compliance with them39. Nowadays, JAS label has been differentiated in four types40, which one is specified for organic products and it is called JAS Organic. For both domestic and imported products the passage through operators certified by registered Japanese or overseas certifying bodies approved by the MAFF is a fundamental requirement in order to attach the JAS label (both as generic or organic). In the case of organic foods, this procedure applies for organic processed foods of plant origin, organic livestock products, organic processed food of animal origin and organic feeds. On the other hand, organic wine, beer and alcoholic drinks are a matter related to the Minister of Finance (MOF), but cannot be labeled as "organic" in English or Japanese ( or ) for the whole product, while it is allowed for its components. Recently, thanks to the work of OECD, IFOAM and foreign ministries, some countries have been approved as equivalent with the Organic JAS System. In Japan, organic products are appealing especially for singles, old people, women and children. The major problem is due to prices: the price which organic foods are sold to final consumers is much more higher (average 1.5 times) than common ones, but there has been observed a bipolarization of consumers: some people seem to be disposed to spend
37

FOSHU (Foods for Specified Health Uses) are foods officially approved to claim their physiological effects on the human body, while FNFC (Foods with Nutrient Function Claims) are foods that are labeled with the functions of nutritional ingredients (vitamins and minerals). Together they are known as FHC (Food with Health Claims) 38 LOHAS is an acronym for Lifestyles of Health and Sustainability, a market segment focused on health and fitness, the environment, personal development, sustainable living, and social justice. At http://www.lohas.com/ 39 OECD (2005). Organic Agriculture. Sustainability, Market and Policies, pp. 295-300 40 See: http://www.maff.go.jp/e/jas/jas/index.html

more in order to have access to organic products, that are considered to be healthier than others. Japan and the Made in Italy "Italy-boom" refers to a widespread interest in Italy culture as a whole by the Japanese during the 90s. Among the many features of this phenomena, a certain curiosity for the Italian way of life as well as its culinary tradition was one major point in constructing the image of Italy that still is popular in Japan41. Thanks to events as "Italia in Giappone" in 2001 and "Primavera Italiana" in 2007 and 2009, the best sectors of the Made-in-Italy as culture, tourism, technology and product have been revitalized again in the mind of Japanese citizens. More recently, to celebrate the 150th anniversary of Italy national unity, the Japanese NHK has been broadcasting on its BSHi channel a number of special programs about the country and others that had been showed in the past years 42. Italy's image is so supported by efforts by both the Italian and Japanese parties over all the levels of Japanese society. Italy exports to Japan are what usually are described as "Made in Italy" products, especially clothing, food and machineries. On a general view of worldwide countries exporting to Japan, Italy figures in 25th position, but focusing only on the European area, it is 3rd as exporting country following France and Germany 43. In the analysis of the sector of Italian food exported to Japan, it has been noticed the growth of fats, oils, animal and vegetal waxes (+28,4%) as well as milk and dairy products (+3,8%). Despite its low position in the rank of worldwide exporting countries as 20th (1,2%), Italy is fundamental for the Japanese imports concerning prosciutto crudo (68%), olive oil (56%), pasta (71%), tomatoes (87%), wine (15%) and cheese (7%)44. Japan has been criticized for its protectionist attitude towards imports, especially regarding the food sector both as tariff and non-tariff barriers45. The greatest problems for Italian exports to the country concern the tariffs applied for the following products: Wine. Custom tariffs are about 30% Cheese. Custom tariffs are about 22.4%29.8% Salumi. Custom tariffs are about 10% Coffee. Custom tariffs are about 12% Preparation of vegetables. Custom tariffs are about 9% 16% (tomatoes sauce)46 On the hand of non-tariffs barriers, for their resolution there has been enstabilished the so-called Regulatory Reform Dialogue (RRD), which every year takes on the request for a

41 42

Miyake, Toshio (2010). "L'Italia made in Japan", Occidentalismi, Cafoscarina 2010, pp.95-116. . http://www.nhk.or.jp/pr/keiei/shiryou/soukyoku/2010/12/006.pdf. Moreover, in 2007, also the popular Japanese tv format of dramas had its taste of Italy with the adaptation of "Bambino!", a wellknown Japanese comic by Sekiya Tetsuji. Official site: http://www.ntv.co.jp/bambi/ 43 ICE (2011). GIAPPONE. Commercio estero. Gen-Feb 2011. 44 ICE (2010). GIAPPONE. Rapporti Amabasciate/Consolati, Uffici ICE all'Estero. Primo semestre 2010, p. 30 45 ICE (2010). GIAPPONE. Rapporti Amabasciate/Consolati, Uffici ICE all'Estero. Primo semestre 2010, pp. 33-38 46 Source: Japan's Tariff Schedule as of April 1, 2011. http://www.customs.go.jp/english/tariff/2011_4/in dex.htm

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further deregulation of the Japanese market aiming for a better business environment 47. Thus, problems due to non-tariff barriers are about: Fruits and vegetables. The "Plant Protection Law" and the "Food Sanitation Law" are the two main barriers for free trade of Italy's products. In 2008, Japan has finally opened its market to the variety "Tarocco" for oranges under the agreement of cold treatment and after years of negotiations on the matter. Food addictives. Japan doesnt recognized the international accepted standards also written in the Codex Alimentarius about food addictives and still it does not permit the import of product containing Sudan I48. Meat and meat products. Due to the BSE fear, Japan permits meat and meat products import only from certain countries, but this is against WTO and SpS agreements49,50. The new frontier for Italian food exports is considered to be organic products, as the worldwide market dedicated to them is growing and Japan itself is considered one of the most important markets. Italian products in Japan were initially dedicated only to the great distribution channel as restaurants and hotels, but due to the great success in the past years, they can be now found also in Western foods specialized shops (Meidi-ya), department stores (Takashimaya, Aeon-Jusco, Miyakoshi, Mistukoshi) and supermarkets. Interesting is also the Italian presence in the form of chains dedicated to one product as coffee (Lavazza, Segafredo, Illy, De Longhi) or ice-cream (GROM)51 in the major cities. The Italian Embassy in Japan, ICE and other organizations for the promotion of Italy in Japan have developed a new promotional plan for the year 2011, which covers different sectors as well as food: organic products, wine, olive oil, water, cheese and products that have not been yet introduced in the Japanese market. On this issue, participation to dedicate fairs as "FOODEX JAPAN 2011" and others in Italy, projects as "Wine Project" and the promotion of Italian regional specialties are considered of primary importance. For this purpose, the next edition of "Italia in Giappone 2011"52 and related events are the new starting point in the mutual relation between the two countries in the aftershock of the tragedy of March 11st 2011. Made-in-Italy goes to Japan: organic The first chapter of this paper has made clear how the organic market has become a reality that crosses the national borders and has been taking its steps in showing itself as a new reality in the wider food global market as well as an important point for the countries' economic growth and relationships. In a global perspective, Italy is one of the most
47 48

Source: http://www.eeas.europa.eu/japan/regulatory_reform_en.htm Sudan I is a food coloring involved in a food scandal in 2005 for its possible being cause of cancer. See: http://news.bbc.co.uk/2/hi/health/4277677.stm 49 MAFF. Animal Quarantine Service. Available at http://www.maff.go.jp/aqs/english/product/import.html 50 SpS is for "WTO Sanitary and Phytosanitary Measures", and it is an agreement on food safety and animal and plant health standards. Available at http://www.wto.org/english/tratop_e/sps_e/sps_e.htm 51 Source:Italian Trade Commission. Presenza Italiana in Giappone 2010. See also: ICE, Pubblicazioni Settoriali. Available at http://mefite.ice.it/EDIweb/ElencoPubPaese.aspx?idPaese=732 52 For the detailed program: http://www.italiagiappone.it/brochure_italia_in_giappone_2011.pdf (March 4, 2011)

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important countries for its organic production, which is mostly dedicated to organic market in foreign countries, also thanks to the worldwide recognition of the "Made in Italy" country brand. Organic food has been indicated as one of the major sectors for a new Italian strategy for the Japanese food market and the renovation of Italy's image on the background of the renewed interest for food quality and safety as well. Still, Japan represents for some Italian organic brands an important market as for Alce Nero & Melizia, that has recently made a joint-venture with the French Group Denis Frres and started by first selling its products in Japan by the Nichifutsu Boeki Kk53. A more recent success is represented by GROM which has opened several stores in the country since 2009, proposing a new idea of icecream for the Japanese consumers. Another important Italian reality is Eataly shop, selling among the great variety of its high-quality products also organic ones. Less known are the consortium Il Paniere di Toscana and Ghigo caff54, but they have a longer experience of the Japanese market as well. To promote its organic food sector, Italy has so to move on different levels, among those there is the crucial importance played by its participation in international fairs dedicated to the subject: BioFach and SANA for the organic market, FOODEX on a more general view. Moreover, due to the fact that those kind of events are mostly closed to the public, it is also worth of attention the creation of a contact with consumers and their education about what organic is. In this way, campaigns and an eye on the great-distribution sector are points that cannot be ignored, but Italy seems to know already very well about their strategic importance as events like "Italia in Giappone" and "Primavera Italiana" have shown. A point worth of attention is the issue about organic international standards. Nowadays there has not been yet approved a common framework for organic products, notwithstanding the efforts made by IFOAM and the Codex Alimentarius Commission for the harmonization: countries still have their own standards for the labeling of organic products and here come some problems, especially in their trade across national boundaries. As said, on the issue of organic production and labeling, Italy is disciplined by the EU Regulations No 834/2007 and No 889/2008, while on the other hand Japan is disciplined by JAS System. Between the two standards there are many shared features55 in accordance with the Codex Alimentarius' guidelines about organic production. Moreover, since January 2009, all the European Certification Bodies must be in compliance with ISO/IEC Guide 65 and this is also remarked by the JAS Law itself (Article 17-2)56. Despite
53 54

Source: http://www.biobank.it/it/BIO-articoli.asp?id=750 Martinelli, Lorenzo. Viste, Mar/Apr 2003, pp. 12-15. 55 Some examples are: no use of Genetically Modified Organism (GMO) at every stage of the production, no use of chemical or industrial fertilizers for vegetables and fruits, organic processed food must contain organic ingredients not less than the 95% of the whole product, etc. 56 Article 17-2 (1) In the case where a person that has applied for the Accreditation pursuant to the provisions of paragraph (1) of Article 16 (hereinafter referred to as the "Accreditation Applicant") complies with all of the following requirements, the Minister of Agriculture, Forestry and Fisheries shall accredit such Accreditation Applicant. In this case, the necessary procedures related to the Accreditation shall be provided for in MAFF Ordinance.

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this, governments still require that producers and operators must obtain a certification from a Certifying Body which must be itself accredited by the foreign country where the products are going to being sold. This is a major point of concern about the global market of organic products: the need for certification by an accredited Certifying Body is source of additional costs for producers and it is also an obstacle for a better market development worldwide. In the Japanese case, MAFF provides a list of those countries whose organic rules and standards are approved as equivalent with the organic JAS System57. Moreover, in May 2010, EU included Japan in the list of third countries from which importing organic products is permitted58, recognizing those countries as having equivalent system and control measures for organic production to those written in EU Regulation No 889/2008 59. This is considered as an important step to further the economic relations between Japan and the EU, but it is still a one-way agreement: while Japanese organic products can be imported in Europe as they are, the same is not for European organic products exported to Japan which still require an additional level of control by accredited Certifying Bodies. In fact, although Italy figures in the list provided by the MAFF, still procedures are complex. In the case of Italy, there are two ways to obtain legal recognition of accordance with JAS Standards. The first one is passing through an overseas Certifying Body accredited by MAFF, but here the matter is worsened by the few number of Italian Certifying Bodies recognized by the Japanese authority: Bioagricert, CCPB, ICEA and IMC. Another one is grading by an importer also accredited by MAFF for products of overseas countries designated as having an equivalent grading system to the one under JAS60. Thus, importing of organic products from EU to Japan is recognized and a Grade Label 61 indicating the conformity with the Japanese Agricultural Standard can be affixed to overseas products, but the rule of overseas certifying bodies and importers are like a multilevel barrier for the trade: event if products are in conformity with EU Regulations they have to undertake a second stage of certification. The JAS label both generic or in its others features is considered as a voluntary procedure that does not prevent selling or importing products in the Japanese market (but in this case, they must be sold without the label62). However, overseas imported products must comply with other measures and laws63 provided by the Japanese government.
(i) The Accreditation Applicant is a juridical person who complies with the standards related to the organizations that perform the Certification specified in the International Organization for Standardization and the International Electrotechnical Commission. 57 List of Countries with Organic Equivalency. Whole list at http://www.maff.go.jp/e/jas/jas/pdf/import02.pdf 58 See COMMISSION REGULATION (EU) No 471/2010 of 31 May 2010 amending Regulation (EC) No 1235/2008, as regards the list of third countries from which certain agricultural products obtained by organic production must originate to be marketed within the Union. 59 See COMMISSION REGULATION (EC) No 1235/2008 of 8 December 2008 laying down detailed rules for implementation of Council Regulation (EC) No 834/2007 as regards the arrangements for imports of organic products from third countries. 60 ICE (2011). Giappone: il mercato degli alimenti biologici. 61 Article 14-1 of JAS Law. 62 Article 18-1 of JAS Law. 63 Food Sanitation Law, Plant Protection Law, Domestic Animal Infectious Diseases Control Law, Foodstuff Law, Liquor Tax Law, Salt Business law.

13

The need for a common revision and harmonization for a more free trade has been underlined many times by the European authorities, as well as the Italian one. Italy sees in its organic production a great potential for the renovation of its country brand in Japan and as a new basis for its future trade relations with the country. Still a lot of work must be done, but it would be interesting see how things will develop from now, also in the light of the growing globalized context of organic market and the events after March 11 in Japan. Further research and methodology The next appointment with the future of food is for the new Expo 2015 in Milan: "Feeding the Planet, Energy for Life". The worldwide interest in organic products and healthy life is a positive aspect in today's society. It could be also the occasion to create new markets, to reveal itself as a start point for developing countries and to give new energy to the problematic times and economic situation we are facing. But, it is not a call to go back to farming: "If we all had to concentrate on raising our own food, we wouldn't have time to do anything else." (Jeffrey Kluger, 2010. TIME) Indeed, this is still a sector which needs some improvement, in terms of accessibility, prices, attitude and international cooperation and standards harmonization as well. Japan is opening to worldwide standards and imports, but it has also its reason to continue being suspicious about what it imports from the other countries as the scandals it experienced has shown. After the earthquake and the tsunami that on March 11th devastated the country in the North-East (the regions of Sendai and Miyagi prefectures, object of research in recent studies about organic farming and government policies towards regional vitalization), it is not difficult to imagine that the Japanese self-sufficiency rate is going to decrease again, also with problems about the safety of the foods of the region, especially vegetables and fishery products. Moreover, the issue about Fukushima and radiation hazard is likely to have great consequences on the attention about the organic market and food safety both national and international 64. North-East Japan's recovery is expected to last for decades, as well as the Japanese economy. But the country is known for its capacity to reinvent itself in the half of the speed that other country would need. From now and on, the future of Japan is worth being studied. Also, the future of the country national organic production: will it go to the North, the Hokkaido region or will it move to the South, the 15-years-ago-earthquake-hit (and from which it is still recovering) Kansai, the former economic core of Japan? Furthermore, Japan organic producers are increasing in number, but they have not been yet mentioned in recent researches, due to the also recent development of the sector. What about their specialization and internationalization by participation to international fairs and events? Internationalization of the organic market will lead to a new integration of markets, and then new opportunities for countries. Italy has a well-established reputation among the Japanese consumers, traditionally appealing to its food culture in terms of health and security. This sector is unfortunately a so-called "low innovation" one, but the new stress on organic products of the well-known "Made in Italy" could be a chance for the country's image.
64

On this subject both the Japanese authorities (MAFF) and international organizations (FAO and WHO) has been moving to guarantee appropriate information on the issue and avoid cases of food hysteria.

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As recent papers and researches have shown, there are many problems arising on the matter of organic food's exports to Japan: tariffs that increase the final price the product is sold (especially for wine, cheese, ice-creams, vegetal sauces); the JAS System which still requires further controls even though the equivalency accorded to the EU organic standards; the BSE fear that halts meat imports; the strict Plant Protection Law which prevents many Italian agricultural products' imports. As mentioned in the previous chapters, organic international market is still in its first stage, and Japan is known for its protectionist tendency. Chances and changes of attitude towards foreign organic imports could be a consequence in Japan's post-earthquake policies. Italy and its organic offer, joined with the Mediterranean Way appeal, could also find new opportunities in the country, not only in the hit regions of the North, but also in the South, where attention to food, health and the search for an authentic way of life are still important matters. So, in which direction will Italy move? And in which way will Japanese policies shape the country's future? My further research would be focused on the Italian-Japanese relationship and strategies about organic food: starting from a general review about the reception and history of Italian food in Japan, I would concentrate my attention on the organic side of Italian's exports to the country and the attitude of Japanese consumers towards it, also in the new light of the post-earthquake and nuclear issues. I would study about trade agreements, collaboration and promotion policies adopted by the two countries, as well as it could be considered under a more international point of view on the matter of organic food and international standards harmonization. Moreover, considerable attention must be given to the various problems that affect international organic trade between Italy and Japan as labels, quality standards and regulations. Then, it would be interesting focusing on the distribution channels and actors concerning the Italian presence in Japan: how do organic Italian food reaches its final consumer in such a distant country? On this question it would be appropriate not only a general study of the subject, but also a case-study one, thanks to the many different examples I have found in my research up to now, as well as organizations' activities in the country for the promotion of Italian organic products to the Japanese and the further development and simplification of regulations on the subject. The aim of this research would be making a comprehensive work about Italian organic food in Japan, to give a good understanding of the state of the things, future opportunities and changes.

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Yokoi, Yukio (2005). Organic Agriculture in Japan: development of a labeling scheme and production policies, Organic Agriculture. Sustainability, Market and Policies, OECD, pp. 295-300. Retrieved April 2, 2011, from http://browse.oecdbookshop.org/oecd/pdfs/browseit/5103071E.PDF Websites Aeon-JUSCO. http://www.aeonretail.jp/kodawari/index.html Alce Nero, Mielizia. http://www.alceneromielizia.it/ Almaverdebio. http://www.almaverdebio.it/index.php Associazione Italiana per l'Agricoltura Biologica (AIAB). http://www.aiab.it/ Barilla Center for Food and Nutrition (Barilla CFN). http://www.barillacfn.com/ Bioagricert. http://www.bioagricert.org/bioagricert/ Biobank. http://www.biobank.it/ BIOFACH. http://www.biofach.de/en/ Certificazione e Controllo Prodotti Biologici (CCPB). http://www.ccpb.it/ Codex Alimentarius. http://www.codexalimentarius.net/ Eataly. http://www.eataly.it/ Envirowindows, EEA platform for knowledge sharing and development. http://ew.eea.europa.eu/ European Commission, Agriculture and Rural Development, Organic Farming. http://ec.europa.eu/agriculture/organic/home_en European External Action Service (EEAS). http://www.eeas.europa.eu/ European Food Safety Authority. http://www.efsa.europa.eu/it Expo2015. http://www.expo2015.org/ FAO Corporate Document Repository. http://www.fao.org/documents/en/docrep.jsp Ferderbio. http://www.federbio.it/index.php Fondazione Italia Giappone. http://www.italiagiappone.it/ Food and Agriculture Organization (FAO),Organic Agriculture. http://www.fao.org/organicag/en/ Food and Agriculture Organization (FAO). http://www.fao.org/ FOODEX JAPAN. http://www3.jma.or.jp/foodex/en/ FOODEX. http://www.ice-foodex.jp/product/pro12.html GROM. http://www.grom.it/ IFOAM Japan. http://www.ifoam-japan.net/index.html International Federation of Organic Agriculture Movement (IFOAM). http://www.ifoam.org/ Istituto Mediterraneo di Certificazione (IMC). http://lnx.imcert.it/v3/index.php Istituto Nazionale di Economia Agraria (INEA). http://www.inea.it/statigeneralibio/ Istituto Nazionale di Economia Agraria (INEA). http://www.inea.it/statigeneralibio/ Istituto per il Commercio Estero (ICE). http://www.ice.gov.it/paesi/asia/giappone/index.htm Istituto per la Certificazione Etica ed Ambientale (ICEA). http://www.icea.info/Home/tabid/36/Default.aspx Italia a Tavola. http://www.italiaatavola.net/ Italian Chamber of Commerce in Japan (ICCJ). www.iccj.or.jp/ Italian Embassy in Tokyo. http://www.ambtokyo.esteri.it/ambasciata_tokyo 24

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