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PRODUCT PROFILE Broccoli to Japan
Bronwyn Warfield and Marcus D. Kauffmann
Department of Agriculture and Fisheries, Queensland
July 2016
Contents
AUSTRALIAN INDUSTRY ................................................................................................................ 3
Production: 2008-2014 ........................................................................................................................ 3
Production by state: 2013-2014 .......................................................................................................... 3
Australian Exports ................................................................................................................................ 4
Value and Quantity .......................................................................................................................... 4
Average Annual Export Price Received ............................................................................................ 4
Top Export Destinations ................................................................................................................... 5
Queensland’s Exports .......................................................................................................................... 6
Value and Quantity .......................................................................................................................... 6
Average Annual Export Price Received ............................................................................................ 6
Top Export Destinations ................................................................................................................... 7
JAPAN MARKET ............................................................................................................................ 8
Market Access ...................................................................................................................................... 8
Market Size and Growth: Broccoli ...................................................................................................... 8
Production........................................................................................................................................ 8
Imports ............................................................................................................................................. 8
Seasonality ........................................................................................................................................... 9
Competitors ....................................................................................................................................... 10
Supply Chain ...................................................................................................................................... 15
RETAIL PICTURES ........................................................................................................................ 18
REFERENCES ............................................................................................................................... 21
Sources Used .................................................................................................................................. 21
Data Used ....................................................................................................................................... 21
3
AUSTRALIAN INDUSTRY Production: 2008-2014
In 2013-2014, Australia produced a total of 50,091 tonnes of broccoli across 6,276 hectares and
with a yield of 8 tonnes per hectare. Total production grew by 3% from 2012-2013 to 2013-
2014, while total hectares decreased by 15% leading to an increase in the yield of 21%.
Total Australian broccoli by area, production and yield, 2008-09 to 2013-14
Year 2008-2009 2010-2011 2011-2012 2013-2014
Production (t) 44,420 49,112 48,472 50,091
Yield (t/ha) 7.1 6.9 6.6 8.0
Area (ha) 6,269 7,090 7,369 6,276
No. businesses 406 487 432 352 Source: Australian Bureau of Statistics, Agricultural Commodities, Australia 2008-09 to 2013-14
Production by state: 2013-2014
In 2013-14, Victoria was the largest producer of broccoli in Australia, accounting for 51% of the
nation’s total production with 25,533 tonnes produced. They were followed by Queensland
(26%), Western Australia (11%), South Australia (4%) and New South Wales (2%).
Total Australian broccoli by area, production and yield, 2013-14 by state
State NSW VIC QLD SA WA TAS Total
Production (t) 755 25,533 12,775 2,128 5,346 np 50,091 Yield (t/ha) 5.2 8.4 7.1 9.6 9.0 10.5 8.0
Area (ha) 145 3,056 1,813 223 594 288 6,276
No. businesses 89 95 73 28 50 np 352
Source: Australian Bureau of Statistics, Agricultural Commodities, Australia 2008-09 to 2013-14
2013-2014 Broccoli production by state
Source: Australian Bureau of Statistics, Agricultural Commodities, Australia 2008-09 to 2013-14
10,000
5,000
0
2013-2014
4
Australian Exports
Value and Quantity
Australian exports of fresh or chilled headed broccoli and cauliflower in 2015, were valued at $14.8
million AUD with a total exported quantity of 7,396 tonnes. In the 2009-2015 period, total value grew
by 18.22% in cumulative annual growth rate (CAGR) while quantity increased by 18.07% CAGR. It is
worth noting that, cauliflower exports tend to account for approximately 7.5% of “fresh or chilled
headed broccoli and cauliflower (07041000)” code1. Additionally please note that total value
represents the Australian dollar value of the goods at the port of loading.
2009-2015 Total Australian exports of Headed Broccoli and Cauliflower (HS: 07041000)
Source: ABS unpublished foreign trade data
Average Annual Export Price Received
The average annual export price (AUD/kg) received for broccoli and cauliflower peaked in 2012 at
$2.35 AUD/kg and has since declined and flattened out at $2.00 AUD/kg in 2015.
2012-2015 Average annual export price received for Headed Broccoli and Cauliflower (HS: 07041000)
Source: Australian Bureau of Statistics unpublished foreign trade data.
1 1Calculated by looking at the separate cauliflower and broccoli codes before they were combined
AUD
16,000,000
14,000,000
12,000,000
10,000,000
4,000,000
8,000,000
6,000,000
2,000,000
-
2009 2010 2011 2012 2013 2014 2015
Quantity Value
4,000
8,000
-
7,000
6,000
5,000
3,000
2,000
1,000
Tonn
es
AUD/
kg
0.50
2.50
2.00
1.50
1.00
-
2012 2013 2014 2015
5
Top Export Destinations
The main export destination was Singapore, with 67% of the market share in terms of quantity, with
other major destinations including United Arab Emirates (7%), Taiwan (5%) and Japan (3%).
2015 Top 5 Australian Export Destinations for Headed Broccoli and Cauliflowers (HS: 07041000)
Rank Destination Tonnes $AUD 1 Singapore 4,940 8,829,284 2 United Arab Emirates 536 1,563,298 3 Taiwan 360 663,148 4 Japan 234 570,198 5 Malaysia 219 636,810
Total Exports (All Destinations) 7,397 14,772,263 Source: Australian Bureau of Statistics unpublished foreign trade data.
Source: Australian Bureau of Statistics unpublished foreign trade data.
United Arab Emirates 7% Singapore
6 7 %
Thailand 2 %
Saudi Arabia 2% Kuwait
2 %
Papua New Guinea 2%
Malaysia 3 %
Japan 3 %
Taiwan 5 %
6
Queensland’s Exports
Value and Quantity
In 2015, Queensland exported a total of 3,465 tonnes of broccoli and cauliflower, valued at
approximately $6.9 million AUD. Over the 2012-2015 period, total value and quantity increased
substantially by 26.9 % and 38.1% respectively. It is worth noting that the total value
represents the Australian dollar value of the goods at the port of loading.
2012-2015 Total Queensland Exports of Headed Broccoli and Cauliflower (HS: 07041000)
Source: Australian Bureau of Statistics unpublished foreign trade data.
Average Annual Export Price Received
The average annual export price (AUD/kg) received for broccoli and cauliflower peaked in 2012 at
$2.57 AUD/kg, but has since declined to $1.99 AUD/kg in 2015.
2012-2015 Average Annual Export Price Received for Headed Broccoli and Cauliflower (HS: 07041000) Source: Australian Bureau of Statistics unpublished foreign trade data.
AUD 4,000,000
8,000,000
7,000,000
6,000,000
5,000,000
3,000,000
2,000,000
1,000,000
0
2012 2013 2014 2015
Quantity Value
4,000
-
3,500
3,000
2,500
2,000
500
1,500
1,000
Tonn
es
AUD/
kg
0.50
0.00
3.00
2.50
2.00
1.50
1.00
2012 2013 2014 2015
7
Top Export Destinations
In 2015, Queensland’s broccoli and cauliflower exports were concentrated in the Asian and Oceanic
regions, with Singapore accounting for 74% of exports in quantity terms, followed by Taiwan (9%),
Papua New Guinea (4%), the United Arab Emirates (2%) and Malaysia (2%).
2015 Top 5 Queensland Export Destinations for Broccoli and Cauliflower (HS: 07041000)
Source: Australian Bureau of Statistics unpublished foreign trade data.
Rank Destination Tonnes $AUD 1 Singapore 2,578 4,842,856
2 Taiwan 325 562,738
3 Papua New Guinea 131 280,002
4 United Arab Emirates 74 235,367
5 Malaysia 73 191,972
Total Exports (All Destinations) 3,465 6,893,336 Source: Australian Bureau of Statistics unpublished foreign trade data.
United Arab Emirates 2%
Malaysia 2%
Papua New Guinea 4%
Taiwan 9 %
Singapore 7 4 %
Brunei Darussalam 2% Japan
2%
8
JAPAN MARKET Market Access
The following outlines the relevant information regarding market access for broccoli in Japan.
Documentation
Document Type Required?
Import Permit No
Phytosanitary Certificate Yes Additional Declaration/Endorsement No
Source: NPPO Regulations, MICOR 2016
General Requirements: Consignments are to be free from pests, soil, weed seeds and extraneous
material.
Market Size and Growth: Broccoli
Production
In 2013, Japan produced a total of 137,000 tonnes of broccoli decreasing by 0.73% CAGR over the 2009-2013 period.
2009-2013 Japans total production of broccoli
Source: MAFF 2016
Imports
From 2009 to 2015 imports averaged approximately 33,700 tonnes per year with a mean dollar
value of $71.3 million AUD. Total quantity and value imported peaked in 2012 and have since
declined to equal 17,804 tonnes and $52.3 million AUD in 2015. Please note that Japanese import
values are in CIF base.
142,000 141,100
2009 2010 2011 2012 2013
140,000
138,000
136,000
134,000
132,000 130,200 _ 129,200 130,000
128,000
126,000
124,000
122,000
Tonn
es
137,500 137,000
9
Total Imports of Broccoli into Japan: 2009-2015 (HS: 070490010)
Source: Japan Customs and Ministry of Finance, 2016
Seasonality
Japan imports broccoli throughout all months of the year, with April-May and September-
October exhibiting the highest volume of imports, with 6-year averages of approximately 3,600
tonnes per month. Japan imported lower quantities in the November – December months, with
6-year averages of 1,616 and 1,803 tonnes per month respectively.
2010-2015 Japanese monthly imports of broccoli (quantity) Source: Japan Customs 2016
Likewise, the value of broccoli imported in Japan was highest in April – May and
September – October, with 6-year averages of AUD$7.5 million.
100,000,000
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
60,000
50,000
40,000
Ton
ne
s
AU
D
30,000
20,000
10,000
0 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5
Q u a n t i t y V a l u e
Tonn
es Im
port
ed
4,000
7,000
6,000
5,000
3,000
2,000
1,000
-
2010 2011 2012 2013 2014 2015 6-year average
J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c
10
2010-2015 Japanese Monthly Imports of Broccoli (value)
Source: Japan Customs 2016
Competitors
Australia’s biggest competitors are the United States, who accounted for 87% of Japan’s broccoli
imports in 2015, as well as China and Mexico who had shares of 6% and 5% respectively in
quantity terms. Australia made up for 2% of Japan’s broccoli imports in 2015.
2012-2015 Total quantity, value and AUD/kg for Japan’s main broccoli providers
Quantity (Tonnes) Value (AUD) AUD/kg
Market Share (Quantity)
Total: 2012 49,735 90,464,135 1.82 - China 4,563 7,162,863 1.60 9%
Taiwan 22 29,640 1.48 0%
Mexico 61 122,049 2.00 0%
United States 45,090 83,149,583 1.85 91%
Total: 2013 36,114 76,858,229 1.98 -
China 4,010 6,302,448 1.72 11% Mexico 305 586,035 1.97 1%
United States 31,799 69,969,746 2.25 88%
Total: 2014 30,384 67,704,540 2.14 - China 1,002 1,805,516 1.84 3%
Mexico 270 631,220 2.30 1% United States 29,112 65,267,805 2.28 96%
Total: 2015 17,804 52,287,191 2.66 - Australia 321 936,080 2.91 2%
China 1,113 2,428,615 2.28 6%
Mexico 948 2,322,150 2.42 5%
United States 15,422 46,600,346 3.02 87% Source: Japan Customs and Ministry of Finance, 2016
In 2015, the peak for Japanese broccoli imports was in March for China and Mexico, October for
Australia and April for the United States. Throughout May – September, China and Mexico
AUD
14,000,000
12,000,000
10,000,000
8,000,000
4,000,000
6,000,000
2,000,000
2010 2011 2012 2013 2014 2015 6-year average
J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c
11
experienced less exports, while Australia and the United States had quieter periods in the December
- February months.
2015 Japan’s monthly imports of broccoli from Australia, China and Mexico (HS: 070490010) Source: Japan Customs and Ministry of Finance, 2016
2015 Japan’s Monthly Imports of Broccoli from the United States (HS: 070490010) Source: Japan Customs and Ministry of Finance, 2016
Tonn
es
300
250
200
150
100
5 0
-
J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c
Australia China Mexico
Tonn
es
2,500
2,000
1,500
1,000
500
J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c
USA
Tonn
es
300
250
200
150
100
5 0
-
J a n F e b M a r A p r M a y J u n J u l A u g S e p O c t N o v D e c
Australia China Mexico
12
Wholesale Photos
Origin: Japan Outlet: Tokyo Seika Wholesale
Market
13
Origin: Mexico Outlet: Tokyo Seika Wholesale
Market Brand: Mr Lucky
14
Origin: United States of America Union Corporation’s warehouse
Brand/Exporter: Double Eagle Broccoli
Count: 42
Origin: United States of America Union Corporation’s warehouse Brand/Exporter: Rabbit/ Cal Ex Count: 38-40
15
Production According to ABS Australia’s broccoli production in 2013-14 was 50,000 tonnes with 6,276 hectares under production with an average yield of 8 tonnes per hectare. Queensland and Victoria account for 75 percent of production. Broccoli is predominately grown in Queensland from April to October and Victoria’s peak production period is over the summer months. Brumby, Spinks, Aurora, Viper are the key varieties grown in Queensland. From planting to harvest the average production time is 90 days. Most growers use transplants and some also use direct seeding.
Harvest/Packing Australian broccoli is harvested in all seasons at various locations. Hand harvesting by knife is the primary method with some experimental mechanical harvesting occurring in recent years. Broccoli is harvested into bins or crates for transfer to a cooling and packing facility as soon as possible after harvesting. However experimentation has occurred with in-field packing a method used in the United States. The time between harvest and the cool room must be less than two hours to prevent loss of quality (DEPI, 2014)
The core temperature of broccoli should be reduced to below 5 degrees Celsius as quickly as possible. For export broccoli, the temperature should then be lowered to 0 – 2 degrees Celsius, and held at this point for at least 24 hours. Cooling methods in Australia include hydro cooling, forced air cooling and vacuum cooling. In the United States broccoli for export is injected with liquid ice.
Packing is done rapidly in a cool place and the packed product returned immediately to the cool room to minimise temperature rises. A fully waxed fibreboard carton is recommended for sea freight to Japan, similar to that which is used by United States producers. Styrofoam or other cartons can be used but often depend on customer requirements. Cartons are packed to customer specifications and iced.
Quarantine in Australia Prior to export from Australia, the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) requires a phytosanitary certificate, issued by the Department of Agriculture of Agriculture Water Resources (DoAWR), for each consignment (Department of Agriculture, 2014). Authorised Officers either from DoAWR or industry inspect a representative sample of either 2 percent of the shipment or 600 pieces for pests prior to the container being shipped from Australia.
Supply Chain
16
Logistics Containers used for sea freight of broccoli must be refrigerated. Two size containers with refrigeration, or reefers, are available from Australia; a 20ft standard reefer, or a 40ft reefer (Maersk Group, 2014). The containers are loaded at the farm and transported to Brisbane.
A 40ft reefer is the standard container used for sea freight to Japan for United States broccoli and is the preferred option for Australian broccoli. Palletised broccoli is loaded into the container used for sea freight to Japan for United States broccoli and is the preferred option for Australia broccoli. The recommended set points of a reefer with advanced fresh air management are temperature (0 degrees Celcius) and fresh air exchanged (setting 20-60 cbmh) (Hamburg SUD).
Various shipping routes operate from Australian to Japan. Most shipping lines have a one day cut off period where a container needs to be at the port before being loaded onto a ship. Shipping times vary from 10 to 33 days from Australia, depending on whether it is a direct or indirect route.
Most common direct routes to Japan are from Australian east coast ports of Brisbane, Sydney and Melbourne. Connections can come from Fremantle to Melbourne, alternatively Fremantle to Japan routes may be investigated that transmit via Singapore, Hong Kong or other Asian ports.
Shipping time to Yokohama port in Japan is 10-11 days from Brisbane, 10-14 days from Sydney, 16-17 days from Melbourne and 21-23 days from Fremantle (transhipped via Singapore). It is then shipped to Japan.
Quarantine in Japan On arrival in Japan, Australian broccoli is subject to quarantine inspection and a chemical residue test. These are performed by the MAFF, and the Ministry of Health, Labour and Welfare (MHLW). A positive identification of a quarantine pest will require return shipping or enforced fumigation of the broccoli by methyl bromide. Depending on the frequency of fumigations, this is normally paid by the importer. The cost varies between (AUD$800 and AUD$1334.
17
Distribution to Retailers and Wholesalers Broccoli from Australia is currently sold to Tokyu, Aeon and CGC stores. Other imported broccoli is sent to the wholesale markets including Tokyo Seika Wholesale Fruit and Vegetable market and Ota Markets. United States broccoli is sold in the same retail outlets as Australian broccoli whereas Mexican and Chinese broccoli tend to be sold to the food service sector. According to CGC Australian broccoli needs to identify a point of difference from United States broccoli. CGC reported imported 1-2 containers of USA broccoli a week and selling 300 boxes of Australian broccoli a week. Union Corporation are presently the only importer of Australian broccoli however several other importers reported they are interested in importing Australian broccoli.
Storage, re-packing and re-icing
The broccoli is then transported to the warehouse of the importer where it can be stored for upto 4 weeks. At the warehouse the broccoli is re-iced and the wax cartons are slotted into Styrofoam boxes which are then sent to retailers.
18
RETAIL PICTURES
Store: Aeon Price: 128 yen (1.61 AUD) Origin: Australia
Store: Greengrocer Yaoichi Price: 198 yen (2.50 AUD) Origin: Japan
Store: Tokyu Store Price: 198 yen (2.50 AUD) Origin: United States of America
19
Store: Life Supermarket Price: - 258 yen (3.24 AUD) Origin: United States of America
Store: Life supermarket Price: 358 yen (4.52 AUD) Origin: United States of America
Store: Precce supermarket Price: 298 yen (3.75 AUD) Origin: United States of America
20
Store: Life supermarket Price: 158 yen (1.99 AUD) Origin: Japan
21
REFERENCES
Sources Used
Free Trade Agreement Portal 2016, Sweet Corn Tariffs: Export from Australia to Japan. URL: Free trade agreement portal
MICOR 2016, Manual of Importing Country Requirements: Japan, Vegetables. URL:
Manual of Importing Country Requirements: Japan, Vegetables
Data Used
Australian Bureau of Statistics 2014, 7121.0 Agricultural Commodities, Australia, 2007-2012
Australian Bureau of Statistics 2015, Agricultural Commodities, Australia, 2013-14
Australian Bureau of Statistics 2016, ABS 5368.0 International Merchandise Exports, Australia – information consultancy subscription service, unpublished data.
URL: Trade Statistics of Japan
MAFF 2015, the 89th Statistical Yearbook of Ministry of Agriculture, Forestry and Fisheries (2013-
2014): IV. Crops.
URL: Ministry of Agriculture, Forestry and Fisheries
MAFF 2015, the 89th Statistical Yearbook of Ministry of Agriculture, Forestry and Fisheries (2013-
2014): XV. 6. Food Consumption.
URL: THE 89TH STATISTICAL YEARBOOK OF MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES
