Coarse Grain S&D
- Roughly 70 percent of the total corn demand in Japan (15.6 mmt) comes from the feed sector, 20 percent from starch manufacturers and 10 percent from other food use sectors, including manufacturers of corn grits and corn foods.
- Japan has maintained total feed grain imports in the 18.0 to 20.0 mmt range over the past ten years, making it the largest U.S. feed grain export market.
- DDGS to Japan gained 24% from 2010 (229 tmt).
- The Japanese dry milling sector is the largest end user of hard endosperm corn. The U.S. market share was reported at 100 percent in 2010.
- Population: 126 million
- World’s third largest economy (GDP of $4.31 trillion, surpassed by China in 2010).
- GDP growth: 3.9%
- Very high per capita purchasing power.
- Consumers moving away from cereal grains to diets higher in animal protein (outside of fish).
Market Growth Potential
- Negative population growth (-0.28%) and aging.
- One-third of population will be over the age of 64 by 2030.
- Will always be a net importer of food/agricultural products.
- Domestic agriculture nearing max capacity.
- Farm land competing with housing.
- Domestic grain production near capacity.
- Low economic and population growth will limit market’s growth potential.