Overview of the flour marketOverview of the flour marketin Japanp

Masayuki KikawayNippon Flour Mills, Tokyo, Japan

Ｔｈｅ Ａｕｓｔrａｌｉａｎ Ｇｒａｉｎｓ Ｉｎｄｕｓｕｔｒｙ Ｃｏｎｆｅｒｅｎｃｅ,

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July 28, 2010Crown Promenade Hotel

Nippon Flour Millsppo ou s

Production of NIPPNProduction of NIPPN

Wheat flourWheat flour

Premixes

Pasta

Frozen foods

Health food products

others

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What I will speak todayWhat I will speak today

1. The recent situation of the wheat flour market in Japanmarket in Japan

2. The use of ASWN, APH in Japan , p

3. The future prospect of wheat flour market p pin Japan

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1. The recent situation of the1. The recent situation of the wheat flour market in Japan

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The Countries of origin of Wheat i t i t J (2009 FY)imports into Japan (2009 FY)

Country 1,000tons %

United States 2961 54.3

Canada 875 16.0

Australia 962 17.6 Japan 652 12 0Japan 652 12.0others 5 0.1 Total 5744 100 0

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Total 5744 100.0

Shares of Wheat by CountryShares of Wheat by Country(1980 – 2009, only for food in Japan)

3000

3500

2000

2500

3000

00to

ns)

USA

1500

2000

unt (

1,00 Canada

Australia

500

1000

Am

o Japan

0

1980 1985 1990 1995 2000 2003 2006 2008 2009

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Wheat Classes Imported to JapanWheat Classes Imported to Japan(2009 FY)

Classes 1,000 tons pctDNS NS 14% 1,348 28.1SH HRW 11.5% 852 17.7WW SW & Club 761 15 8WW SW & Club 761 15.81CW No.1 CWRS 671 14.0Durum CWAD 204 4 2Durum CWAD 204 4.2PH APH 159 3.3ASWN APW & Noodle 803 16.7others 5 0.1Total 4,803 100.0

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Uses of Wheat Flour in Japan (2008 FY)

Others10%

Industrial Use2%

BreadHouse Use

3% Bread40%

Confectionary

3%

12%

Noodles

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Noodles33%

Classification of Wheat and Flour by

Hard Wheat

Classification of Wheat and Flour by Application

CWRS Strong BreadUS HRS Flour

Roll and Bun

Semi-Hard Wheat Semi- French BreadAust PH StrongUS HRW(SH) Flour Yellow alkaline Noodle

Medium Wheat Medium Japanese NoodleASWN FlourJp.Dom

CakeCakeSoft Wheat SoftUS WW Flour Cookie

Durum Wheat Semolina PastaCWAD

Major Use Minor Use

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j

2. The use of ASWN, APH in Japan pand demands of wheat products

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Use of ASWN in JapanUse of ASWN in Japan

ASWN is used for half production of the Japanese udon noodleudon noodle

ASWN is recognized in Japan for

creamy and bright color

texture ; smooth good elasticitytexture ; smooth, good elasticity

Decrease of good characteristic for the past few years?

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Use of APH in JapanMainly for Yellow alkaline noodle

Use of APH in Japan

along with CWRS,DNS,HRW

APH is recognized in Japan for

For yellow alkaline noodle useFor yellow alkaline noodle use

bright color

good elasticity, limited deterioration in hot soup

For bread use in comparison with CWRS DNSFor bread use in comparison with CWRS, DNS

less strong gluten and less water absorption at mixing

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give a less volume of bread

3. The future prospect of wheat p pflour market in Japan

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The prospect of wheat flour market

Shrinking population in JapanShrinking population in Japan

Little or no increase in consumption

Decrease in prices

B d lit d t t bl tBad quality goods not acceptable to consumer even if less costly

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Quality attributes of foods of concern to Japanese consumers

What of the food do you regard as important? （plural choice）

100perishables

What of the food do you regard as important? （plural choice）

(%)

60

80 processed food

20

40

0

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safefresplacdelipricprodoth Extracts from

‘ Consciousness

afetyeshnessace of prodeliciousnessriceroducerhers

Consciousness investigation about food indication ‘

Government of Japan

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oductionss Government of Japan

2008

The place of production of food is important for the purchase decisionimportant for the purchase decision

The item of label to make much of at the time of the purchase

production date

The item of label to make much of at the time of the purchase.

place of production

production date

additives

raw materials

0 20 40 60 80

chemicals

%0 20 40 60 80 %

Extracts from

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‘ Consciousness investigation about food indication ’

Government of Japan 2008

Advantage of the domestic wheat

H k hi

Japanese consumers believe

Domestic = Safety Hokushin50% production of domestic wheat

Domestic = Safety

domestic wheat

M ki dditi l lMaking additional value

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Catchwords are “mochi-mochi”Catchwords are mochi mochi

“mochi-mochi” : texture of cooked rice

Japanese preferenceJapanese preference

udon noodleHokushin : major variety in Japan

suitable for Udon noodle with these texture

udon noodle

suitable for Udon noodle with these texture.

In some case, “mochi-mochi” is also used for bread and yellow alkaline noodle steamed cake

Graphics:

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Extracts from the maker's HP

Increasing awareness of foods withIncreasing awareness of foods with health benefits

Low calorie food, dietary fiber food attracting Japanese consumerattracting Japanese consumer

low-calorie instant noodle non-fried instant noodle cereal bread

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Demand for “wheaty” flavor and taste

Taste of wheat flour itself

whole grain flour

Hi h h fl l bHigher-ash flour close to bran

Wh t’ fl d t t i t t th

Whole grain udon

Wheat’ flavor and taste more important than some darkening of product

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D l t f i fl d tDevelopment of rice flour productsBread noodles and cake made from rice flourBread, noodles and cake made from rice flour

Encouragement by Japanese Government

increase in self-sufficiency of country’s food supplyconsume the current surplus of rice in Japan

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rice bread rice noodle rice flour cake

The impact of deregulation on Japanp g p

1. Change of purchase attitude

Lack information about Australian wheats

Collect information and try new Australian wheat

2. Japanese millers unsure of quality of

Australian wheat

Move towards use of more domestic wheat21

Move towards use of more domestic wheat

Changes in the purchasing ofChanges in the purchasing of imported wheatp

APH and durum

SBS t lik i t t dSBS system; like private trade

Try to purchaseTry to purchase

APH by variety or growing area

Brand new class of wheat

(ex. Durum & Soft wheat in Australia) ( )

Possibility of purchase

L i d h t i i t i22

Lower priced wheat grown in various countries

NIPPON FLOUR MILLSWhat we can as, for improving Australian wheat

Biggest using company of Australian wheat, in Japan.

Having bread, noodle and pasta factoriesg , p

Closer relationship is important with Australian breeders and researchersAustralian breeders and researchers.

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