Marketing Bulletin, 1999, 10, 24-37, Article 3 Page 1 of 11 http://marketing-bulletin.massey.ac.nz The Japanese Market for Organic Fruit and Vegetables Philip Gendall, Kerry Betteridge, and Bill Bailey In 1998, New Zealand organic produce exports reached $29 million, a 45% increase over the figure for the previous year. This rapid increase was a reflection of expanding world-wide demand for organic produce, driven by increasing consumer interest in more healthy food and concerns about the sustainability of conventional agricultural production. Japan is now New Zealand's largest organic export market, consuming 46% of organic exports. This paper reports the results of a study conducted in 1997 of Japanese consumers' awareness and consumption of organic fruit and vegetables, and their attitudes towards organic produce, food imports in general, and New Zealand as a supplier of organic fruit and vegetables. The study concludes that there is continued potential in Japan for New Zealand organic fruit and vegetables. However, New Zealand organic exporters must emphasise the safety of their product, and ensure that certification labelling and explanations are clear and comprehensive. The healthiness, taste, and freshness of the produce are also important points to emphasise in packaging or promotional materials. Keywords: Japanese market, organic fruit, vegetables Introduction In the last decade much attention has been placed on sustainable and environmentally sound farming practice and on the international market opportunities for New Zealand produce grown in a sustainable way. Much of this attention has focused on organic farming, its viability in New Zealand, and the market potential for organic produce in Japan, the United States, and Europe. One reason for this interest in organic farming is that many consumers and producers are concerned about negative impacts of conventional farming on physical health and safety, and on the environment. A further reason is that many producers and processors see this environmental concern as a potential market opportunity (Tregear, Dent, and McGregor 1994). Though typically up to 30% less productive than conventional farming, organic farming is less capital intensive, and its produce is often claimed to be safer, better tasting, and more nutritious than its conventional counterpart. Conversely, organically-grown produce has the disadvantage of being irregular in shape, small in size, more often afflicted by blemishes and insects, as well as being relatively more expensive to purchase than conventionally grown produce (Powell 1995; White 1995). While the local market for organic food remains small, New Zealand companies were reporting annual organic export sales of $NZ29 million by June 1998. This represented a 45% increase over exports in the previous year and an increase of more than 250% in two years. However, this 1998 figure represents only 0.1% of the value of all exports, and 0.2% of the value of agricultural exports. Organic kiwifruit represents the largest single category of organic exports at 55%. Fresh organic squash and onions represent 22%, and processed foods and honey make up 10% each. Japan is New Zealand's largest market, accounting for 46% of total organic export sales; Europe accounts for 28%, and the United States, 16%. Despite the importance of the Japanese market, relatively little is known or understood about Japanese consumers' attitudes to organic produce or their purchasing behaviour. Thus the