Towards the end of September, food company representatives, buyers, certification agencies and consumers filled Tokyo’s Big Site exhibition centre for the fourth annual BioFach Japan, a trade show focused on organic products. From unprocessed agricultural products to ready-to-eat foods, Bruce Hoggard was there to sample the exhibition’s delights.
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From 21 to 23 September 2004, Tokyo’s Big Site, the international exhibition centre located in Tokyo Bay Ariake, played host to the Fourth Annual BioFach Japan. The West Exhibition Hall was, once again, divided into the domestic and international exhibitors, a divide that truly represents the Japanese mindset of there being only two choices – you are or you are not Japanese. IFOAM (International Federation of Organic Agriculture Movements), as usual, had a visible presence at the show and remained one of the show’s major patrons.
BioFach Japan is patterned after the very successful BioFach held in Nurnberg, Germany each February. The Japanese Show is organised by Nurnberg Global Fairs, a subsidiary of the Nurnberg Messe, and Nihon Keizai Shimbun, Inc. (Nikkei) of Japan. The show has moved dates several times. It was originally in December the first two years, then moved to October in 2003, a terrible date given the power of rival trade fair Anuga and this year’s September date was equally as challenging. The show has been trying, though not as successfully as anticipated, to become the focal point for certified organic products throughout Asia and Japan.
As in Germany, the organic products are not limited to food and beverages. An array of exhibitors covered both International and Japanese organic product areas including; household utensils, detergents and cleaning agents; cosmetics and accessories; remedies (natural remedies, extracts and essences); textiles and clothing; toys and paper; marketing supplies (packaging, decoration and marketing); agricultural supplies and processing and finally services. The one product that always amazes me at these organic and health driven shows is the organic cigarette, a seemingly contradictory product in today’s smoke-free and healthy world.
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By GlobalDataThe first two days of the show were for trade visitors, while the last day, Thursday, was also open to the general public. During the final day the Japanese side of the hall was definitely the busiest as the local Japanese people came to taste and savour the food they were most comfortable with and knowledgeable about. The difference in the sound level in the Japanese side of the hall was very noticeable as it rose dramatically with the influx of the public.
For the 2004 show, organisers had expected the number of visitors to rise, but I can only surmise at this point that the number decreased given the poor crowds at certain times during each day. There were, however, 156 companies and organisations from 20 countries, so a healthy increase in exhibitors from 2003. However, the most visible countries were those noticeable because of their absence. There were no companies from the United States, Canada or the UK, with this year’s largest contingents coming from Argentina (23), followed by Germany (15), Spain (12) and Chile (11).
One of several very big disappointments for visitors and companies, expressed by numerous people I talked with, as well as myself, was the overpowering number of Government, certification/accreditation agencies and organisational booths at the show. The question asked several times was: “Where are the businesses?” The show would have been more valuable and rewarding to the visitors if there had been more businesses involved in the organic industry present.
Other disappointments, talking with several German and Sri Lankan people with booths at the show, were the small crowds in attendance, the number of unqualified visitors on the Thursday in comparison to real business people, and finally the fewer number of booths at the show in comparison to Nurnberg. Several comments after the three days of the show also included, “close the show permanently” and “we will not return – ever”. However, in fairness to the organisers, several companies said they enjoyed the show and would return.
Although exhibiting offers an excellent opportunity to be present in this major market, BioFach in the eyes of many fell short of the mark. However, some exhibitors were also to blame for their own demise and slow traffic flow to their booth. It was amazing to still see international booths with no Japanese people or translators working in them. The booths were staffed with only the people working from the foreign company. This applied to companies from both Latin America and Europe. This was a fundamental flaw at several booths as they expected the Japanese people to be able to converse in English. This unfortunately is a major mistake made each year by several foreign companies. They do not realise English is not readily used and the average Japanese individual does not wish to embarrass themselves by making a mistake while talking or not understanding what is said. It was a long show for several companies as they sat there and watched the Japanese crowds wander by their booth.
Welcome to Japan
Given the differences in Japanese culture and business dealing when compared to Europe and North America, understanding the country, its business and its people can increase a company’s ability to do business successfully in Japan.
Each day, 6 million of the more than 13 million people living in Tokyo travel through its main railway station, Tokyo Station, located just on the north edge of the Ginza. This is an amazing sight and you truly experience the meaning and feel of the Japanese word “GYU” (squeezed) as you are pushed and jammed like sardines into the trains by men wearing white gloves. In the evening, several areas including the Ginza, Rappongi, Shibuya and Shinjuku come alive as people enjoy the lively nightlife and fabulous selections of foods and entertainment.
Japan is home to more than 126 million people and represents the third-largest market for organic products, after Europe and the United States respectively. Although still fighting with slow overall economic growth, Japan remains the largest consumer market for organic and natural products in Asia. This is, in part, a result of several factors characterising the average Japanese consumer and market.
The first characteristic is that Japanese people traditionally tend to have close ties to nature. The second and third factors contributing to the continued growth of the organic industry are that food is viewed as a cultural asset in Japan and Japan is the largest importer of food in the world. Finally, as with many developed countries, the Japanese have a growing health consciousness and safety issue with food. This is constantly reinforced by the continuing food related scares experienced throughout the world. This was most noticeable with the recent BSE problems in Canada and the United States (and Japan) and Foot and Mouth in Korea.
Although the populace is slowly recognizing “value”, another unique characteristic of the Japanese market is its ability to still generate a demand for high priced consumer goods. Nevertheless, these must be high quality goods supported by high levels of service. For this combination, the market is still willing to pay higher prices when delivered in a timely manner.
Consumers in Japan are very sensitive to health and allergy concerns making organic products in strong demand. Preferences are for vegetarian food, Soya products, fish or very high quality meats with marbling. Other highly regarded products in Japan where organic versions are gaining success are drinks like green tea, wine and beer, and remedies and natural personal care products. In addition, according to IFOAM Japan, the share of processed organic products in Japan continues to rise, an indication that greater amounts of organic raw materials are being imported. However, it is crucial that companies know which international certifiers have access to the Japanese market.
Organic news from the show
The initial conversion difficulties (2002) to the official Japanese “JAS” label for domestic organic products and recognition of imported certified organic products have been largely overcome. This transition resulted in the organic industry drastically shrinking from US$2.5bn to only $200m. One of the factors still contributing to the lower figure is that only a relatively small group of consumers are familiar with the “new” JAS label, therefore organic growth is expected to accelerate as the education process takes hold and people look for the label and recognition.
In its on-going battle to ensure the reliability and safety of organic products and to enhance the JAS accreditation, the Japanese government is continuing to target organic and natural food retailers and producers. Since April, and a discussion at the show, the government with support from the industry has been scrutinising the accuracy of product labelling claims including the use of “no or limited use of agricultural chemicals”.
The newly emerging organic supplier and powerhouse is China, where no standard national regulation for organic farming and marketing has previously existed. Until recently, the individual provinces were able to set and monitor their own standards for each product. However, given the potential economic impact this sector could have to the Chinese economy, Beijing has been encouraging the creation of standards and a national accreditation system. One of the keys of the new system is the compatibility with existing laws in the United States, Europe and Japan. It will be important to avoid export problems to these countries, the main impetus of the initiative, as very little organic product is sold in China. Organic products imported into China will also need to meet the Chinese standards.
Trade show floor
Many of the companies at the show were selling commodities and raw materials ranging from spices from Sri Lanka to various versions of olive oil from the Mediterranean. There were a limited number of value-added processors in comparison to other BioFach shows.
One of the companies from Ecuador, Expalsa, was at the show to promote one of my favourite foods, shrimp – in this case the L.vannamei variety. Already established in several international markets it will face strong competition in the Japanese market from several Asian competitors from Thailand and Vietnam.
Being a major fan of shrimp it was encouraging finding an organic producer certified by Bio Suisse Naturland and QCS-recognised and reputable certifiers. The peeled shrimp were delicious and succulent, a product that would add the “finishing touch” to any dinner party whether they be served in a chilled shrimp cocktail glass or placed on the table in a well presented shrimp ring.
In the past, before big, commercialised business realised the potential in organics, the majority of European and North American organic products and companies found their origins in humble beginnings. An individual or individuals, seeing an opportunity to live a better, healthier life style created a product to accentuate that very reality. From there, other people upon realising the great taste or benefits of the product, helped grow what may have been a very personal vision into a viable business entity. Zwergenwiese Naturkost GmbH, from Germany, was one such company that today has more than 60 products ranging from Chinese Rice and Pasta Sauce to Almond Melt.
New food product innovations
One of the newer and more unique combinations was the tomato basil spread with yoghurt. The initial reaction, especially if you do not fancy yoghurt, is to turn your nose up to the product. However, it is a very smooth product that has a wonderful taste and texture.
Throughout Asia tofu plays an integral part in many diets from a meat substitute to dessert making. Zwergenwiese’s product line of four Tofu spreads is a potentially popular item. For those who dislike tofu, there is only a minimal amount in each of the products. The curry-pineapple version, however, sends the taste buds in different directions at once. First, hit with the pineapple sweetness and then second, with the power of the curry’s hotness, it is a flavour that requires some getting used to. While the carrot cucumber tofu would seem to be more refreshing and less overpowering, it too delivers a strong, seasoned taste that may be overwhelming for some.
Nichirei Corporation is regarded as Japan’s number one producer of frozen foods and it was at the show to promote its extensive list of products. This list includes processed marine products such as octopuses, fish eggs and shrimps, processed meat products such as fried chicken, canned and retort-pouched foods such as soups and sauces and chilled foods including desserts. However, the most bizarre new product being developed just this year will be food items made from fish bones.
Right now, however, the more popular product line is the diabetic food series called the JudyBalance series which is based on the concept of “Chinese medicinal cuisine” and health drinks and is a part of Nichirei’s wellness product positioning. From a taste and quality stand-point there was no discernable difference, good or bad, from the regular food available in the market, which is a plus if you are diabetic and regulated in your dietary selections.
Spaghetti sandwiches and bamboo shoots
Fresh bread and pastries do not immediately leap to mind as a typical Japanese food, but Japan does have a thriving bakery industry, a collection of foreign franchises and local shops. In fact, a famous bread shop in Tokyo consistently draws 350 customers daily and that is just between 7.00 and 9.00 each morning.
One of the major players is Okano Food Co. Located in the Kansai region, it operates approximately 250 bakery stores in the western part of Japan. The Japanese are rivalling the European dominance in the pastry and bread world. In fact, given the great samples being given out, it was considered by some to be better French bread than the finest bakeries in Paris – which I am sure will cause major controversy in some circles. The textures, colour, aroma and taste were second to none. In addition, the cream cheese-filled sweet rolls, croissants, baguettes, and several other pastries were light and flaky. However, the spaghetti sandwiches and other Japanese creations, such as character buns, were less than desirable and would take “getting used to”.
With the many of companies at the show promoting agricultural-style, raw organic materials instead of value-added and processed foods, Tennen Sozai Co’s products were representative of many of the other products on display. Its main products, grown and processed in China and Indonesia, were shiitake mushrooms, ear mushrooms, bamboo shoots, Japanese radish, burdock (gobo) and sweet potatoes. Both the products from China and Indonesia were remarkably well defined in shape, colour and overall appearance and consistency, demonstrating the value of certification and scrutiny. Since these products are also in great demand in Japan, whether fresh, chilled, dried or frozen the price and supply are very competitive.
Mediterranean products in abundance
Chambergo, Cia de Exportación was one of the Spanish companies exhibiting at the show with value-added, processed products. It produces and markets organic delicatessen products under the brand “Hacienda Chambergo”. The company has targeted demanding consumers seeking maximum quality who take care of their health and the environment – an ambitious undertaking but one that fits Japanese perceptions and expectations.
Offering more than 20 products based on the Mediterranean diet, the principal product is Organic Extra Virgin Olive Oil, a staple product of 99% of all Mediterranean companies that export. The other product with overkill at these shows is olive, another Mediterranean staple.
From a more unique and interesting perspective, and a positive relief from boredom, the company also offers several other organic product lines. The first is canned vegetables, with the pickled cucumbers and zucchini being the better of the choices. Those products really captured the freshness and essence of what we view as being Mediterranean.
Another product line is its organic sauces and ready-to-serve dishes. With these, the company distances itself from the other over abundant and unimaginative olive oil producers. Gazpacho is a cold soup made from five vegetables, olive oil plus several other ingredients. Never one for cold soup, this was actually enjoyable. However, the suggestion of adding a boiled egg was politely but quickly refused. The other choice, giving the soup more freshness and filling it out, would be to add fresh-chopped vegetables from the garden or store.
Their other interesting product was the zucchini paste. With a unique taste all of its own, it was best served and eaten warmed. Although it was recommended as a main course, some people may prefer it, because of its taste and texture, as an accompaniment on the side with meat or fish – but this becomes a personal preference based on individual likes and dislikes.
Like so many of the different foods introduced at these shows and on store shelves, it becomes a matter of what we are accustomed to with regards to appearance, smell, texture and feel, and taste. The adventure and ultimate fun with food is to experiment and try new food items, broadening the pleasure experienced from having a vast selection of food choices.
Notes for the future
As for the BioFach Japan Trade Show, the organisers have decided next year’s dates will remain in September, from the 21 to 23. At least these dates keep it from competing with ANUGA but it does potentially place it in competition with FHM and FHC. Although these are more conventional food shows and not organic specific, all shows are beginning to showcase organic sections.
Because of the growing show competition the BioFach organisers need to seriously re-evaluate the show’s direction and impact in the market. They need to make major improvements. The first is in the area of international as well as local representation on the show floor. More “real” organic businesses need to have a presence and cover more countries. Second, more people are needed through the doors – both qualified buyers as well as the public so they become more educated and aware of the organic products that exist in the market. Third, the organisers should consider having people on the show floor monitoring the mood of the exhibitors so the “bad news” does not come as a total surprise. With the right approach, BioFach Japan could establish the market presences it is seeking and grow in prominence to match the BioFach show at Nurnberg.
Bruce’s next visit is SIAL hosted in Paris from 17 to 24 October. He will be covering the show as well as visiting more than 18 grocery markets and supermarkets to review the food scene within Paris.
