When Japanese Prime Minister Fumio Kishida pledged this week to bring more Gains from a weak yen that has become instead source of Because of the economic pain, he was pinning his hopes on Likes of Soichi Yoshimura, 33, and his strawberry farm north of Tokyo.
Most Japanese farmers – like a lot of others key players in The economy – be up in Arms around the yen slipping by 20% a year, inflating costs for Imported fuels and fertilizers and other production inputs.
But the possibilities are different for japan exporters of Wagyu beef, green tea, and premium fruits and vegetables, including Skyberry from Yoshimura Greenhouses that can fetch up to 800 yen ($5.50) or more Piece in supermarkets of Hong Kong, Bangkok and Singapore.
“It seems that everyone is concerned about the weak yen,” Yoshimura said. “But it’s good for our exports of Strawberry because it helps make our prices competitive in overseas markets. “
Agricultural exports were among the clutch of Sectors targeted by Kishida in a policy Speech on Monday – along with Tourism and construction of Foreign chip and battery factories in Japan – This could get a boost from the sharp drop in the yen, and offset some of The economic damage it causes caused.
“we need To maximize profits power Now that the weak yen has increased the potential of Exports,” Chief Cabinet Secretary Hirokazu Matsuno, Kishida second-in- ordered, said a government Meeting on Wednesday.
Matsuno ordered the ministers to bring forward The government goal of nearly double agricultural exports to 2 trillion yen ($13.8 billion) annually by 2025, urging government ministries to find ways of Take advantage of the weak yen to increase farmers’ profits power.
The government Aims to increase agricultural exports to 5 trillion yen by 2030, Kishida also set Target 5 trillion yen for Annual revenue from tourism, which is expected to rebound after the lifting of border restrictions related to COVID-19 on October 11.
This would still be relatively modest compared to with last year83 trillion yen in Total exports and nearly 550 trillion yen gross domestic product (GDP), but steady signs progress for Agricultural exports, totaling just 450 billion yen in 2012.
structural reorganization
This is not Japan first Go in this genre of Structural reorganization, to diversify the dominance of manufacturing economy and reviving its stagnant rural areas.
Similar efforts have emerged from Japanese policymakers since the early 2000s, including reforms proposed by former Prime Minister Shinzo Abe government in The last decade.
But the yen is so steep drop this is year to 24-year Low, resulting in a sudden increase in import-driven costHigh inflation, which seriously threatens the Japanese economy growth And the popularity of Kishida, gave new Momentum for campaign.
In Miyazaki Prefecture, southern Japan, local government Provides $5,200 in subsidies to developing farmers new farm products for Export and setup up new EXCLUSIVE FACILITIES for use in exports.
not far in Rural Saga Prefecture, located between the cities of Nagasaki and Fukuoka Prefecture government he is building a new wagyu processing plant gear up for export of Saga Beef A leading Domestic brand for European markets.
And the in Gunma Prefecture, north of Tokyo, about 40 small Companies began to export agricultural products since 2018 under the auspices of of Japan External Trade Organization, a semi- The government export promotion entity that provided expertise on Brand development, export pricing and other export-related operations.
But export-oriented farmers in Japan says the sector will need more Investing to increase productivity and produce higher-value goods, especially as the weak yen has become a double-edged sword also increases costs.
“The cost of Fertilizer and shipping materials Hideyuki Otsuki, 65, a peach farmer said: in Fukushima Prefecture north of Tokyo, who It exports its products to Thailand, Singapore, Indonesia and Hong Kong.
“that it true A weak yen helps the export of food. To maximize the positive impact, we must add more value of agricultural commodities and increase production so that more of us The meeting is over.”
