Japan focused on fruit prices

Long seen as the best market for high value fresh produce in Asia, consumers in Japan are becoming increasingly price conscious as the economy there continues to stumble.

Overall market conditions in Japan have apparently not improved much in the past 12 months, a contrast to many markets in the region with economies and consumption levels already climbing uphill.

“Consumer spending has still been decreasing,” said Masahiro Onishi of importer AIC Inc, a wholly-owned subsidiary of Japanese supermarket chain AEON.

“Japan has not yet got over its deflation period. Consumer spending will `only` recover after wage levels recover, which will take a long time.”

Total household fruit spending was ¥2,395 in February, according to Japan’s Ministry of Internal Affairs and Communications Statistics Bureau, the lowest February level in the last decade and contrasting with ¥2,429 the same time last year, and ¥2,523 in February 2008.

Highlighting the increasing price focus of consumers, that spending level was on an average of 7.11kg per household in February, a relatively good figure compared to the last few years.

But the average price of that fruit was only ¥337 per kg, the second lowest February level in the last ten years.

The one product highlight continues to be bananas; while last year’s morning banana diet craze has well and truly finished, it has left the industry a legacy.

“The banana diet craze is finished, but it raised the overall banana consumption for sure,” Mr Onishi told Fruitnet.com.

Household spending on bananas is still at reasonable levels, according to the Statistics Bureau; ¥319 in February, the second highest year-on-year level in a decade. Average quantity was 1.45kg per month, at ¥220 per kg, both fair figures albeit lower than this time last year.

How long that effect will linger is unsure; some in the industry believe it is already waning.

“Usually the demand season starts from March, but demand is not so good now,” Hirotaka Yoshida of importer Unifrutti Japan told Fruitnet.com. “Although spring is near, the banana market hasn’t caught up yet. The banana diet craze increased consumption, but it's over now.”

Mr Yoshida explained price had also become the most important aspect for consumers buying bananas, followed by quality, origin and brand.