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Oilseed Policies in Japan

By United States, Tetsuo Hamamoto, John Dyck and Jim Stout


Japan’s oilseed sector is divided into two main components: 1) a large oilseed-crushing industry that produces vegetable oil and oilseed meal, and 2) industries using oilseeds for food, without crushing them for oil. In general, the oilseed-crushing industry is protected by tariffs on vegetable oil at the border, but receives no domestic subsidies. Oilseed production for food, in contrast, generally has no border protection but receives domestic subsidies. Japan’s policies support soybean producer incomes by paying the difference between market prices and higher target prices that reflect costs of production in Japan. Farmers who plant soybeans on fields diverted from rice production receive additional subsidies. In recent years, soybean production has grown in response to the large incentives offered by these policies. Tariffs on soy and canola oil favor crushing of oilseeds in Japan, at the expense of vegetable oil consumers. Removal of the tariffs would lead to greater imports of oil and meal into Japan, while imports of oilseeds for crushing would fall

Topics: Japan, oilseeds, canola, soybean, rapeseed, peanut, vegetable oils, oilseed meals, policies, domestic support, tariffs, trade, trade liberalization. Acknowledgments The authors gratefully acknowledge the reviews of Mark Ash, Erik Dohlman, Linwood
Year: 2002
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