Try telling a farmer in Fukushima that the earthquake and tsunami are more a consumption than a production issue and you’re likely to be met with a look of consternation, or worse. For those farmers within a close radius of the damaged nuclear plant forced to abandon their land due to radiation contamination, this is a very real production issue. Even those farmers further afield who still have their land are counting the cost of ravaged crops and/or a radiation-stained image.
Yet despite the significant damage to production in the affected areas, we have not yet seen any real supply shortages in Japan’s domestic market. Rather the reverberations have been felt more at the consumer end. While these effects remain unclear, produce consumption has been dented. The weak economy and concern about the future have led many consumers to rein in spending, while the food service sector has taken a big hit with the cancellation of celebratory events and the general spirit of “jishuku” or self-restraint.
On a more complex level is the consumer reaction to the radiation contamination of some produce grown around the plant. One of the big questions is whether this nuclear issue will challenge consumers’ traditional view of imported produce as being inferior to domestic produce in terms of quality and food safety.
Consumers have a vital role to play, not only in reviving the farmers’ fortunes, but also in the recovery of the nation and its economy. After the initial panic, many people now seem torn between a desire to support the farmers by buying produce grown near the power plant, and nagging concerns about radiation. These fears could well blow over in time, but the broader issue in the Japanese market of declining fruit consumption shows no sign of fading.
Indeed, there’s a need for everyone in the supply chain to look at how they can lift consumption in Japan. Retailers must steer away from misguided low-price strategies to promote quality, value and range. Producers need to develop varieties and products that cater to changing consumer tastes. Marketers must boost the appeal of their products to younger generations.
Above all, sectors must work together to grow the size of the pie rather than squabbling over the crumbs. This means fighting the curve of a declining population and a deflationary economy, but history shows that growth can be achieved, and premiums can be earned, in this discerning market by offering a better product and/or adding value to it.
