Investigation of Commodity Food Standards and Food ...

1 - 1 - FY2011 Financial Supports for Promoting the Sixth Industry in Agriculture, Forestry and fisheries and Rural Areas Creation and Promotion of the Sixth Industry for Pioneering the Future Overseas Business Support Project for Japanese Food Industry in East Asia Investigation of Commodity Food Standards and Food Additives in Asia III Reported by : Hiroaki Hamano, International Life Sciences Institute (ILSI Japan) Investigation Ryoichi Akahoshi (Yakult Honsha Co., Ltd.) Collaborator : Yumi Asada (Unilever Japan Co.) Hiroshi Iwamoto (Morinaga Milk Industry Co., Ltd.) Youichiro Umeki (Danisco Japan Co.)

2 Toshihisa Ohta (Yakult Honsha Co., Ltd.) Hiromi Ohta (Suntory Wellness Ltd.) Yoko Ogiwara (Ajinomoto Co., Inc. ASEAN Regional HQs) Satoru Kasai (Nihon Kraft Foods Limited) Kiyohisa Kaneko (Coca-Cola (Japan) Co., Ltd.) Kaori Kusano (Kirin Group Office Company, Ltd.) Yoshiharu Kuma (Kuma Consulting Engineer Office) Masanori Kohmura (Ajinomoto Co., Inc.) Yukio Suzuki (Schiff's Japan) Fumiko Sekiya (Takasago International Co.) Tomoko Takahashi (Nestle Japan Ltd.) Hisahiro Tatewaki (Kirin Holdings Company, Ltd.) Hidekazu Hosono (Suntory Business Expert Ltd.) Kensuke Watanabe (Suntory Business Expert Ltd.) Ryuji Yamaguchi (ILSI Japan) Hisami Shinohara (ILSI Japan) Shuji Iwata (ILSI Japan) Kazuo Sueki (ILSI Japan) ILSI Korea ILSI Focal Point in China ILSI Southeast Asia Region 1.

3 Purpose of the Investigation In order to strengthen management practices and international competitiveness of Japanese food industry that is facing quantitative saturation and maturity in domestic market, it is necessary to address developing business in East Asian - 2 - regions where attractive market is forming due to increasing population and dynamically growing economy. In the past, Japanese food industry has been reluctant to develop new business in East Asia due to lack of information and understanding on food Standards , methods of analysis, and conditions for use of food additives in the countries.

4 The information including consistency with international Standards such as Codex Standards should be compiled on database. Providing these information enable Japanese food industry to start and promote new business or facilitate smooth business in East Asian regions. This Investigation aimed to encourage Japanese food industry to enter into the East Asian market and to enable to start new business there, by using results of the Investigation discussed at a workshop, training courses and/or individual consulting sessions held in Japan or in such East Asian countries, and by disseminating those results on the ILSI Japan website.

5 2. Outline of the Investigation In order to expand distribution of foods and food materials in East Asian region according to MAFF (Ministry of Agriculture, Forestry and fisheries )'s "East Asian Food Industry Revitalization Strategy", product Standards , methods of analysis, and conditions for use of food additives for foods and food materials are required to be standardized or harmonized in the Region. This project intends to investigate the product Standards , methods of analysis, and conditions for use of food additives on main foods and food materials in major countries in the Region and to contribute to the promotion and easier business developments of Japanese food industries and those in East Asian countries by means of exchanging and sharing information and dialogues on procedures for quality control and measures for resources and environments in the Region.

6 This Investigation was conducted with the help of specialists in the countries surveyed. The results of the Investigation were discussed at the International Conference for Sharing Information on Food Standards in Asia held at Hotel Mulia Senayan in Jakarta in Indonesia on February 21, Tuesday, 2012. The Conference was attended by total 127 participants from 9 ASEAN countries (Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam), plus Australia, China, Korea, Japan, UK, and USA, from those Governments as well as food industries. The interests of the administrators and food industries in harmonization of the Standards for foods and agricultural products in the ASEAN countries were very high and the topics were actively discussed.

7 - 3 - Further, the Investigation included in this year general information on Halal , and preliminary survey on the Indian market in addition to the previous Investigation on Codex, Korea, China and ASEAN countries, such as Malaysia, Singapore, Philippines, Indonesia, Thailand, and Vietnam, and preliminary study for preparation for the Database of the information collected. Countries covered by the Investigation In the light of marketability (including population), business activities of Japanese companies possessing overseas subsidiaries and market potential in East Asian countries, we selected 5 countries in the FY2009 project; the Republic of Korea, the People's Republic of China, Malaysia, Singapore, and the Philippines.

8 In FY2010, we added 3 countries; Indonesia, Thailand, and Vietnam, and in the FY2011 project, we examined the possibility to further expanded to India market. Food(s) covered by the Investigation When designing the Investigation program, the first pilot study covered instant noodles, carbonated drinks and prepared frozen foods which were considered to be relatively common in the region for the FY2009 project. Further, the information of milk was also collected for reference in FY2010. In the FY2011 project, related regulatory framework and conditions for use of food additives in target countries, and general information on Halal were added and investigated.

9 Methods of the Investigation This project was conducted by International Life Sciences Institute (ILSI Japan) with cooperation of ILSI's international network, namely ILSI Korea, ILSI Focal Point in China and ILSI Southeast Asia Region (ASEAN countries). Practically, the Investigation was conducted under the following procedures: (1) ILSI Japan determined survey items and target countries, and designed and prepared Investigation forms. (2) ILSI Japan sent the Investigation program and forms to ILSI branch offices concerned in the target countries. Local meetings were held as required and the Investigation forms were modified according to conditions in the target countries.

10 (3) ILSI branch offices in the target countries filled the Investigation results into the forms in English and prepared the Investigation report in each target country. (4) ILSI Japan compiled and analyzed the data filled, and translated into Japanese if needed. - 4 - (5) Investigators in this project extracted the issues for standardization and harmonization of Commodity food Standards and conditions for use of food additives. (6) ILSI Japan convened an International Conference together with the persons from relevant Government Agencies, Experts in the Region, participants from Japanese companies to share and exchange the results.