Japan: Determinants of Wheat Import Demand

This paper describes trends in Japanese wheat production, consumption, and trade. It also describes pricing policies, the marketing systems for domestic and imported wheat, and the milling and baking industries. The authors interviewed officials from the Food Agency--the sole wheat-buying authority, representatives of the Flour Millers Association, and personnel of Japan's four largest flour milling companies to find out the major factors affecting wheat purchase decisions. Survey questions focused on grain quality issues, particularly dockage. The authors concluded that under the existing state-trading system, cleaner (that is, lower dockage) U.S. wheat probably would not lead to an increase in either U.S. export volume or share of the Japanese market