Japan’s agriculture ministry is preparing to start negotiations with the 11 other members of the Trans-Pacific Partnership (TPP) aimed at boosting its farm exports, reports Nikkei Asian Review.
Among its first priorities, the Japanese Ministry of Agriculture, Forestry and Fisheries plans to start talks as early as this month with Malaysia, focusing on quarantine procedures and other conditions for exporting Japanese chicken. Under the TPP free trade agreement, Malaysia will end a 20 percent import tariff on chicken immediately after the pact takes effect.
The Japanese government plans to progress the talks with other TPP members with the view to raising its farm exports by 60 percent to JPY1.0 trillion (US$8.0 billion) per year by 2020.
Japan, the U.S. and 10 other Pacific Rim countries reached broad agreement over the TPP deal in early October of 2015 but details over specific export terms are still to be finalized. Import tariffs on 98 percent of Japanese agricultural exports will eventually be eliminated.
McDonald’s Japan is forecasting a net loss of JPY17 billion (US$156.7 million), largely as a result of a lack of consumer confidence after a food safety scandal hit the quick service restaurant chain in July. This marks the first net loss for McDonald’s Japan in 11 years.
The loss of business for McDonald’s Japan came after supplier Husi Food Co., a subsidiary of the U.S. based OSI Group, took expired poultry and beef, then repackaged it with false expiration dates to a number of restaurant customers, including McDonald’s businesses in Japan and China. McDonald’s officials were unaware of what the Husi Food workers had done.
The food safety scandal already has had a negative impact on McDonald’s global sales, with the company reporting its August sales slumping 3.7 percent globally and its sales for the Asia/Pacific, Middle East and Africa (APMEA) region declining 14.5 percent.
Sara Casanova, CEO of McDonald’s Japan, said at a media briefing the company is making efforts to restore consumer confidence as quickly as possible.
“Customers have expressed a lack of confidence in our food quality, and I take responsibility for that,” she said. “It’s our intention to try to turn this business around as fast as we can.”
OSI Group has since apologized for the scandal, closed the plant in question and restructured business operations in Shanghai, where Husi was headquartered.
The loss of business for McDonald’s Japan came after supplier Husi Food Co., a subsidiary of the U.S. based OSI Group, took expired poultry and beef, then repackaged it with false expiration dates to a number of restaurant customers, including McDonald’s businesses in Japan and China. McDonald’s officials were unaware of what the Husi Food workers had done.
The food safety scandal already has had a negative impact on McDonald’s global sales, with the company reporting its August sales slumping 3.7 percent globally and its sales for the Asia/Pacific, Middle East and Africa (APMEA) region declining 14.5 percent.
Sara Casanova, CEO of McDonald’s Japan, said at a media briefing the company is making efforts to restore consumer confidence as quickly as possible.
“Customers have expressed a lack of confidence in our food quality, and I take responsibility for that,” she said. “It’s our intention to try to turn this business around as fast as we can.”
OSI Group has since apologized for the scandal, closed the plant in question and restructured business operations in Shanghai, where Husi was headquartered.

