Farming in Japan focuses on crop production, so the majority of shipped agricultural chemicals were used for vegetable and upland farming as well as paddy rice. Regarding chemical fertilizers, those made from ammonia had the largest consumption volume, followed by nitric acid. Japan not only depends on imports for materials to produce chemical fertilizer domestically but also relies on fertilizer imports overall, as the demand continuously exceeds the domestic fertilizer production. In 2021, the import value of fertilizer to Japan stood at over 98 billion Japanese yen, with China being by far the largest supplier.
In recent years, the demand for sustainable foods among Japanese consumers has been growing, as indicated by the steadily increasing production volume of certified organic produce. However, organic farming is still a minor industry within the Japanese agricultural sector. The rainy season in early summer brings heavy rain and floods, challenging sustainable agriculture, while the hot and humid climate during summer accelerates weed growth and insect propagation. To counteract the spread of weeds and insects, chemical fertilizers are usually employed. However, overuse of chemical fertilizers may boost plant productivity initially but negatively impacts soil health in the long run as it contributes to soil acidification, alters the pH of the soil, and can even lead to the release of greenhouse gases.
Increasing fertilizer prices challenge the farming industry
In 2022, the price of chemical fertilizers that the National Federation of Agricultural Cooperative Associations (Zen-Noh) sells to regional member cooperatives increased significantly. Reasons for the price hike were decreased shipments of fertilizer ingredients from Russia, Belarus, and Ukraine, increased fuel prices, and therefore higher transportation costs, as well as a weaker Japanese yen on the foreign exchange market. Since Japan is dependent on imports for fertilizer ingredients, the prices for chemical fertilizers are likely to remain high for the foreseeable future. Furthermore, since farmers need to cover costs, this issue may lead to either an increase in food prices or a reduction in the overall agricultural production volume.Further challenges and trends in the farming industry
The Japanese agricultural sector only accounts for slightly over one percent of the country's GDP since merely around 20 percent of Japanese land is suitable for cultivation. Another challenge for the sector is the aging workforce, as the average age of farmers stood at close to 68 years in 2020. Since the work is physically demanding and barely profitable, only few young people are willing to take over their parents' farms or enter the sector as newcomers. Consequently, the number of commercial farm households keeps declining.In recent years, the demand for sustainable foods among Japanese consumers has been growing, as indicated by the steadily increasing production volume of certified organic produce. However, organic farming is still a minor industry within the Japanese agricultural sector. The rainy season in early summer brings heavy rain and floods, challenging sustainable agriculture, while the hot and humid climate during summer accelerates weed growth and insect propagation. To counteract the spread of weeds and insects, chemical fertilizers are usually employed. However, overuse of chemical fertilizers may boost plant productivity initially but negatively impacts soil health in the long run as it contributes to soil acidification, alters the pH of the soil, and can even lead to the release of greenhouse gases.