Most industries in Japan are perceived to be resilient, dynamic and competitive in the global marketplace, however, agriculture is considered an exception. Japan’s agricultural sector is highly subsidised and protected, with crop yields among the highest in the world. While the country is self-sufficient in rice production, Japan is the second-largest agricultural product importer in the world (after the US). The country imported almost $60 billion of agricultural commodities in 2013, accounting for nearly 60 per cent of its total food consumption (Yutaka, 2013). However, crop production is fundamental to Japan’s economy, despite only having 11 per cent of arable land. Since World War II, innovative methods have been effectively integrated …show more content…
Although the sector provides only 2.3 per cent of GDP, its weakening value is not the result of a decline in output but rather the progression in manufacturing and service-based sectors of the economy. More than two thirds of all Australian agricultural production is exported. While graphically, Australia has an abundance of land, only 6 per cent of Australia’s 400 million hectares of agricultural acreage has sufficient rainfall adequate for yearly cropping (Keogh, 2016). Water availability is also a limiting factor for expansion however; this in turn has allowed Australian farmers to become more innovative. This has developed the nation’s comparative advantage of low input, rain-fed cropping systems. Therefore, making Australian grain producers exceptionally cost competitive within the global …show more content…
Production of livestock, particularly in beef, has grown exponentially, and there is an indication that producers of fruit and vegetables have been successful in exploiting their comparative advantage to flourish in the marketplace. These products are manufactured by business-orientated farms, which are less exposed to the scale impediments faced by the rice sector due to its small sized, mostly family-run holdings. In recent years exports of these products have increased by 60 per cent and is anticipated to continue (van der Meer, 1990; p.22). Yet, many agricultural products in Japan continue to receive high levels of government regulation and