Top Trading Connects Global Markets with Japanese Ingredients

For 11 consecutive years, Japanese food-related exports have grown, reaching JPY 1.45 trillion by 2023. A key driver of this success has been the rapid expansion of Japanese restaurants globally, which have tripled in number over the past decade. From the perspective of a trading company, how do you explain this significant rise in Japanese food exports? And why do you believe now is the ideal time for washoku to gain international prominence?

Washoku, or Japanese cuisine, is widely regarded as being very healthy. Another distinguishing feature is the variety of hot dishes it offers beyond just meat-based meals, such as ramen. In European cuisine, by contrast, hot dishes like stew are relatively rare, making washoku’s offerings unique and appealing to international audiences.

With the recent success of Japanese food exports, the Japanese government has been motivated to push these numbers even higher. This has led to more globally focused and proactive policies, such as establishing the Japan Food Product Overseas Promotion Center and increasing investment in infrastructure, overseas marketing, and human resource development. The government now aims to raise food exports to JPY 5 trillion by the end of the decade. Do you believe this target is achievable within this timeframe? If so, what steps do you think are necessary to reach the JPY 5 trillion goal?

In my personal opinion, achieving the government’s JPY 5 trillion export target will be very difficult. The main challenge lies in the limited range of products we can export due to varying regulations in different countries. For example, regulations on pesticide use in agricultural products and additives differ widely. Recently, the US banned the use of a certain red food dye that is still commonly used in Japan. Packaging is another area heavily influenced by regulations. Japanese standards, particularly for packaging, tend to be very different to those in countries like those in Europe where restrictions are becoming more stringent, which further restricts what can be exported. These regulatory hurdles significantly limit the variety of products Japan can export, making the target extremely challenging.

Given these constraints, many suggest focusing on high-end products for export, such as wagyu beef. While this is a viable strategy, it raises another issue: over-exporting high-end products could deplete supplies for the domestic market. For instance, Wagyu is known for its premium quality, which is reflected in its high price. However, if we over-export given the current limited supply, it could drive domestic prices up excessively..

Another challenge lies in the structure of Japan’s agricultural industry, which is predominantly composed of small, family-run farms rather than large corporations. Take Sansho (Japanese pepper), for example, which is considered a high-end seasoning. Harvesting this crop is a long-term commitment—the plant begins producing fruit five years after planting and has a productive lifecycle of just 10 years afterward. This long cultivation process, combined with an aging farming population and a lack of successors to inherit farms, has led to a significant decline in Japanese pepper harvests.

These challenges highlight the complexity of scaling Japanese food exports and explain why I believe reaching JPY 5 trillion will be extremely difficult within the current framework.

You’ve highlighted an important issue for Japan: many farmers and food-related companies are small, family-run businesses, which reflects a broader trend across Japanese industries, where 99% of companies are SMEs. What role do you believe trading companies can play in helping these smaller Japanese food businesses expand globally?

A key aspect of supporting SMEs is maintaining consistent purchases of their products each year. Beyond that, we strive to grow the volume of these purchases, sometimes by as much as 10% annually. Equally important is fostering open communication with suppliers, ensuring they understand how their products are being used and the demographics enjoying them. This feedback helps SMEs feel proud of their products and the role they play in the market.

We have many examples that highlight this approach. One instance involved a company we met through a business session organized by a prefectural government. At the time, the company was only selling its products to roadside stations and farmer’s markets, which we felt limited its potential. We proposed the idea of expanding their reach to international markets and encouraged them to use the experience of selling overseas to enhance their domestic sales activities.

Today, that company can proudly say its products are featured in prestigious hotels in Paris. While I can’t disclose the company’s name, the product was a citrus juice. Their overseas expansion not only boosted their brand but also enabled them to scale domestically. To meet the growing demand, they built a larger factory and hired more staff, achieving significant growth as a result.

Could you elaborate on the opportunities you see for the growth of your export business? What specific strategies are you implementing to expand your presence in international markets?

Firstly, to clarify, our export business focuses on Japanese ingredients rather than finished Japanese dishes. By ingredients, I mean staples such as miso, soy sauce, or okara (a soy pulp used in tofu production). We recognize that Japanese dishes often evolve when they are introduced to foreign countries, as seen with creations like the California roll. However, this evolution can sometimes diminish the need for authentic Japanese dishes—a trend we aim to counter. Instead, we want to ensure that Japanese ingredients remain valued and essential, not only for preparing traditional dishes but also for creating unique local dishes that incorporate these elements.

For our exports to European countries, we work through a French agency. With this approach, we don’t actively promote our products to Japanese restaurants, as they often already employ Japanese chefs who may have preferred ingredients. Additionally, we want to avoid competing solely on price, as this could reduce the perceived value of Japanese ingredients as well as the total export value of Japan..

Our strategy is to target restaurants and chefs who are less familiar with Japanese cuisine. By introducing them to our ingredients, we aim to inspire them to combine Japanese elements with local culinary traditions, creating something new and unique. This approach not only expands awareness of Japanese ingredients but also leads to a more sustainable and positive long-term outcome for our business.

Are there specific food groupings or categories that you are particularly interested in targeting for growth or expansion?

There is significant potential in fermented foods, and our goal is to adapt these ingredients so they can be easily incorporated into local cuisines abroad. To achieve this, we are actively working on a range of product development projects.

For example, at sushi restaurants we often see foreign customers mix wasabi into soy sauce. This inspired us to develop a soy sauce infused with wasabi. However, one challenge we faced was that the flavor of wasabi tends to dissipate quickly. Our efforts have focused on preserving the wasabi flavor in the soy sauce over a longer period.

Another development we are working on is a sweetened sauce designed for dango, a traditional Japanese confectionery that is tailored for foreign markets. These developments aim to adapt Japanese flavors in ways that will appeal to international consumers.

We are also collaborating with a miso manufacturer in Kyoto on innovative flavors such as vanilla, cacao, and matcha miso, specifically designed for export. These flavors are unconventional by Japanese standards, but they were inspired by conversations with French chefs who suggested, for instance, that vanilla-flavored miso pairs beautifully with seafood.      

At Top Trading, our focus is on tailoring these flavors to make them both accessible and appealing in foreign markets while maintaining their unique Japanese essence.

Switching to your import business, one of your standout offerings is lamb and mutton sourced from renowned regions such as Australia, the UK, Spain, and France. Top Trading also provides a comprehensive selection of cuts from all parts of the animal. What makes Japanese companies choose Top Trading as their preferred partner for lamb imports? What are your key strengths in sourcing lamb and mutton from overseas?

Top Trading’s trading business began in 1970 with the import of lamb and mutton, giving us a long-standing history and deep expertise with these products. Over the years, we have built a high level of trust with our domestic customers, which is a cornerstone of our success.

Each country offers distinct qualities in its meat products, and we pride ourselves on catering to individual preferences. Whether a customer has a specific request or is looking for variety, we position ourselves as a trading company that provides access to a wide range of high-quality options.

Partnerships are crucial in the trading industry. Are you seeking to expand your international partnership network? If so, what types of partnerships or countries would be most valuable to your company, both as an exporter and an importer?

Given the current size of our company, we don’t feel that further export partnerships are necessary at this time. Instead, our focus is on strengthening the relationships we already have with existing partners. Many of these partnerships were established during my father’s leadership, and now that he has passed away, it is crucial for us as a trading firm to deepen these connections before taking the next step.

The export business, however, is something I personally initiated, and it holds a special place in our company’s history as my contribution. I am committed to expanding this part of our operations. My ultimate goal is to achieve a balanced revenue split, with 50% of our income coming from exports and the other 50% from imports.

What plans do you have for 2025 regarding exhibitions, workshops, or promotional events to showcase your business and products?

In October 2024, we held a workshop in a small town in France, where we invited around 20 local chefs. We brought a Japanese chef specializing in French cuisine to demonstrate Japanese dishes tailored to French tastes. He prepared chawanmushi, a savory egg custard, along with a few other traditional Japanese dishes that were adjusted to appeal more to French preferences.

In January 2025, we will participate in an exhibition in Lyon alongside our French partner. We are also planning a workshop focused on making confectionery using rice powder. We’ve learned that many French housewives enjoy cooking Japanese dishes at home, so we’re working on developing a variety of recipes tailored to their needs.

Additionally, we’re supporting our French partner in creating instructional YouTube videos to demonstrate these recipes, complemented by leveraging Instagram to enhance our online presence. By utilizing these platforms, we aim to further expand awareness of our products and increase engagement with international audiences.

How do you adjust or tweak the flavors of Japanese dishes to better suit French tastes?

Firstly, we replace the ingredients with French-sourced ones. The base ingredient we used was kombu broth, but then we added French ingredients and olive oil.

Imagine that we come back to interview you again in 2030. What goals or dreams do you hope to achieve by the time we come back for that new interview?

One of my goals is to balance our business, making it 50% imports and 50% exports. Another key objective the goal is to grow our business without increasing the number of staff, allowing me to enhance the compensation we provide to our employees, ensuring their contributions are recognized and rewarded.

For more information, please visit their website at: https://toptrading.co.jp/

To read more about TOP Trading, check out this article about them