Booming sushi business in U.S. spurring Japanese imports

In the United States, there are many Japanese restaurants and retailers dealing in Japanese food commodities as diverse seafood and other Japanese food are being imported to the U.S.

JFC International--a seafood distributor doing business in the U.S--and Gatten Sushi U.S.A.--operating revolving sushi restaurants in Los Angeles and its adjoining areas--were interviewed as regards the prospect of imports of Japanese seafood to the U.S.

The number of Japanese restaurants has been on an increase in the U.S. backed by the booming sushi business and recent popularity of “ramen” noodles. U.S. food retailers are now engaging in sales of wide-ranging Japanese food.

According to Japan's Agriculture, Forestry and Fisheries Ministry, among top 20 food items exported from Japan to the U.S. in 2010, yellowtail came to the first position (worth Y6,037 million), followed by surimi products like fish-meat kamaboko (5th position; worth Y2,424 million), scallop (7th; worth Y2099 million) and prepared shellfish (20th; worth Y708 million). In point of fact, seafood accounted for about 30% of the top 20 export food items from Japan.

Other items in the top group included processed products, such as seasonings, alcoholic beverage and water, noodles and confectionery.

In an attempt to boost Japan's food exports, the semi-governmental Japan External Trade Organization (JETRO) newly established the headquarters for promoting exports of agriculture, forestry and fisheries products on January 20 this year.

Taking this occasion, JETRO interviewed corporations dealing in seafood regarding the present state and issues surrounding the Japanese food market in the U.S. JFC International is a company selling food commodities to restaurants and retailers in the U.S.

Kiyoshi Tamai of the commodities division of JFC U.S. head office said that imports of yellowfin, imitation crab kamaboko (surimi products), and scallop have been growing on a continuous basis.

Yellowtail suits the taste of American consumers because of its fatty meat contents, but this species is not farmed in the U.S. Although scallop is landed in the U.S., consumer taste is more inclined to Japanese scallop processed in the way to contain tastiness (umami) even after being frozen.

Tamai observes the reason of favorable sales of those commodities owes to Japan's farming and processing techniques which are not found in the U.S.

Major clients for seafood are Japanese restaurants. Especially, sales to revolving sushi chains have been growing thanks to the recent sushi boom in Los Angeles and its vicinity.

Tamai says the company will consider dealing in fish species which have not been dealt so far in the U.S., but how to keep a balance between sales prices and wholesale prices is an issue facing them.

However, he expects that, if sushi chains dealing in various types of fish materials further increase in the U.S., there would be a chance for the exports of new species to expand because fish--hitherto unfamiliar to U.S. customers—are presented at increasing occasions.

Yukishige Yamamoto, CEO of Gatten Sushi U.S.A.--which opened its first revolving sushi restaurant in the suburbs of Los Angeles in September 2010 and is now operating five others in the city area--talked about his impression as a buyer of seafood.

"Our company," he says, "has a concept of providing good-quality and tasty products to American customers." It is now providing the lines of sushi products in more or less the same menus as in Japan at reasonable prices.

While holding fast to Japanese technique of sushi making, Gatten Sushi also offers locally-developed sushi items already taking root among American users, such as California roll, in a bid to entice more customers.

The company hopes that customers will start with California roll and then will gradually move on and get used to traditional Japanese sushi.

It does not necessarily hold to authentic Japanese fish only, but is importing seasonal fish from all over the world in the hope to provide "tasty" sushi to visitors. However, Yamamoto admits he has not yet found a proper substitute for yellowtail from Japan.

Besides yellowtail, the company is importing scallop and medium-sized gozzard shad (kohada), and is using other fish as kampachi, horse mackerel and sardine on a spot basis.

Yamamoto pins expectation on importing high-grade fish such as red sea bream and other high value added commodities.

Because of high costs of obtaining seafood from Japan, the company is now looking for partners who can tie up from production to sales, regardless the forms of distribution.

Gatten's restaurants are designed to look like those in Japan, and customers are greeted by lively voices of welcome as they enter the store--an atmosphere making them feel as if they are in Japan. A majority of visitors, who sit in front of the revolving belt, are Americans.

This sight makes one have expectation that sushi will gain greater popularity in the U.S. in the days ahead. Gatten Sushi opened five outlets in only one and half years, and intends to open more in the near future.

In the long run, Yamamoto hopes to raise the number of restaurants to 50 throughout the U.S. by seeking partners under franchise agreement.

It is certain that Gatten Sushi will prove to be a powerful partner to the companies considering exports of seafood to the U.S.--to start with sushi materials.