Japan is the world’s third-largest importer of sesame seed, importing 179,067 metric tons (mt) worth USD 290 million in 2022, an increase of 36.1% year-on-year (YoY) in volume and 18.6% YoY in value. However, from January to September this year, Japan’s import of sesame seed decreased in volume by 2% YoY to 135,000 mt, while import value increased by 11% YoY to USD 240.7 million. This is due to changes in market conditions, fluctuations in currency exchange rates, and shifts in supply and demand dynamics.
Figure 1. Japan’s sesame seed import volume and value from 2022 to 2023
African countries, notably Nigeria, Tanzania, and Mozambique, stand as Japan's main suppliers of sesame seeds. Challenges in sesame production within these regions, particularly Tanzania and Mozambique, are expected to disturb the global supply. During the 2023 season, Mozambique's sesame crop is estimated to be 80,000 mt, 24% less than the previous year. In addition to lower production, in Jul-23, the Mozambique Oilseed Department has been trying to put a 2.5% export duty on oilseed export, including sesame seed, soybean, and cottonseed. This law has not been implemented forcefully, but the uncertainties give an unexpected increase in their cost. In Tanzania, adverse weather conditions are forecasted to lead to a 4% YoY decline to 120,000 mt in sesame seed production.
Nigeria, which contributed to a 36% share of Japan’s sesame seed imports in 2022, anticipates a production increase of 4% YoY to 300,000 mt in 2023. The sesame harvest season in Nigeria typically spans from August to February, with the peak usually observed between November and December. The situation in other key African regions has exerted pressure on heightened dependence on Nigerian sesame seeds. This also affects the price of global sesame seeds. The price of imported sesame to Japan in Sep-23 was USD 1.91 per kilogram (kg), an increase of 18% YoY.
Figure 2. Japan's sesame seed import price from 2022 - 2023
With an average import volume of 175,647 mt of sesame seeds over the past five years, Japan faces significant challenges due to the recent depreciation of the Japanese yen (JPY) against the United States dollar (USD). This currency devaluation, coupled with the escalating prices of sesame seeds, may push prices in the Japanese yen to unprecedented highs in 2023. Consequently, this anticipated surge in price may result in sesame seed import volumes for 2023 falling below the five-year average.
Navigating the challenges posed by the higher price due to supply constraints requires a comprehensive approach to Japan's sesame market industry. One strategic initiative involves diversifying the markets for Japan’s sesame seed imports, ensuring resilience in supply disruptions. One alternative market other than African countries is Pakistan. In 2021, Pakistani sesame seed exports to Japan increased by 298.46% YoY to 6,000 mt. However, due to floods in Pakistan, which occurred from Jun-22 to Oct-22, the export of sesame seed to Japan decreased by 46% YoY to 3,621 mt in 2022. Despite this, Pakistani sesame seed is expected to increase its production to 120,000 mt, marking a 9% YoY rise in 2023.
Implementing such diversified sourcing strategies helps mitigate risks associated with production uncertainties and policy changes. Leveraging Tridge's platform, particularly Tridge Social Marketplace, offers an opportunity to establish diversified supply chains, connecting Japanese buyers with alternative suppliers worldwide.