Japan Enacts Food System Act to Promote Sustainable Supply, Fair Pricing, and Food Security

1. Background of the Amendment

On June 11, 2025, the amended Act on Rationalization of Distribution and Proper Trade of Food, etc. and the Wholesale Market Act (“this Amendment”) was enacted¹. The revised Basic Act on Food, Agriculture and Rural Areas in June 2024 prescribed the assurance of food security² as a fundamental principle (Article 1) and also provided that the Government take into consideration any necessary measures to ensure reasonable costs for sustainable supplies. This Amendment specifies the measures that the Government must take in line with the above provisions.
With this Amendment, the previous “Act on Rationalization of Distribution and Proper Trade of Food, etc.” has been renamed the “Act on Promotion of Business Activities by Food Business Operators to perform the Realization of Sustainable Supply and Proper Trade of Food, etc.” (the “Food System Act”)³.

¹ Overview of this Amendment:
https://www.maff.go.jp/j/law/bill/attach/pdf/250214-19.pdf (In Japanese)

² This refers to a state in which high-quality food is stably supplied at reasonable prices and in which each citizen has access to it (Article 2, Paragraph 1 of the Basic Act on Food, Agriculture and Rural Areas).

³ The Ministry of Agriculture, Forestry and Fisheries website summarizing information on the Food System Act:
https://www.maff.go.jp/j/shokusan/250623.html (In Japanese)

2. Overview of the Measures

The Food System Act sets forth the following measures:

(1) Business Activity Plan Certification System

Food business operators⁴ can make any of the following business activity plans aimed at realizing the sustainable supply of food, etc. and obtain certification from the Minister of Agriculture, Forestry and Fisheries:

• Business activity plan for establishing stable transaction relationships: Aimed at establishing stable commercial relationships between food business operators and primary producers by expanding opportunities for transactions, enabling continuous trades, etc. (Article 6; Article 2, Paragraph 4)
• Business activity plan for rationalization of distribution: Aimed at reducing costs, improving added value, or developing new demand through rationalizing food distribution (Article 8; Article 2, Paragraph 5).
• Business activity plan for reducing environmental impact: Aimed at reducing environmental impact or promoting effective resource utilization by reducing greenhouse gas emissions, curbing food loss and waste, etc. (Article 9; Article 2, Paragraph 6)
• Business activity plan for supporting consumer choice: Aimed at providing information to consumers enabling them to make sustainability-conscious choices (Article 10; Article 2, Paragraph 7).

Upon certification, food business operators may receive support such as financing support, tax incentives, and R&D assistance (Articles 13-18).

(2) Measures for the Setting of Proper Prices

Food and beverage, etc., business operators, as well as primary producers, must endeavor to undertake good-faith efforts to discuss matters related to their trade, with a view to securing sustainable supplies (Article 36). The Minister of Agriculture, Forestry and Fisheries sets out criteria that serve as standards for such efforts (Article 37), conducts surveys regarding actual trading practices (Article 34), and may provide guidance, advice, recommendations, or public disclosure as necessary⁵ (Articles 35, 38-40).
For designated food and beverages, etc.⁶, the Minister must certify organizations responsible for developing and publishing cost indicators as well as for providing information to consumers (Articles 41-51). These measures ensure that reasonable costs are properly reflected in the pricing of food, etc.

With the amendments to the Wholesale Market Act, a requirement to disclose cost indicators, etc., in the operational rules, is added as one of the requirements that allow for the certification of wholesale markets as “central wholesale markets”/”regional wholesale markets.” (Article 4, Paragraph 5, Item 3; Article 13, Paragraph 5, Item 3)

⁴ This refers to persons engaged in the business of manufacturing, processing, distributing, or selling food, etc. (Article 2, Paragraph 2 of the Food System Act)

⁵ If the Minister of Agriculture, Forestry and Fisheries determines that there are facts falling under unfair trading practices, the Minister must notify the Japan Fair Trade Commission (Article 52 of the Food System Act).

⁶ The Minister of Agriculture, Forestry and Fisheries designates food and beverages, etc., for which costs are typically difficult to reflect in transactions (Article 41, Paragraph 1 of the Food System Act).

3. Closing Remarks

It is hoped that, through this Amendment, a proper setting of food, etc. prices will be scaffolded and that the food industry will achieve sustainable development, thereby contributing to the assurance of food security. Worth anticipating in the near future is the publication by the Government of lists defining what kinds of food and beverages will be named as designated products along with their cost indicators.

By Anderson Mori Tomotsune, Japan, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact japan@transatlanticlaw.com

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