GAIN Reports from May 28, 2026

The following GAIN reports were released on May 28, 2026. _______     China: Dynamic Developments in China's Hardwood Market China’s market for hardwood logs and lumber is undergoing a rapid transformation in response to U.S.-China trade tensions including tariffs and an 8 month ban on the U.S. log imports. These changes disrupted traditional supply chains, prompting a realignment of sourcing and processing strategies. Vietnam has emerged as a key processing hub, reshaping the flow of U.S. logs and lumber into China. Despite these disruptions, demand for high-quality U.S. hardwood remains strong, especially in China’s high-end furniture manufacturing sector. This report details those challenges and opportunities. Japan: Japan Amends Food System Act to Promote Fair Pricing in Food Supply Chain The Government of Japan amended the Food System Act in April 2026 to promote cost-based price formation in the food supply chain. Aiming to deter below-cost transactions, the amended Act establishes a framework for creating "cost indicators" that provide clear benchmarks for appropriate costs in price negotiations. The first cost indicator was created for rice. Cost indicators are not minimum guaranteed prices, and prices remain subject to negotiation between parties.   Japan: Japan's Proposed GHG Emission Values for Ethanol Derived from Additional Feedstocks On April 17, 2026, Japan's Ministry of Economy, Trade and Industry (METI) proposed default greenhouse gas (GHG) emission values for three additional ethanol sources. Currently, METI has established GHG emission values for U.S. corn and Brazilian sugarcane ethanol. The three new additions are ethanol derived from Brazilian corn, Thai sugarcane, and Thai cassava. Japan: Japan to Transform Paddy Field Support Payments to Productivity-Based Support in 2027 Japan’s Agriculture Ministry announced a major transformation of its agricultural support system, shifting from the current paddy field support payment to productivity-based support for both paddy and upland fields starting in 2027. This represents a significant shift in Japan's rice policy, which has historically focused on maintaining paddy fields. The Ministry will extend the new support payment to table rice used for food service and ready-to-eat meals, intending to help domestic rice regain market share lost to imports in recent years. For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/. Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please visit subscriberhelp.govdelivery.com. This service is provided to you at no charge by USDA Foreign Agricultural Service. This email was sent to ooseims.archieves@blogger.com using GovDelivery Communications Cloud on behalf of: USDA Foreign Agricultural Service · 1400 Independence Avenue, SW · Washington, DC 20250