Major Companies entering Agricultural Business

Major Companies entering Agricultural Business

In recent years, agriculture business in Japan is severer than ever. As farmers aging and successors in shortage, more fields and rice paddies are abandoned without being cultivated any longer and income from agriculture business is decreasing. In such a devastating status, improvement of food self-sufficiency ratio has been the imperative challenge. In addition, with the expansion of economic partnership agreements such as EPAs and FTAs, trade liberalization is being further promoted, and Japanese agriculture is required to open its domestic market and strengthen its competitiveness in the global market. Furthermore, the government has positioned agriculture as a growth industry and is promoting new agricultural markets and diversification of agricultural product distribution by expanding support measures.
This, in turn, can expect new market generation and new business opportunities, attracting many companies newly entering agricultural business from various approaches. Compiled in this report is the categorization of farm business by major companies into the types of using farmland or horticulture, by industry, or by farm type. It also gives insight into the latest trend of cultivation business, energy-saving and digitalization trends, case studies on farm business that contribute to food chain business, and other noteworthy business, thereby to explore trends and future directions in the agricultural business. The plant factory market will be covered in detail, along with the trends of independent companies not belonging to other industries.

I   Current Status and Future Perspectives of Agriculture in Japan

1. Declining Number of Farmers Nationwide and Challenges in Domestic Agriculture
2. Status of Produce & Crops, and Total Production Amount
3. Status of Agricultural Production Corporations Rapidly Increasing
4. Initiatives for Sixth Industrialization of Agriculture
5. Revisions to the Food, Agriculture and Rural Areas Basic Act
6. International Economic Cooperation Trends (Initiatives for EPA/FTA in Japan)

II    Trends of Business Entry by Major Companies and Future Perspectives

1. Agricultural Business Overview
   1) What is Agricultural Business?
   2) Background against Invigorated Entry into the
   　 Agricultural Business by Large Companies
   3) Agricultural Products Value Chain Overview
   4) Ever-Increasing Entries into Farming Business by
       Companies
   5) Entry into Farming by Companies and Agricultural
       Land Law
   6) Relationship between Agricultural Land Law and Act
       on Promotion of Improvement of Agricultural
       Management Foundation
   7) Strengthening Support Measures to Encourage Entry
       into the Agricultural Business
   8) Outlook of Co-generation of a Sustainable Agricultural
       Business Model by Companies and Local Communities
   9) Sixth Industrialization of Agriculture
   10) Specific Initiatives in Each Field for MIDORI Strategy
         for Sustainable Food Systems
   11) Sustainable Farming by Companies Entered into
         Agricultural Business from Different Industries
   12) Transition of Gross Farm Output and Income from
         Agricultural Production by Agricultural Corporations
   13) Comparison of Balance of Payments and
         Expenditures by Agricultural Production Corporations
         by Crop and Percentage of Expenditures
2. Agricultural Business Market Trends
   1) Entire Agricultural Business Trends
   2) Agricultural Business Market Size Transition
   3) Enterprises' Agricultural Business Entering Styles
   4) Market Trend of Agricultural Business Using
       Farmlands
   5) Market Trend of Agricultural Business Using
       Cultivation Facilities
3. Trends of New Distribution Business of Agricultural Produce
4. Trends of Agricultural Business Developing Overseas by Japanese Companies
5. Trends of Major Demanders (Ready-to-Eat Food/Ready-Made Meals Businesses)
6. Current Challenges and Future Direction of Agricultural Business
7. Future Agricultural Business Market Size and Perspectives

III    Agricultural Business Entry Trends by Industry

1) Trends of Companies Entering Agricultural Business
2) Business Scheme and Characteristics in Development
3) Plant Cultivation Trends (Plant Species, Types, Seasonal
    Nature)
4) Sales Trends
5) Labor Saving, Increasing Work Efficiency, and Digitization
    Needs
6) Challenges to Develop Agricultural Business and Solutions
7) Future Direction of Agricultural Business

1. Construction Related Companies
2. Railway and Transportation Related Companies
3. Food and Beverage Related Companies
4. Trading Firms and Food Wholesaling Related Companies
5. Food Service and Ready-Made Meal Industry Related Companies
6. Mass Merchandising and Convenience Store Related Companies
7. Other Industries (Gas, Electrical Machinery, Manufacturing, etc.)

IV   Agricultural Business Entry Trends by Farming Pattern

1) Entry Company Trends
2) Plant Cultivation Trends (Plant Species, Type Season
3) Sales Trends
4) Labor Saving, Streamlining, and Demand for Digitalization
5) Challenges to Develop Agricultural Business and Solutions
6) Future Direction of Agricultural Business

1. Paddy Rice
2. Vegetables
3. Fruits
4. Flowers and Other Plants (Tea, Turf Grass, etc.)

V   Results of Corporate Questionnaire to Total 67 Companies/Organizations in Different Industries

1. Questionnaire Collection Result
2. Respondent Company Attributes
3. Most Recent Income and Expenses
4. Number of years until business stabilization
5. Impact of rising production costs on management
6. Intention to Expand the Scale of Business (Production) In the Future

Simple Company Profiles

VI    Profiles of Major 24 Companies

• Construction Related Companies: 5 enterprises
• Railway and Transportation Related Companies: 3 enterprises
• Trading Firms and Food Wholesaling Related Companies: 2 enterprises
• Food Service and Ready-Made Meal Industry Related Companies: 2 enterprises
• Mass Merchandising and Convenience Store Related Companies: 3 enterprises
• Other Industries (Gas, Electrical Machinery, Manufacturing, etc.): 9 enterprises