Japan News Update #28 (17 - 23 May, 2022)

Japanese Companies’ Overseas Investment

The Development Bank of Japan (DBJ) invests in the EU investment fund, Cibus Fund II LP, advised by ADM Capital Europe. Through this investment, DBJ intends to gain advanced knowledge and a network in the food and agriculture sector to solve agricultural issues in Japan. The DBJ has invested in foreign agricultural and food-related funds since 2020, this being its 4^th foray into this area.

Source: DBJ Bank Invests in European Agricultural Fund, PR by DBJ

Mitsui & Co, a Japanese trading company, said it has agreed to buy a 33.7% stake in a rapidly growing Australian carbon farming company, Climate Friendly, as the Japanese firm looks to offset its emissions. Climate Friendly works with farmers, indigenous landowners, and conservation groups to generate carbon credits from projects that regenerate vegetation or improve soil health.

Source: Japan's Mitsui buys stake in Australian carbon farming company

Agrivoltaics and Biomass Benefits and Barriers in Japan

Chiba Ecological Energy is at the forefront of a program called solar sharing - or agrivoltaics - that involves the simultaneous use of farmland to produce crops and generate power. However, agrivoltaics is a tough sell for Japan's elderly farmers, many of whom are without successors to take over the business. As a result, they're unwilling to make a heavy investment in solar panels that may take decades to pay off. While solar panels can be an alluring prospect for extra income, Japan’s farm ministry wants to ensure food security remains the priority.

Source: Electric farms in Japan are using solar power to grow profits and crops

Non-agricultural Companies’ Entry into Farming Business

Chiba bank, the biggest bank in Chiba prefecture, established "Fresh farm Chiba" jointly with local companies in 2018. The company had not been profitable in the past but has turned in positive results in FY 2022. The company aims to establish a profit model for the development of prefectural agriculture. The employee also works as bankers: one of the typical farmer's models is called dual-income farmers (kengyo nouka). It aims to diversify without placing an undue burden on staff to solve the problem of depopulation.

Source: Chiba Bank Enters Agriculture

Kyushu Electric Power is working to commercialize smart agriculture in its strawberry orchards, starting in 2019. The company is experimenting with technologies that incorporate IoT and lead to higher yields and earlier cultivation of strawberries. The aim is to establish a new business by building a model of smart agriculture and selling the technology to others. The company has been involved with agriculture as it has been aiming to electrify primary industries for about 80 years.

Source: Build and Sell a Smart Farming Model 

New Trend toward Eating Habits in Japan

Japanese companies have developed new products and services to help people with food allergies enjoy the same meals as family and friends. For example, Kyocera Corp., a primary electronic parts maker, has launched a service that delivers easy-to-make luxury meal kits to homes on special days.

Source: Japanese firms offer new options for people with food allergies

Japan's grocery stores are packed with immaculate produce, but this practice comes at the cost of immense food waste. A new trend in defective products has emerged to reduce food waste and promote more sustainable eating habits in Japan. Some Japanese firms offer irregular-shaped organic food delivery services and irregular-shaped apples, hoping to turn them into a brand.

Source: Repackaging Japan's Food Culture 

Daifuku is a traditional Japanese confectionary. Fruit Daifuku, which is fruit wrapped in bean paste and mochi, is becoming more prevalent. With this booming trend, automatic fruit peeling machines ease the production process.

Source: Fruit Daifuku becomes an increasingly popular food in Japan

Applications of New Robots and Online Services in Agriculture

In Japan, farmers are beginning to apply robots to open-field agriculture. Farmyard, which produces leeks, uses robots to spray pesticides on leek fields automatically. Pesticides on leeks are not suitable for spaying by drone. Farmyard outsources the pesticide spraying to Legmin, an Agri-tech startup that develops the robots.

Source: Robot sprays pesticides in leek field

 Mitsubishi Electric Corporation has launched a service to monitor water facilities such as reservoirs remotely. With a simple installation, farmers can check water levels and local rainfall data 24 hours a day via a dedicated application. The service is intended to help improve the maintenance and management efficiency of agricultural reservoirs in preparation for flooding.

Source: Mitsubishi Electric Starts Remote Monitoring Service for Pond Conditions 

An NTT West subsidiary has launched "foove," a Livestream shopping service connecting farmers and consumers. The service provides a place for farmers to share their recommendations on cooking vegetables with consumers via PCs and smartphones, thereby supporting the expansion of sales channels. Consumers can also ask questions directly through the chat, allowing them to make purchases with a sense of satisfaction.

Source: NTT West Subsidiary Starts Live Commerce to Connect Farmers and Consumers