Japan News Update #7 (March 23 – April 5, 2021)

Agritech trends in the retail sector

Infarm, the world's fastest-growing urban farm vegetable platform from Berlin, began selling its products in two new supermarkets in March 2021. Infarm has been operating in Japan since January 2021 as the first location in Asia. Its fresh vegetables are now available for purchase at five stores in Tokyo. It plans to open other multiple stores in the Tokyo metropolitan area by the end of this year.
Source: Infarm expands the number of stores selling vertical farming vegetables

Next Meats Co., the Tokyo-based alternative meat venture company, announced that it would sell its plant-based barbecue meat products in the meat department of Ito-Yokado, one of the largest Japanese superstore chain. The first time that Next Meats' products will be sold in retail stores alongside regular animal products, establishing its positioning as a plant-based food and providing an opportunity to attract new customers.
Source: Alternative meat venture Next Meat's plant-based yakiniku meats to be available at the meat section of Ito Yokado; Japanese superstore

DAIZ Inc., a Japanese startup company that develops and produces soybean-derived plant meat, announced on March 24 a capital and business partnership with ENEOS Holdings, a Japanese oil and metals conglomerate. They will conduct joint research to demonstrate CO2 reductions (adaptation of carbon credits) through the widespread use of plant meat.
Source: Japanese plant-based meat startup DAIZ secures deal with petroleum company ENEOS

DX and new distribution system in the food chain

Mitsubishi Corporation, Japan's largest trading company, and NTT, a telecommunications company, have established a joint venture called Industry One. Industry One is already working on a project to support DX in the food distribution sector. It aims at reducing inventory volume and the rate of product shortages simultaneously. A project to support DX across the entire distribution centre of Lawson, a convenience store chain that is a subsidiary of Mitsubishi, will be launched in the coming months. They also plan other demonstration experiments using blockchain and other technologies to address food waste and labour shortages later this year.
Source: Mitsubishi and NTT form joint venture for blockchain DX solutions

Corona and new e-commerce concepts

As the epidemic drags on and demand from foreign tourists is unlikely to recover quickly, department store companies are strengthening their online shopping services by taking advantage of their staff's ability to interact with customers. For example, they have launched in-person sales with important customers using video conferencing systems and virtual reality services that allow customers to look around stores and purchase products online using avatars.
Source: In bid for survival, Japan department stores accelerate digital push

Economic impact of Corona on the retail industry

The coronavirus pandemic's economic impact may be widening the gap between the rich and the poor in the nation. The loss of jobs, especially in the food and beverage and travel industries, is hurting many people, but on the other hand, the stock market and other asset markets have been booming. The Nikkei Stock Average temporarily crossed the 30,000 yen line for the first time in over 30 years. Meanwhile, the number of full-time employees in 2020 increased by 360,000 from the previous year, but part-time workers decreased by 750,000.
Source: COVID-19 cuts jobs and boosts stocks, widening economic gap in Japan

Food policy in Japan

Japan's gross agricultural output for 2019 fell 1.8% from the previous year to 8,893.8 billion yen, the second consecutive year of decline, according to the Ministry of Agriculture, Forestry and Fisheries (MAFF). The ministry cited a drop in vegetable prices due to a bumper harvest as the reason for the decline. On the other hand, some items saw an increase in production value compared to the previous year, such as rice with a 0.1% increase to 1,742.6 billion yen, beef cattle with a 3.4% increase to 788.0 billion yen, milk with a 2.1% increase to 762.8 billion yen, and potatoes and root vegetables with a 1.9% increase to 199.2 billion yen.
Source: Agricultural production value declines two years in a row reflecting drop in vegetable prices

The revised Plant Variety Protection Law, which aims to prevent the outflow of superior varieties overseas, partially came into effect on April 1. The law's central pillar is to allow developers to limit the cultivation area to Japan or a specific region when applying for variety registration.
Source: Amendment seed act come into force from April 1