A new firm in japan has established by agricultural corporations in Akita Prefecture and the city of Sendai for large-scale rice farming to help nation tackle looming changes in agriculture environment.
A new company was aimed at being a mediate between rice producers, mass merchants and consumers and was based in the village of Ogata, Akita Prefecture.
It is an effort to prepare for rapid changes in the competitive agricultural environment , including Japan’s participation in Trans-Pacific Partnership free trade talks and the planned abolition of rice production adjustments in five years.
It was chiefly founded by an Ogata firm Ogatamura Akitakomachi Seisansha Kyokai, selling rice online to individual customers nationwide and Butai Farm, a Sendai company working to promote large-scale rice farming and industrialize farming through combining production, processing and distribution including direct sales and restaurant management.
Toru Wakui, became the President of newly formed firm and called it the Rice Industry Organization of East Japan, or RIO East.
Rice industry expects new firm to increase rice sales including to mass retailers and restaurants. It will determine demand so it can produce the appropriate amount and quality of rice.
It will lease farming equipment in cooperation with manufacturers and leasing firms for joint use by agricultural corporations and farmers across several prefectures.
It has plans to develop a loan program for farmers in partnership with financial institutions for their financial needs.
Within five years, the new company aims to achieve sales of ¥15 billion, with 10,000 hectares under cultivation by farmers and agricultural corporations that invest in or cooperate with the company.