Japanese Firms Enter Rice Production to Secure Supplies

Japanese companies from diverse industries are entering rice production to ensure stable procurement and mitigate supply chain risks ^[1].

This shift follows a period of instability known as the "Reiwa Rice Riot," where shortages and price fluctuations threatened the operational stability of food-service and consumer goods providers [1, 2]. By controlling the production process, these firms aim to eliminate their dependence on volatile external markets.

Watami, a major restaurant operator, partnered with farmers in Chiba Prefecture to begin cultivation around May 2024 [1, 3]. The company set a target to produce approximately 600 tons of rice in the coming fiscal year, which would account for about half of its total needs ^[1].

"The biggest risk was that we didn't have rice," said Takuma Hagino, president of Watami Farm ^[1]. Hagino said the company intends to build a stable procurement system by growing the portions they use themselves ^[1].

Similarly, household goods manufacturer Iris Ohyama began rice cultivation in Marumori, Miyagi Prefecture, on May 12, 2024 [1, 3]. The company initially dedicated 22 hectares to produce rice specifically for its packaged rice products ^[3]. Iris Ohyama has set a long-term goal to expand its cultivation area to 1,000 hectares ^[3].

While these corporate entries provide stability for the companies, some market observers have raised concerns regarding potential price crashes. Some reports noted that rice prices had dropped by approximately 1,000 yen from the previous year before beginning to stabilize ^[1].

Koji Kubota, a store manager at Super Celsio's Wada town branch, said prices had fallen by about 1,000 yen since last year and have gradually settled since the start of this year ^[1].