Various Companies Enter Rice Production after Supply Shock

Tokyo, June 26 (Jiji Press)--Japanese companies from different sectors are entering rice production after supply disruptions triggered price surges in the country last summer.

These moves are expected to help realize sustainable agriculture at a time when abandoned farmland is increasing due to a labor shortage caused by the country's aging population.

In May, Watami Farm, a unit of major restaurant chain operator Watami Co., announced its full-scale entry into rice production. It plans to annually produce about 600 tons by fiscal 2027 to cover about half of rice consumption at the group's outlets, totaling about 1,200 tons per year.

"We intend to produce (rice) on our own, in order to fully manage restaurant operations," said Watami Chairman and CEO Miki Watanabe.

Takuma Hagino, head of Watami Farm, warned that if an increasing number of farmers leave the agricultural industry, production will decrease and rice prices will "keep rising."

[Copyright The Jiji Press, Ltd.]