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.” The number of full-time farmers in Japan has more than halved, from 2.4 million in 2000 to 1.02 million in 2025, 70 pct of whom were 65 or older. Watami Farm plans to first expand rice production in the city of Katori, Chiba, with which it has concluded a partnership agreement. “It’s quite possible to monetize the project by promoting agriculture with increased productivity while expanding farmland,” Hagino said. Iris Agri Innovation Inc., a group company of major household goods maker Iris Ohyama Inc., also entered the agricultural business in May. “Japan’s agriculture is facing a severe environment due to a shortage of farmers and an aging population, and the stable supply of rice is collapsing,” said Iris Ohyama CEO Akihiro Ohyama, indicating the company’s intention to address problems in regional agriculture. The Iris group plans to produce rice by leasing abandoned farmland. The 2009 agricultural land law fully permitted companies to enter the agricultural business by leasing farmland. The number of such companies rose about 15-fold from 2009 to 4,544 in 2024. END [Copyright The Jiji Press, Ltd.]