YAMAMOTO-CHO, Japan (Reuters) – A new breed of younger, business- and tech-savvy farmers are transforming Japan’s shrinking agriculture sector with cutting edge techniques and marketing strategies, giving new hope to an industry in slow decline.
Hiroki Iwasa, a 40-year-old IT entrepreneur with an MBA, grows strawberries in seven high-tech greenhouses where computers set the temperature and humidity to optimum growing conditions and ensure the rows of bushes are sprayed with water at precise times.
He markets his “Migaki Ichigo” brand strawberries directly to fancy department stores in Tokyo, where they go for as much as 1,000 yen ($9) apiece, as well as to customers in Hong Kong, Singapore, Taiwan and Thailand, where Japanese produce has an excellent reputation.
Such changes, while small, come as Prime Minister Shinzo Abe pushes to reform Japan’s hidebound farm industry where small-plot holdings still dominate, the average farmer is aged over 66 and the sector’s contribution to the economy has fallen by 25 percent since its peak in 1984.
They should also make Japan more resilient if the United States tries – as Trade Representative Robert Lighthizer has hinted – to pry open markets such as rice and beef that are protected by tariffs.
Iwasa was running an IT company and getting an MBA in Tokyo when his coastal hometown of Yamamoto in the northeastern prefecture of Miyagi, an area famous for strawberries, was hit by the March 2011 tsunami.
He rushed to help with relief efforts and later saw an opportunity to combine his tech skills with the specialized know-how of a local farmer.
He now heads 6-year-old GRA Inc, which has 20 full-time employees and 50 part-timers, including four dedicated to managing overseas orders.
“Farmers’ intuition and experience may not always result in a good harvest. So it’s crucial that we capture that as explicit knowledge in technology and automation, and use that to increase productivity,” Iwasa said. “Also nurturing professional farm managers is needed.”
By leasing surrounding land, Iwasa expanded his farm to two hectares (five acres), which is about 10 times the size of an average strawberry farm in Japan.
FUTURE OF FARMING
Such larger-scale agri-businesses, many using new technologies, are the future of Japanese farming, says Kazunuki Ohizumi, professor emeritus at Miyagi University, who has been studying farming trends in Japan for decades.