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A worker plants seedlings in Granpas dome-shaped plant factory in

Hadano, Kanagawa Prefecture. The seedlings rotate once each day and

gradually move outwards. After about 30 days they reach the outside

and are ready for harvest.

Growing the Business of

Agriculture

T he first sight which greets visitors entering the snow-white, dome-shaped struc-ture is a mass of brightly verdant foliage. It is leaf lettuce grow-ing atop a circular cistern about twenty meters in diameter.

If you just had a place to do it, you could set up a dome-shaped plant factory in central Tokyo and have a restaurant offering customers all the vegetables they could eat, says Abe Takaaki, president of Granpa Co. Using Japanese technology, you could also reinvigorate agriculture.

Granpa began hydroponic cultiva-tion of vegetables in 2006 using high-performance vinyl greenhouses locat-ed in the city of Hadano, Kanagawa Prefecture, about an hour and a half by train from central Tokyo. The high-performance vinyl houses enabled Granpa to produce high-quality vegeta-bles consistently, but it was very diffi-cult to make the business profitable. The major reasons were the high startup costs and the inability of the company to

be profitable enough to cover operating expenses. Conventional rectangular high-performance vinyl greenhouses have to be large enough to accommodate the expected size of the vegetables at shipment time. But the vegetables are small when newly planted, giving rise to a lot of wasted space. At least once be-fore harvesting, staff also had to labori-ously transplant the vegetables one by one into pots spaced wide enough apart to allow them room to grow.

Wondering if there wasnt a good way to improve productivity, Abe hit on the idea of a dome-shaped plant factory. He got the idea from Tokyo Dome in the center of Tokyo. The roof of the dome-shaped baseball stadium is supported by air pressure.

The stadium is round, and my guess was that the designers almost cer-tainly sought for an efficient way to use energy or accommodate a big crowd, says Abe. Then it occurred to me that the shape might be good for a green-house too.

The major features of the dome-

shaped plant factory developed by Granpa are efficient use of space and automation. First, seedlings are planted in pots in the innermost area of the cir-cular tank. The pots holding the seed-lings make one round each day automat-ically on circular rails. The system is designed so that, with each round, the pots move outward and gradually away from the center. The space accorded each plant is increased as it moves to-ward the perimeter, eliminating the need for transplanting. After about thirty days, the plants reach the outer edge, where they can be harvested. About 450 plants of about 100 grams each can be harvested daily from a single dome-shaped plant factory.

The membrane of the dome is fluo-roresin and is supported by air pressure. The temperature and pH of the water in the tank and the concentration of fertil-izer are all controlled by computer. Heating and cooling are accomplished through the use of groundwater. Wasps and a type of mayfly which eat insects harmful to the vegetables are released

inside the greenhouse, so pesticides are unnecessary. In the case of conventional high-performance vinyl green-houses, the steel frame causes shade over about 17% of the internal area. In dome-shaped plant factories, however, shade covers only about 2% of the area. Since incoming sunlight is reflected back into the structure, the inside is flooded with even more light than the volume of light cap-tured. As a result, productivi-ty is twice that of convention-al greenhouses, and energy

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Granpa Co. President Abe Takaaki with leaf lettuce grown in one of the companys high-performance vinyl greenhouses. The lettuce requires no washing before serving.

Vigorous efforts around the country to strengthen links among the agriculture, forestry and fisheries industries, commerce industry and manufacturing industry are yielding new products and services, and revitalizing local areas. The Japan Journal reports.

consumption is cut by about 40%. The resulting produce is sold to convenience stores and supermarkets.

Traditional agriculture is heavily influenced by the natural environment, says Abe. Consumers are also increas-ingly concerned about food safety. Our plant factory can help address these is-sues. They can also be used by some-body having no experience in agricul-ture. They make farming like operating a company.

Granpas plant factories are the first in the world to use such a system. Its therefore no surprise that inquiries and observers have been pouring in from elsewhere in Japan and the rest of the world too. Having patented its plant fac-tory, Granpa is now moving to export them overseas. Two are scheduled to be built in China before the end of the year. Inquiries have also come in from Middle Eastern countries like Qatar and Oman.

To help in the recovery of Iwate Prefecture city in Rikuzentakata, which suffered damage in the Great East Japan Earthquake, Granpa built eight of its plant factories there with government support. Ongoing research aims to fur-ther cut operating cost and improve pro-ductivity through the use of ground water and solar heat.

The world might have to face food shortages owing to rising population and global warming, says Abe. I hope to make farming into an attractive in-dustry so a lot more young people will try it. If that were to happen, thered be even further technological innovations. In that sense, Japan can play a big role in global agriculture.

Applying Manufacturing Technology and Commercial Know-how to Farming

In recent years, the national and local governments in Japan have teamed up with business firms in the agriculture, forestry and fisheries industries to build links among the agriculture, commerce and manufacturing industries. The idea is promote agriculture and invigorate re-gional economies by applying manufac-turing technology and commercial know-how to farming.

Agriculture is an important industry in Japans local regions. Promoting

agriculture would therefore help revital-ize the countryside. However, Japanese agriculture faces a variety of problems. One of these is the advancing age of farmers. Data from the Ministry of Agriculture, Forestry and Fisheries shows that elderly farmers (sixty-five and older) accounted for about 34% of the fa rming popula t ion in 2011. Moreover, the farming population itself fell from 3.9 million in 2000 to about 2.6 million in 2010. Imports of low-priced agricultural products from abroad have accelerated the decline in the num-ber of farms. The area of unused farm-land increased about three-fold between 1985 and 2005 to about 380 hectares. Total agricultural output stood at 11.7 trillion yen in 1984 but had fallen to 8.2 trillion yen by 2007.

In order to address this situation, ef-forts are underway to build links among agriculture, commerce and manufactur-ing and thereby encourage new entre-preneurs to move into agriculture, develop new processed goods in the agriculture, forestry and fisheries indus-tries and raise productivity. One mea-sure aims to popularize plant factories like those of Granpa. Plant factories have the advantage of being able to produce agricultural products of uni-form shape and quality in a stable and highly productive fashion throughout the year even in non-farm areas. However, costs tend to be high. The Ministry of Economy, Trade and Industry is therefore providing financial support to build plant factory research facilities and equipment in order to pro-mote technical development and experi-mentation regarding plant factories.

Plant factories are presently operat-ing at about 120 locations in Japan, and new technologies are being developed. F o r e x a m p l e , t h e A i z u f u j i k a k o Company, in the Fukushima Prefecture city of Aizu Wakamatsu, engages in semiconductor assembly as its main business. In 2010, however, the compa-ny began marketing leaf lettuce after turning semiconductor assembly clean rooms into 100% artificial-light plant factories which require no natural sun-light. The leaf lettuce requires no pes-ticide or rinsing before serving. The company has been able to produce leaf lettuce in large volumes with no more

than 100 mg of potassium per 100 grams, a 25% reduction compared to conventional lettuce. This is good news for patients with kidney disease, who must limit their daily intake of potassi-um within 1,500 to 2,000 mg.

Efforts are also underway to build a legal framework supporting links among agriculture, commerce and manufactur-ing. In 2008, a new law was created known as the Act concerning the Promotion of Business Activity through Links between Small Entrepreneurs and Agriculture, Forestry and Fishery Operators (known as the Agriculture, Commerce and Manufacturing Linkage Act). The purpose of the law is to estab-lish symbiotic links between small en-trepreneurs and businesses in the agri-culture, forestry and fishery industries and promote business activity which ef-fectively leverages the managerial re-sources of these industries, thereby en-hancing small enterprise management and improving management in agricul-ture, forestry and fisheries. Under this law, the government certifies business plans submitted by small operators and agriculture, forestry and fishery opera-tors endeavoring to link the agriculture, commerce and manufacturing industries. The government then provides support in the form of subsidies, loans and tax breaks to businesses implementing the approved plans.

Thus far, about 500 business ven-tures of various types have been certi-fied by the government under the Act. An information technology company in Tottori Prefecture linked up with a live-stock farmer in Kagoshima Prefecture to develop a system which can alert farm-ers by email whenever it detects cows coming into estrus or showing behavior-al signs of approaching calving time. In the past, farmers had to sleep in the barn when cows were about to calve, but the new system enables them to check the condition of the cows with their cell phones or computers, which lightens the burden on the farmers and contributes to enhancing productivity and economies of scale in the livestock industry.

In order to show people at home and abroad how agriculture, commerce and production can be linked, the gov-ernment holds various events in differ-ent locations. Over the first two days of

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December, for example, the Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries jointly sponsored an event at Tokyo Big Sight called Farming Frontier 2012 under the banner of linking producers and consumers, Japan and the world. Visitors could view and experience the cutting edge of Japanese agricultural technology. There were cooking demonstrations with star European chefs preparing dishes using Japanese food materials, as well as ex-hibitions of agricultural technologies being used to support recovery from the Great East Japan Earthquake. Visitors could also sample sandwiches made with lettuce and tomatoes grown in the plant factory on show and bread made with Japanese bread-making technolo-gy. Also on display was agricultural

equipment support-ing the production o f t h e t a s t i e s t Japanese agricul-tural products. (See http://agri-frontier.com/english/ for more details.)

Michi no Eki

Various efforts are being made to pro-mote agr icul ture a n d l i n k i t w i t h commerce and man-ufacturing in order to invigorate local economies. One of these is Michi no Eki, or Road Side Station. Road side stations are roadside f a c i l i t i e s w h i c h serve as rest stops fo r t r ave le r s , a s i n f o r m a t i o n a n -nouncement venues for t ravelers and local residents, and as links which tie together different towns in the sur-rounding region to stimulate vitality. Local governments wishing to set up a

road side station must first apply for registration with the Ministry of Land, Infrastructure, Transport and Tourism. If the proposed road side station serves the above three purposes, it is for-mally registered. It then receives support from the national and local govern-ment. Some 103 road side stations were initially registered in 1993, and so far 996 have been estab-lished nationwide. The great majority have not only restrooms and park-ing lots but also shops, restaurants, cafs and other facilities.

The organizations managing road side sta-

tions can be divided broadly into private groups, local governments, and a combi-nation of these (the third sector). They are found in a variety of locations, such as along ordinary roads, at train stations or by highways. In order to highlight the unique character of the locality, the re-spective road side stations try to sell local specialty products from the agri-culture, forestry and fisheries industries or processed goods made from such local materials.

One road side station that has achieved considerable success is Michi no Eki Tomiura Biwa Kurabu (hereafter Biwa Club), located in the town of Tomiura in the Chiba Prefecture city of Minami Boso. The city is about ninety minutes by car from the center of Tokyo at the very tip of the Boso Peninsula. It enjoys a mild climate throughout the year and is well known as a place where visitors can swim, gather flowers, drive and otherwise enjoy the rich natural en-vironment. Registered as the first road side station in 1993, Biwa Club was in-corporated with capital provided by the town of Tomiura, whose mayor became president. (In 2006, the town of Tomiura was amalgamated with six local govern-ments and is now part of the city of Minami Boso.)

A lot of people come here to swim in the summer, says Suzuki Kenji of Chiba Minami Boso Company, which manages Biwa Club. But other than that, there arent many tourist attrac-tions, and the towns had to deal with other major problems as people have got older, the population has fallen and

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The road side station Biwa Club in Tomiura, Minami Boso, Chiba Prefecture. The rest stop is a hub for industry, culture and information.

Biwa Club staff hold products made from locally grown loquats.

the agriculture and fishing industries have declined. So using the local re-sources we had, we set up a road side station to serve as a hub for industry, culture and information.

The biwa in Biwa Club is taken f r o m t h e b i w a f r u i t , o r l o q u a t (Eriobotrya japonica), a local specialty of Minami Boso. The aim of Chiba M i n a m i B o s o ( c a l l e d T o m i u r a Company at its opening) is to develop products using the loquat. The fruit is easily bruised, and although fine in taste and quality, about a third of the crop formerly had to be discarded because it couldnt be shipped to market. Chiba Minami Boso therefore sought to devel-op a variety of products using the lo-quats that would otherwise go to waste. The result was about thirty different products, including curry with loquat pure, loquat jam, and loquat juice. Two products especially popular among tour-ists are loquat gelatin and loquat soft cream. About 80,000 jars of loquat soft cream are now sold each year.

Shortly after Biwa Club started business, Hana Club opened at a loca-tion about ten minutes away by car. In addition to flowers such as carnations, lilies and poppies, Hana Club grows fruits and vegetables such as tomatoes, strawberries and melons which tourists, for a fee, can pick themselves.

Chiba Minami Boso attracts tour-

ists in other ways. It also designs and markets tours around Minami Boso for sightseeing companies so tourists can v is i t o ther loca l res taurants and nurseries.

In our product development and marketing, we take care to avoid overlap between the products sold in local shops, says Suzuki. Were also careful to share our know-how and profit with the local community.

Biwa Club also serves as a cultur-al center for the community. The Biwa Club gallery displays works by l o c a l a r t i s t s , and a var ie ty of events a re h e l d i n t h e mul t ipu rpose hall, including puppet shows and concerts.

I n i t i a l l y , about 200,000 people visited Biwa Club each year, but now t h e f a c i l i t y welcomes about 600,000 visitors each year, even t h o u g h t h e population of Tomiura is only about 5,700.

Biwa Club has many visitors from overseas as well. Efforts are also underway to share Biwa Clubs know-how with developing countries. One such effort is assistance for road side stations in Vietnam. With support from the Sasakawa Peace Foundation, the Binh An Road Side Station was estab-lished by a private company along a nat ional h ighway in Quang Nam Province in central Vietnam. When the facility was established, an advisor from Biwa Club shared know-how regarding management of road side s t a t i o n s . M e a n w h i l e , t h e J a p a n International Cooperation Agency (JICA) in 2011 began providing assis-tance to further stimulate the business of the Binh An Road Side Station, and representatives of Biwa Road Side Stand provide further assistance to their Vietnamese counterparts.

But its not enough just to sell conventional agricultural products at road side stations, cautions Suzuki. You have to sell something out of the ordinary, like pesticide-free or organi-cally grown vegetables raised by local farmers, for example. That creates a brand image for both the road side station and the products themselves. Its the same in Japan, and we want to show the operators of road side stations in Vietnam how they can enhance the added value of products through links among different regions.

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In Ethiopia, villagers learn how to make honey as part of the JICA-sponsored OVOP project.

Ethiopian government representatives join business group members for an exchange of views on their products at the OVOP projects Annual Review Meeting.

One Village, One Product

In addition to road side stations, yet an-other example of the way Japanese-style linkages among agriculture, commerce and manufacturing are spreading throughout developing countries is the One Village One Product (OVOP) movement. The approach got its start in Kyushus Oita Prefecture in the 1960s, and by 1979, had grown into a major ef-fort in all cities, towns and villages in Oita Prefecture to promote the region. There are three concepts underlying OVOP. The first is Think globally, act locally. This means building a national and global appeal by highlighting local culture and ambience. The second con-cept is self-reliance creativity and imagi-native creativity. Local residents them-selves decide what their OVOP products will be, and through repeated brain-storming, make it as appealing as possi-ble. The third idea is human resource development. The goal of the OVOP movement is to nurture local leaders who are ready for any challenge and able to help the community become highly cre-

ative. Based on these ideals, the goal of the OVOP movement is for each city, town and village to harness its own local resources, develop local specialty prod-ucts and thereby revitalize its communi-ties. Thanks to the OVOP movement, Oita Prefecture produce now sold nation-wide includes mandarin oranges, kabosu, shiitake mushrooms and barley shochu.

T h e J a p a n I n t e r n a t i o n a l C o o p e r a t i o n Agency (JICA) is working to apply t h e O V O P a p -proach in helping to stimulate region-al economic ad-vancement in de-veloping countries. JICA is providing support for such programs in Asian countries, including China, Thailand, M a l a y s i a , L a o s and Kyrgyzstan, in the Latin American country of Columbia, and in African countries such as Malawi and Kenya.

One African nation where JICA is supporting the OVOP approach is Ethiopia. The One Village One Product Promotion project was launched from 2010 in the Southern Nations, Nationalities, and Peoples Region (SNNPR) in the south of the country.

T h e SNNPR region is a very ver-d a n t a r e a , says Nakayama K a n a k o o f JICAs Private S e c t o r Development Group. A va-riety of agri-cul tural prod-u c t s c a n b e h a r v e s t e d in different areas, so its possible to make prod-ucts unique to each area.

The project is support ing

fourteen rural farmer groups/cooperatives (of about ten to twenty people) in five woredas (districts) within the region. A variety of products are made by the re-spective groups/cooperatives, including furniture from bamboo, paper from ba-nana stems, mango jam, honey and datta (chili pepper paste). Technical and mar-keting support is provided to the groups/

cooperatives by government agencies, district governments, companies, re-search institutes and other partners.

Its a considerable benefit for members to form groups/cooperatives a n d e n g a g e i n b u s i n e s s , s a y s Nakayama. But group/cooperative members have little experience in busi-ness, so local NGOs provide a five-day business management seminar teaching them how to draft a business plan or calculate costs.

One distinct feature of the Ethiopian OVOP program is matching groups/co-operatives with potential buyers. The co-operative engaged in making paper from banana stems was provided with paper-making technology by an entrepreneur in the capital of Addis Ababa, and in some shops, cooperative members are selling tourists products like photograph stands made from this paper. In other successes gradually being achieved, mango jam is now sold in supermarkets and datta is being supplied to hotel restaurants.

Encouraged by the groups/cooper-atives that have succeeded, other local people have started to put more land under cultivation and formed their own groups/cooperatives, Nakayama says. We have plans to support the activities of an additional thirty-five groups/coop-eratives. Besides lifting community pride and energizing the region, the activities of these groups/cooperatives are sure to encourage people in many other areas to act on their own to further boost the vitality of the region.

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Among the fourteen groups/cooperatives involved in the Ethiopian OVOP project is this bamboo furniture-making group.

Pots of mango jam (center), made by a group taking part in the Ethiopian OVOP project, on sale in a local supermarket

SAWAJI Osamu, The Japan Journal