Major Japanese retailers' challenge to in-house farm production

Major Japanese retailers venture on in-house farm production aggressively. Seven & i holdings clarified they started produce vegetables with in-house production system. Lawson which is one of major Japanese convenience store chain and IEON which is a major Japanese retailer developing shopping mall will intend to enter this markets of not only vegetables but also rice. Each retailers try to produce high quality and safety farm products sustainably.

Seven & i holdings got Seven Farm Niigata (subsidiary) cooperated with local farmers and decided to establish special agricultural management firm by taking advantage of special provisions for the establishment of agricultural reproduction organization.

The plan is to produce vegetables such as daikon radish and egg plants from one hectare farm field. These harvested vegetables are sold at "Ito Yokado" (Japanese super market) within Niigata prefecture and the Metropolitan area. 

Seven & i holdings entered into in-house production market in 2008. They have been producing at more than 10 farmlands in all parts of Japan. Their business is more prospective

Lawson established special agricultural management firm named "Lawson farm" in March in special farm zone in Niiagata city. They produce 28t of rice in 5 ha rice field and plan to process harvested rice into rice ball and bento in convenience store in the Metropolitan area. Lawson is developing producing fruits and vegetables at 23 farmlands in all parts of Japan but rice production is the first trial for them. Lawson CEO said "we intend to increase the number of farmlands up to 30 by 2007 and finally aim at expanding the number of farmlands up to 40 all over Japan in the future ."

IEON entered this market in 2009 and started producing rice in Saitama prefecture through subsidiary and plan to produce brand-name rice of Saitama at 18 ha rice field by taking advantage of the system that rents producer a part of farmlands which is leased by Farmland Intermediary Management Institutions (Farm Bank). Their first year rice production is 90t and mainly the rice is sold in IEON market within the prefecture. They intend to expand their rice field up to 100 ha in 3 years.

The background of major retailer's haste expansion of farm production has thought of realizing stable farm production to support farm industry in Japan because the reduction of successors of farmers is serious problem and decreasing birthrate and aging of the population super on this problem.