Japan’s Potato Processing Industry: A New Partnership
Japanese food giant Calbee, Inc. and agricultural cooperative Shiretoko Shari have entered into a strategic agreement to build a new potato processing plant and secure a reliable supply of raw materials.
Currently, Calbee Group sources about 19% of all potatoes grown in Japan. The new deal will allow the company to purchase up to 40,000 tons of potatoes annually, a significant step toward achieving its goal of 400,000 tons of local production by 2030.
How will this affect Japanese farmers?
Shifting from traditional crops to growing potatoes for processing could improve the profitability of farms in the JA Shiretoko Shari cooperative. As part of the agreement, JA Shiretoko Shari will also build a potato freezing plant, which will be operated by the Calbee Group. One of the key areas will be the production of the popular “Poteriko” product, which will help the company strengthen its position in the frozen food industry.
In addition, the partnership will:
- Create a stable potato distribution system for farmers.
- Promote agricultural development in the Hokkaido region.
- Ensure the creation of new jobs.
Investment details and future plans
The joint investment in the project will amount to approximately US$133.6 million. The plant is scheduled to begin operations in fiscal 2027, after which Calbee will fully assume control of the production.
“By joining forces, Calbee Group and JA Shiretoko Shari will be able to create a stable potato supply system, supporting agricultural development in the Hokkaido region,” the company said in an official report.
Do you think this approach to partnership could be a successful model for other countries? Share your opinion in the comments!
