KUBOTA CORPORATECOMMUNICATIONMAGAZINE

2013

For the Benefitof Farmers
The Start of New Initiatives

1

For the Benefit ofFarmers
The Start of New Initiatives

Agriculture is an activity that humanity has engaged in by capitalizing on the bounty of nature. The agricultural
products thus produced have provided us with the food that sustains our livelihoods, for which people have long offered up
prayers of thanksgiving.
As history has unfolded, agricultural products have come to be seen in terms of two different aspects: as “provisions”
that sustain daily life, and as “commodities” that are inevitably incorporated into market economy systems.
Amid population explosions and climate changes, the world faces the threat of serious food shortages in the foreseeable
future. The question that now confronts humankind is, “Can we maintain the necessary supply of food and continue tosurvive on the face of this planet in the future?”
We all need to stop and think about the true nature of agriculture, which is often obscured as market economies
increasingly go global. It is no exaggeration to say that the sustainability of agriculture is directly correlated with humanity’s
chances of survival, since agriculture is something that has sustained us until now and will continue to do so in the future.
In this issue of GLOBAL INDEX, we specifically focus on farmers, who are the producers that must shoulder the futureof agriculture. The feature stories cover a project to export Japanese rice to Hong Kong conducted by rice farmers in Niigata,and the opportunities that are opening up for farmhouses in Thailand as a result of localizing the entire manufacturing
process of the farm machinery business there.
In all times and places, farmers have universally shared the same aspiration of “delivering their painstakingly growncrops to as many people as possible.” What can Kubota do for the farmers who have come this far together with them? In thehopes of helping farmhouses to realize their aspiration, new initiatives have already been set into motion.

This view is from the Sea of Japan coast. Hong Kong lies beyond the vast ocean in this direction.
(Kakuda Point, Nishikan Ward, Niigata City)
2

3

For the Benefit of Farmers
The Start of New Initiatives
Contents
2

Prologue

For the Benefit of Farmers
The Start of New Initiatives
4

Contents

5

Chapter 1

Giving Back to the Farmers—the Japanese Rice Export Project6

Opening Up the Future of Japanese Rice.
Venturing into the Culinary Gold Mine of Hong Kong to Reach a Common Goal

8

Empowering Farmers and the Agricultural Industry for a Hopeful Future.
The Significance of the Japanese Rice Export Project10

The Novel Approach of “Exporting Brown Rice and Milling Rice Locally.”
A Future Model for Exporting Japanese Rice

12

The Affinity between Hong Kong and Japanese Food.
A “Japanese Food Boom” Has Taken Hold in Hong Kong.

14

Sharing a Common Aspiration.
Kubota’s Enthusiasm Moves Farmers.

16

The Pride of a Farming Machinery Manufacturer.
From “Local Milling” to “Cooking Rice”

19

Set an Example of Resilient Agriculture for the World.
Innovation of Japanese Agriculture Begins.

21

Chapter 2

22Start-to-Finish “Localization” to Offer Thoroughgoing Support for Thai Farmers

24

Farming in Thailand—Underpinning the Nation’s Economy and Livelihood.
To Bring “True Happiness” to Farmers

26

From “Manufacturing of Engines” to “Human Development.”
Kubota’s Localization Accelerates.

29

KUBOTA Number 1 for Thai Agriculturists.
Charged with the Mission of Providing User Benefits

32“Messages to Our Valued Customers”

34

Affluent Lifestyle Brought About by Mechanization.
High Expectations for Affordable Lines in the Growth Market

38

Spread the Working “Thai Model” Throughout the World.
The First Step to Solving Food Problems

39

Chapter 3

Full-bodied when cooked, exported
Koshihikari rice impressed even the
producers themselves, who cameto visit from Niigata (at Japaneserestaurant SESSYU in Hong Kong).

Localization Fully Established in ThailandFor
the Benefit ofFarmers

I

Giving Back to the Farmers—
the Japanese Rice Export Project

OPINION

The World’s Food Situation and the Future of Japanese Agriculture
Hiroyuki Ishi

Environmental Journalist

42

Epilogue

Innovation of Farmers
The Unchanging and the Changing

4*All affiliations, titles, etc. of individuals
in the text are current as of March 2013.
5

For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

Opening Up the Future ofJapanese Rice.
Venturing into the Culinary Gold Mine ofHong Kong to Reach a Common Goal

NIIGATA

HONG KONG

A cosmopolitan city noted for its “million dollar night view,” Hong Kong was formerly ceded by the
Qing Dynasty to Great Britain and then colonized by the British Empire. As is well known, it was only
as recently as 1997 that the Hong Kong islands were returned to China, and now they form the Hong
Kong Special Administrative Region. An ancient transportation hub in Asia, this free port has served
as a financial and distribution center since the British colonial days, and now ranks among the world’s
three largest financial centers, along with London and New York City. Committed to a free-market
economy with few regulations and low tax rates, Hong Kong plays host to the Asia-Pacific regional
headquarters of numerous multinational enterprises. The island is also a prominent cultural hub,
not only for the Chinese world, but also for the entire globe, making it a truly cosmopolitan city. Thishistorical and cultural background has had no small amount of influence on the “food culture” there,
and the city is now known as a veritable treasure house of food and cuisine from around the world,which never ceases to delight the gourmets who are attracted by its world-famous gastronomic culture.
In 2011, Kubota kicked off a project to export Japanese rice to this city—an initiative that was
originally planned as a way for the company to give back to Japanese farmers for their unflagging
loyalty to Kubota-brand farm machinery. Japan is now witnessing a steady decline in rice consumption
as a result of diversification of eating habits on the back of changing lifestyles, a shrinking and ageing
population, and lower birthrates. Having grown together hand in hand with farmers and having
received their patronage, Kubota gave serious thought to what it could do for its long-time customers
in Japan. The result was a plan for helping farmers to expand sales channels by tapping into Kubota’s
collective strength in the rice export business.
Having chosen rice grown in Niigata Prefecture, which is best known for the prominent brand
Koshihikari, the company partnered with many farmers who had a strong motivation to pursue theproject. Under the banner of “From Niigata to Hong Kong,” Kubota, its affiliated companies, andindividual farmers united their efforts to make this Japanese rice export project a success in theirbid to open up the future of Japanese rice. This report celebrates their ambitious undertakings andimpressive achievements.
6

Hong Kong’s busiest district, Causeway
Bay bustles with many young people,
much like Harajuku in Tokyo.

Top: Double-decker trams, reminiscent of
the British colonial days
Bottom: After the 1980s, food vendors were
only allowed to set up stands in designatedlocations.

Hong Kong’s night view—said to be one of the world’s top three,along with those of Hakodate and Napoli

A city view from Victoria Bay,showing Hong Kong Island (right) and the Kowloon Peninsula (left)
7For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

Empowering Farmers andthe Agricultural Industry
for a Hopeful Future.
The Significance of theJapanese Rice Export
Project
In the fall of 2012, a ship carrying
Niigata-grown rice left Niigata East Port forHong Kong. This marked the full-fledged
initiation of the export of Japanese rice toHong Kong, a project in which Kubota has
been involved since the spring of 2011.
The destination of the cargo holding full of
Niigata rice was Kubota Rice Industry (H.K.)
Co., Ltd., which the company recently
established to mill rice in Hong Kong andsupply made-in-Niigata rice to the local
market. The overarching goal of the project
was to import, mill, and distribute Japaneserice in Hong Kong, thereby helping Japaneserice to expand its sales channels. Before
describing the series of developments thus
far, it is necessary to explain what brought
Kubota to support farmers in this “Japaneserice export project.”
As mentioned earlier, rice consumption
in Japan has experienced consistent declines
due to diversification (i.e., Westernization)of people’s eating habits and an aging society
with a dwindling birthrate. The problem
is that farmhouses usually cannot increase
8

production, since any additional produce
would end up creating an oversupply inthe market unless people suddenly began
consuming more. The Japanese government
has thus implemented an acreage-reduction
program*1 to adjust the balance between
supply and demand of “rice as a staple food”
distributed throughout the country.
On the other hand, in addition to “riceas a staple food,” there is another categoryof rice that farmers can produce—“rice for
new demand.” Rice in this category is used
for animal feed, rice powder, or exporting,and it does not affect the supply and demandof rice as a staple food. Taking a closer look,however, one finds that both rice for animal
feed and rice powder are priced low, andthat demand for them has become saturated.
What remains is “rice for export,” but forfarmers to obtain permission to start growing
rice for this purpose, they must first present
a contract with overseas consumers to theauthorities. In other words, no farmer isallowed to grow rice for export without
a contract with prospective internationalbuyers or partners with sales channels
overseas, no matter how desperately they
may wish to sell their rice abroad.
Indeed, some farmers did team up with
export businesses to export rice, but suchbusinesses often found it difficult to proceedon their own initiative unless they were surethat they would be able to sell their goods,
since they are required to reach agreementswith farmers on purchasing quantities andfile notification as early as the end of the rice
planting process. For the farmers, on theother hand, exporting rice is a ray of hopethat could lead to increased rice production—
so much so that many are eager to sell theirrice to international customers. However,for this to happen, they require someone toarrange stable purchasing.
In response to such requests fromfarmers, Kubota arrived on the scene.
Having developed in tandem with farmers
for many years, Kubota is keenly awareof the fact that it owes much to these
agriculturists. This led to the decision to
support farmers by leveraging the company’s

The sun sets over Mt. Yahiko and the fields from which the export rice was harvested. (Nishikan Ward, Niigata City)

collective strength as a farm machinery
manufacturer: “If farmers have trouble
finding overseas markets, then Kubota willtake the initiative in developing markets.
Doing so will eventually empower Japanese
farmers, revitalize agriculture in Japan, andbring about a promising future for Japanese
agriculture. All of this is meant to give backto the farmers.” As people gathered together
with determination to make this aspiration a
reality, Kubota’s Japanese rice export project
took off.

*1 Under this policy, the Ministry of Agriculture,
Forestry and Fisheries (MAFF) determines thetarget volume of rice production for the following
year based on its demand estimate for such year
in order to prevent a sharp decline in rice prices
due to oversupply. Up until the 2003 production
year, the Ministry had set forth targets for
reduction in rice acreage to avoid overproduction,
but it switched its strategy and began targetingproduction volume from the 2004 production
year.

Tractors await the farming season in spring.
(Akiha Ward, Niigata City)

Overlooking Niigata City from the Toki Messe: Niigata Convention
Center (Background: Sea of Japan, foreground: Shinano River)

A rural landscape found on the Echigo Plain, a prominent rice-producing
district. Retaining some 600 trees for drying harvests, the sight of the“hazaki trees of Natsui” has been chosen as one of the 100 famous viewsof farming villages in Japan. (Natsui, Nishikan Ward, Niigata City)
9

For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

The Novel Approach of“Exporting Brown Rice andMilling Rice Locally.”
A Future Model for
Exporting Japanese Rice

Export volume and value of Japanese rice
Volume

Value

（t）
2,500
2,000
1,500
1,000

545

527
427
967

1,294

683

691

641
1,898

2,129

1,312

10

600
500

300
200
100

2006

2007

2008

2009

2010

2011

0

Data: MAFF

Export rice waiting for shipment to Hong Kong

If one wishes to export rice, it isnecessary to have stable and expandable
consumption at the destinations for export.
Taking this into account, Kubota decided
to devise its own original scheme. To
positively differentiate from other varietiesof rice for which export had already begun,
Kubota set about taking inventory of its
engineering assets to determine whether anyof them might be of use for the project. Theirconclusion was the innovative approachof “exporting brown rice and milling rice
locally.” In most of the previous cases ofJapanese rice exportation, the rice had been
milled in Japan before being sent abroad,following which polished rice was distributed
in export markets. The problem with thisprocedure was the perishability of rice,which loses some of its freshness over time. In
the past, this had made it virtually impossible
to achieve in other countries the delicious
taste that has always been the hallmark offreshly cooked rice in Japan. To resolve thisbottleneck, the Japanese rice export project
team opted for the clever scheme of exporting

700

400

940

500
0

(Million yen)800

unpolished rice, which is warehoused in
Kubota’s cold storage facility in Hong Kong,milled after orders have been received, anddelivered to customers in as fresh a state as
possible. To help international customers
who may not be skilled at cooking rice toenjoy this delicious specialty, they even cameup with the idea of promoting Rice Robo,a commercial-use automatic rice cooking
system, thus establishing a start-to-finishbusiness model in which Kubota would be
involved at every step of the way. This novel
approach succeeded in boosting project
results. “From soil preparation to cookingrice” is a business model that can be offeredby Kubota and no one else.
The project was led by the Strategy
Planning Office, which was set up in 2010 tolaunch new businesses.
“We were desperately seeking ways togive back to the farmers, whose patronage
we have had the privilege of enjoying for somany years, and pondering what we could
do as a private business to revitalize farmingin Japan. The project was born out of this

Gen Takahashi
Senior Manager, Strategy Planning Office,
Kubota Corporation

sincere desire. We thought, ‘If we are goingto do it, we need an innovative approachthat taps into Kubota’s expertise in farming
machinery and a business model that will last
into the future.’ The result was the solutionof ‘exporting brown rice and milling rice
locally.’ However, even the best quality rice

may not taste like it should if it is cooked
poorly. For overseas consumers to enjoy
delicious Japanese rice and truly appreciate
its virtues, we needed a machine that could
cook rice with consistent output, and ‘Rice
Robo’ manages this beautifully. Now wehave a business model in which Kubota’s
machinery is involved in every step fromsoil preparation to rice cooking. We areproud of this brand-new business model,
as it is something that can only be achieved
by Kubota, a leading farming machinery
manufacturer.” (Gen Takahashi, Senior
Manager, Strategy Planning Office, Kubota
Corporation)
Incorporating the innovative solutionof “exporting brown rice and milling rice
locally,” Kubota’s Japanese rice export
project drew considerable attention fromthe government of Niigata Prefecture, hometo the farmers who rendered their services
to the project. As consumers all over thecountry turn away from rice, demand for
Niigata-grown rice has been on the decline.
In a bid to expand sales channels, theNiigata prefectural government had set
about promoting rice export and introducing
a series of stimulus programs, including
support for business meetings, subsidizationof sales promotion expenses, and distributionof information on their rice. Their efforts
paid off, and Niigata Prefecture’s 2012production plan for rice for exports (rice for
new demand) was the largest in the country
at 928 tons, 242 tons of which were produced
for Kubota’s project, and the prefectural
government hoped to maintain this export
drive further for the benefit of farmers.
“Exporting rice for new demand serves
to expand the planted area, which thenrevitalizes paddy fields and producers. With
this in mind, we have recognized rice export
as an extremely important measure for thefarming business in Niigata Prefecture.
Export volume is steadily increasing, but
we are conducting multifaceted studies
as to what backup support the prefectural
government can provide to further expand
the volume. Kubota’s approach of ‘millingrice locally’ is uniquely original, and so our

Minoru Fukuhara
Director, Agri-Foods and Distribution
Division, Department of Agriculture,
Forestry and Fisheries, Niigata Prefectural
Government

government has high hopes for it. We hope
to see this set a model for those who aspire
to export Japanese rice.” (Minoru Fukuhara,
Director, Agri-Foods and Distribution
Division, Department of Agriculture,
Forestry and Fisheries, Niigata Prefectural
Government)
11For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

The Affinity between Hong
Kong and Japanese Food.
A “Japanese Food Boom”
Has Taken Hold in Hong Kong.
Gathering various foods from all aroundthe world, Hong Kong is a veritable treasure
house of culinary delights. One of therealities of Hong Kong’s food situation isthat it is dependent on imports for most of its
farm products, with 100% of rice consumed
there being imported. Japanese rice imports
account for only a meager proportion, but
Japanese food has long earned the love ofpeople in Hong Kong.
In the fast-growing Southeast Asian
region, Hong Kong, along with Singapore,is one area where Japanese food enjoys
high penetration. Although restaurants
serving Chinese cuisine account for 30.3%(4,770 establishments) of all food services,Japanese restaurants represent 6.9% (1,080
establishments) of the total, ahead ofrestaurants serving Italian, French, Korean,
and other national cuisines.*2 In recent years,
Japanese food service chains serving conveyor
belt sushi, ramen, tonkatsu deep-fried pork
cutlets, and curry and rice, as well as highend Japanese restaurants, have set up shopin Hong Kong and seen a steady increase inclientele.
Taking notice of this high affinity forJapanese cuisine in Hong Kong, Kubota’s
Strategy Planning Office surveyed themarket there in March 2011. They forged
relationships with people there while
conducting various surveys, thus leading to
Kubota’s very own network in the region.
As Kubota came to learn more about
players in the local rice market and the formsof distribution there, they realized that up
to around 90% of rice in Hong Kong is usedby businesses, including food services.
People in Hong Kong eat out much more
frequently than those in Japan, with the latter
12

dining out an average of only 1.4 times per
week (according to the Ministry of Internal
Affairs and Communications), whereas theformer eat out 6.9 times per week on average(according to a private research institute).
Kubota’s goal had become clear—supplying
rice from Niigata first to food services withthe main focus being placed on Japaneserestaurants, and then moving on to the retailmarket to gradually reach dinner tables inprivate homes.
A long-time food distribution businessinsider in Hong Kong who now owns seven
Japanese restaurants there, Hiroshi Yoshidais also President of the Hong Kong JapaneseRestaurant Association. “Now that the third
Japanese cuisine boom has arrived in Hong
Kong, we are being presented with a golden
opportunity to introduce Japanese rice
here,” Yoshida notes. “Over the past three
decades, TV dramas, music, and other formsof subculture from Japan have resulted in aseries of Japanese cuisine booms here. We
are now witnessing the third boom, owing
to the increased number of people from
Hong Kong visiting Japan and promotionsof local food by various prefectures in Japan.
This opportunity is too important to pass
up. When I first heard about the plan toexport rice from Kubota, I was more thanimpressed by their underlying motive, which
was to benefit farmers. Success or failure will
depend on how we can effectively let peoplein Hong Kong experience the superb taste ofJapanese rice. I really hope that this projectwill be a major success, and I will spare noeffort to support it.”
“We need a ‘story’ to let Hong Kong
people really experience the tastiness ofJapanese rice,” points out Director Motoaki

Komiya, Business Development Departmentof the Japan External Trade Organization(JETRO) Hong Kong.
“Hong Kong people have good taste, butthey favor knowledge about food so much thatthey are often said to ‘taste with their brains.’
It is thus important to convince them of how
good Japanese rice is with a story, so that we
can help them to deepen their understandingof it. I want to ask the exporters of Japaneserice to do something that helps to expand themarket for Japanese cuisine as a whole. If themarket does not grow, then different varietiesof Japanese rice from different areas will end
up competing against each other over thesame small slice of the pie. I hope that Kubota
will focus on broadening the width and depthof the market through its endeavors to export
rice,” Komiya continues.
Hiroshi Umezu, a consul at theConsulate-General of Japan in Hong Kong,
also expects much from this initiative by
Kubota. “I was profoundly surprised at
how good the locally milled rice marketedby Kubota is. The difference in taste is
unmistakable compared with other Japanesebrands of rice available here. I really wantpeople in Hong Kong to know this exquisite
f lavor. It certainly is an understatement to
say that people in Hong Kong show a strong
interest in what they eat, and they have a firm
trust in the safety and quality of Japanesecuisine. I have only the highest hopes for
Kubota’s unique project.”
Expectations are running high for
Kubota’s Japanese rice export project in Hong
Kong.

Sushi, teppanyaki, and sukiyaki...some 1,000 Japanese restaurants are crowded together in Hong Kong.
No matter how you slice it, Japanese cuisine is in fashion here.

Motoaki Komiya
Director, Business Development
Department, JETRO Hong Kong (left)
Shinichiro Kawahara
Economic Research & Business Support
Department, JETRO Hong Kong (right)

Hiroshi Umezu
Consul, Consulate-General of Japanin Hong Kong

Hiroshi Yoshida
President, Hong Kong JapaneseRestaurant Association

Seafood, vegetables, meat, and more—every kindof foodstuff is available at the market, ready to fill
the stomachs of discerning gourmets in Hong Kong.

*2 Census and Statistics Department (Hong Kong)(as of July 25, 2012)13

For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export ProjectNiigatakubota Co., Ltd. Head Office

Sharing a Common Aspiration.
Kubota’s Enthusiasm Moves Farmers.

Mt. Yahiko viewed from the Echigo Plain. This sacred mountain has long been an object of veneration among farmers.
(Nishikan Ward, Niigata City)

Joining in this project to coordinate
distribution within Japan were Kubota’s
Japanese dealer Niigatakubota Co., Ltd. andits subsidiary Niigatanosho Co., Ltd.
One may very well wonder why the ricemust be grown in Niigata. This prefecture isamong Japan’s largest rice-producing areas
and gave birth to Koshihikari, the country’s
leading rice brand. Of course, this initiative
was not undertaken without the intention todeliver Koshihikari—the most prestigious
brand of Japanese rice—in the event thatJapanese rice would be marketed outsideof Japan. However, there were also othergood reasons why rice grown in Niigata waschosen.
One such reason was the availabilityof a workforce,*3 i.e., farmers who werekeenly aware of the issues facing the farming
business in Japan and who seek new hopein rice farming. Although such workforces
exist in abundance around the country,
14

Niigata was the optimum choice given thata workforce of a certain size located within
a single area would be required. From apractical sense, one needs local contacts
to first gain support from rice producers
and to collect goods and distribute themthrough export channels. Niigatakubota
and Niigatanosho readily fulfilled suchrequirements.
“When Kubota first came to consult withme about this project to export rice, I was
moved by their enthusiasm for ‘contributing
services to farmers.’ I myself have believed
for the past 30 years that we need to export
rice, and so when I heard about the story of
Kubota, I had a strong conviction that I mustjoin and make it a success. In retrospect, alarge part of what drove this project was an
enthusiastic spirit on the part of the farmers.
At the heart of the project is their aspiration
to leverage rice exports to find hope in the
future of Japan’s farming business, and tothus break through the current impasse.
Our efforts were made in response to their
passionate aspiration,” says Norio Yoshida,
President of Niigatakubota.
A total of 48 farmhouses decided tojoin the project because they approved of
the new initiative to export “rice for new
demand,” and 242 tons of Koshihikari andother brands of rice harvested in 2012 over
45 ha of contracted land were collected.
Although there was no regulation demanding
inspection of rice for export, it was decided
to conduct a 100% check to ensure safe,
trustworthy rice with a clearly defined
cultivation history. Taking responsibility
for the inspection was Niigatanosho, asubsidiary of Niigatakubota, which is among
the few companies in the industry to have as
many as six qualified agricultural productinspectors.
Kimihiro Ito, President of Niigatanosho
says, “I recall a particularly memorable eventat a gathering to brief farmers on the project.
One farmer asked about our purchasing
price, which is completely understandable
considering that the amount we pay for theirrice is certainly important for them. On thatoccasion though, many others present spoke
up by saying that, ‘This is not the time fordiscussing prices.’ Obviously, rather thanworrying too much about prices, the farmers
shared expectations for the new prospects
and challenges that rice export would open
up in the years to come. It was a moment
when I felt their high aspiration and sensed astrong response.”
With comrades sharing a high aspiration
coming together, the network of producers
had taken shape.

Norio Yoshida
President, Niigatakubota Co., Ltd.

Kimihiro Ito
President, Niigatanosho Co., Ltd.

*3 In the context of agricultural policy, a “workforce”
refers specifically to persons engaged in farming thattake the lead in the farming business in their respective
communities, including full-time and part-time
farming households and farming corporations.
15

For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

The Pride of a Farming
Machinery Manufacturer.
From “Local Milling” to“Cooking Rice”

For the Japanese rice export project, allof the harvested rice is exported unpolishedin order to keep it as fresh as possible. Upon
arrival in Hong Kong, the rice is kept at
Kubota’s cold storage warehouse until it ispolished and shipped after orders have beenplaced. The central element of this wholeproject is Kubota Rice Industry (H.K.) Co.,
Ltd., Kubota’s wholly owned subsidiary(established in October 2011) that specializes
in importing, milling, and marketing Japaneserice to expand its international sales channels.
Putting into practice the new strategy of“locally milling” export rice is indeed a key
component of this project, but its rigorous
quality control is also worthy of attention.
Upon arriving in Hong Kong, brown rice
is sampled for radiation measurements.
Then a grain discriminator and heavy metal
determinator measure the mixture rate of
substandard rice and heavy metal contents,
respectively, thereby ensuring safety andstable quality even before polishing.
The milling line is furnished withequipment for high-quality polishing,including a color separator (for removing
colored rice) and a crushed rice remover (forremoving broken rice that affects taste whencooked). To prevent any foreign matter frombeing mixed in during the distribution processin Hong Kong, an automatic packing machine
has been introduced, thus maintaining milling
quality equivalent or superior to that of rice
grown and consumed in Japan. Also in place
to gauge the quality and safety of rice are an
eating quality meter, which grades the taste ofrice, and a whiteness meter, which stabilizes
milling quality. This facility is the only fully
equipped rice mill in Hong Kong that iscertified as a food processing plant, having
met the ISO 22000 international standard forfood safety management for additional safety
and security through these equipment andsystems.
When shipped from Japan, the riceis transported in containers that hold
only Kubota goods, as opposed to mixed
containers. This is to prevent the qualityof rice from deteriorating, as rice can easily
absorb odors. Brown rice from Japan isheld in a cold storage warehouse attachedto the head office, where temperatures are
kept strictly at 15°C around the clock. All of
the operations throughout the process arecontrolled using barcodes, from shipmentfrom Japan, warehousing in Hong Kong, andA physical distribution company that endorses
support for farmers offered for use the buildingin the warehouse district that now houses
Kubota Rice Industry (H.K.) Co., Ltd.

directions when milling to de-warehousing
and shipment to customers. This ensures
traceability for the varieties, producers, andcultivation histories of brown rice, and also
prevents any mistakes that might occur while
milling. This approach of doing everything
possible in-house and ensuring rigorous
quality control represents the epitome of theessence and pride of Kubota’s engineeringexpertise as a farm machinery manufacturer.
In addition to ensuring quality, theproject team worked on reducing physicaldistribution costs. Their solution was
to outsource 100% of the distribution
work to a single partner service provider
that empathized with the project. Thispartner helped Kubota to significantly
reduce overhead costs and, together withthe company, created a scheme for full
support throughout the entire process, fromproduction and distribution to marketing.
A member of the Strategy Planning
Office and one of the driving forces behindthe project, Takushi Suminaka assumed
the position of representative for Kubota
Rice Industry (H.K.) Co., Ltd., which wasestablished exclusively for accepting export
rice.

From the upper left
Rice imported from Japan is placed underrigorous control around the clock at a constanttemperature of 15°C in the cold storage
warehouse of Kubota Rice Industry (H.K.) Co., Ltd.
The only fully-equipped rice mill in Hong Kong thatis certified as a food processing plant, the facilities
include equipment that incorporates the best of
Kubota’s engineering expertise.
Farmers on a Hong Kong inspection tour for theJapanese rice export project listen to explanations
on the milling machine.
Using operation sheets for the milling processthat have been translated into the local language,
most of the jobs are handled by Hong Kong staff
members.
A local staff member explains the shipping label.

Takushi Suminaka,
Director & General Manager,
Kubota Rice Industry (H.K.) Co., Ltd.

A barcode is placed on the shipping bag.
To assure quality, every step in the process from shipmentfrom Japan to customer delivery is controlled using such barcodes.
16

All staff members attend daily meetings to discuss
issues in Japanese, English, and Cantonese. Although
they speak different languages, they share the common
aspiration to “help spread delicious rice from Japan.”17

Upper left: Signature “Hamburg Curry”
Upper middle: Brightly colored “Vegetable Curry” is always popular among women.
Upper right: Takashi Nakano, Director of Izumi CurryIn the kitchen of Izumi Curry is Kubota’s Rice Robo, a commercial-use automatic ricecooking system that operates at top performance to prepare some 500 dishes every day.
A brainchild of the specialist farm machinery manufacturer Kubota, the “total solution forrice” covers everything from preparing the soil with tractors on the farm to cooking rice
for a delicious presentation.

For the Benefit of Farmers-I

Giving Back to the Farmers—
the Japanese Rice Export Project

A child is absorbed in eating food. In any country, children always have a good appetite.

A mother eats with her child. She praises
the Japanese rice, saying “It’s delicious andsafe, and that’s why I give it to our child.”“Exporting rice is essentially exporting
the rice culture of Japan,” says Suminaka.
“If we are to develop sales channels andstimulate consumption in foreign countries, itis necessary to not only supply tasty, quality
rice, but also to educate people on how to
prepare it in a delicious way. There is nosmall number of people in Hong Kong who
do not know how to cook or serve rice, andare unaware of the importance of freshness.
Such being the case, it is extremely important
to implement educational activities andadvertising for enhanced understandingof Japanese rice, while at the same time
allocating more resources to marketing.”“Made-in-Niigata” Japanese rice madeits debut in the Hong Kong market in the fallof 2012. In addition to supplying Japanese
18

A grandfather who visited the restaurant with themother and her child (left) said, “I find Japaneserice tasty, but Thai rice is equally good, probably
because I have become accustomed to it,”showing that he belongs to a generation capableof appreciating both types of rice.

Women in their 20s sit in the restaurant.
“Japanese rice is so good, and we love
Japan,” they exclaim. The advent of theJapanese cuisine boom has helped Japaneserice to penetrate young people’s lifestyles.

restaurants there, the rice is also sold togeneral consumers via leading Japanesesupermarket chains and online.
One of the first Japanese restaurants topurchase rice from Kubota was Izumi Curry,which operates Japanese curry restaurants
in the Kansai district. In March 2012, they
opened their first shop in Hong Kong in thefood court of a Japanese department store.
The variety of rice initially chosen for theirvery first location there was short-grain rice
grown in China.
“Having achieved success with our first
shop, we began to consider opening a second
establishment in an upscale shopping mall in
Causeway Bay. We wanted to make it different
from the first shop. Since it is supposed to
be a high-end restaurant, we wanted to serve

truly delicious Japanese curry and rice dishes
using top-class rice. Naturally, we required
high-quality rice, and so we decided to source
it from Kubota in spite of the slightly higher
costs. Also, to cook delicious rice we purchased
an automatic rice cooking system from Kubota.
Quite frankly, this machine makes unbelievably
delicious rice. Without Kubota’s rice and theautomatic rice cooking system, we would nothave been able to open the second shop,” says
Takashi Nakano, Director of Izumi Curry.
We invited comments on Japanese rice fromlocal customers of different ages in the shop,
who unanimously responded by saying that the“Japanese rice has its own particular f lavor andis really good.” It was a powerful moment, whenthe “aspiration” of everyone involved in theJapanese rice export project is realized.

Farmers on the Hong Kong inspection tour for the Japanese rice export
project check rice from many different countries on the shelves.

Set an Example of Resilient
Agriculture for the World.
Innovation in Japanese
Agriculture Begins.
Soon after its rice hit the market, Kubota
invited the farmers who participated in the
project to inspect the Hong Kong market
in December 2012. Knowing that it would
take some time before they could give a fairevaluation, Kubota decided to organize atour in response to these farmers’ ardentdesire to see with their own eyes how therice that they had painstakingly grown was
being treated and accepted there. Among thegroup members was Eiji Hirano, President of
Niigata Nouen Corporation, who is planningto participate in the next round of this export
project and was once involved in the rice
export business.
“I was profoundly impressed to see themilling facility at Kubota Rice Industry(H.K.) Co., Ltd. I also felt proud of what
Kubota has done—they had the mostrigorous quality control system in place toensure food safety and security. We thenvisited a Japanese supermarket there. To ourgreat surprise, we found that much of the riceon the shelves there was from 2011, not from2012, as ours would have been. Milled a longtime ago, it had lost much of its flavor andwas obviously priced low. There is no doubt
whatsoever that our rice is more delicious by
far. For us to expand the sales of our rice inthis market where so many different choicesof rice are available, I believe that we needto have excellent communication skills, andbe there in the market to provide convincing
messages to local consumers to help themlearn more about our rice.”
At the basis of Hirano’s high aspirationfor export rice is his pride as a professional
rice producer.
“Many farmers share the same aspirationof producing quality rice so that many people
will be able to enjoy it. One of the ways that
we made this a reality was to voluntarily

market rice outside of the government’s pricerestrictions. Our attitude toward this projectto export rice to Hong Kong is the same. We
make quality rice, and we want someone whowill appreciate our aspiration to market it,”explains Hirano.
Although Sakuichi Nomizu, Presidentof Granary Takabatake Corporation, wasunfortunately unable to join this tour, he isamong the 48 farmers who participated inthis project.
Says Nomizu, “As the domestic demand
for rice had remained sluggish, I was seeking
ways to diversify sales channels. Meanwhile,
we faced the major challenge of deciding what
to produce under the ‘rice for new demand’category. There is a natural limit to what we
can do about the prices of rice for feed andrice for processing. It was at that point that I
suddenly heard about this rice export projectusing rice for new demand. We were not19without our concerns due to the fact that it isa brand new initiative, but I decided to joinbecause I saw the potential of it opening up
new paths in the future.”
Like Hirano, Nomizu is firm in sayingthat their role is to “produce quality rice.”
The question remains as to how they should
promote and market “what they want toproduce” (i.e., “delicious rice”) in HongKong. In its very first year, members of theJapanese rice export project were assured
that they could successfully compete in the
gourmet city of Hong Kong if they offered“something real.” There is no doubt thatmaking greater marketing efforts to expand
sales channels and providing discerning
consumers in Hong Kong with recipes
and some knowledge of rice will help todeepen their understanding of the qualityof Japanese rice. On visiting one of the local
supermarkets, however, all sorts of rice fromSoutheast Asian countries and elsewhere
could be found on the shelves, which areoften less than one-third the price of Japaneserice. For Japanese rice to survive this kind

President Yoshida of Niigatakubota Co., Ltd.
shakes hands with a buyer who has purchased
their rice milled in Hong Kong. Consumers inHong Kong are quick to understand data onlabels, such as the date of milling.

of competition and gain greater penetration,
it must first achieve greater international
competitiveness. With this in mind, Kubota
kicked off the farmer support project, which
pursues better control of quality, including
taste, and at the same time helps producers to
streamline their process.
Kubota has already launched a series of
initiatives designed to streamline the riceproduction process. One such initiative
is a proposal for “direct sowing of ironcoated seeds,” which eliminates the need tocultivate seedlings. As the name implies, theprocess involves sowing rice seeds coatedwith iron powder directly into rice paddies.
Since it obviates the necessity of raisingand transporting seedlings, which is an
essential process in transplant production,
this agricultural technique reduces costs
and labor involved in the process. If thisinnovative rice farming technique can be
spread to streamline rice production process,then there will be a high chance of increasing
the international competitiveness of Japaneserice.

A leaflet on “How to cook delicious Japaneserice” that Kubota Rice Industry (H.K.) Co.,
Ltd. gives away to those who have purchased
their rice. As many people outside of Japan
have never cooked rice before, this kind of
considerate service is important.

Made-in-Niigata Koshihikari, with a label
proudly reading “Milled in Hong Kong”

Displayed side
by side on retailshelves is Japaneserice along with ricefrom China, Taiwan,
Thailand, andAustralia. This market
is subject to intense
sales competition
that is unimaginable
in Japan.

20

So far, the 242 tons of rice harvested in2012 is selling smoothly. Going forward,
the project aims to increase the sales volume
in stages to reach 500 tons in three years’
time. However, the project is also aiming
even higher by sharing the success of the
Niigata case nationwide to invite more
likeminded individuals to further increase
the scale by forming an “All-Japan” team ofrice producers. When production of export
rice comes to play an important role in farmmanagement in Japan, the overall picture ofJapanese farming and rice production will becompletely different from what is seen now.
It will definitely be a day when the world
realizes the true value of Japanese farming.
It is fair to say that this Japanese rice
export project by Kubota represents astep toward new hope by going beyond
conventional frameworks to support farmers
and giving rise to innovation that couldchange the entire course of Japan’s farming
business. However, the voyage has only justbegun.

For theBenefit ofFarmers

Ⅰ
Ⅰ

Localization Fully Established in Thailand

President Eiji Hirano of Niigata Nouen
Corporation (left) discusses matterswith Kubota staff members.

President Sakuichi Nomizu (left) andDirector Yoshio Kobayashi (right) of
Granary Takabatake Corporation stand in
front of the company’s large-scale dryer.

21

Rural landscape in Ayutthaya, where double-cropping is practiced
Seen in the distance is the Rojana Industrial Park, which was affected by the 2011 floods.

For the Benefit of Farmers-II

Localization Fully Established in Thailand

Start-to-Finish “Loc alization” toOffer Thoroughgoing Support forThai Farmers

Top: Bustling Bangkok is a capital city
notorious for traffic jams.
Bottom: Begun in a warehouse district
by the Chao Phraya River, Asiatique isa huge night market visited by many
young Thai people and families, as wellas tourists.

The Kingdom of Thailand, commonly known simply as Thailand, occupies a very highplace in the global rankings for rice production and export. The production of rice and otheragricultural products was once the centerpiece of Thai industry, but rapid economic growthin the 1980s and 1990s changed the nation’s status from an impoverished agricultural nation
to a newly industrializing country committed to the export of industrial products. Despitea temporary socioeconomic setback in 1997, when the country became the epicenter of the
Asian currency crisis, this “land of smiles” has since followed a smooth growth trajectory.
Having extended a generous welcome to foreign-affiliated companies and direct investmentsfrom Japan and Western countries, Thailand has transformed itself into a full-fledged
industrialized nation, and it is increasingly seen as a leading power among ASEAN countries.
In 2010, its gross national income (GNI) per capita was US$4,150 (about 1/10 of the same
figure for Japan),*1 which makes Thailand an “upper-middle-income country” (UMC) as
defined by the World Bank.*2
Having established a presence there early on, Kubota has virtually led the mechanizationof farming in Thailand and has come to enjoy the leading share in the national farmmachinery market. With the opening of an engine manufacturing company there in 2012,
Kubota completed the start-to-finish localization of the entire process from production ofengines—a core component—and hydraulic equipment to assembly of farm machinery. What
does this mean for agriculture in Thailand and the people who are engaged in farming there?
The second feature of this issue examines the present state of agriculture in Thailand, thechallenges it faces, and Kubota’s efforts to achieve solutions.

*1 The World Bank
*2 The World Bank classifies countries with per-capita GNI of US$3,466 to US$10,725 as UMCs.
22

BANGKOK
AYUTTHAYA

Palm trees accentuate the rustic landscape in the tropics.

Threading its way through the urban
district, the Bangkok Mass Transit
System (BTS) was built to alleviate traffic
congestion.

23

Tractors at work
Tractors are essential in cultivating the heavy,clayey soil in central Thailand. (Ayutthaya Province)

For the Benefit of Farmers-II

Localization Fully Established in Thailand

Farming in Thailand—
Underpinning the
Nation’s Economy andLivelihood.
To Bring “TrueHappiness” to Farmers

Farming (agriculture, forestry, and fisheries) population as a percentage of thetotal labor force in Thailand
（％）
55
50
45
40
35
30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012（Year）

Data: Report of the Labor Force Survey, Whole Kingdom, National Statistical Office of Thailand* Numbers are for the three-month period ending September 30 (busy farming season).

Fruitful ears of rice in double-cropping.
Crops are cultivated twice annually, typicallyduring the dry season (February - May) andthe wet season (July - November).

An enormous amount of harvested rice
After drying in the sun for one day, the rice
is sent to a mill to be bagged.

24

The land area of Thailand is 51.31 million
ha, making it 1.4 times larger than Japan.
Farmland accounts for 38.6% of the total
area, or 19.80 million ha. This vast expanseof farmland—about 4.3 times larger than
the amount in Japan—has long underpinned
Thailand’s agriculture.*3 Its mild tropical/
subtropical climate makes it possible tocultivate crops throughout the year, and in
the irrigable paddy fields that stretch acrossthe central plain, rice is harvested more thanonce annually, with five crops in two years
or three crops in a single year. Statisticallyspeaking, however, farming (agriculture,
forestry, and fisheries) as a percentage of GDP
has been on a downward trend in relative
terms: after recording 25.9% in 1970, thepercentage has since dropped to 12.4% in
2010,*4 primarily due to the rapid developmentof the manufacturing and service industries. In
2011, the manufacturing industry accounted
for approximately 34% of Thailand’s GDP androughly 90% of its total exports.*5 Nevertheless,the country’s agricultural population stillaccounts for about 42% of the total, or 16
million people.*6 Grain self-sufficiency stands
at 144%, which makes the country the leader inthis category in Southeast Asia, and close to the
top of the list globally.*7 It is true that these days
Thailand often captures public attention as anindustrial power, but much is expected from thefurther development of its agricultural businessas farm mechanization continues to progress.

It was only in the 1960s that farming
machines were first introduced to Thailand,
and in those days, imported tillers accounted
for most of the equipment available. They
often broke down and there was little-to-noaccess to replacement parts, leading the Thaigovernment to address the pressing need fordomestic production of farm engines. At thetime, Kubota was exporting general-purpose
tillers to Thailand and offered maintenanceservices. Having high regard for Kubota’s
impressive track record in the country, the Siam
Cement Group (SCG), a conglomerate affiliatedwith Thailand’s royal family, chose Kubota
as its partner to establish the joint venture
Siam Kubota Diesel Co., Ltd. (SKDC) in 1978.
SKDC started to manufacture and distribute
farm diesel engines in 1980, and went on to
expand the scope of its business to include the
manufacturing and distribution of tillers, and,later, tractors and combine harvesters. With themerger of Siam Cement Group’s subsidiaries in2010, the joint venture started afresh as Siam
Kubota Corporation (SKC).
It is no exaggeration to say that Kubota’s
history in Thailand has been defined byagricultural mechanization. The course of
events changed in 2002, when the introductionof tractors and combine harvesters for paddy
fields triggered an explosion in the market,
boosting tractor sales there 40-fold between
2003 and 2008. Nevertheless, such machines
were only being used by a small percentage

of farmhouses. We visited Apichart Jongskul,
Secretary General of Thailand’s Ministry ofAgriculture and Cooperatives (MOAC) Officeof Agricultural Economics, to ask what hethought was the essential issue for farming in
Thailand.
“The lingering problem with farming in
Thailand is that farmers’ income is unstablebecause the business is vulnerable to droughts,
floods, and other natural phenomena,” henoted. “This puts many farmers in debt,
and some are even forced to sell their land
to repay the debt. As a relief measure, theThai government established a land bank,through which the national government buys
up land for leasing to individual farmers at anaffordable rent.”
Apichart mentioned the shortage of laborin the farming sector is also a major bottleneck.
“In order to develop the next generation ofagricultural producers, we offer scholarships
so that young people can gain skills ‘in thefield.’ However, the fact is that young people
are crowding into the big cities, with the resultthat the farming population is now dwindling.
Because of this, we believe that it is essential
to mechanize farming. Going forward, we may
consider a scheme under which the government
purchases farming machinery and offers it toindividual farmers at reasonable costs.”
Thailand’s agricultural policies arecharacterized by the fact that they often lean
toward protecting the producers. One policythat clearly exemplifies this is the “rice collateralloan system,” which basically amounts to a ricepurchasing system under which the government
purchases rice from producers at above market
prices. However, this new scheme counteracted
Thai rice’s export (price) competitiveness,with the result that in 2012 the nation lost its
position as the largest rice exporting country in
the world—a ranking it had retained for as longas thirty years.*8 So, the question to be asked
is, “Has Thailand come to a turning point?”
Apichart claims that, “Agriculture remains thefoundation of the Thai economy. Agriculture
and the manufacturing industry are two sidesof the same coin, and therefore we must protect
agriculture. It is thus an important mission
for the government to realize a living standard
for farmers that they will feel content with.”
The Thai government has a clear recognition
that farming is not just another industry, but
is an important asset for the country, andthus farmers engaged in the business must be
protected. This perspective is the key to a better
understanding of farming in Thailand.
*3 2009 data from MAFF web site
*4 Data by FAOSTAT from MAFF web site
*5 2011 data from Ministry of Foreign Affairs of Japanweb site*6 2012 Report of the Labor Force Survey, Whole
Kingdom, National Statistical Office of Thailand*7 2009 data from MAFF web site
*8 2012 statistics announced by the Thai Rice
Exporters Association (TREA); India andVietnam placed first and second, respectively.

Apichart Jongskul
Secretary General, Office of Agricultural
Economics, MOAC

Walk-behind tillers are a common sight at
farmhouses.
Not a few farmers own several of these tillers.
25For the Benefit of Farmers-II

Localization Fully Established in Thailand

From “Manufacturing
of Engines” to “Human
Development.”
Kubota’s Localization
Accelerates.

Operators silently concentrate on their work. They take their work as
seriously as their Japanese counterparts.

Many greeting cards
from customers show arelationship of trust.

Body parts for KET’s engines. The depth of the black luster
evidences their sturdiness.

Shigenori Kobayashi
President, KET

KET’s new production lines.
Farm machinery engines are produced in an orderly fashion.
26

KET Head Office

Kazunobu Nakata
Manager, Manufacturing
Department and Manufacturing
Engineering Department, KET

To bring “happiness to farmers,” it is
crucial to improve their standard of living byincreasing their income. To make this happen,
it is necessary for the farmers themselves toraise their own income by boosting yields
and to maximize their profit margin bytrimming production costs, before seeking
support from the national government. This
also requires that farm machinery, which has
a significant influence on farmers’ earnings,
and its manufacturers undergo a fundamental
change, starting at the shop floor.
Kubota’s localization of manufacturing,which is now complete with the establishmentof a local engine manufacturing plant, offers
the potential for the company to reduce
production costs and provide farmers withfarm machinery at reasonable prices.
We visited Kubota’s production sites inThailand to inquire about the present stateand future prospects of their business andtheir empathy with farmers.
Some 125 km east of central Bangkok, an
industrial park in Chachoengsao Province
is the home of Kubota Engine (Thailand)Co., Ltd. (KET), which was established in
February 2011 to perform parts processing
and assembly of farm engines (massproduction began in October 2012).
The “hearts” of farm machinery, engines
had until recently been imported from Japan.
As demand continued to expand, however,Kubota decided to set up KET in a bid tofurther reduce costs. This completed thestart-to-finish production process fromcast manufacturing to parts processing andassembly of engines.
“If we wish to further expand business inThis state-of-the-art KET plant features an
effluent-free system to reduce environmental
load.

Thailand, we must definitely lower the pricesof our engines,” says President Shigenori
Kobayashi of KET. “Aside from enhancing
cost competitiveness, one of the otherobjectives of establishing KET was to avoid
forex risks. Since we have just begun mass
production, our top priority now is to stabilize
production at the earliest possible date, but wehope to standardize manufacturing processes
like we did in Japan. This is because webelieve that guaranteeing reliable productquality, in addition to lower costs, will lead tosupporting farmers in Thailand.”A founding member of KET who now
supervises production, Kazunobu Nakata
cites stable production and quality assurance
as the two most important issues that they are
currently tackling.
“Being a young company, most of the27

For the Benefit of Farmers-II

Localization Fully Established in Thailand“KUBOTA Number 1 forThai Agriculturists.”
Charged with theMission of Providing
User Benefits

Manufacturing cast parts at SKMT involves pouring red-hot iron into a mold.

engineers that we hired locally were newgraduates,” he notes. “It is thus imperativethat we help them to develop through close
communications so that we can stabilize
production at the plant. At the same time,
we are hoping to further lower costs bystreamlining production and procuring
materials more efficiently.”
In addition to engines for Kubota’s
tractors and combine harvesters, KET is
also charged with the mission of serving
as a global supply center for external sales
to construction equipment and industrial
machinery manufacturers in Japan, theU.S., and emerging countries. As such, thecompany is the heart of Kubota Thailand’s
global strategies.
Standing close by KET is Siam Kubota
Metal Technology Co., Ltd. (SKMT),
Kubota’s first cast components manufacturing
plant outside of Japan. Set up in December
2008 (mass production began in December2010), SKMT manufacturers castcomponents for diesel engines.
Involving the molding of molten iron,casting production requires advanced

Isao Kuwahara
President, SKMT

expertise that cannot be quantified.
Crankcases (engine blocks) are said to bedifficult to produce in a stable manner due totheir complicated shapes. With a view towardmaking greater inroads into the global market,
however, Kubota finally decided to transfer
its technology offshore. This posed a major
challenge for Kubota; namely, training Thai
operators on the production lines, which
included improving their technological skills.
“To acquire skills, people must think forthemselves and act voluntarily on their own
initiative,” says President Isao Kuwahara
of SKMT. “With this in mind, there is one
habit that I want them to form, which is toenjoy what they are doing. If they learn the
purpose of their jobs, they can become more
knowledgeable, and eventually the entire
plant will start changing for the better. Also,
I hope that they will find the joy of working
as they gain a sure sense that things arechanging.”
Kuwahara says that he has anunshakable conviction that it is necessary
in manufacturing “to make every decisionby putting oneself in the customers’ shoes.”

More specifically, at the very basis of his plant
management is a relentless pursuit to shorten
lead-time, reduce costs, and improve quality
for farmers.
“What we can and should do is provide
machines that are affordable but do noteasily break. To stabilize the global supply
and demand of food, we must spread the useof machines among farmers. Our goal is todevelop Thai operators who can take on this
responsibility,” states Kuwahara.
Manager Satoshi Tsuji of the SKMTManufacturing Department agrees with
Kuwahara on the importance of development
and localization of not only products,
but also human resources. “The primaryobjective of human resources development
is to improve product quality by training
operators on their skills; however, if we are to
make a really significant contribution to thefarming business in Thailand, I believe that
localization in the truest sense of the word is amust. Now, what I mean by this is to see Thai
employees take up key administrative roles atthis plant, so there won’t be any overt feelingthat this is a ‘Japanese company.’”

Satoshi Tsuji
Manager, Manufacturing
Department, SKMT

SKMT Head Office28

Combine harvester being assembled
at the SKC Amata Nakorn Plant
29

Somchai Limthongsittikhun
Manager, Combine Harvester &Rotary Manufacturing Division, SKC

Prasong Adulratananukul
Manager, Tractor Manufacturing
Division, SKC

Right: Toshihito Majima, President, KPMT
Middle: Toshiyuki Yasuda, Manager, KPMT
Left: Shuji Imanishi, Manager, KPMT

After leaving KET and SKMT, we madeour way to the SKC Amata Nakorn Plant in
Chonburi Province, some 60 km southeast ofcentral Bangkok. Kubota’s largest production
site in Thailand, SKC manufactures
horizontal diesel engines and tillers at its Nava
Nakorn Plant in Pathum Thani Province, 45
km north-northeast of central Bangkok, andproduces tractors, combine harvesters, androtaries (tractor attachments with rotating
hoes for plowing land) at its Amata Nakorn
Plant in Chonburi Province. The production
function at the Amata Nakorn Plant is underthe management of Thai employees, who
naturally have more than the usual amount offeeling toward farming in Thailand.
“The important thing for accelerating
the mechanization of farming in Thailand is
to offer services that are finely tuned to thespecific demands of farmers,” says Somchai
Limthongsittikhun, a manager at SKC’s
Combine Harvester & Rotary Manufacturing
Division. “I am Thai myself, and also used
to be a farmer, and so I understand how thefarmers in Thailand feel. Different regions
have various types of soil, and farmers use
the same machines differently. I hope tomake machines that reflect the spirit of theThai people.”“Agriculture is an all-too-important
industry for Thailand. However, many of the

farmers who support agriculture are miredin poverty,” notes Prasong Adulratananukul,
a manager at SKC’s Tractor Manufacturing
Division. “Farm labor is so hard that you
begin wondering why on earth people would
go to all that trouble. That is how difficult
the reality is. Mechanizing farm labor isan effective way of breaking through this
impasse. Toward this goal, we must definitely
reduce production costs to lower our prices.”
What these two gentlemen have incommon is a firm conviction that theirinvolvement in the production of tractors andcombine harvesters will help to support Thai
farmers and contribute to the development ofagriculture in Thailand.
The other key element of Kubota’s
localization strategy in Thailand is Kubota
Precision Machinery (Thailand) Co., Ltd.
(KPMT), which began operation in July
2011. Responsible for production of hydraulicequipment, KPMT specifically producescylinders for controlling tractor implements.
Since such machinery tends to operate forlonger hours in Thailand than in Japan, higher
durability is required from the cylinders.
“I believe that our mission is to produce
hydraulic equipment from the viewpoint offarmers, meaning failure-free, inexpensive
equipment that performs stably. By pushing
forward our localization strategy, we hope toincrease our cost competitiveness, shorten
lead-time, and supply service parts more
efficiently, so that we can win the trust ofusers,” says President Toshihito Majima of
KPMT.
At present, production is conducted at a
temporary plant within the Amata Nakorn
Industrial Estate, but production willcommence in full swing in January 2014 at
a new plant to be built within the PinthongIndustrial Estate in Chonburi Province. At
this new plant, KPMT is planning to expand
the line of components that they produce andsupply globally both within and outside of the
Kubota Group.
Procurement of components is one factor
that affects production costs. Kubota had
curbed its procurement costs by purchasing
more from local suppliers, but in January 2013it established Kubota Procurement & Trading(Thailand) Co., Ltd., which specializes inprocurement and supply of components, in abid to accelerate the global procurement setup
under which components are acquired withouta hitch from local suppliers in Thailand. At
the same time, by centralizing procurement
services that had previously been taken careof by each production site, hopes are highthat tapping into the scale merit will resultin greater bargaining power and increased
efficiency in quality improvement activities.

Kubota has by now established a start-tofinish production process covering everythingfrom cast manufacturing, parts processing,and assembly of engines to production of
hydraulic equipment and assembly of farmmachinery. There is no doubt that this newly
reinforced cost competitiveness will further
promote the mechanization of farming in
Thailand and contribute to supporting
farmers there. This entire series of initiatives
by Kubota can be summarized into SKC’s
message: “KUBOTA Number 1 for Thai
Agriculturists.”“With top priority on customer benefits,
we constantly think about how we cancontribute to farmers in Thailand. While
providing a range of products that matchcustomers’ purchasing power, we not only
sell machinery, but also have assembled an
R&D team to customize our machines tomeet local needs and offer after-sale services
when customers call on us. More recently,
we have been working with our customers
in the single planting area to start off-season
cropping of soybeans, and teaching them how
to raise seedlings and plant rice to increase
productivity and yields. By offering practicalsolutions that maximize user benefits, Kubota
sincerely hopes to move forward in step with
our valued customers,” says President Hiroshi
Kawakami of SKC.

Hiroshi Kawakami
Executive Officer, Kubota Corporation, andPresident, SKC

For the Benefit of Farmers-II

Localization Fully
Established in Thailand

Engines manufactured at SKMT and KET are built into final products at SKC.

Thai users want their machinesdelivered sparkling new.
For a beautiful finish, final checks
are conducted with the utmost care.

SKC Amata Nakorn Plant

30

31

Nivath Jankaeng
Foreman, Combine Harvester Production Department, SKC“I believe that supplying more combine harvesters will benefit
farmers.”

Jirawat Pasaro
Foreman, Molding Line, SKMT“Our goal is to achieve low-cost production.”

For the Benefit of Farmers-II

Localization Fully Established in Thailand“Messages to Our Valued Customers”

Tossawan Naudomsub
Assistant Manager, Administration & Account section, KPMT“I am always thinking about what I can do for Thai farmers
through this company.”

Ratchanok Wongcharoen
Assistant Manager, Kubota Ayutthaya (Hua Heng Lee)
“We will continue to catch customer demands and respondto them effectively.”

Prasert Klinchantuek
Foreman, Combine Harvester Production Department, SKC“We will continue to meet the expectations of farmers.”

Krissana Chaosuan
Foreman, L Tractor Production Department, SKC“I hope to ease the burden of farmers by making good products.”

Thongchai Sridee
Foreman, L Tractor Production Department, SKC“I hope that farmers will put their trust in our sincere
desire to produce quality products.”

Thaweechai Moonsawasde
Assistant Manager, Production Section, KPMT
“Just try using a Kubota machine. It will make work much easier!”
Watchara Kanmee
Foreman, Melting Line, SKMT
“I would like many farmers to learn what mechanization can do forfarming.”

Dao Pimpa

Group Leader, Machining Line, KET“We produce high-quality yet inexpensive engines so thatmany farmers can make use of farm machinery.”Somsak Niean-Aroon
Group Leader, Assembly Line, KET“We will keep producing reliable engines that will
last for a long time.”

32

33

For the Benefit of Farmers-II

Tamgonsak Sarwin and his son Sompop with his family.
A portrait of a typical happy farming family in Thailand

Localization Fully Established in Thailand

Affluent Lifestyle Brought
About by Mechanization.
High Expectations for
Affordable Lines in the
Growth Market
34

Having seen many of Kubota’s sites, we
decided to pay a visit to dealers, who have
daily contact with customers. Kubota now
has as many as 80 dealers throughout thecountry, with an eye on further expansionof the network. Our first destination was
Kubota Ayutthaya (Hua Heng Lee) Co.,
Ltd., a dealer covering the popular tourist
destination of Ayutthaya Province in its
entirety. It sells various types of farmmachinery to some 1,000 farmhouses, andenjoys the lion’s share of the market at 90%.
Managing Director Wanchai Leenawatthana
was born into a family that ran a Kubota
dealer. After working for his parents’business for a time, he became independent
three years ago. He has since built up a
management model for other Kubota dealersand developed a solid track record.

“Our management focus is threefold:to maximize customer satisfaction,
meet customer demands, and fulfill our
responsibilities to customers,” he states.
“Our business is growing steadily, but I mustsay that Thai farmers are faced with no small
number of problems. The most difficult
one is unstable yields. We also have natural
disasters and plagues of harmful insects.
We believe that it is important for individual
staff members to have a deep knowledge andunderstanding of farming.”
To promote sales of farm machinery,prospective customers are given a trial period
as an opportunity to try machines out. By
constantly improving the quality of after-salecare and maintenance, the dealership ensuresthat it will be able to cater to the diverse
demands of customers. For many farmers,

however, the high prices of machines
always represent a bottleneck. Providing
support for dealers’ marketing efforts, SKC’s
salespersons feel the same way: “Every time
I visit the fields, I am made to realize thatmany farmers are suffering from low income.
Crop prices are on the rise, but many farmers
find it difficult to make payments, as costs
are also rising, with the result that the
majority of farmers are running into debt.
Mechanization of farming jobs is necessary
to rectify this, but only a handful of farmers
are affluent enough to afford machines. We
are constantly monitoring what the farmers
require and coming up with new options,such as provision of pre-owned machineryand financing by agricultural banks,” says
Chalermchai Kittibuntorn, an assistantmanager for SKC’s Central & Southern
35

For the Benefit of Farmers-II

Localization Fully Establishedin Thailand

A service engineer carries out maintenance. Such workers are like partners for the farmers.

Kubota user Somkhit Harweetee.
His carefree smiling face matches the beautiful rurallandscape.

The badge on the service engineer’s arm
shows a call number.
These workers rush to customers’ place after
a single phone call.

“We use a Kubota tiller. It’s easy to use, high quality, and durable. We are very satisfied with
Kubota machines,” say Somyot Onramuern and his wife (Ayutthaya Province).

Region Sales Office.
To learn more about the actual situation,
we visited some farmers at their places ofwork. Somkhit Harweetee of Savandid
Village in Ayutthaya Province has been
engaged in rice production for nearly
40 years. He took his first step towardmechanization when he purchased a tiller
some 20 years ago, and purchased anotherthen-current model after 10 years. Also, hepurchased a tractor five years ago, which
he subsequently replaced with a higherhorsepower model two years ago.
“I once used other brands, but I foundKubota machines the easiest to use, andyou could even say that I feel a great senseof affection for my Kubota machines,”
says Somkhit. “Looking back on themechanization of my work so far, I rememberthat the introduction of tractors had aparticularly large impact. It certainly madeour work a lot easier, but more importantly,
it eliminated the need to hire labor, thereby
36

helping us to greatly reduce our costs.”
Higher earnings through lower laborcosts led to improved standards of living forthe farmer. He rebuilt his house, purchased
paddy fields, and saw his saving accounts
growing. To purchase the tractors, Somkhit
took advantage of a leasing plan where hepaid 60% of the cost out of his own pocket
and Kubota covered the rest.
Tamgonsak Sarwin of Ban Mai Village
in the same province grows rice with his son
Sompop. He is a long-time user of Kubota’s
pre-owned tractor, but recently purchased a
new one completely at his own expense. Like
Somkhit, Tamgonsak says that tractors cansave them significant expenses.
“My goal is to gain more profits so that
I can purchase the paddy fields which I
now lease,” says Tamgonsak. “Tractors are
the driving force behind this. Also, as thegovernment is purchasing rice at high prices,
my income has been growing substantially.
Whenever my machines are in trouble,

Long rows of tractors under maintenance—it is clear that business is good.

Kubota comes to the spot instantly. You could
say that Kubota is like a lifetime partner.”
Just like their counterparts in Japan,
farmers in Thailand often lack successors,
but the Tamgonsak family does not seem toshare this problem: their 20-year-old son quit
his job at a factory and returned to the village.
“One of the beautiful things about being a
farmer is that you have lots of freedom. I’dlike to assist my father to boost our income sothat we can improve our livelihood,” says thedutiful son.
When we visited Kubota’s plants for thisreport, we listened to what employees on the
shop floor had to say and found that, like
Sompop, most of them were from farming
families. They said that they send money totheir families back home, in the hopes that
their parents would purchase a farm machineso that they can lead easier lives, even if only
by a little bit. They also spoke passionately
about their future goals of returning to theirparents’ homes and taking over their family

Left: Chalermchai Kittibuntorn
Assistant Manager, Central & Southern Region Sales Office, SKC
Right: Ratchanok Wongcharoen
Assistant Manager, Kubota Ayuthaya (Hua Heng Lee) Co., Ltd.

businesses. In Thailand, family ties are what
underpin agriculture. The existence of young
people who are ready and willing to succeed
the businesses is a ray of hope for the farming
industry in Thailand, and mechanization isdefinitely playing a leading role in this.
So long as the hurdle of initial investment
is cleared, introducing farm machines
will surely boost farmers’ income. As
many farmers still lead modest lives, thepenetration of tractors is not very high.
Conversely, the market has yet to matureand there still exists much room for sales
expansion.*9 Anticipation is growing that
Kubota will be able to establish a completely
localized production process to provide
inexpensive farm machines.

Kubota Ayutthaya Head Office

Wanchai LeenawatthanaManaging Director, Kubota
Ayuthaya (Hua Heng Lee) Co., Ltd.

An elegant customer counter at Kubota Ayutthaya*9 The main customer group for combine harvesters
is the contract business of “harvesting services,”
which harvest crops for a fee.
Combine harvesters have yet to penetrate the levelof the individual farmer, but are often purchasedcollectively by the village community.
37

For the Benefit of Farmers-II

Localization Fully Established in Thailand

Spread theWorking “Thai Model”
Throughout the World.
The First Step toSolving Food Problems
For many years, Kubota has endeavored toreduce costs for farmers by locally producing
farm machinery. Beyond that, however, thecompany has made greater efforts to promote“true localization.” Beginning with the
manufacture of farm diesel engines and tillers,
this age-old initiative has resulted in a startto-finish production process from engines
to finished products, with some 90% ofcomponents procured from within Thailand.
With this development, the drive to localize
manufacturing has virtually come to fruition.
These consistent efforts by Kubota in
Thailand have borne fruit in what might
be called the “Thai model.” Farming in
the country will surely make progress as
the model broadens and deepens; however,this is not exclusive to Thailand. As SKC
President Kawakami proclaims, “Thailand
will be Kubota’s regional production centerin Southeast Asia and a ‘second motherplant,’ from which Kubota will accelerate its
development into neighboring countries.”
His plan is to expand sales networks in Laos,
Cambodia, and Myanmar, and promote sales
in the Philippines, Indonesia, Vietnam, andIndia.
For Kubota, “true localization” means
to be completely assimilated within the hostcommunity. For this to happen, Kubota
believes that these operations must be
for Thai people and by Thai people, i.e.,managed by Thai employees. It is in line withthis policy that the importance of human

The presidents of Kubota’s four subsidiaries in “Thai KUBOTA Group”, all determined to support
Thai farmers as a team. (From the left: KET President Shigenori Kobayashi, SKC President Hiroshi
Kawakami, SKMT President Isao Kuwahara, and KPMT President Toshihito Majima)

38

For theBenefit ofFarmers

Ⅰ
Ⅰ
Ⅰ

resource development has been emphasizedat each subsidiary.
“Wherever we go, our mission of
pursing user benefits does not change,” notes
Kawakami. “This means that we are required
to offer machines and solutions that are
customized to the specific demands of eachregion. For us to meet these requirements,
we must focus on the development of ourpeople so that we can keep pace with rapid
market growth. This is why we believe that it
is important to ‘make people before making
products.’”
Whether it is greater localization in
Thailand or expansion to neighboring
countries, “people” are the ones thinking
and acting “for farmers” in each locality.
“We want our people to find in their worksomething that they can put their hearts andsouls into—something that they can live for.
It is when people realize such fulfillmentthat they truly grow,” says Kawakami. It
is the awareness of each and every Kubota
employee that makes it possible to makechanges in production and selling sites andprovide farmers with substantial benefits.
Bringing this “Thai model” of manufacturingand human resource development to otherparts of the world will eventually contributeto progress in agriculture in each region, andmay become a key to resolving the world’s
food problem. When this becomes a reality,
SKC’s message of “KUBOTA Number 1 forThai Agriculturists” will be transformed
into “KUBOTA Number 1 for World
Agriculturists.” For the “farmers of theworld,” Kubota’s challenge is entering into a
new phase.

OPINION

The World’s Food Situation and the Future ofJapanese Agriculture
Hiroyuki Ishi
Environmental Journalist

39

Finding Solutions through a“Global Reach” and“Technological Innovation”
For the Benefit of Farmers-III

The World’s Food Situation and the Future of Japanese Agriculture
Farmland Reduced by Half, Widening Gap between
Oversupply and Short Supply
Increasingly Severe World Food Situation

The food situation in the world is becoming increasingly tight. The
global population has climbed up to nearly 7.1 billion, and is expected toreach 9.3 billion by 2050 and 10.1 billion by 2100 if the trend continues.
Currently, 6,200 people are born and 2,700 people die with each passing
hour. This major gap in total births and deaths means not only population
growth, but also an aging world population. With 76 million people
arriving on the surface of our planet by the end of this year, the world
population is quite literally “exploding.”
Rising food demand and prices on the back of population growth,shortages of farmers and decreases in the quality of their labor due to aging,competition between farmland and residential areas, soil deterioration
caused by higher cultivation frequency and use of chemical fertilizers, andglobal climate destabilization—in addition to this mountain of difficulties,
another serious concern is a reduction in the area of farmland per capita. At
present, the world’s total farmland stands at 1,530 million ha, or 0.22 ha perperson. Despite an increase in yields per unit area due to mechanization,etc., this number is less than half of what it was 50 years ago in 1960, when
it stood at 0.5 ha per person with only about 3 billion people occupying
the globe. If we are to meet the growing food demand from the expanding
population, an additional 17 million ha of new farmland will be needed
each year.
A problem lies hidden behind the food shortage due to a population
growth—an ever-widening gap between oversupply and short supply offood. In today’s world, 904 million people suffer from malnourishment
and 1,600 people die of hunger every hour, while the population of obese
people amounts to 1,570 million. If we divide the world’s annual grain
production of 2.3 billion tons by the world population (7.0 billion), there
should be 328 kg of grain per person. Assuming a hunger line of 180 kg per
year, there should theoretically be no starvation on this planet. However,the problem is that distribution mechanisms are not functioning properly,
as a result of exports to developed countries with greater purchasing power,
growing demand in China and India, conversion to biofuel, and speculative
trading in global financial capital. Comparing food supply per person, thesupply in Japan is 33% higher in terms of calories than necessary, while thesupply in countries south of the Sahara Desert in Africa is 16% short. Only
those living in developed countries—some 20% of the world population—40

are fortunate enough to have constant and easy access to food, and it is they
who consume more than half of the world’s grain production. This createsa gap between people living in hunger and those who are overweight.
Incidentally, Japan is the world’s largest producer of leftover food,dumping 19.4 million tons of food every year. This is far beyond thetotal amount food aid offered across the globe (7.4 million tons), and isequivalent to the annual food consumption of 30 million people (or even50 million people in the case of developing countries). It seems that no one
in the world has a clear solution to these food problems, and the situation is
becoming increasingly chaotic.

Eradicate Deserted Arable Land and Labor Shortages
Challenges and Prospects of Japanese Agriculture

The world’s food supply and demand forecast for 2020 given by the
Ministry of Agriculture, Forestry and Fisheries (MAFF) predicts that
consumption of grains such as rice and wheat will rise from the 1.7 billion
tons recorded in 1996 and 2.4 billion tons recorded in 2010 to reach 2.7
billion tons by 2020 on account of the population increase and economic
development in China and other countries, while grain production is
expected to remain steady at 2.65 billion tons. By geographic region, graindemand looks set to increase substantially in Asia, Africa, and the Middle
East. In particular, consumption of grain for livestock feed should increase
rapidly in China, as meat consumption there is expected to grow inproportion to the rise in their income level. This will inevitably sustain therising prices of grain, and the prices of rice, wheat, and corn are expected
to jump by 31%, 24%, and 35%, respectively, by 2020 compared to 2008
levels. Given these forecasts of the world food situation, it is clear that wemust go about redesigning the future of Japanese agriculture.
In 2012, MAFF published its report on the present state of Japanese
agriculture and its forecasts for changes that may occur over the mid-term
period. The report concluded that the number of farmers in Japan would
drop to 580,000 by 2030, only 36% of what it was in 2010, and that theiraverage age would reach an extreme high of 71.7 years. What this means isthat many farmers—particularly those with side jobs and those farming on
the side—should have witnessed a generation change by now, yet have not.
Furthermore, as many as 50.3% of those who gave up farming as of 2010
cited an absence of successors as a reason for their decision, and elderly
people are being left to farm alone in a growing number of cases. It is thus
expected that many more farmers will simply quit their jobs in the future.
The immediate urgent issue that must be tackled now is the insufficient

Hiroyuki Ishi

Environmental Journalist

ProfileHaving earned his bachelor’s degree from the University of Tokyo in 1965, Hiroyuki
Ishi joined The Asahi Shimbun Company. After serving consecutively at the Tokyo head
office as a member of the Science Department and Foreign News Department and thenDeputy Director of the Science Department, he became a senior staff writer in 1985.
In 1988, he met with critical praise when he published his Global Environment Report,
which provided realistic coverage of the current conditions of our damaged planet that hecompiled during his arduous travels throughout more than 80 countries.
After resigning from The Asahi Shimbun Company, he entered one public office
after another, serving as a professor at his alma mater, ambassador extraordinary andplenipotentiary to the Republic of Zambia, Special Adviser to the Executive Directors of
the United Nations Environment Programme (UNEP), and Member of the Board of theRegional Environmental Center for Central and Eastern Europe.
He also taught at Hokkaido University, Tokyo University of Agriculture, and Peking University.
Among the commendations that he has received are the A.H. Boerma Award from the Food and Agriculture Organization of the United Nations in 1987, the Mainichi
Publishing Culture Award in 1988, and the Global 500 Roll of Honour from the United Nations Environment Programme (UNEP) in 1989.
He has authored many literary works, and co-edited and translated several others.
Selected literary works:
Crisis of the Global Ecosystem - Report from Inner Africa, Chikuma Library, Chikumashobo, 1987
Global Environment Report, Iwanami Shinsho, 1988
Disappearing Snow of Mount Kilimanjaro - Africa Environmental Report, Iwanami Shinsho, 2009
Global Environment Case File, Iwanami Shoten, Publishers, 2010
Global Environment History in the Classics, Iwanami Shoten, Publishers, 2011
The Volcanic Eruption That Changed History, Tosui Shobo, Publishers & Co., Ltd., 2012
History of Barbed-wire Fences, Yosensha Publishing Co., Ltd., 2013

workforce in the farming business and the expansion of deserted arable
land. Municipal governments and relevant organizations are working on avariety of support programs for those who take over previous generations’businesses or take up farming by either returning to their hometowns or
migrating from urban areas. They have also eased entry regulations forcompanies from other sectors going into the agriculture business, promoted
efficient use of deserted arable land, supported baby boomer senior citizens
in joining the agriculture business, and put aged labor to efficient use, all ina bid to alleviate the labor shortages in full-time farming households. The
national government, on the other hand, is encouraging private businesses
to enter the agriculture business by leasing deserted arable land to newentrants from other industries in an attempt to resolve the problem ofdeserted farmland. However, not many private businesses have started rice
farming. This is due to the decrease in rice consumption and the resultant
drop in rice prices, which have led to shrinkage of the rice market. In short,
if we hope to see deserted farmland rejuvenated and the shortages of skilled
rice farmers overcome, it will be necessary to streamline the industry
and develop new markets at the same time. What are required, then, aredevelopment of an environment that makes young people want to carry on
farming and strategies for dealing with such issues.

Hopes for a “Global Reach” and “Technological Innovation”
Revitalization of Japanese Farming to Boost World Food Production

I have a few ideas that I believe will help to revitalize Japanese farming.
The first is to secure farmland overseas, use local labor to grow farm
products, and import them to Japan. This scheme is attracting muchattention throughout the world, and food-importing nations such as
China, India, South Korea, and Middle Eastern countries have started
to make huge investments in farming in central Asia and Africa. Behind
this is a growing concern over the global food crisis, which is premised on
the assumption that the world population will reach 9.3 billion by 2050.
Investment in farming in developing countries is in and of itself one of the
key elements underpinning the development of national economies, taking
the form of farming infrastructure improvement, job creation, and higher
productivity. Furthermore, increasing food production by expanding
farmland can serve as a breakthrough in resolving the world’s foodproblems mentioned at the outset of this article.
However, anything that has to do with land risks the danger oftriggering nationalism. As such, the kind of farming investment thatwould be most desirable is one that benefits not only investing countries,

but also helps recipient countries to achieve sustainable development ofagriculture. In other words, we should realize a “win-win” relationshipwhere both parties benefit from investments; investing countries can
expect good returns on their investments and a stable food supply andrecipient countries can expect the development of social infrastructures andtechnology transfer.
Having advocated the “promotion of responsible agriculturalinvestment” from early on, Japan won support from the international
community when it announced its belief that transparency andaccountability, as well as proper consideration of communities, residents,
and the environment, be included in the principles of action forinternational agricultural investment. As the world is counting on Japan’s
leadership in this regard, I believe that opportunity is knocking for Japan toset an example for the world with its farming technology, using agriculturalinvestment as a vehicle.
Another idea concerns matters that need to be dealt with domestically;that is, enhancing productivity through technological innovation, in
addition to optimizing the scale of farming. The highest expectations inthis regard are for hydroponic culture, in which Japan leads the rest of theworld. More specifically, this is referring to the “Plant Factory,” which isa technique used to cultivate crops inside buildings where the amount oflight and nutrition are carefully controlled. Three years ago, the Ministryof Economy, Trade and Industry (METI) certified six universities inJapan as research centers to improve the control system for the cultivation
environment. METI’s plan is to lower production costs by 30% andcommercially distribute the vegetables cultivated in the Plant Factory. In
light of growing concerns over the safety and stable supply of food, thisinitiative perfectly meets the needs of the times and offers the potential of
becoming the next growth field for Japanese businesses, which have strong
assets in manufacturing technology.
Kubota is highly regarded as a farm machinery manufacturer, andhas built close relationships with farmers in Japan. If they were to takenew action for Japanese agriculture and farmers, it would be possible
for them to support a program to seek farmland outside of Japan jointlywith like-minded farmers who possess the necessary techniques, inaddition to developing sales channels for rice, which they are diligently
working on even now. In order to increase the world’s food production,
the mechanization of agriculture is an inevitable global trend. I have highexpectations for Kubota’s ambitious and innovative efforts in this regard,
which start with collaboration with Japanese farmers and have the farmers
and agriculture business of the world in mind.
41

Innovation of Farmers
The Unchanging and the Changing

Agriculture is an industry that determines human survival, and at the same time shapes culture. Just as there still remainaround the world customs and ceremonies in which people pray for bountiful harvests of grain crops, it is clear that within
agriculture is human culture, where the workings and feelings of people are engraved.
However, modernization has been a process where the culture engraved in farm products has been cast aside in theirperception as commodities. At the very source of the act of farming lies something “unchanging” that lies deep within themind of every human being. Re-appreciating and preserving these cultural aspects of agriculture should be among the great
drives for agricultural revitalization.
Meanwhile, the current environment in which agriculture as an industry finds itself is becoming increasingly difficult,and for us to overcome these hardships we must change in response to the times. To offer a solution to the world’s foodproblems, each and every one of us must go about “changing” the status quo in a responsible way. This is simultaneously an
attempt to create new culture and make steady efforts for a bright future.
Needless to say, at the forefront of this effort can be none other than the farmers themselves, who are chiefly responsible
for the production of farm products. The farmers’ own innovations will move the evolution of agriculture into a new phase.
What can a private enterprise can do to support this? Some answers can be found in the initiatives that Kubota initiatedin Japan and Thailand. It could be just one small step toward innovation that will break the status quo of farmers. However,Kubota realizes that the simple act of taking a step forward is a “repayment to farmers,” and this should be the mission ofany enterprise involved in agriculture. All of these efforts are for the sake of opening up new possibilities for the future of
agriculture.
Herons fly over fertile farmland. Watered by the Chao Phraya River, this firm soil has brought forth bountiful harvests. (Ayutthaya Province, Thailand)
42

Published

May 2013

Planning and Publishing Corporate Communication Department, Kubota Corporation
2-47, Shikitsuhigashi 1-chome, Naniwa-ku, Osaka 556-8601 Japan
Editing & Production

Works Japan Inc., Universal Combo Inc.

Photographs

Sincom Photo

DesignDice Design

Printing

Cie Bie Kansai Inc.

Inquiries

Corporate Communication Department, KUBOTA Corporation43

www.kubota-global.net

MIX

Paper from
responsible sources

FSC® C012635

44

This booklet is printed on FSC-certiﬁed paper that contains materials sourced from responsibly managed forests.
Low-environmental-stress vegetable oil ink was used to print this booklet.

2013.5