## (2) Revitalization of Agriculture and Rural Economy through Collaborations between Food Industry and Agriculture

• Collaborations between agriculture and food industry should be strengthened to revitalize local agriculture and economy. Such a joint approach brings benefits to farmers and the food industries. Farmers can be assured of constant customers and the food industries can promote differential marketing by taking the community-based approach.

• There are common elements in successful collaborations between the food industry and agriculture. Generally, the joint projects have been promoted from a long-term perspective. For example, the traditional agricultural products are utilized and the food industries are involved in cultivation and quality control of crops.

Successful Cases of Collaborations between the Food Industry and Agriculture

Cases	Summary	Results
Production of dietary oil from the traditional local sesame (P. frutescens var. frutescens) seeds [Nihonmatsu, Fukushima Pref.] Initiation of program: FY2004	A miller started to produce dietary oil by using the traditional local sesame (P. frutescens var. frutescens) seeds. The miller contracted with the local farmers, advised them to grow the plant (P. frutescens var. frutescens) without agricultural chemicals and purchased all the harvested seeds.	The special sesame seed oil sells well because of health food boom. The number of contract farmers and the acreage under sesame (P. frutescens var. frutescens) cultivation have been increasing from 40 farm households and 2 ha in FY2004 to 90 farm households and 7 ha in FY2006.
Production of ketchup from locally-produced tomatoes [Toyohashi, Aichi Pref.] Initiation of program: FY2002	A ketchup manufacturer considered the trend of safety-oriented food selection and contracted with local farmers to procure tomatoes as raw materials. The manufacturer checks for residual agricultural chemicals and purchases all the passed tomatoes.	The farmers could increase their income by growing tomatoes, under contract, as the off-season crop of cabbage in winter. The number of contract farm households increased from 32 households in FY2002 to 55 households in FY2006.
Production of ice cream using local products [Ino-cho, Kochi Pref.] Initiation of program: FY1995	An ice cream manufacturer contracted with the local farmers involved in production of Kochi's famous fruits (Japanese lime, buntan orange) and rice using the technique of rice-duck farming, and purchased the harvested crops. The manufacturer processes such local products into ice cream for sale.	The ice cream manufacturer gradually increased its sales from 30 million yen in FY1995 to 320 million yen in FY2006. The local farmers, who accepted the primary processing of squeezing juice from fruits, could sell their products at higher prices. The number of contract farm households increases in the course of time.

Source: Investigated by MAFF

• According to the estimation of economic effects resulting from collaborations between the food industry and agriculture, the increase in the proportion of locally-produced foodstuffs procured by food processors contributes not only to increased production in local agricultural, forestry and fishery industries, but also to stimulation of production of related industries involved in production materials. The people engaged in such industries can receive additional income, which may lead to production of economic results such as increased consumption.

• Relatively remarkable results are produced in the local areas where greater importance is given to food processors and agricultural, forestry and fishery industries.

Economic Effects Achieved by the Collaboration between the Food Industry and Agriculture

Source: Estimated by MAFF according to “Local Input-Output Tables” (Ministry of Economy, Trade and Industry, 2000)

Notes: 1) (Proportion of the products procured from a single area) = (Agricultural, forestry and fishery products procured from a single area) / [The total agricultural, forestry and fishery products procured (including those procured from different areas)] × 100

2) The prefectures were classified according to the local classification used in the figure on the previous page.