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Investment Guide to Tohoku

Agricultural Production Corporation, Limited Company, Iwaki Onahama Vegetable Farm :Fukushima Prefecture

The Tomato "Factory"- the Advent of New Agriculture in Tohoku

Iwaki is a city located at the southeast end of Fukushima Prefecture in the southern end of Tohoku, and the effects of the temperature extremes are relatively mild throughout the year. Iwaki has a population of about 350,000 and is twice as large as Singapore. The Kagome-funded "Iwaki Onahama Vegetable Farm" was established in this city. They are the largest organic vegetable farm in Japan with two greenhouses producing eating tomatoes rather than for processing, grown in an area as large as 10 hectares. Mr. Tsugumoto Kobayashi, the president, holds an ambitious dream, saying, "I would like to popularize our fresh tomatoes as Iwaki’s new brand in the future."

Agricultural Production Corporation, Limited Company, Iwaki Onahama Vegetable Farm 3-1, Sumiyoshi Aza Iriume, Onahama, Iwaki, Fukushima 971-8124 Tsugumoto Kobayashi, President Establishment: November 2003 Number of employees: 80 (as of August 2005) Product: Tomatoes for eating raw TEL: +81-246-76-1794 FAX: +81-246-58-4486
Tsugumoto Kobayashi, President

Advantageous Climatic and Geography

In 1998, Kagome Co., Ltd., a top tomato-processing company, entered the fresh tomato business and established its new business unit (NBU) for fresh vegetables. Kagome took this action in response to the request made by an executive officer of a supermarket who visited Kagome’s tomato juice factory for inspection. His request was to grow tomatoes to be eaten raw. Then, the staff visited large-scale vegetable farms around the world, and established the first demonstration greenhouse in 1999. Afterward, they created some large vegetable farms. They selected Iwaki as the sixth place for this project.

Mr. Kobayashi selected Iwaki mainly because of "its advantageous climate for tomato growing." He said, "Special attention should be directed to the fact that the annual amount of sunlight exceeds 2,000 hours in Iwaki. Only a few places in Japan satisfy this climatic condition. This city satisfies another climatic condition for tomato growing in that the difference between the maximum and minimum air temperature is approximately 10 °C. An additional reason for selecting this city was its location—Iwaki is close to the huge markets in Tokyo and Sendai, a core city in Tohoku."

Mr. Kobayashi, who was transferred from Kagome Co., Ltd., had been mainly in charge of procuring apples and vegetables in Japan as the raw materials for juices. Consequently, he belonged to the production department and the trade department.

On August 20, 2003, Iwaki officials, land owners and Kagome Co., Ltd. held a press conference and announced that a Kagome-funded large-scale high-tech vegetable farm would be created in Iwaki. Mr. Kobayashi was transferred to the Iwaki office the following month and established the "Agricultural Production Corporation, Iwaki Onahama Vegetable Farm" on November 28, 2003. The tomatoes produced in this farm were first shipped in July 2005.

Iwaki Onahama Vegetable Farm built on a large site

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Step-up to Full-scale Production

An aerial photograph would be needed to appreciate the entire site because the scale of this integrated organic farm can be ranked in the first place in the Orient. Brand names such as "Kagome Kokumi Tomato" and "Kagome Delica Tomato" are given to all the harvested tomatoes, and then they are shipped to Tokyo and Sendai. In June 2005, Kagome Delica Tomato seedlings were first planted in a 1.25 ha area of their farm’s 1st Greenhouse. In July, the long-awaited first shipment was completed successfully. In the 2nd Greenhouse, planting was completed late in August. A system for regular shipments from the two greenhouses was established in November. The estimated annual shipment is 3,400 tons and sales are expected to exceed 10 million dollars ($1 = JPY120, as of November 2005).

Kagome Delica Tomatoes were grown specifically for commercial use. Because of their uniform shape and consistent flesh, Kagome Delica Tomatoes can be sliced easily, with a minimum loss. Mr. Kobayashi stated, "Tomatoes for commercial use are sliced for hamburgers or sandwiches. Therefore, uniform shape and consistent flesh are the prerequisites for these tomatoes. If one tomato can be cut into five 5 mm slices and another into seven 5 mm slices, this difference results in an economical loss. The tomatoes shipped from this farm can be cut into six to seven slices. In this way, we supply high quality products that are economically feasible for the food service industry and satisfy the standards of the industry." They divide one greenhouse into four sections and also produce the "Round Medi Plum," a type of Kagome Kokumi Tomato, in addition to Kagome Delica Tomato, according to requirements. They use a rock wool medium for tomato growing, instead of soil. Tomato plants are hung with guide hooks and the position of the tomatoes to be picked can be adjusted to the staff’s eye level by moving the plants upward or downward. This system contributes to an improvement in working efficiency. An electrolytic water mist is sprayed for sterilization and beneficial insects are used to reduce pesticides. Japanese native B. ignitus is used to promote pollination and natural crossbreeding. Taking an approach like this, they are making efforts to ensure a safe and reliable production system.

Assurance of water resources is especially important for tomato growing. "As one of the means to ensure adequate water resources, the rain falling on the roofs of the greenhouses is collected in a water reservoir on the farm. For example, 10 mm of rainfall provides 1,000 tons of reservoir water. The water reservoir is filled with a 70 mm rainfall and this storage is equivalent to the amount required for approximately 10 days." At the Iwaki Onahama Vegetable Farm, with due consideration for growing techniques and assured water resources, all staff make their efforts to achieve the largest unit crop yield in Japan.

You can find a futuristic vegetable farm in the greenhouse for fresh tomatoes.

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In Order to Create a New Iwaki Brand

The number of staff at the farm reached approximately 200 in November when the tomatoes growing in the 1st and 2nd Greenhouses are harvested and continuously shipped. Mr. Kobayashi says, "As of August 1, about 80 staff are involved in tomato growing. Most of them are locally-hired employees and the predominance of women is evident. They work intensively on tomato growing mainly in the greenhouses. I am from the central part of Japan but I know the natural beauty of Tohoku, the northern part of Japan, where the four seasons are clearly defined because I worked in Kagome Aomori Branch Office for a total of eight-and-a-half years. I occasionally invite the former executives of Kagome Co. Ltd. to show them around the city of Iwaki and all of them highly praise this wonderful environment." Moreover, he is deeply attached to the climate and culture of the region and recognizes the necessity to "actively popularize the advantages of Iwaki throughout the world."

They promote collaboration with local sectors, not only by recruiting local staff but also by procuring a large variety of materials—including containers for harvesting and fertilizers from local companies as much as possible. They are always exploring possibilities for harmonious coexistence with another local tomato brand called the "Sunshine Tomato." Iwaki officials expects that the newly born Iwaki Onahama Vegetable Farm will take a firm root and become a major representative local company. Kagome Co., Ltd. also promotes exploration of new commercial markets for eating tomatoes and also offers recipes for cooked tomatoes at grocery stores. Consequently, these trends seem to contribute to an increase in shipments from Iwaki Onahama Vegetable Farm.

Mr. Kobayashi says, "I would like to promote a project to popularize the tomatoes produced in the large-scale vegetable farm in combination with Iwaki’s tourist resources, including the sea coast and hot springs." He focuses on the creation of the new "Iwaki Brand".

"Kagome Kokumi Tomato," characterized by its uniform shape

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Covered, Jul 2005