Japan’s agriculture ministry is exploring a new support system for food technology and agricultural businesses to enhance the country’s food security. With concerns about food availability due to increased import costs from the war in Ukraine, climate change, and a decline in domestic producers, the government aims to ensure a stable food supply at fair prices.
The Ministry of Agriculture, Forestry and Fisheries is considering supporting partnerships between farming businesses and food manufacturers, along with offering tax incentives and low-interest loans to companies developing technology for food production with minimal environmental impact.
These measures are likely to be included in the year-end outline on tax system reforms by the government and ruling parties, with legislation expected to be submitted in the 2025 ordinary Diet session. Recent revisions to the law on food, agriculture, and rural areas prioritize food security, encouraging businesses that contribute to sustainable food supplies.
To address the issue of small to medium-sized food producers dominating the market, the government plans to assist these businesses in expanding through mergers, acquisitions, and business successions. Furthermore, the agriculture ministry is considering allowing farmers to reflect increased production costs in their prices.
© KYODO