JAPAN – Calbee, Inc. and the Shiretoko Shari Agricultural Cooperative in Hokkaido, Japan, have signed an agreement to secure a stable supply of potatoes and build a frozen processing facility.
This move is expected to strengthen domestic potato production and create new economic opportunities in the region.
The Calbee Group, which uses about 19% of Japan’s potato supply, will be able to purchase up to 40,000 tons of raw potatoes annually under this agreement. The company has set a goal to increase the country’s total potato production to over 400,000 tons by 2030.
For JA Shiretoko Shari’s farmers, shifting to potato cultivation from other crops is expected to improve profitability. The agreement will provide them with a reliable buyer, reducing uncertainties in the agricultural sector.
To strengthen its frozen food business, JA Shiretoko Shari will establish a frozen potato processing facility, which will be managed by the Calbee Group.
This facility will play a crucial role in expanding the production of well-known potato products, including ‘Poteriko.’
The joint investment is estimated at approximately USD 133.6 million. Operations at the facility are scheduled to begin within the fiscal year 2027. The Calbee Group will oversee the facility’s management, ensuring efficiency and consistency in production.
“Together, the Calbee Group and JA Shiretoko Shari will leverage each other’s strengths to develop a sustainable supply source for raw materials and support agricultural development in the region of Hokkaido,” a recent report stated.
Japan’s potato production is concentrated in Hokkaido, which accounts for nearly 80% of the country’s total yield. Other regions involved in potato farming include Kyushu, Nagasaki, Kagoshima, Ibaraki, and Chiba.
In 2023, Japan produced approximately 2.18 million metric tons of potatoes, with an average yield of about 31,287 kilograms per hectare.
The country has seen a shift in consumption patterns, with processed potato products such as chips and french fries becoming more popular than fresh potatoes.
Most frozen potato products in Japan are imported, making this agreement significant in boosting domestic processing capabilities.
This partnership is expected to secure a steady supply of potatoes, strengthen Japan’s agricultural sector, and create employment opportunities in the region.
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