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Japan lags behind other advanced economies in agricultural productivity, as individual farms still account for 60% of domestic sales.

Businesses help spur Japan's agricultural revival

Companies now make up 40% of local sales, but overall productivity still low

HIROKI OBAYASHI, Nikkei staff writer | Japan

TOKYO -- Corporate involvement in agriculture is growing in Japan. The number of companies in the sector increased 30% over the five years through 2022, accounting for roughly 40% of domestic sales.

Many businesses have entered the sector from different industries, while a number of large private farms have been incorporated. Still, overall productivity remains low, as many individual farms, often headed by the elderly, remain inefficient due to their limited scale. Many young people in rural areas seem reluctant to succeed their family business, but they have not lost interest in agriculture, as attested by the popularity of some farming corporations.

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