Japan

Japanese food corporations are stepping up their diversification and security of food sources, in particular taking ownership of the entire supply chain, from owning the farms in other countries, through to the processing and distribution of the food stuffs.

On the heels of tight crop production reports and the recent memory of individual nations experiencing food disruptions, there is a scramble to control or own agricultural assets and food stocks.

Japan's big trading houses, which have enjoyed bumper years from betting on iron ore and metals, are getting into the food market, aiming to tap voracious demand in China and emerging economies.

China's Ministry of Agriculture (MOA) was drafting policies to encourage domestic companies to rent or buy land abroad for farming, especially for planting soy bean, the EO learned. The MOA had identified five regions, including Central Asia, Russia, Africa, Southeast Asia, and South America, for five major Chinese state-owned farming companies to invest in.

Japan has steadily prepared for food security by buying 12 million hectares of croplands around the world, from Southeast Asia and China to South America. By comparison, the amount of Korea’s overseas croplands is negligible.

Brazilian grain broker Multigrain SA has bought 100,000 hectares of farmland and related operations in Brazil to secure a stable supply of soybeans and other farm produce, Japan's Mitsui & Co Ltd, a part owner of holding company Multigrain AG, said on Tuesday.

Three Japanese firms, including two on the Fortune magazine's world top 500 list, have jointly leased 100 hectares of farmland in east China's Shandong Province, to become the first foreign investors in China's farming industry.

From the California wine country to the Florida citrus groves and Montana ranches, a wave of Japanese investment is sweeping through American agriculture and food processing.