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    World

    Japan's Agriculture Ministry pursues overseas storage investment to bolster food security

    Japan's Agriculture Ministry pursues overseas storage investment to bolster food security

    Amid growing concerns over food security, the Japanese agriculture ministry intends to promote the engagement of domestic companies in establishing overseas storage facilities for agricultural products, NHK reports.

    The A-Five fund was established in 2013 to provide financial assistance to Japan's farm sector.
    Source: Reuters

    This strategic move has been prompted by mounting global uncertainties, notably Russia's incursion into Ukraine, which has disrupted global food supply chains. The ministry's objective is to safeguard Japan's access to consistent reserves of grains and animal feed, thus reducing vulnerabilities in the face of supply disruptions.

    As part of this initiative, Japanese companies contemplating investments in foreign storage facilities or logistical hubs will conduct feasibility studies to assess the profitability of their prospective ventures. To support these efforts, the ministry has announced plans to subsidize half of the expenses incurred during these investigations.

    For the fiscal year 2024, commencing in April, the ministry aims to secure approximately 200mn yen (equivalent to around $1.37mn) in its budget request to cover the associated costs of these initiatives.

    Japan relies heavily on imports of wheat, rapeseed, and corn, which serves as animal feed. The invasion of Ukraine by Russia has induced significant price hikes in these imports, thereby placing substantial pressure on Japanese farmers and consumers alike. In response to these challenges, the Japanese agriculture ministry is taking proactive steps to enhance the nation's food security and mitigate the impact of such disruptions on its food supply chains.

     

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    27.08.2023, 20:34   Comments (0)   1372
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