The company is reinforcing its business against the backdrop of challenges facing Japanese agriculture, including an ageing farming population, declining numbers of agricultural workers and shrinking farmland.
The company cited government estimates warning that around 30 per cent of farmland could be lost by 2030 compared with 2020 if current trends continue.
CEO Shohei Naito positions the fundraising as coming at a pivotal moment for Japanese agriculture.
“The creation of value chains from production to sales and export, as well as large-scale farming through corporate participation, which we focus on, is becoming increasingly important. At this pivotal moment, Nihon Agri is marking its 10th year since founding, and we feel an even stronger sense of responsibility,” said Naito.
A core objective is to create a sustainable agricultural model that also delivers stable incomes for those working in the sector.
“We will continue to expand our business and work towards establishing a sustainable agricultural model that meets the expectations of our partners.”
Funding so far
The funds were raised through third-party allotment with investors including Suzuyo Shoji, Mitsubishi UFJ Capital and DG Resona Ventures.
With this round, total equity financing for its Series C round has reached approximately JPY3.85bn, bringing cumulative equity funding to date totals approximately JPY5.7bn.
The company noted that fundraising activities for its Series C round are still ongoing.
The newly raised capital will be used for working capital and capital expenditure aimed at further optimising Nihon Agriculture’s value chain.
The company emphasised that deeper value chain optimisation, spanning production through to logistics and sales, will be central to building a sustainable and scalable agricultural model.
Apple alliance
Aomori apples are Nihon Agri’s core product. It has exported them primarily to Asian markets such as Taiwan and Hong Kong since its establishment in 2016.
The company plans to accelerate the expansion of Aomori apples and apply its expertise in high-density planting to other crops and regions.
Following the latest funding round, Nihon Agri and Suruyo Shoji announced that they have entered a capital and business alliance to expand fruit cultivation.
The companies are set to launch a high-density apple production in Aomori City’s Namioka area in April.
Nichi-Nou Pack
The company also aims to accelerate the growth of its agricultural entry support service, Nichi-Nou Pack.
According to the firm, Nichi-Nou Pack provides end-to-end support, from business launch and orchard operations to the sale of harvested produce.
It supports companies considering entering agriculture and for producers already operating agricultural businesses.
With this service, it employs experts specialising in agricultural business development, crop production and sales.
The company also researches and develops highly profitable and efficient cultivation methods, introducing overseas agricultural machinery and materials to improve productivity and reduce costs.
“Nihon Agriculture manages the entire value chain from production and grading to export and sales. In particular, its “Nichi-Nou Pack” service, which supports new agricultural entrants, will revitalise domestic agricultural production and create a new future for agriculture,” said Mari Kondo from Resona Innovation Partners.
