A new survey revealed that small and medium Japanese food makers faced structural and operational challenges in switching from imported to domestic raw materials.
According to the survey findings, 76 per cent of companies had considered switching to domestic raw materials, but only 24 per cent had successfully implemented the change. More than half (52%) had examined the option but were unable to proceed.
Fifty food manufacturers participated in this only survey by AkaneSasu, a consultancy specialising in the food industry. The respondents included producers of bread, noodles, prepared foods, tofu, miso and soy sauce.
Top barriers
Cost was the more frequently cited barrier, with 80 per cent of respondents indicating that domestic raw materials are more expensive than imported alternatives.
However, high costs were not the only concern holding companies back.
Forty-five per cent of respondents expressed concerns about stable procurement, reflecting anxiety over supply consistency due to climate variability and production capacity limitations.
At the same time, 38 per cent highlighted a “lack of direct transactions with production regions”, highlighting a structural disconnect between food producers and makers.
“The survey found that 76 per cent of companies considered switching to domestic raw materials but were unable to implement the change. Behind this lie structural challenges – not only price but also concerns about stable procurement and the lack of relationships with production regions,” said Ryutaro Hojo, representative director, AkaneSasu.
Supportive measures needed
The survey underscores a divide that makes it difficult for individual firms to overcome without coordinated support.
In response to these challenges, the Ministry of Agriculture, Forestry and Fisheries (MAFF) has allocated approximately JPY5bn (USD32.7m) in its FY2025 supplementary budget to launch the “Emergency Measures Project to Establish a Sustainable Food System.”
The programme targets food manufacturers that formulate formal regional collaboration plans with producers.
By fostering direct collaboration between food manufacturers and agricultural producers, the programme ultimately aims to strengthen the overall resilience of Japan’s food system.
“The Emergency Measures Project to Establish a Sustainable Food System is specifically designed to address this disconnect. By supporting the provision of machinery and materials to production regions and the formulation of regional collaboration plans, it helps establish direct links between food manufacturers and producers,” said Hojo.
It provides subsidies covering up to 50% of eligible costs, supporting measures such as the provision and lending of agricultural machinery and materials to production regions, capital investment to expand handling of domestic raw materials, and the development of new products using locally sourced inputs.
To qualify, applicants must increase their use of domestic raw materials by at least 10%, expand the number of collaborating producers, and participate in regional collaboration forums as model cases.
The application window ran from 16 December 2025 to 8 January 2026, a timeframe that Hojo said was excessively short.
“However, the application period was extremely short – just two to three weeks – so companies are advised to begin preparing collaborative frameworks with production regions now. Last year’s programme closed early due to overwhelming demand.”
