[K-soybean Industry] ① 'Processors-Local Governments-Farmers' One-Team 'Hyogo Model'... Where Soybeans Are Planted, Profits Grow

Japan's soybean self-sufficiency rate at 23% amid influx of imports
Raising self-sufficiency through the Wheat and Soybean Domestic Production Plan
Enhancing stability and sustainability through 1:1 matching between processors and farmers
Spreading awareness of "local production for local consumption" through school lunches

Editor's noteKorea's soybean industry is facing demands for change. Policies encouraging soybean production to ease rice oversupply have backfired and are now threatening the domestic soybean market. The concern has shifted to how to deal with surplus soybeans. We visited sites in Korea and Japan to explore the potential of the domestic soybean market.

"In Hyogo Prefecture, users (processing companies) are designated even before soybeans are produced by producers (farmers) in the region. Centering on the Hyogo Prefectural Government, we identify the tofu, soy sauce, and natto that processing companies plan to produce, recommend suitable varieties to those companies, and then connect them with farmers who will grow them. Processing companies can secure a stable supply of soybeans and wheat that perfectly match their products, and farmers can focus on cultivating the crops that users want without worrying about sales channels. This is the advantage." (Yamada Masashi, Section Chief of Agricultural Horticulture at the Hyogo Prefectural Government in Japan)

On the morning of the 28th of last month, we visited the Hyogo Prefectural Office, located about an hour's drive from downtown Osaka, Japan. Kobe, where the Hyogo Prefectural Office is located, is an international port city surrounded by mountains, situated west of Osaka and Kyoto, and is the sixth-largest city in Japan.

On the 28th of last month at the Hyogo Prefectural Office, Yamada Masashi, head of the Agricultural Horticulture Division (right), and Fujiwara Kako, Senior Administrative Officer, posed for a photo holding promotional materials for Tanbaguro, a specialty of Hyogo Prefecture. Photo by Joo Sangdon

◆ Like Korea, Japan has a low soybean self-sufficiency rate... Central and local governments jointly promote increased consumption of domestic soybeans = Japan, like Korea, has a rice self-sufficiency rate of 100%, but the self-sufficiency rates for soybeans and wheat (excluding feed use, as of 2024) are only 23% and 16%, respectively. As in Korea (soybeans 37.4%, wheat 1.5%), the country consumes more imported soybeans than domestic ones. With international grain prices soaring due to factors such as the Russia-Ukraine war, and import costs surging because of the weak yen, the Japanese government formulated and announced an emergency measure, the "Wheat and Soybean Domestic Production Plan," at the end of 2022 to reduce dependence on imports. Through this, Japan is actively pursuing policies related to the domestication and production, distribution, and consumption of wheat and soybeans.

If the Wheat and Soybean Domestic Production Plan is a central government-level policy, the "Hyogo Model" is a local government-level measure to improve self-sufficiency. Section Chief Yamada explained, "Hyogo Prefecture is promoting both new technologies and labor-saving through mechanization so that it can ensure a stable supply tailored to various uses, such as for boiled soybeans, tofu, miso (Japanese soybean paste), and soy sauce, while also encouraging the production of high-quality soybeans required by the food industry," adding, "The key is to expand the production and consumption of Tanbaguro (black soybeans), a specialty of Hyogo Prefecture, and to build a system that connects producers and users."

Tanbaguro is a compound word combining "Tanba," a place name in Hyogo Prefecture, and "kuro," meaning black. With its large size and good flavor, it is used for Nimame, a traditional soybean dish mainly eaten during Oshogatsu (New Year), Japan's biggest holiday. Administrative Officer Fujiwara Kako of the Hyogo Prefectural Government said, "In the case of Tanbaguro, it is used extensively in special seasonal dishes such as for Japanese holidays, so it has both uniqueness and strong demand," and added, "Because it is food eaten while praying that the new year will go well, people who want to use large, high-quality beans are seeking out Tanbaguro, which is eight times more expensive than ordinary soybeans." Other regions have attempted to cultivate Tanbaguro because of its high profitability, but due to unsuitable cultivation conditions such as soil, 46.3% of Tanbaguro is grown only in Hyogo Prefecture. It ranks first nationwide, with about 569 tons produced every year.

Tanbaguro and white soybeans produced in Hyogo Prefecture are placed on a Nimame promotional material made using Tanbaguro, Hyogo Prefecture’s specialty black soybean. Photo by Joo Sangdon

◆ Connecting processors and farmers to create a win-win structure = Another feature of the Hyogo Model is the establishment of a system linking producers and users. When a processing company inquires with Hyogo Prefecture about the required protein content and ease of fermentation for a specific product, the Hyogo Prefectural Technology Center for Agriculture, Forestry and Fisheries selects five varieties from among those grown nationwide that meet the company's criteria. The center then tests whether these varieties are suitable for cultivation in Hyogo in its own paddy fields and upland fields, and if they are deemed suitable, it recommends the variety to the company and finds farmers capable of producing it so that they can sign cultivation contracts with the processing company. The crops produced by the farmers are supplied to the company and used for the originally planned processed food production.

Section Chief Yamada emphasized, "Farmers start production knowing which company will make what product, and they continuously interact with the processing company during the cultivation process, sharing every step," and added, "Processing companies can secure agricultural products suitable for their products, and farmers can receive higher prices than for simple shipments and can cultivate with a clear understanding of the final processed form of their crops, which boosts their motivation. This results in a high level of satisfaction for both producers and users." In Hyogo Prefecture, about 10% of all crops are currently produced through this kind of producer-user linkage. The prefecture plans to gradually increase this share.

Officials in Hyogo Prefecture advised that, to raise the self-sufficiency rate of domestic soybeans, it is necessary to induce changes in consumer awareness. They cited as key concepts "local production for local consumption" (chisan-chisho) and "food education" based on it. Administrative Officer Fujiwara said, "Along with the spread of the perception among consumers that local agricultural products are good, which is the essence of chisan-chisho, a shift in awareness has been taking place through dietary education programs for children and parents that have been promoted for the past 10 years," and added, "Through each school's board of education, we are promoting the introduction of local agricultural products into school lunches, and producers of local agricultural products visit schools directly to explain the production process to children, providing a kind of chisan-chisho awareness education."

They also stressed the need for a variety of products using domestic soybeans and for breeding improvements suited to those products. Section Chief Yamada said, "In Japan, as in Korea, tofu, natto, and miso made from domestic soybeans are in reality more expensive than imported ones," and advised, "Under these circumstances, rather than simply encouraging people to use them by saying, 'Domestic soybeans are expensive but healthy and tasty,' we must first develop varieties that are easy to use for soybean processing and create processed foods that consumers prefer."