Agriculture Business
We view agriculture as a business deeply rooted in the local community and an industry that supports the region's future, and we are committed to working closely and growing together with the people and the community.
As a comprehensive real estate developer with a long history of working with the land, we strive to shape the future of local communities through agriculture.
Working Closely and Growing Together with Local Communities as an Agri-Developer
For many years, we have operated business sites in areas surrounding Nippon Steel's steelworks, engaging in community development by building residential developments and commercial facilities, primarily on idle land within the steelworks sites. The farmland we are using for our first project in Muroran, Hokkaido, was likewise developed on idle land that we have long owned.
In this way, by applying the expertise we have cultivated through real estate development to farmland, we aim to enhance its value and build a new regional industry that spans everything from production to distribution, processing, sales, branding, and tourism. This is the kind of agri-developer that Nippon Steel Kowa Real Estate Agri strives to become.
Rather than treating agriculture as a standalone production business, we aim to understand the true potential of the land and grow crops that are suited to it, thereby establishing production areas and nurturing agricultural value chains in collaboration with local businesses and governments. Our goal is to create a model that enables each region to prosper through agriculture by strengthening employment, technological development, industry, branding, visitor numbers, and community pride.
Building Regional Prosperity Through Production
Our first focus is on production. We will develop farmland and grow crops, striving to achieve high yields, quality, and efficiency.
Leveraging the production areas that we cultivate through this process, we will create new business opportunities in areas such as distribution, processing, sales, branding, and tourism.
Initiatives in the Agricultural Sector
Climate change is driving shifts in suitable growing regions. Viewing these changes as new business opportunities, we are developing an agricultural business focused on profitability and efficiency.
Growing Apples Using High-Density Planting Methods
We began producing apples using high-density planting methods in Muroran, Hokkaido, planting 3,199 saplings.
High-density planting methods have become mainstream worldwide, delivering yields approximately three times higher than conventional cultivation methods in Japan while offering advantages in both profitability and efficiency.
We also take a business-oriented approach when selecting crops, taking into account such factors as the high market price of fruit and shifts in suitable growing regions driven by climate change.
Demonstration Project for Sweet Potatoes for Processing
Hokkaido is emerging as a promising new production region for sweet potatoes due to the northward shift in suitable growing regions driven by climate change, as well as the development of new varieties and cultivation techniques suited to cold climates.
In Noboribetsu, Hokkaido, we are carrying out a demonstration project to produce sweet potatoes for processing, with local farmers taking the lead in farming operations.
By leveraging the advantages of large-scale farmland and specializing in crops for processing, we strive to establish a highly productive model that minimizes management and sorting costs while allowing us to develop a regional brand.
Future Development Strategy and Vision
Over the next decade, we aim to establish a production system spanning 100 hectares. In addition to scaling up production, we are also exploring investments in upstream segments of the agricultural value chain, such as sorting facilities and processing plants.
Leveraging our strengths as a developer, we will pursue a multifaceted approach that includes developing distribution infrastructure, branding, and tourist farms while maintaining profitability, as we continue to engage with the primary industry and contribute to addressing Japan's food security challenges.
Phase 1（〜2028）
Establishing a Foundation for Production in Muroran
- Validation of high-density planting methods and accumulation of expertise
- Initial harvests and regional brand launch
- Establishment of local employment frameworks
KEY FOCUS
Establishment of stable production operations
Phase 2（2029〜2032）
Expanding into Neighboring Areas and Venturing into New Crops
- Expansion of farmland into neighboring municipalities, such as Noboribetsu
- Trials to grow a variety of crops, including sweet potatoes and grapes
- Exploring the development of sorting facilities and logistics hubs
KEY FOCUS
Expansion of business areas and portfolio
Phase 3（2033〜2035）
Nationwide Expansion and Vertical Integration
- Expansion of the model outside Hokkaido (to Kyushu, etc.)
- Creation of high-value-added products through the development of tourist farms and processed goods
- Sales and consulting services for smart agriculture technologies
KEY FOCUS
Establishing our position as an agri-developer
Establishing a Production System Spanning 100 Hectares
Milestones
- May 2026: Launched a demonstration project for the production of sweet potatoes for processing
- May 2026: Held an apple tree planting ceremony (approximately 80 participants)
- May 2026: Began apple cultivation in Muroran, Hokkaido
- December 2025: Established Nippon Steel Kowa Real Estate Agri Co., Ltd., an agricultural business subsidiary