Project Story 01
Undertaking carbon-neutral agriculture
through industry collaboration.
"Japan-originated" smart agriculture project
through cascaded use of woody biomass resources.
Project Outline
In 2011, Tsuji Oil Mills, Co., Ltd., which was exploring ways to utilize waste heat from its own factory and surplus steam from biomass boilers, had a meeting with Asai Nursery and decided to enter the agricultural business. In addition to Asai Nursery, the company sought cooperation from Mitsui & Co., Ltd. and Inochio Agri Co., Ltd. The four leading companies in the agriculture, manufacturing (food processing), and logistics industries collaborated to establish the "Ureshino Agri.” By effectively utilizing waste heat and surplus steam from an oil factory for tomato cultivation, a carbon-neutral production system was established. They also introduced advanced technologies such as high-ceiling high-tech greenhouses in the Dutch style and a composite environment control system utilizing ICT. By introducing this next-generation agricultural model, they have garnered high expectations and attracted attention from the Ministry of Agriculture, Forestry and Fisheries as well as agricultural professionals across Japan.
Members
Ureshino Agri Co., Ltd., Representative Director and President
Tsuji Oil Mills,Co.,Ltd., Representative Director and Chairman
Yasuhiko Tsuji
Asai Nursery, Inc.
President and CEO
Yuichiro Asai
Chapter 01
Undertaking carbon-neutral agriculture with consideration for the global environment.
Asai
I met Chairman Tsuji for the first time in 2011. He visited the Asai Nursery to observe tomato cultivation. He was the president back then, and I remember being nervous about the president of Tsuji Oil, a leading company in Mie Prefecture, visiting. At that time, only a few employees worked at Asai Nursery, and I was looking after everything from production to sales with a towel wrapped around my head. The roads around the greenhouses were gravel paths that emitted dust when cars drove along them. I still cannot forget the sight of Chairman Tsuji briskly arriving in his car in a cloud of dust.
Chairman
Tsuji
Oh no, was it like that? At that time, I was looking for ways to effectively utilize waste heat from Tsuji Oil's edible oil factory. Tsuji Oil had previously introduced a biomass boiler that used wood chips made from thinned timber and other wood biomass from the region. We used steam from the boiler to manufacture edible oils; however, in this process, an enormous amount of hot water and surplus steam was produced. Therefore, I consulted Professor Nishimura from Mie University, whom I have known for a long time, and he introduced me to Asai-kun.
Chairman
Tsuji
He told me, "There is a young man who recently returned from the Netherlands, doing research on tomato variety improvement and challenging new cultivation methods in Mie university graduate school." Therefore, I went to observe the Asai Nursery. Until then, Tsuji Oil had focused on manufacturing and selling edible oils, chemicals, and food processing. We did not have a considerable connection with agriculture. Personally, I had no knowledge of tomato cultivation or greenhouse horticulture.
Asai
Conventionally, a type of heavy oil for agricultural use (i.e.,a fossil fuel) is used to heat the tomato and general horticultural greenhouses. Moreover, heavy oil prices were rising rapidly then, and the increasing fuel cost had become an issue in greenhouse horticulture. When I heard Chairman Tsuji's idea of "Instead of heavy oil, why not use the factory's waste heat for tomato cultivation," I thought, "I definitely want to take on this challenge." Although terms such as carbon neutrality and SDGs are common now, extremely few places were tackling decarbonization back then, not only in Mie Prefecture but also in Japan overall. I was deeply impressed by Chairman Tsuji's foresight in having already introduced a biomass boiler, a form of renewable energy, and now additionally interested in effectively utilizing surplus waste heat.
Chairman
Tsuji
We had various other ideas also for utilizing factory waste heat. In addition to consulting university professors, I also asked connections at Mitsui & Co. and others, and received suggestions such as "Why not build pools for eel aquaculture?" However, none of the ideas clicked with me. When I saw the tomato cultivation at Asai Nursery, I thought "This is it!" When Asai-kun said, "Please leave the cultivation entirely to me! I definitely want to work on this together,”I was tremendously reassured.
Asai
To be honest, I had little confidence. However, it was also an opportunity for the Asai Nursery to take a major step forward. I was determined not to lose to anyone in my passion to "make this an absolute success." I was truly grateful for being entrusted with this task. At the time, the general perception about agriculture in Japan was small-scale “family farming”, conducted by individual families and small groups. Asai Nursery explored a new form of agriculture systematically undertaken by an organization. By partnering with Chairman Tsuji, I hoped to establish a model for corporate entry into agriculture.
Chapter 02
Introducing cutting-edge technologies such as The Netherlands-style high-tech greenhouses.
Asai
Thus, Tsuji Oil and Asai Nursery, plus Mitsui & Co., which the chairman knew about through distribution and sales channels, and Inochio Agri, active in agricultural equipment sales, collaborated to launch a new agricultural business called Ureshino Agri. We started by conducting a feasibility study(*) together to determine the amount of surplus energy Tsuji Oil has, whether tomato cultivation is truly the best way to utilize it, and the type and manner the greenhouses shoulld be built. We conducted various surveys domestically and overseas, brainstormed ideas together, and repeatedly discussed things to solidify our policy. We must have held conferences for over a year, maybe 10-20 times?
Chairman
Tsuji
No, no, considerably more than that, dozens of times! It was a project requiring an investment of several billion yen, along with other things to consider such as government subsidies.
Asai
You are right. It is only now that the Ministry of Agriculture, Forestry, and Fisheries has finally developed a "Green Food System Strategy"(*), promoting things such as corporate agriculture participation and agricultural decarbonization. However, corporate entry into agriculture entry was still rare back then without policy frameworks such as government subsidies in place. Amidst that, the Ministry of Economy, Trade, and Industry launched an agricultural growth industrialization demonstration project to support advanced corporate agriculture projects, allowing Ureshino Agri to receive a subsidy to help with our launch.
Chairman
Tsuji
That's right. Initially, everyone was reticent and thought "will this really be alright?" "can we make it work?". But for me, not just for this project, my policy is that "once I decide to do it, I see it through to the end.” Asai-kun and I persuaded everyone saying "let's bring in high-ceiling high-tech greenhouses and the latest technologies from the agriculturally advanced Netherlands.” While agriculture was a new challenge, I was also proactive in adopting new technologies.
Asai
I think Chairman Tsuji's resolve inspired everyone. When taking on a new challenge, people tend to "look for reasons to quit," I think. Because I was offered the challenge this time, I did not have any reason to quit. However, I am sure that Chairman Tsuji had reasons to quit; still he encouraged and brought everyone together. Thanks to that effort, as a successful case of corporate agricultural participation and a model of advanced agriculture, Ureshino Agri has gained considerable attention from Ministry of Agriculture officials and several other agricultural professionals.
Chairman
Tsuji
No, it is all because of Asaikun. Without his agricultural insights and cultivation techniques, this project would have been impossible. Honestly, as he was still young, a few parts worried me a little initially (laughs). However, now he has matured splendidly as a business executive, and I can leave things to him with equal confidence as a business partner too.
*FS...Feasibility Study. In projects for new businesses etc., investigating the feasibility, profitability, and other aspects from multiple perspectives.
*Green Food System Strategy...Food production policy formulated by Ministry of Agriculture, Forestry and Fisheries in May 2021. A strategy to achieve both improved productivity and sustainability in food, agriculture and fisheries through innovation.
Chapter 03
Overcoming various troubles to establish a sustainable production system.
Chairman
Tsuji
It has been almost 10 years since Ureshino Agri was established in 2013. Retrospectively, we experienced several problems. I think this caused Asai-kun several difficulties onsite too.
Asai
Oh, not at all. Thanks to his excellent support, we have managed to continue for 10 years. However, several challenges still remain, and unexpected problems continued to occur at each step along the way. First, obtaining our greenhouses was very difficult in the first year, because the Dutch company we ordered them from went bankrupt without warning. Like "You can just go and do that?" However, bankrupting of companies, rebuilding them through civil rehabilitation, and rapid resumption of business is quite common in the Netherlands, which was what occurred in our case. Finally, the ship carrying our greenhouse materials set off from Holland, but ran aground in a storm.
Chairman
Tsuji
Oh right, that happened too. This was even in the news. However, the cargo containers somehow made it safe, at least right?
Asai
Yes. Although one-third of the container cargo sank, our cargo remained intact in the other two-thirds. Materials were delayed by several months. Then, just as our greenhouses were nearing completion, a huge typhoon arrived, which was so severe that the emergency alarms would not stop ringing with urgent flood warnings instead of just heavy rain warnings in the Ureshino area.
Chairman
Tsuji
He is right. Water was on our doorstep in the farm plot. I think certain items, such as the computers and service rooms were even submerged in water?
Asai
Yes, that is right. However, since then, we have not experienced severe storms again, and, furthermore, we have not sustained any typhoon or disaster damage after beginning cultivation. I think it may be thanks to Chairman Tsuji for performing the land-sealing rituals.
Chairman
Tsuji
Our company has a saruta-hiko shrine that performs purification rituals once a month. Even at Ureshino Agri, rituals are performed at milestones such as the construction of greenhouses. Whether that is the reason, I do not know; however, I think it is important to have an attitude of respecting the local land.
Asai
Yes. I have followed Chairman Tsuji's example, having rituals performed at Asai Nursery's milestones as well. With cultivation also getting properly on track, another issue emerged in the latter half of that first year when we were finally starting to feel a little relief, which was "work delays.”
Chairman
Tsuji
He is right; such issues also occurred, particularly in the second year.
Asai
Yes. I think the reason we were somewhat managing in our first year was that we were just focused on what was right in front of us with beginner luck. In the latter half of the first year, issues started arising, such as our work lagging behind the projected deadlines. In one such period, I worked late into the night with headlights trying to catch up; however, as Ureshino Agri is on the scale of dozens of hectares, with tens of thousands of tomato plants, we could not keep up. Even with the support of all people working desperately, the unfinished work would extend into the next week again. At that point, I was keenly aware of my own inexperience, and then Chairman Tsuji would show up cheerfully with arms full of snacks and encouragement for me and the team.
Chairman
Tsuji
As Asai-kun was in charge of the actual cultivation aspects, my role was more of raising team unity and motivation. When working people feel someone watching over their hard work, they will continue doing it with all their effort.
Asai
That's right. Thanks to Chairman Tsuji, our team united and overcame these difficulties. I was truly grateful. During the second and third years, the company became profitable. Subsequently, we expanded the greenhouses by 1.2 hectares, introduced supplementary LED lighting and other new technologies, and continued expanding the business. However, in the following year, yellowing leaf disease spread within the greenhouses. In retrospect, this was owing to my own complacence and negligence. Chairman Tsuji appropriately managed the issues on site once again.
Chairman
Tsuji
That did happen. Old sayings like "prosperity tends to breed arrogance" and "tighten your helmet's strap in victory” are extremely relevant. I learned it myself through several experiences.
Asai
Yes. Thanks to Chairman Tsuji for covering my shortcomings everywhere. I think we have demonstrated one aspect of a new sustainable form of agriculture, albeit limitedly.
Chairman
Tsuji
Right. Although profitability and business sustainability are also important, watching the tomatoes grow day after day is very satisfactory. Watching the tomatoes grow in all their glory and lined up in the greenhouse turning beautifully red is a spectacular sight. I realized that this type of enjoyment is part of agriculture.
Chapter 04
Establishing an agricultural business model leads to regional and social contributions as well.
Asai
Since the initial launch, Chairman Tsuji set a business target of achieving "100 million yen in annual profit per project.”At Ureshino Agri, although we have come quite close, we have not achieved it yet. I have only recently begun to slowly understand the significance of the goal the Chairman has consistently emphasized. As a business, if we do not make a profit, we cannot properly pay salaries to employees, or taxes. Failure to fulfill our obligations to the business partners and all involved participants will not allow us to sustain the business, right?
Chairman
Tsuji
Yes, as a corporation, we conduct business within the framework of capitalism, and as an executive, I must never forget that. However, simultaneously I also felt this project had significant meaning in terms of repaying and contributing to the local region and society; therefore, I thought "we absolutely have to make this succeed.” If it were just for our own profits, I may have already given up (laughs). For example, Ureshino Agri currently employs over 100 part-time staff, with several local mothers working in addition to fulfilling their child-rearing duties. No other facility in the vicinity can employ such a large number of people together like this or provide employment with this degree of work-style flexibility at the outset.
Asai
Agriculture is not is a field that does not have absolute tasks to be finished by the end of each day. Therefore, with proper schedule management,
Asai
it allows us to cooperate with diverse human resources working in varied workstyles tailored to their lifestyle, including people with disabilities.
Chairman
Tsuji
That is right. This is similar to global environmental aspects. Although Ureshino Agri switched from heavy oil to a renewable energy source (biomass), achieving an almost carbon-neutral form of agriculture, we still use electricity. Moving forward at Ureshino Agri and Tsuji Oil, we want to work on decarbonizing electricity also, through solar and biomass power generation, to promote further decarbonization.
Asai
In review, I think Ureshino Agri has been impressive in pioneering and showcasing a new form of agriculture for the future to the society and local region. I want us to continue accepting new challenges while pursuing new forms of regional agriculture. For example, as Chairman Tsuji mentioned, decarbonizing electricity and so on. I also want to work on issues such as shifting away from reliance on imported materials toward domestic production and expanding exports.
Additionally, at the first stage, Chairman Tsuji and I were at the core of building this ship, called Ureshino Agri. However, going forward, parts will wear out at places occasionally, and a need may arise to set a new heading. Then, I hope that the people of the next generation will determine a course themselves, while this continues to be a ship that contributes to society, as the Chairman says.
