As Japan is in talks to join the Trans Pacific Partnership and has plans to abolish rice production regulations within the next five years, the agribusiness landscape will see big changes. Two agricultural companies have joined to establish a large scale rice company that will mediate between rice producers, merchant and consumers. Japanese companies Ogatamura Akitakomachi Seisancha Kyokai and Butai Farm joined efforts to create the Rice Industry Organization of East Japan (RIO East) based in Ogata. The new company will expand rice sales to mass merchants and restaurants, and as production caps on rice output are eliminated, will determine demand in order to set supply. Within five years the company aims to have 10,000 hectares under cultivation and sales of ¥15 billion per year. It will also lease farming equipment to agricultural corporations and farmers and will develop a loan program for farmers in partnership with financial institutions.
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