Delivering Kagoshima's Finest Meats to the World

For 11 consecutive years, Japanese food-related exports have continued to grow—reaching JPY 1.45 trillion by 2023. A key driver behind this growth is the global rise of Japanese restaurants, which have tripled over the past decade. From your perspective as a trading company, what do you believe accounts for this substantial increase in Japanese food exports? And why do you think now is the moment for washoku to truly shine on the international stage?

I believe the growing popularity of washoku is closely tied to the rise in inbound tourism. As more people visit Japan, they’re naturally drawn to experience authentic Japanese cuisine. They’re not only intrigued by the taste, but also by the freshness and quality of the ingredients—which create flavors that are difficult to find elsewhere.

At Nanchiku, we specialize in premium Kagoshima black beef and black pork. One of the key features that sets our products apart is traceability. We can trace the heritage of each cow or pig right down to the specific cut of meat. This level of traceability is a major point of differentiation and a hallmark of our commitment to quality.

Achieving this traceability takes significant effort. Every piece of black beef and black pork we offer is carefully monitored throughout the production process to ensure its origin is verifiable. In contrast, this kind of transparency is much harder to achieve with more generic white pork.

The farmers who raise Kagoshima black cattle and pigs are extremely meticulous. There’s a precise, protected method to how these animals are raised, including specific feed ratios and conditions required to qualify as official Kagoshima black beef or pork. Much of this knowledge is confidential, held only by the farmers and regional associations, which makes both the taste and the traceability deeply unique to the region.

The Japanese government is aiming to build on the global momentum behind washoku, targeting JPY 5 trillion in food-related exports by 2030. To support this, several initiatives have been launched—focused on marketing, branding, and strengthening domestic supply chains. What kinds of opportunities do you see emerging from these efforts, particularly in terms of expanding your company’s reach in overseas markets?

Before meat exports can truly flourish, the Japanese government is rightly focusing on strengthening domestic support for farmers. Cattle ranching and butchering are incredibly labor-intensive industries, and without robust support systems, it’s difficult for these operations to remain viable. Government subsidies play a critical role here—without them, many cattle ranchers would struggle to stay in business.

However, exporting meat presents its own set of challenges. Each country has its own regulations, and even something as basic as how meat is cut varies significantly by market. In Japan, for example, a single cow is typically butchered into 34 pieces. But for export, we often need to process it into 60 to 150 pieces—much smaller portions. This is because overseas markets generally lack the butchering expertise found in Japan, where skilled professionals can further break down larger cuts for retail. As a result, we’re often required to produce the final retail-ready product before exporting, adding steps and increasing the burden on meat processor.

Until 2023, government subsidies were primarily directed at cattle ranchers. But in 2024, that support was extended to butchers and retailers—and in 2025, we will begin receiving subsidies ourselves. This expanded support is a significant development, as it will help us enhance our overseas export capabilities.

That said, while the subsidies are appreciated and necessary, we’re still facing real financial pressure. Rising commodity costs and the continued depreciation of the yen have made it increasingly difficult to maintain profitability on exports, so while the government's initiatives are opening new doors, they also highlight the need for comprehensive, sustained support across the entire supply chain to ensure long-term growth in Japan’s food export sector.

While it’s true that Japan is currently benefiting from a surge in inbound tourism, the country is also grappling with significant long-term demographic challenges. As the world’s oldest population continues to decline due to low birthrates, this has led to mounting pressures—including a shrinking labor force and a contracting domestic market. How is your company addressing these challenges, and to what extent do you see overseas markets as essential to offsetting the impact of Japan’s demographic shift?

As Japan’s population declines and the domestic market contracts, we see new opportunities emerging—particularly in the area of processed products. Items like roast beef, for example, not only offer added convenience but also enhance the overall flavor experience, making them appealing to a wide range of consumers.

On the production side, we're focusing on increasing efficiency through collaboration. We’re working closely with existing manufacturers to implement greater automation in our processes. This not only helps address the labor shortage, but also allows us to maintain consistent quality while scaling production to meet both domestic and international demand.

Sustainability has become a major focus across industries, and in your case, you're already implementing several initiatives—from high-efficiency refrigeration systems to donating surplus food to food banks. How is your company positioning itself when it comes to sustainability? And more broadly, how important is sustainability to the future of the meat industry?

In terms of local contributions, we do donate to food banks, but we don’t necessarily view this as part of a broader sustainability or food loss initiative. Our primary goal with this effort is community support. The food bank we work with focuses on providing meals to children through participating restaurants, and we see this as a way to contribute directly to the well-being of families in our local area.

Nanchiku is a fully integrated meat company, covering everything from agriculture and production to distribution and even restaurant operations. What competitive advantages does this end-to-end integration model offer your company, both in terms of quality control and business growth?

Our core mission is to ensure profitability for cattle ranchers producing Kagoshima beef and pork, so maintaining healthy profit margins is essential. Simply selling fresh meat isn’t sufficient to sustain the business. That’s why we’ve adopted a fully integrated model that includes not only primary production but also secondary and tertiary processing. This allows us to add value at every stage—from butchering to ready-to-eat products—helping us optimize returns across the supply chain.

In addition, product merchandising plays a key role in enhancing and promoting our brand. By developing branded items and expanding into consumer-facing channels like restaurants, we’re able to elevate the profile of Kagoshima meat while also strengthening our market presence. This integration gives us greater control over quality, consistency, and brand identity—creating a sustainable advantage in an increasingly competitive industry.

What is it that makes Kagoshima black beef and black pork so distinctive and valued—both within Japan and internationally?

What makes Kagoshima black beef so unique is the exceptional level of care and precision that goes into every stage of production. The producers pay close attention to both herd management and the living conditions of the cattle, ensuring they are raised in an environment that supports their health and overall quality.

Compared to other premium wagyu varieties,  Kagoshima beef is known for its slightly darker color and richer umami flavor—considered by many to be the most flavorful among Japan’s wagyu offerings. The meat features extremely fine fibers and a heightened depth of taste, making it highly sought after both domestically and overseas.

This growing popularity is reflected in our export figures. In 2023, we exported 113 tonnes of Kagoshima beef to the U.S., and by 2024, that number had risen to 424 tonnes. A key enabler of this growth has been our advanced vacuum packing technology, which allows us to maintain the quality of the meat during transportation and support high-volume exports without compromising freshness or flavor.

In addition to the U.S., we understand that you're already exporting to markets across Asia and Europe. Looking ahead, which international markets are you currently targeting for future expansion, and what factors are guiding your overseas strategy?

Our current focus for international expansion is on the European market and the rapidly growing Asian market. These regions present strong opportunities for premium meat products like Kagoshima black beef and pork, especially as global appreciation for washoku continues to rise.

To support this growth, we’ve placed a strong emphasis on professional standards. We have ten team members who hold official certifications in professional butchery. This expertise allows us to meet the specific regulatory and quality requirements of international markets while ensuring our products maintain the highest level of precision and consistency throughout the export process.

Which of your products are you prioritizing for export as you expand into overseas markets? Are there particular cuts or value-added items that you see as having the most international appeal?

At the moment, due to the ongoing swine flu outbreak, we’re unable to export pork, which has shifted our primary export focus to wagyu beef. Kagoshima wagyu is now our main product for overseas markets, supported by its growing reputation and demand internationally.

Alongside our beef exports, we’re also committed to promoting other popular regional specialties from Kagoshima—one of which is yuzu juice. In 2024 alone, we exported 25 tonnes of yuzu juice, and we see strong potential for continued growth in this area.

Personally, I’m a fan of sushi made with Kagoshima wagyu, especially when it’s paired with a touch of yuzu pepper—it adds a light spiciness that enhances the overall flavor. These kinds of product combinations not only highlight the richness of Kagoshima’s culinary culture but also offer international consumers a uniquely Japanese gourmet experience.

Earlier, you touched on the importance of traceability and the complexities it presents. For overseas markets, maintaining consistent quality throughout the supply chain is another major challenge. To address this, many companies form partnerships with local entities abroad. What role do such partnerships play in your export strategy, and how are you leveraging them to ensure your products meet expectations internationally?

First and foremost, we’re proud to say that our technology for butchering, processing, and packaging is among the highest in the industry. Thanks to our advanced freezing and vacuum-sealing techniques, our products can maintain their quality for two years—something that’s essential for ensuring consistency in overseas markets.

That said, maintaining quality isn’t just about technology—it’s also about trust and alignment. We place great importance on working with overseas partners who truly understand our values, our commitment to quality, and the dedication of the farmers behind each product. This shared understanding is essential, which is why we’re very selective about the partners we choose to work with. We believe that only by collaborating with partners who respect and uphold our standards can we successfully deliver the true value of Kagoshima products to global consumers.

We understand that your company has actively participated in numerous events both in Japan and abroad to raise awareness of your brand. How important is participation in these events to your overall business strategy? And are you planning to continue attending international events in the near future as part of your global outreach efforts?

As you mentioned, we are actively promoting our company overseas through participation in various international exhibitions. This year, for example, we’ll be showcasing our products at the Taiwan, Germany and the Japan Food Expo in Los Angeles.

These events are incredibly important for us—they not only allow us to introduce our products to new markets, but also give us the opportunity to connect directly with local distributors, chefs, and consumers. Engaging face-to-face helps us communicate the story behind our brand and the care that goes into producing our Kagoshima beef, pork, and other regional specialties. We absolutely plan to continue attending international events as a key part of our global expansion strategy.

What would you say are the main competitive advantages that set your company apart from others in the industry, both in Japan and internationally?

I would say one of our greatest strengths is that we are a company actively creating history in the meat and butchering industries. We were the very first company in Japan to be established specifically as meat butchers, and also the first to operate a factory approved for exports to the U.S. market.

More than two decades ago, we introduced European-based technology for pork processing that uses hot water to remove the skin—a method that was unprecedented in Japan at the time. This innovation reflects our pioneering spirit and our commitment to continuously improving industry standards.

We take great pride in maintaining this spirit of innovation while working closely with cattle ranchers across Japan. Our goal is to continue evolving with them, strengthening Japan’s meat industry while bringing the highest-quality products to both domestic and international markets.

Let’s imagine we sit down again for this interview three years from now. What goals or dreams would you like to have achieved by then—for your company, your brand, or even for the broader industry?

Looking ahead, our goal is to double the volume of our overseas exports. At the same time, we’re planning to establish a new factory dedicated specifically to beef processing. This facility will allow us to further refine our operations, increase production capacity, and better serve the growing international demand for Kagoshima beef.

Of course, realizing this vision will require significant capital investment. That’s why we’re focused on creating a virtuous cycle—where increased sustainability, higher-quality output, and global market expansion lead to the kind of growth that attracts new investment. We believe that by building responsibly and strategically, we can strengthen not just our business, but also the broader industry and communities we support.

For more information, please visit their website at: https://www.nanchiku.co.jp/