Pioneering Sustainable Growth from Kagoshima to the World

For 11 consecutive years, we’ve seen Japanese food-related exports increase. By 2023, they reached JPY 1.45 trillion. A key factor behind this success is the growth of Japanese restaurants, which have tripled over the past decade. From the perspective of a trading company, how do you account for this substantial rise in Japanese food exports? And why do you think now is the time for washoku to shine internationally?

Yes, we’ve seen growing popularity for washoku, and this is thanks to the efforts accumulated over the past 50 years. Looking back, Japanese washoku was not popular at all, but as time passed, globalization took place, and Japanese people made concerted efforts to promote their cuisine abroad. This led to gradual popularity, with many Chinese and Koreans using the washoku name to boost their own restaurants. The trend has now gone beyond that, with increasing numbers of foreigners coming to Japan to experience Japanese cuisine and then bringing it back to their home countries. In my opinion, traditional Japanese cooking methods have been warmly welcomed globally.

On one hand, the Japanese government is working to leverage the popularity of Japanese cuisine, with over 30 different initiatives aimed at boosting exports. On the other hand, one of the main export markets for Japanese cuisine before 2022 was China, but since then, the market has banned the import of Japanese seafood. In your opinion, which overseas market holds the highest potential for Japanese food exports?

Our company is not affected at all by the import ban in China, as we are an importer of Chinese products into Japan rather than an exporter of Japanese products to China. Our main export targets are the U.S. and Indian markets. For the U.S. market, we primarily export frozen confectionery and sweet potatoes, while for the Indian market, we focus on exporting natural food additives.

The Japanese market is being significantly impacted by the demographic crisis the country is facing. Japan not only has the world’s oldest population but also a declining population due to low birth rates. In the food sector, the consumer base is shrinking, and there is a labor crisis. This is forcing many Japanese companies to look overseas for new opportunities. What strategies is your company implementing to mitigate the impact of Japan’s demographic challenges? To what extent are you looking to expand overseas to capture new market growth potential?

For our LPG retail gas business, which requires blue-collar workers, we are strengthening our salary offerings to better attract local talent. As for our IT and DX businesses, which can be done remotely, we are targeting individuals across Japan. By hiring technicians and engineers in these fields, we are strengthening our overall business.

In the AI and DX sectors, we are very proactive in paving the way forward. Our vice president is a strong advocate for AI, and we hold a study group with about ten companies to explore and advance these technologies.

Established more than 100 years ago, Kobira Corporation has evolved into a very diverse company offering IT services, energy solutions, and international trade. Can you walk us through some of the key milestones that have led to Kobira becoming the diversified company it is today?

I’m the fourth-generation president of the company, and each generation has expanded into new business areas. The founding business was blacksmithing, the second generation launched our energy business, the third generation established IT and trading, and as the fourth generation, I am diversifying our business portfolio. Each generation has identified what society needs at the time and introduced new services to meet those needs. We must always be innovative and provide value, and this mindset has allowed us to grow in the market.

Personally, before becoming president, I started three companies, 2 in Tokyo and 1 in Kagoshima. In my generation, we’ve focused on enhancing our integrated IT services. I also aim to lead the company toward becoming more environmentally sustainable. Fourteen years ago, we began our renewable energy business, focusing on hydro, wind, and solar power generation. I personally acquired a master’s degree in environmental studies, specializing in agriculture. Local revitalization, in my view, is part of creating positive environmental impacts through economic activities.

Which of your current businesses do you believe has the highest potential?

All segments have immense potential, but in terms of my highest expectations, it would be IT, AI, and DX technologies. We are looking to test new models in Kagoshima as case studies, which we plan to apply overseas. Given the aging population in Kagoshima, utilizing AI is essential. Essentially, we are envisioning a renewable energy cycle or a sustainable food cycle. Our goal is to prototype this in Kagoshima before expanding it elsewhere.

You mentioned the high potential of IT, DX, and AI, with your intention to trial the model in Kagoshima before expanding it elsewhere. Which industry are you aiming to establish your case study around?

Our biggest strength is the diverse range of businesses within our company, which allows us to create synergistic effects. For example, DX can be applied across any type of business. We’ve been applying this from services such as energy to nursing care. Our goal is to create a successful model and then apply it horizontally across other sectors. We are also exploring the possibility of starting a business related to carbon credits.

Earlier, you mentioned exporting confectionery and sweet potatoes to the U.S. What challenges do you face in this regard, and how do you plan to scale up your export operations?

What’s interesting is that sweet potatoes originally came from South America. These were then exported to Japan, where farmers improved the breeding and developed the unique Japanese sweet potatoes we know today. Kagoshima is the largest producer of sweet potatoes in Japan. However, we’re not solely focused on sweet potatoes—we also aim to export fresh produce from across Japan. To do this, it’s important to explain to foreign buyers the exceptional qualities of Japanese produce. For sweet potatoes, specifically, we need to highlight the differences and superior qualities of Japanese sweet potatoes compared to South American varieties. By creating more fans of these products, we can expand overseas.

We’ve spoken to many Japanese companies, and time and again, the theme of collaborations and partnerships comes up when discussing the export of businesses overseas. These types of partnerships are vital for penetrating new markets and understanding the needs of local consumers. In your case, are you looking for partnerships with local companies to assist with your overseas expansion?

As mentioned, the U.S. is a target market for us, as it is one of the most economically advanced markets. In the U.S., we are looking for a distributor who can identify the right retailers to promote our products. In India, we aim to integrate more deeply into the local culinary culture, so finding a partner who can blend Japanese produce into Indian cuisine would be essential.

Through various projects and initiatives, Kobira Corporation is actively contributing to the revitalization of underutilized spaces, fostering community development, and promoting sustainable urban renewal. Could you share the key factors you consider when selecting a specific location for one of these projects? Additionally, could you tell us about the impact previous projects have had on local communities?

It is challenging to quantify success in regional revitalization projects. However, the investment is clearly reflected in the positive results for our company. These efforts serve as an effective way to market and brand our company, helping us attract more personnel and engagement. Ultimately, these initiatives bring significant positive impact both for us and the local community.

Additionally, there is a nationwide project called Atotsugi, which means "heir" or "successor" in Japanese. The primary goal of this project is to support businesses in preparing for succession. We are recognized as one of the Atotsugi companies, which brings prestige to the region.

Could you share your company’s main competitive advantages?

Our main strength lies in our century-old history, which has earned us absolute trust from the local community and the nation. This trust enables us to take on new challenges while leveraging our existing brands. Our diversity allows us to explore new opportunities and tackle fresh challenges. In essence, we have created a virtuous cycle.

You’ve set goals to become a key cornerstone of the community by 2032. What key milestones do you need to achieve in order to reach that goal?

This goal is more qualitative than quantitative. Our aim is to provide holistic community services that, in essence, will support and enrich people’s lives.

Imagine we return in 2032 for another interview. What goals or dreams would you hope to have achieved by that time?

I officially succeeded to the position three years ago, and since then, I’ve relocated the headquarters. One-third of our current staff are new hires, and we’ve launched ten new businesses. Our goal is to continuously expand the scale of our company by creating an ecosystem in collaboration with other startups, major companies, research institutes, and community stakeholders. We aim to have a more significant impact both domestically and internationally.

How do you plan to achieve the same impact overseas that you’ve had locally?

Partnerships and M&As are two strategies we could implement. For our energy business, M&As are within our scope, but I believe that all successful businesses start with strong human connections. This is why I’m eager to meet new people and support emerging startups. I plan to attend a startup event in Thailand to meet new companies. With these new connections, we can expand our business on a larger scale.

Could you tell us a bit about your background and the vision you have as the president of Kobira?

I graduated from the University of Kyoto’s Faculty of Agriculture, majoring in Plant Breeding for my bachelor’s degree. I then pursued my master’s degree in natural resources and environmental sciences at the University of Illinois in the U.S. During my studies, I conducted research on the genes in broccoli responsible for its anti‑cancer properties. After returning to Tokyo, I started working at an IT consulting company, and then I started my own company, primarily supporting new entries into the agricultural field.

Subsequently, I started a tomato farming business in Kagoshima, where I collaborated with a Hungarian company that provided an automated farming system. Then I launched an IT platform that connects farmers and consumers through segment‑based farm contracts, delivering vegetables and fruits directly from the plots they sponsor. With the onset of COVID-19, I sold two of the companies and shut down one before returning to Kobira as the successor.

Initially, I was the director of the trading division at Kobira, and when I became vice president, I was still running two other companies. I officially became president three years ago. My vision is to create a foundation where startups can be innovative and present new solutions to societal challenges.

For more information, please visit their website: https://www.kobira.co.jp/en/