Major foodservice operators 元気寿司’s ゲンキGDC and 塚田農場APHD have begun producing rice in-house. While ゲンキGDC uses approximately 5,000 tonnes of rice annually for sushi rice, it plans to expand from 250 kilograms of in-house cultivation in the first year to approximately 500 tonnes in the future.
Spurred by the recent rice crisis, major foodservice operators have begun producing rice in-house. ゲンキGDC has established an agricultural corporation in Utsunomiya and plans to eventually expand production to approximately 500 tonnes a year, with the aim of stabilizing the group’s rice supply. APHD, meanwhile, has begun small-scale in-house cultivation in Shizuoka, initially producing 250 kilograms, with a view to using the rice at its core izakaya and set-meal restaurants and selling it externally.
ゲンキGDC aims to stabilize rice prices and volumes by combining production-area agreements with in-house cultivation. It plans to expand its own paddy fields to approximately 30 hectares and eventually produce around 500 tonnes, enough to cover the annual rice needs of its stores in Tochigi Prefecture. APHD aims to build expertise by linking production directly to sales and enhance its brand value through small-scale in-house cultivation, with plans to use the rice for the final course of meals and in boxed lunches.
Even when rice prices are falling, upstream integration can serve as a form of insurance by cushioning fluctuations in supply and demand, according to some views. Attention will focus on how the combination of in-house cultivation and contractual arrangements at the two companies affects supply stability and brand building in the foodservice industry.
Although the scale and objectives of in-house production differ, the companies’ differing views on whether rice should be treated as a core cost or as part of the brand experience will shape the form their upstream integration takes.