Seibu Kaihatsu Nosan and the Sumitomo Corporation Group Enter Business Alliance for Sustainable Agricultural Production- Promoting stable food production through smart farming, regional revitalization through human resource development and environmentally friendly farming practices -

Seibu Kaihatsu Nosan Co., Ltd. (Head Office: Kitakami City, Iwate Prefecture; President: Katsuya Terui; hereinafter "Seibu Kaihatsu Nosan"), Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno), and Sumitomo Corporation Tohoku Co., Ltd. (Head Office: Sendai City, Miyagi Prefecture; President and Chief Exective Officer : Seiji Takano; hereinafter "Sumitomo Corporation Tohoku") have entered into a business alliance agreement to promote sustainable agricultural production and regional development in the Tohoku region.

The three companies will advance joint projects with local producers and agricultural companies focused on realizing sustainable agriculture by: (1) enhancing work efficiency and stabilizing food production through smart farming technologies, (2) revitalizing regional production via human resource development and distribution support and (3) promoting the adoption of environmentally friendly agricultural inputs and cultivation techniques.

Background and Purpose of the Alliance

Japan faces an urgent challenge of declining and aging agricultural workers. Over the past 20 years, the number of farmers has halved, and as of 2023, their average age reached approximately 69. In addition, farmland maintenance is a major issue – abandoned farmland now totals 420,000 hectares, equivalent to nearly 10% of the nation's 4.29 million hectares of farmland.

Seibu Kaihatsu Nosan currently manages approximately 1,000 hectares of farmland, making it one of Japan’s largest agricultural corporations. In response to challenges such as a declining farming population and the spread of abandoned farmland, the company leverages smart agricultural technologies – including IoT-based work recording, automated machinery steering and agricultural drones – to achieve efficient agricultural operations on its large-scale managed farmland. In addition, by undertaking farm operations such as spraying, harvesting and drying on behalf of neighboring producers, the company supports the vitality of regional agriculture.
Building on prior joint efforts to test and promote digital and labor-saving technologies that lead to improved productivity and efficiency, Sumitomo Corporation, Sumitomo Corporation Tohoku and Seibu Kaihatsu Nosan have now expanded the scope of their collaboration by signing a new alliance to accelerate contributions to the Tohoku region.

Future Initiatives

Four joint projects will be implemented under the alliance as below.

1. Stable Food Production Through Work Efficiency Improvement
   These efforts will demonstrate the productivity and efficiency benefits of smart farming technologies, as well as optimal methods of adoption in the field. Through demonstration events, the companies will support the introduction of these technologies to producers across Tohoku, aiming to ensure stable food production.
2. Regional Revitalization Through Human Resource Development
   This project will establish consulting services and training programs by collecting and analyzing farm data from smartphones and machinery, with the aim of improving efficiency and expanding production areas. Drawing on extensive practical experience in farmland aggregation and management, the companies will help ensure the sustainability and growth of agriculture rooted in regional communities.
3. Support for Agricultural Distribution
   This project will support both the development of cultivation systems responsive to market fluctuations and enhanced quality control by linking producer data with food processing and distribution companies. The companies will also support producers by undertaking post-harvest operations such as drying and sorting, thereby contributing to enhanced production, quality assurance and distribution in Tohoku.
4. Promotion of Environmentally Friendly Farming
   This effort will demonstrate the use of agricultural inputs and cultivation systems that help reduce environmental impact, examine efficient methods of introduction and promote adoption throughout the Tohoku region. In addition, the companies will pursue studies on the practical implementation of a carbon credit program.

About Seibu Kaihatsu Nosan

Seibu Kaihatsu Nosan Co., Ltd., headquartered in Kitakami City, Iwate Prefecture, cultivates and sells soybeans, rice, wheat, buckwheat and other crops on approximately 1,000 hectares of farmland. Under the concept "Earth to Table" and the principles of "protect, support, create and nurture," the company pursues highly efficient agriculture using advanced technologies and machinery, while also contributing to regional agricultural development by undertaking farming operations (spraying, harvesting, drying and processing) on behalf of local producers.

About Sumitomo Corporation

Sumitomo Corporation is an integrated trading and business investment company with a strong global network comprising 127 offices in 64 countries and regions. The Sumitomo Corporation Group consists of approximately 500 companies and 80,000 employees on a consolidated basis. The Group's business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of "Enriching lives and the world," based on Sumitomo’s business philosophy passed down for over 400 years.
Sumitomo Corporation

Sumitomo Corporation’s Chemicals, Electronics & Agriculture Group operates agricultural input manufacturing and sales businesses – including crop protection products, fertilizers and seeds – across 38 countries worldwide, including Japan. In addition to handling agricultural inputs, the Group leverages its close relationships with local producers to support sustainable agriculture tailored to the needs of each region, offering farming support services, agricultural drone spraying solutions and AgriTech services. Under the current medium-term management plan, the Group has set out a strategy not only to expand sales businesses but also to focus on identifying and establishing seeding projects that will form the foundation for innovation-driven businesses. This business alliance will be promoted as part of that strategy.

About Sumitomo Corporation Tohoku

Sumitomo Corporation Tohoku Co., Ltd. serves as a regional arm of the Sumitomo Corporation Group, developing a wide range of businesses that support economic revitalization and sustainable development across the six prefectures of the Tohoku region. In particular, it plays a vital role in rice distribution, handling the full cycle from procurement to sales, and contributes to regional agriculture and food supply.

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