On January 20, we once again held the announcement ceremony for the Yamada Nishiki Contest at the Imperial Hotel.
This year, the Grand Prix was awarded to Mr. Taemon Kawasaki from Shiga, while the Runner-up Grand Prix went to Mr. Kei Suzuki of Mogura Farm in Tochigi. Mr. Kawasaki received a prize of 40 million yen, and Mr. Suzuki received 15 million yen.
Mr. Kawasaki, the Grand Prix winner, shared his joy, saying:
“This feels like a dream. I am truly overwhelmed with emotion. I hope that in 10, 20, or 30years, my children or grandchildren will invite me back to this stage as a recipient themselves, and that thought gives me the strength to keep working hard.”
Hearing these words filled us, the organizers, with deep emotion as well.
Mr. Suzuki, the Runner-up Grand Prix winner, also told us:
“There were many times when I nearly gave up. But last year, seeing Mr. Fumiya Saotome from the same Tochigi Prefecture win the Grand Prix inspired me to challenge myself once again.”
These words truly made all our efforts worthwhile. Congratulations to both of them.
Prior to the awards ceremony, we held our now-regular panel discussion under the theme“The Future of Japanese Agriculture and the Potential of Sake Rice.”
This year, we welcomed Mr. Masaharu Kamo, Senior Advisor at McKinsey, who presented the structural challenges facing Japanese rice farming as he sees them. These issues were then discussed by special judge Mr. Kenshi Hirokane and myself.
Mr. Kamo is also a member of a Japan Association of Corporate Executives committee addressing rice-related issues, and we had heard that he possesses a broad, well-balanced perspective rooted in Japan’s overall economy. (He is said to be so intelligent that colleagues sometimes joke they “can’t keep up with him,” but when speaking with us, he graciously adjusted his level and showed none of his overwhelming brilliance—truly an impressive person.)
When it comes to agricultural issues, discussions often become polarized.
On one side, the media—and consumers—focus solely on last year’s sharp rise in rice prices as a problem. On the other, politicians and agricultural cooperatives argue that high prices must be maintained to protect farmers. Add to that sake brewers saying, “Sake rice is too expensive to make sake,” and everyone ends up speaking only from their own convenience. As a result, it becomes extremely difficult to understand what is truly right and what should actually be done.
So why does Dassai, a single sake brewery, feel compelled to hold such a symposium?
The reason lies in Dassai’s uniqueness. We use only Yamada Nishiki rice, and in extraordinary quantities—approximately 10,000 tons. Compared to Japan’s total edible rice production of 7.48 million tons, this is already significant. It is also an astonishing figure when compared with the roughly 9,000 tons of sake rice used by all breweries in Akita Prefecture combined. And since I have publicly stated that we aim for five times our current sales—100 billion yen globally—our need for Yamada Nishiki will only continue to grow.
In other words, the future of rice production is a matter of survival for Dassai.
Returning to the symposium, Mr. Kamo pointed out that over 80% of Japanese farms operate on less than three hectares of land. As farm size increases, production costs—especially labor costs—decline dramatically. Therefore, Japan’s failure to consolidate farmland represents a massive loss of opportunity.
What concerned me most was this: while so-called “full-time farmers,” who rely primarily on agriculture for income, make up about 20% of farming households, they produce only 40% of total output. The familiar 80/20 rule of business does not apply. This can be seen as evidence that agricultural protection policies have worked, but it also means the industry is structurally unable to grow. Sixty percent of production comes from farmers who are not fully committed. Under these conditions, can we really expect rice that is affordable,reasonably high in quality, and highly productive? Can we expect farmers to earn strong profits? And can Dassai continue to obtain the exceptionally high-quality Yamada Nishiki we seek, even at a higher price?
I therefore believe that without some form of consolidation and selection, Japanese rice farming cannot be revitalized. What makes this especially frightening is that we now live in an era of global competition. Japan once led the world in yield per unit area, but today we lag far behind Australia and the United States—and even China. If rice prices remain high, consumers will move away from rice, foreign rice will inevitably enter the market, and prices will eventually fall to market-appropriate levels.
Attempting to maintain current rice prices through policy will not succeed, no matter how hard agricultural lobby politicians try. One cannot go against major global trends. The real danger is not the collapse of the 80%, but the collapse of the 20% of serious, full-time farmers. If we reject necessary change, Japanese agriculture will suffer the same decline and collapse that once befell the sake industry.
So what will Dassai do? Frankly, I am pessimistic. I do not believe the government or agricultural stakeholders will choose the path of reform. I expect the convoy-style system to continue.
However, just because Japanese agriculture as a whole may head in that direction does not mean Dassai can sit idly by and watch the farmers who have supported us collapse.
That is why I declared at the symposium that Dassai will maintain its Yamada Nishiki purchase price for the next three years.
This year’s purchase price already stands higher than the industry average, reflecting rising food rice prices. Even if table rice prices decline this spring, we have no intention of lowering our price. Yamada Nishiki farming is a capital-intensive industry, and stable pricing is essential to support necessary investment. We want farmers to feel, genuinely, that “growing Yamada Nishiki for Dassai was worth it,” and to focus confidently on improving quality.
We believe that an increasing number of farmers pursuing quality through continuous innovation will ultimately revitalize Japanese rice farming as a whole. That is the message I shared with the audience at the conclusion of this symposium.