Agricultural equipment maker Kubota Corp said Monday it will start exporting rice this year in a collaborative venture with the National Federation of Agricultural Cooperative Associations.
Kubota and the associations will aim for annual exports of around 10,000 tonnes of rice to Hong Kong and Singapore in the financial year starting April 2016.
The venture is aimed at expanding markets for Japanese rice producers, who in turn are consumers of Kubota's equipment.
Osaka-based Kubota already exports rice to Hong Kong and Singapore, last year exporting 890 tonnes from farmers in Yamagata and Niigata Prefectures. The tie-up with the association is set to boost exports by about 11-fold from that amount.
Kubota will invest 50 million to 100 million yen (13 million to 28 million baht) in each of its existing subsidiaries in Hong Kong and Singapore to step up their rice polishing capacity and other functions in preparation for the tie-up.