TOKYO (AFP) — Japanese retail giant Seven & I Holdings Co. said Thursday that it will enter the farming business to produce its own vegetables amid growing consumer concerns about food safety.
The group will grow vegetables in cooperation with farmers in Chiba Prefecture east of Tokyo to sell at its Ito-Yokado supermarket chain, the second largest in Japan, a company spokesman said.
The move is "aimed at offering our customers safe products by directly getting involved in farming from the very first stage of making good soil," said Keisuke Chimoto.
The group also aims to ensure there are enough workers to keep the farming industry going after elderly workers retire, he said.
The company, which also operates Seven-Eleven convenience stores, will grow vegetables such as cabbages, radishes, carrots, and spinach on two hectares (4.94 acres) of land in cooperation with the farmers.
"We hope to contribute to raising Japan's food self-sufficiency," the spokesman said, amid growing worries about rising food prices worldwide.
Japanese consumers have also been alarmed by a series of food safety scandals including an incident early this year in which Chinese-made dumplings containing pesticide made 10 people ill.
Japan relies heavily on food imports, despite efforts by the government to protect domestic farmers with high tariffs on imported products such as rice.
In this greying nation, where young workers often head to the city in search of work, farmers often have difficulty finding someone to take over their fields when they retire.
Seven & I Holdings plans to expand the agriculture business nationwide in about three years, setting up 10 farming companies, the spokesman said.
There have been similar attempts by food companies to enter the farming industry, but it would be the first case of a retailer entering the agricultural business on a nationwide scale.
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