Japan Investment Mission Blog
FRIDAY, SEPTEMBER 14
We left Tokyo today in the early afternoon and flew to Detroit and then back to Indianapolis. Overall, this was a very successful trip for us in agriculture – we hosted the first ever, state-sponsored investment seminar on food and agriculture; we had great meetings with several new Japanese companies with some tangible follow-up leads to pursue; we spent time with Japanese firms already located in Indiana to learn more about their future plans; and we had great interaction with the other Indiana business, community and educational leaders on our own delegation that likely opened their minds a bit more to the importance of our industry.
Deputy Director Beth Bechdol
THURSDAY, SEPTEMBER 13
Director Miller left Japan this morning for other travel so Kip Tom, Mike Beard and I attended a few final meetings and spent a little time visiting some sites of Tokyo. We started the morning with the American Soybean Association's Japanese representative who was kind enough to take us to visit the oldest shrine in the city – a beautiful, scenic park with religious buildings hundreds of years old where people would come to pray and perhaps get a glimpse of the Emperor. Many Japanese and international tourists still come to this site to offer their prayers and wishes.
Kip and I returned to the hotel for a luncheon meeting with a company that is considering expanding its healthy oils into the U.S. market – currently they sell in Japan, Taiwan and Korea but are convinced market opportunities exist in the United States. We are starting discussions with them of how they might consider exporting the product first with longer-term plans of finding a U.S. partner (preferably in Indiana) with whom they can establish a full manufacturing facility (hopefully in Indiana as well!).
We had one last meeting this afternoon with two organizations associated with Indiana Packers Corporation – Mitsubishi and FoodLink. We learned a bit more about their joint relationships and extended our sincere gratitude and appreciation for the great partnership that already exists among us.
Our final event this evening was a local baseball game for the entire delegation – the Giants vs. the Swallows. The crowds were excited and even our delegation was divided in its cheering!
Deputy Director Beth Bechdol
The Giants vs. the Swallows.
WEDNESDAY, SEPTEMBER 12
We continued today with some great meetings with two companies already investing in Indiana. Both Itochu and Zennoh have ownership in CGB (Consolidated Grain and Barge) and are very engaged in that company's grain procurement plans and also CGB's development of an ethanol plant in Indiana. On our last mission to Japan, we met with senior officials from both companies and spent more time in these two meetings with senior managers about possible further expansion or investment plans.
Itochu is a large food company and partners with CGB to ensure the necessary corn supply for their processing. They also have strong interest in sourcing non-biotech and other specialty varieties of grains and to that end are interested in more grain elevator or storage locations. A strong relationship exists between Itochu, CGB and the state of Indiana, so we are hopeful that we can continue to find ways for them to grow even more in our State.
From left: Isamu Nakayama, Deputy Chief Operating Officer, Provisions Division, General Manager, Grain and Feed Department, Itochu; Beth Bechdol, Indiana Agriculture Deputy Director; Andy Miller, Indiana Agriculture Director; Kouichi Nishimura, Itochu.
This afternoon we met with Zennoh – the other parent organization of CGB. Several of their officials joined us and even presented us their outlook for corn and soybean production and use for the coming year – once again demonstrating general concerns about grain availability across the year. Zennoh is a farmer cooperative and markets agricultural and livestock products for its members directly to consumers, and it also provides necessary outreach and other informational materials to these members. They too are pleased with the relationship between CGB and Indiana and are contemplating opportunities for additional growth in the state.
This evening we were hosted by U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) Minister Counselor Dan Berman at his home in the Embassy Compound for a traditional sushi dinner. The FAS staff does a great job of supporting U.S. agricultural interests and certainly went above and beyond in helping us throughout the work and participating in our agricultural investment program on Tuesday. They are a real asset and Dan and his staff have done so much for us on each of our three trips to Japan.
Deputy Director Beth Bechdol
TUESDAY, SEPTEMBER 11
Tuesday was a big day for the agricultural delegation. We conducted our first “Invest in Indiana Agriculture” seminar. The event brought together many members of the Governor’s delegation, along with several Japanese companies investing in food and agriculture. Governor Daniels kicked off the event by sharing his and Lt. Governor Skillman’s commitment to making Indiana one of the most progressive states for agriculture growth. Additional perspective on Indiana agriculture was given by Secretary of Commerce Nate Feltman, USDA Minister Counselor Dan Berman, Kip Tom of Tom Farms and Mike Beard of the Indiana Pork Producers. I also gave an overview of Indiana's competitive advantages and the ISDA Strategic Plan.
Special thanks to our "Invest in Indiana Agriculture" seminar sponsors; Energy Systems Group, ProLiance Energy, Ice Miller LLP, Agribusiness Council of Indiana and Indiana Soybean Alliance.
The seminar was successful on two fronts. First, it reiterated the importance Indiana plays in commodity trade with Japan in products like corn, soybeans, pork and poultry. Second, it demonstrated that Indiana is an ideal location for Japanese investment in further, value-added processing. The Japanese market is becoming more dependent on global trade to meet its food demands, which is making investment in areas beyond commodity trade important. The seminar showcased Indiana’s success with other Japanese investors like Mitsubishi, Toyota and Honda. Attendees were receptive and several leads were identified.
Interestingly, Indiana is one of the first states to augment its traditional commodity trade strategy in agriculture with a focus on investment back in the United States. This seminar was a good start, showcasing several opportunities but also demonstrated the need to continue fostering these relationships. This was done in part with a series of one-on-one meetings with many of the companies. On Tuesday, the agricultural delegation met with Sumitomo Chemical, which owns Valent Crop Protection, and discussed many opportunities for partnership. Meetings with other companies are scheduled for Wednesday and Thursday.
The evening culminated with the Governor’s Friends of Indiana reception, which was a great chance to thank and interact with our Japanese friends, both new and existing.
Andy Miller, Director
View the "Invest in Indiana Agriculture Presentations"
Andy Miller
Mike Beard
Kyle Hupfer
Jeffrey Knight
Melissa Proffitt Reese
Kip Tom
MONDAY, SEPTEMBER 10
Our morning began with the kick-off the Midwest US-Japan Association meetings. Three Japanese Governors and three Midwestern Governors – including Governor Daniels – spoke at the conference’s opening session. The Association's objectives are to spur investment, promote trade and support friendship and communication between our region and Japan. You can see it makes perfect sense for Indiana to be a part!
Governor Daniels spoke of the great enthusiasm of our state for the important business we do with Japan. Indiana’s business history with Japan dates back more than 20 years – in fact, it was in 1987 that Subaru made its first major investment in the state. And in just the last two years, 28 new Japanese investment projects came to Indiana, with Honda and Toyota leading the way. With 300 Japanese-owned businesses in our state, contributing 50,000 jobs to our workforce, it is obvious that we support and look for ways to enhance this relationship.
Our agricultural itinerary began mid-morning with a briefing from U.S. Department of Agriculture staff in Tokyo on important trends in Japanese agriculture and bilateral United States-Japan issues. They are convinced, like we are that great opportunities for more business with Japan clearly exist in the food and agriculture sector. Japan’s food self-sufficiency rate is just 39 percent – meaning they import a very significant share of their food and agriculture products. In 2006, 19 percent of the $64 billion worth of imported agricultural products came from the United States – that is worth about $10 billion to us. Japan is our third largest agricultural market after Canada and Mexico. Japan imports products from a large number of other countries as well – so our challenge is to maintain U.S. market share and also explore ways that we can find more investment opportunities between us.
Challenges do exist though in our food and agricultural trading relationship. Japanese consumers feel very strongly about traceability and are not generally supportive of biotechnology food products. There are still differences to work out on regaining access to their beef market, which has been almost completely closed since 2003 and the first mad cow find in the United States. The Japanese also are large buyers of U.S. corn, and there is significant concern here about available supplies given the growth in biofuels across the United States.
We spent the afternoon with three different food and agricultural companies – Tyson, Cargill and Sojitsu. We talked with each about potential investment opportunities in Indiana and the overwhelming number of competitive advantages Indiana’s agriculture industry has to support that investment. We will hold more meetings like this throughout the week and are hopeful that some existing relationships could be expanded and new ones identified and explored. We continue to hear of Japanese interest in the handling and shipment of identity-preserved (many times non-biotech) grains; in the alternative energy industry and also in livestock and food processing – all potentially creating some great new opportunities for producers and businesses in Indiana!
Andy Miller, Director
From left: Kip Tom, Indiana Economic Development Corporation Agricultural Board Member; Mr. Takamichi Tawara, Managing Director, Tyson International Service Center, Inc. Asia; Andy Miller, Indiana Agriculture Director; Mike Beard, Indiana Pork Producers.
SUNDAY, SEPTEMBER 9
The third Indiana delegation to travel to Japan with Governor Daniels in just the last two years left Indianapolis mid-day Friday and arrived in Tokyo late Saturday evening. Agriculture is represented in the delegation again, and I am accompanied by Beth Bechdol, ISDA Deputy Director; Kip Tom, Indiana Economic Development Corporation Board Member and operator of Tom Farms; and Mike Beard, Indiana Pork Producer and operator of Meadowlane Farms. The delegation is large with nearly 70 travelers and is highly diverse with business, education and community leaders participating.
The late arrival Saturday meant for a difficult time difference adjustment, so Sunday was used to acclimate ourselves, prepare for the week’s meetings and also take in some of the sights and sounds of Tokyo. Many of us took in the amazing experience of attending a Sumo wrestling tournament – the history and tradition of the sport are just as impressive as the sheer size of the wrestlers!
This evening we attended an opening reception for the 39th Midwest US-Japan Association meetings being held here in Tokyo this week. Indiana is a member of this organization, along with Illinois, Ohio, Iowa, Wisconsin, Nebraska, Kansas and Minnesota. Several of these states also planned trade missions around this large event, and we enjoyed the opportunity not only to meet new Japanese contacts this evening but also interact with many of our counterparts in other states.
Just as with the first two missions, it is exciting to be here, and we are looking forward to making many new connections.
Andy Miller, Director
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