Japan News Update #69 (Feb 2026)

JP food industry is looking at global markets for its PB business

House Foods Group has canceled plans for a new tofu factory in Kentucky due to weak U.S. demand and declining profitability amid inflation-driven cost-consciousness. The company will record a ¥6.9 billion impairment loss and lowered its earnings forecast, reflecting ongoing challenges in its plant-based food business.

Source: Japan's House Foods scraps construction plans for US tofu plant

Maruha Nichiro will expand U.S. production of imitation crab sticks (kanikama in Japanese) by about 25% in 2026 versus 2019, following capacity upgrades at its Washington State plant. Targeting health-conscious consumers, the company aims to meet rising demand for surimi, with output reaching 16,500 tons and further expansion under consideration.

Source: Japan seafood giant to boost US imitation crabmeat output by 25%

Trends in Agricultural Machinery

Japan’s agriculture ministry plans to raise caps on subsidized low-interest loans — up to 10-fold — to support smart farming investment and expansion into large-scale production and processing. Loan limits could reach ¥200 million for individuals and ¥700 million for corporations, with interest subsidized for up to 20 years.

Source: Japan to Raise Smart Farming Loan Caps 10-Fold

Kubota has reorganized its machinery business and appointed CEO Shingo Hanada to accelerate global expansion. The new structure separates key divisions and streamlines decision-making, reflecting rising overseas sales, now about 80% of the company’s total. The company also aims to recruit more non-Japanese executives to strengthen global operations.

Source: Japan's Kubota shakes up farm, construction machinery teams under new boss

Continued inflation in Japan

Japan’s Engel coefficient rose to 28.6% in 2025, a 44-year high, as food spending increased faster than overall expenditures. Despite higher nominal spending, real food consumption fell, indicating thriftier behavior. Persistent inflation, a weak yen, and declining real wages continue to strain household budgets.

Source: Japan's ratio of household spending on food hits 44-year high