PROFILE: Pasona Inc.’s “Otemachi Ranch” of Tokyo

September 12, 2018

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By Michelle Pelletier Marshall

Long a disruptor in the marketplace in its efforts to “Life Produce” – create lives of abundance for people, working with them to create ways of working that suit their own lifestyles – Japan’s multinational corporation Pasona has caught the attention of many with its new 11,000 square-foot urban ranch located in Tokyo.

The ¥311.4 billion (US$2.8 billion) staffing and outsourcing company, which employs some 9,000 and has 66 subsidiaries in Asia and abroad, has been promoting the development of new farmers and managers across Japan since 2003. This latest endeavor is part of its re-invigorated mission to attract new workers to dairy farming and the tourism ranch fields. It also reflects the company’s goal of “Providing Solutions to Society’s Problems” by recognizing the shortage of labor in farming, that farmers are aging out, and that the number of key farmers is declining – and then taking action to draw people back to this career.

The urban ranch — “Otemachi Bokujo” or “Otemachi Ranch” — is one way to do this. Located on the 13th floor of the Pasona Group JOB HUB SQUARE in Tokyo, Chiyoda Ward, Otemachi, the unique farm, which opened in August 2017, houses more than 60 animals, including cattle, goats, and alpaca.

The farm offers seminars on dietary education, human resources development courses on dairy farming, guest lecturers, and other events to allow participants to interact with the animals, all with the goal of attracting interest to careers in agriculture.

GAI Gazette spoke with Masato Ito, president of Tango Kingdom (“Shoku-no-Miyako”), the Pasona Group company that oversees the ranch, on his part in the growth of Pasona’s services and its newly-energized focus on agriculture.

Could you please tell us how the company’s philosophy on staffing has led to supporting the agricultural field, such as with the Pasona Challenge Farm, Agriventure Academy, and now, the urban ranch?

Our corporate philosophy, “Providing Solutions to Society’s Problems” has not changed since our founding in 1976. One of the greatest challenges that Japan is currently facing is the change in social structure due to the declining birthrate and aging society. Japan’s population is already in decline, down from its peak of 128.08 million in 2008, and it is predicted that it will have fallen to 86.74 million by 2060. In rural areas in particular – due to the outflow of young people to the cities – the aging of society and depopulation are progressing at a rapid pace, and sustaining local economies, local government functions, and community development are becoming social issues.

Our venture in the agriculture sector began in 2003. The number of farmers was declining, people were more aware of food safety, and the agriculture industry was facing globalization. At the same time, the Japanese economy was struggling and we believed many employment opportunities were available in the agriculture industry. Farming is not just about produce; many workers with experience in white collar jobs could make Japan’s agriculture stronger by utilizing their knowledge in marketing, logistics, etc.

Pasona launched an agriculture internship in Akita prefecture. Since then, our business in this field has evolved to working with local governments to match consultants with farmers as well as help agri-ventures by providing startups with land and salary for up to three years in Awaji Island (Hyogo prefecture).

In 2017, Pasona opened the “Otemachi Ranch” in its Tokyo office. The number of workers in the dairy industry has declined about 30 percent in the last 20 years. The facility promotes the dairy industry, especially to city dwellers. We offer seminars and training on the industry as well as host recruiting seminars. We also stress the importance of nutrition and food safety, and host, for example, events to make ice cream for children.

Tango Kingdom is the largest roadside station (rest area) in Western Japan, complete with a farmer’s market, food shops, and more. How does the mission of Otemachi Bokujo fall in line with this?

The roadside station has a farm with animals where tourists can enjoy time with the animals. Tango Kingdom utilizes this know-how to run the ranch in the Tokyo office. Also, the company’s shareholders include local (Kyoto’s) farmers and dairy farmers. They are keen on the decline of personnel in the industry and are passionate about our mission to tackle this societal problem through the Otemachi Ranch.

Why a dairy farm at the top of a city building? What have been some of the challenges, and the promising outcomes?

The aim of the facility is as stated above. One of the challenges was the odor. We consulted with various professionals on how to maintain a clean and healthy environment for both the animals and the people. For example, we use hypochlorous acid to mitigate the odor, the ventilation system is separate from the rest of the building, and the floors are uniquely customized so that the staff can easily and quickly clean it.

Also, we were initially cautious of people’s reaction toward animals being housed in a building. However, we received more support than anticipated, and we were welcomed by many people. The Ministry of Agriculture and Forestry was on board from the start, as well as the Tokyo government. Since we complied with all legal issues, all government parties cheered us on since they are aligned with the facility’s goals.

As for the promising outcomes, there were a lot more people who lived in Tokyo that had never closely interacted with farm animals than we thought. Children and their parents came up to us with enthusiastic comments about their visit. Also, many farmers outside of Tokyo have contacted us conveying their support and hopes. When we conducted the recruiting fair, more than 20 farm-related entities participated. About 60 job seekers participated. We hope to hold the next job fair in the fall.

The farming industry has changed over the last 10 years; laws have been deregulated, many young people have entered the industry. We hope the dairy industry will follow this path as well, encouraged by our efforts.

Otemachi Bokujo has been open for nearly a year now. How many visitors has it seen? Have classes on management, marketing and sales, and general business begun? Have they been well attended?

We have seen about 30,000 visitors, and the seminars and events have attracted more than 1,500 people.

It is said that children are the main focus of this impressive project. Why is that and what programming is offered for them?

The facility aims to bridge current office workers to the industry. But as you noted, we hope to attract children as well. For one thing, they are the future working population and we hope that one day they will be enticed by the dairy industry and pursue a career in this field. Also, we want to convey the importance of health. Nutrition and health awareness are better acquired when education is conducted at an early age.

We conduct events where children make ice cream or butter. There also is a flamingo in the facility to teach them that what you eat is essentially what you become (flamingos are pink because they eat red shrimp and plankton).

What does the future hold as far as Pasona’s efforts to further create employment relative to revitalizing and developing human resources related to food?

Japan’s farming and dairy farming will ultimately shift to corporate-run entities and large-scale farming. Thus, more will be “employed” in this field (rather than family-run farming); workers will increase. We hope jobs in these fields will be considered on the same level as, for example, sales and marketing or accounting. Hopefully job hopping between the agriculture sector and the current business market will become more common.

We hope to enhance human mobility; both among industries, as well as between the city and the countryside.

ABOUT MASATO ITO

Ito-MasatoMasato Ito joined Pasona Inc. in 1994 working for the company’s Human Resources Exchange System Inc. Subsequently he was involved in launching Kobe Harbor Circus, an entertainment department store aimed at creating employment after the Great Hanshin earthquake of 1995. In 2007 he was named president of Pasona Logicom Inc., which provides help and personnel supply services. He was named to his current position of president of Tango Kingdom Inc. and Pasona Agri-Partners Inc. in 2015. He is a native of Kobe, Hyogo prefecture, Japan, and received his bachelor’s degree in law from Soka University.

 

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Michelle Pelletier Marshall is the managing editor for Global AgInvesting’s quarterly GAI Gazette magazine and a regular contributor to GAI News. She can be reached at mmarshall@globalaginvesting.com.

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