Japan Targets 4.6 Trillion Yen Investment in Plant Factories by 2040

Japan is facing a growing shortage of farmers, with agriculture ministry figures showing that the number of people whose primary income comes from farming has dropped to about 980,000 in 2026, down from roughly 2.05 million in 2010.

To address this issue, the government is seeking to sustain agricultural production by investing in plant factories. By fiscal 2040, it aims to have combined public and private investment in these facilities reach 4.6 trillion yen.

Plant factories are becoming more common in Japan, with about 440 operating across the country, a number that has doubled over the past decade. However, their economics remain challenging due to high initial expenditure and increasing costs of capital investment and electricity.

Some plant factory managers have expressed concerns about achieving profitability, citing the need for improved productivity and added value. To address this, businesses are exploring various uses of AI and sensor technology to increase efficiency in indoor production.