Rice Flour Production Projects and Their Vitalization Effect on Regional Economy

―A Case Analysis on a Milling Company in Niigata―

Abstract

Rice flour production projects have a possibility to bring positive economic and social effects into the area where the mills are located when the projects are skillfully managed and succeed in expanding the production, employment and procurement of rice materials. Niigata’s rice milling company, called Niigata Seifun Co., Ltd., presents a good example of the effort made in the field of management and contribution to the local society. The local food manufacturing businesses based on the indigenous agricultural products, being often initiated by such public or quasi-public entities as village councils or agricultural co-operatives, occasionally find difficulty in how to balance themselves between their business expansion orientation and their social responsibility such as extension of support to farmers or creation of employment opportunity for local people. Niigata Seifun has been showing so far a good performance in sales growth, and its development effort of new food products and the R&D activity may provide them with further expansion opportunity if the local network for innovation development has been strengthened. In spite of its good record on the side of contribution to the local society, Niigata Seifun should identify some potential risks in this field and consider the solution for them.