Japanese Wagyu Beef Producer Thrives in Islamic Markets, Serving as Export Model

Kurohana Wagyu cattle are raised at a stock farm in Hitoyoshi, Kumamoto Prefecture, by Sugimoto-Honten Co. This company, based in Uki, Kumamoto Prefecture, is experiencing rapid growth in its exports to the Islamic world. This success is drawing attention and serving as a business model for other Japanese companies.

Sugimoto-Honten began exporting its Kurohana Wagyu beef, sourced from the Japanese Black breed, internationally in 2021. Within three years, the company's exports exceeded 1 billion yen. The Ministry of Agriculture, Forestry and Fisheries has recognized Sugimoto-Honten as a "flagship producer and exporter," hoping it will serve as a model for other businesses looking to sell Japanese products globally.

To sell food items to Muslim countries, exporters must obtain halal certification. This certification, meaning "permitted" under Islamic law, is granted by authorities who assess compliance with religious and food hygiene standards. For example, pork and pork-derived ingredients are strictly forbidden. The certification process can be complex, as requirements vary by country.

Sugimoto-Honten overcame these challenges by having its ranch and processing factory inspected to ensure compliance with Islamic standards. This allowed the company to quickly expand its international shipping. They initially gained halal certification in Thailand and Macao in 2020, followed by the United Arab Emirates in 2021, which enabled them to begin exports.

In its first year of exports, Sugimoto-Honten shipped only six cattle, valued at less than 10 million yen. However, the volume grew significantly, reaching 230 million yen in 2022 and 370 million yen in 2023, ultimately reaching 1.1 billion yen last year. The company has now obtained halal certification in seven countries and regions, including Taiwan and Singapore.

Sugimoto-Honten plans to further increase its exports, aiming to raise the export-to-sales ratio to 20 percent by 2027. The company is also working to obtain certification in Indonesia and Malaysia. Kurohana Wagyu cattle are raised for export at dairy farms in Kumamoto, Oita, Miyazaki, and Kagoshima prefectures.

The company is continuously working to improve beef quality while maintaining its price. This includes adjusting feed recipes and shortening the fattening period. As a designated flagship exporter, Sugimoto-Honten receives support from the agriculture ministry, including assistance with overseas promotional campaigns, business negotiations, and tours of production areas. The company aims to deliver its Japanese Black beef to consumers worldwide, regardless of religious background.