Photo/Illutration Kurohana Wagyu cattle are raised at a stock farm in Hitoyoshi, Kumamoto Prefecture, of Sugimoto-Honten Co. (Provided by Sugimoto-Honten Co.)

UKI, Kumamoto Prefecture--A Wagyu beef producer and seller here is rapidly expanding its exports to the Islamic world, attracting considerable attention and serving as a business model for Japanese companies. 

Sugimoto-Honten Co., headquartered in the Toyonomachi district of Uki, embarked on the international shipment of its Kurohana Wagyu beef from the renowned Japanese Black breed in 2021.

The company’s exports topped 1 billion yen ($6.7 million) three years later.

Expecting Sugimoto-Honten to serve as a “model” for businesses to pitch Japan-made merchandise to the global market, the Ministry of Agriculture, Forestry and Fisheries has designated the stock farmer as a “flagship producer and exporter.”

Exporters must qualify for halal certification to sell food items to Muslim countries. The word “halal” means “permitted” under Islamic law in Arabic.

Applicants are screened by certification authorities comprised of experts in religion and food hygiene.

For example, pork is strictly forbidden for consumption under Islamic law. This prohibition extends not only to pork itself but also to food products containing pork-derived ingredients and domestic animals fed with pork-based food.

Certification systems vary by country, rendering the recognition process even more challenging for exporters.

Sugimoto-Honten overcame all these difficulties. It had its ranch and processing factory inspected, verifying that their sanitary conditions and rearing methods comply with Islamic standards.

In this manner, Sugimoto-Honten succeeded in quickly scaling up its international shipping.

As the first step, the Japanese company gained halal certification in Thailand and Macao in 2020. It won the same recognition in the United Arab Emirates the following year in 2021 to begin exports.

Sugimoto-Honten exported solely six cattle, valued at less than 10 million yen in total, that year. But the overseas shipment volume grew to 230 million yen in 2022 and 370 million yen in 2023, ending up reaching 1.1 billion yen last year.

To date, Sugimoto-Honten has been awarded halal certification in seven countries and regions, including Taiwan and Singapore.

The corporation intends to further its exports from here on out, aiming to raise the export-to-sales ratio from the current 13 percent to 20 percent by 2027.

“We will likewise tackle the challenge of obtaining certification in Indonesia and Malaysia, despite the procedure being particularly difficult in these nations,” said President Koshiro Sugimoto, expressing his commitment to the plan.

Sugimoto-Honten cultures its Kurohana Wagyu cattle for exports at dairy farms not only in Kumamoto Prefecture but also in Oita, Miyazaki and Kagoshima prefectures.

The company is making constant efforts to improve beef quality while maintaining its price, such as adjusting the recipe for feed and shortening the current fattening period of 27 to 28 months by several months.

Sugimoto-Honten, a designated flagship exporter, is currently eligible for a range of forms of support from the agriculture ministry in the endeavor to spread its beef products outside Japan.

The ministry is expected, for example, to facilitate overseas promotional campaigns, assist in business negotiations with buyers, and organize tours of production areas for the benefit of Sugimoto-Honten.

“We will be delivering the world’s finest Japanese Black beef to consumers across many countries and regions beyond religious barriers,” said President Sugimoto.

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