Revitalization of Rural Economies though the Restructuring the Self-sufficient Realm

Abstract

According to rising social and environmental concerns, the number of small-scale oil mills growing and milling rapeseed has increased over the past decade. This study was undertaken to clarify small-scale rapeseed oil mill production, which is under pressure from mass-produced vegetable oil, and propose the application of this community-based system to developing nations. We analyzed all domestic rapeseed oil mills between 2009 and 2011, and discussed the transition from traditional mills to newly established town office-sponsored mills and its effect on the rural economy. We clarified that small-scale oil mills in rural areas have survived through strong self-sufficient production and have restructured into self-managing local communal businesses. This restructuring of local rapeseed production has had a positive effect on the local community and has revitalized the rural economy. Thus, we concluded that it may be suitable for microcredit in developing nations. Discipline: Agricultural Economics Additional key words: community mill, inducing production effect, local rapeseed production, restoring local production Present address: 2 College of Bioresource Sciences, Nihon University (Fujisawa, Kanagawa 252-0880, Japan) *corresponding author: nonaka@affrc.go.jp +81-19-643-3494 Received 16 November 2012; accepted 13 March 2015. Introduction Nowadays, vegetable oil, one of the most essential foodstuffs, is manufactured in large-scale chemical plants from imported oilseed grown in a few exporting nations. Japan used to grow and mill rapeseed in rural areas; however, imported oilseed now dominates the domestic market and Japanese production is close to zero. Recent discussions on the growing use of bio-diesels, however, have raised public concern about domestic rapeseed cultivation, and the number of rural areas growing rapeseed has increased since 2000. Such regional areas have established small-scale oil mills to process rapeseed that farmers in their neighborhood grow, and this growth in rapeseed production and milling activity (rapeseed production hereafter) has revitalized rural economies. Kawate et al.(2006), Goto et al. (2008) (2009), Ono et al. (2011), Ono and Nonaka (2011), Hirano (2008), Watanabe (2010), and Nonaka (2007) (2008) have all analyzed new rapeseed oil milling in rural areas based on field research and reported that increasing small-scale milling is established by local government and supported by local society. However, previous studies on this growth in small-scale rapeseed milling are based on specific case studies, and their structure and benefit to rural economy remain unclear. Major oil mills, such as the Honen Corporation, started mass production in large-scale chemical plants using Chinese soybean in the late 1920s, and they sold soy oil to Japan and other overseas markets. However, domestic rapeseed oil production survived until Japan’s high economic growth era (mid-1950s to 1973). Most farmers grew rapeseed as a second crop in paddy fields, while small-scale oil mills in towns processed the rapeseed, a system that resisted pressure from mass-produced goods. Although the growth in new small-scale rapeseed oil production is attracting research interest as a method of promoting small-scale business in rural areas, there are differences and similarities between old small-scale rapeseed production and new ventures in this regard. Sasama (1981) analyzed the history of Japanese vegetable oil milling, but not small-scale rapeseed oil milling specifically. Nonaka