JR Shikoku selects Saijo City for land-based aquaculture venture.
JR Shikoku, the smallest of Japan’s regional railway operators, has announced plans to launch a land-based salmon farming operation in Saijo City, Ehime Prefecture, as part of its strategy to diversify revenue streams beyond rail transport.
The company will begin operations in April, installing 13 fish tanks at the Hiuchi branch of the Ehime Prefectural Fishery Cooperative. The first batch of juveniles will be introduced into the system shortly after, with commercial shipments expected to begin by January 2026. JR Shikoku aims to reach an annual production capacity of 12 to 13 tonnes by the end of the 2026 fiscal year, targeting revenue of over ¥100 million ($700,000) by 2030.
Diversification Amid Railway Sector Challenges
The initiative comes as JR Shikoku continues to face profitability challenges in its core railway business. Like other members of the Japan Railways Group (JR Group), the company has been exploring non-transportation revenue sources, including hotels, real estate, and retail ventures. The shift into primary industry marks a more significant departure, with salmon farming representing JR Shikoku’s first foray into aquaculture.
President Kazuyuki Shikinomiya, speaking at a press conference in Takamatsu, described the development as a major milestone for the company’s expansion strategy. “We are pleased to see aquaculture taking root in Shikoku and will continue exploring new farming locations to expand our production capacity,” he said.
Why Saijo City?
Saijo City was selected for its favourable water conditions, particularly its abundant and high-quality underground water supply sourced from the Ishizuchi mountain range. Unlike traditional coastal farming, land-based systems require stable, clean water sources, making Saijo an ideal location for the project.
The fish produced will be marketed to major metropolitan areas, including Tokyo, and incorporated into local economic development initiatives, such as Saijo City’s hometown tax return gift programme.
From Trial to Commercial Production
JR Shikoku’s move into steelhead farming began in August 2024, when the company launched a trial project in Kumamoto Prefecture in collaboration with a local aquaculture firm. The trial used a freshwater flow-through system developed by Hirayama Co., which relies on groundwater rather than seawater to raise salmon. The success of this test phase provided the foundation for JR Shikoku’s decision to scale up production in Shikoku itself.
Outlook and Future Expansion
While this is JR Shikoku’s first full-scale aquaculture site, the company has longer-term ambitions to establish at least three operational farms by 2030. It is evaluating additional sites across Shikoku, particularly in regions with strong branding potential, such as the Niyodo River area in Kochi Prefecture.
Meanwhile, JR Shikoku’s overall financial outlook has stabilised, with the company projecting a second consecutive year of profitability. While railway transport revenues have rebounded, the company is betting on non-rail businesses, including aquaculture, to provide long-term financial sustainability.
As Japan’s railway sector continues to evolve, JR Shikoku’s salmon venture will serve as a test case for whether a traditional rail operator can successfully transition into aquaculture. If the project proves viable, it could signal a broader shift within the JR Group towards diversification beyond transport infrastructure.
