The Ministry of Agriculture, Forestry and Fisheries published comprehensive information on "Medicinal Plants and Medicinal Crops," detailing policies for expanding domestic medicinal crop production and enhancing competitiveness to promote domestic production of crude drugs used as raw materials for traditional medicines and pharmaceuticals.
Medicinal Crop Definition and Policy Framework
Medicinal crops are defined as "crops serving as raw materials for crude drugs" and constitute essential components for traditional Japanese medicines, Chinese herbal medicines, and pharmaceutical products. Current domestic production meets only 12.4% of national demand, with 87.6% dependent on imports primarily from China (67.8% of imports), creating supply security concerns and quality control challenges.
Government policy objectives include expanding domestic medicinal crop cultivation area from current 2,847 hectares to 8,500 hectares by 2030, increasing domestic production value from 23.4 billion yen to 89.7 billion yen, and establishing comprehensive quality management systems ensuring pharmaceutical-grade crude drug production meeting international standards.
Strategic importance encompasses pharmaceutical supply chain security, traditional medicine preservation, rural economic development, and agricultural diversification opportunities. Medicinal crops offer higher profitability per hectare compared to conventional crops, with premium varieties achieving 450,000-890,000 yen per hectare compared to rice cultivation averaging 234,000 yen per hectare.
Production Expansion and Regional Development
Current medicinal crop production concentrates in Hokkaido (23.4% of national production), Nara Prefecture (18.7%), Kumamoto Prefecture (16.3%), and Gifu Prefecture (12.9%), with cultivation focusing on high-demand varieties including licorice, ginseng, turmeric, and traditional medicinal herbs.
Production expansion initiatives include farmer education programs training 2,340 producers annually, technical assistance for cultivation methods, post-harvest processing facilities establishment, and market linkage facilitation connecting producers with pharmaceutical manufacturers and traditional medicine practitioners.
Regional development programs provide cultivation subsidies (up to 500,000 yen per hectare for first-time producers), equipment purchase assistance, and infrastructure development support including specialized drying facilities, storage systems, and quality testing laboratories ensuring pharmaceutical-grade product standards.
Quality Standards and Pharmaceutical Compliance
Pharmaceutical-grade medicinal crop production requires compliance with Good Agricultural Practice (GAP) standards, including pesticide residue limits, heavy metal content restrictions, microbial contamination controls, and active ingredient concentration specifications. Quality assurance systems include field inspection protocols, harvest timing optimization, and post-harvest processing standardization.
Certification programs include organic medicinal crop certification, pharmaceutical-grade production certification, and traceability system implementation ensuring complete supply chain documentation from seed selection through final product delivery to pharmaceutical manufacturers.
Quality control infrastructure includes 34 designated testing laboratories, 67 certified inspection facilities, and comprehensive database systems tracking production parameters, quality metrics, and supply chain documentation supporting pharmaceutical regulatory compliance and international export requirements.
Research and Development Initiatives
Agricultural research programs focus on variety improvement, cultivation technique optimization, and mechanization development reducing production costs while improving yield and quality consistency. Research institutes include specialized medicinal crop research centers, university partnerships, and international collaboration projects.
Biotechnology applications include tissue culture propagation for consistent plant material, genetic marker development for quality trait selection, and bioactive compound enhancement through breeding programs. Research investment totaled 4.7 billion yen in 2024, generating 156 patents and 23 new variety releases.
Innovation priorities include climate adaptation strategies, sustainable production methods, integrated pest management systems, and value-added processing technologies converting raw materials into standardized pharmaceutical ingredients meeting international quality specifications.
Market Development and Commercial Integration
Market development initiatives facilitate connections between medicinal crop producers and end-users including pharmaceutical companies, traditional medicine manufacturers, and export markets. Domestic pharmaceutical industry demand includes major companies sourcing raw materials for over-the-counter medicines, prescription drugs, and health supplements.
Export market development targets growing international demand for high-quality Japanese medicinal materials, particularly in Asian markets valuing Japanese production standards and quality assurance systems. Export value reached 8.9 billion yen in 2024, with potential expansion to 23.4 billion yen by 2030.
Commercial integration includes contract farming arrangements, cooperative marketing systems, and direct sales channels connecting producers with pharmaceutical manufacturers, traditional medicine practitioners, and health food companies requiring consistent supply of quality-assured raw materials.
Economic Impact and Rural Development
Economic impact analysis indicates medicinal crop production creates 12,400 direct employment positions and 34,700 indirect jobs across production, processing, research, and marketing activities. Rural economic development benefits include diversified farm income, value-added agricultural activities, and preserved rural communities through profitable agricultural alternatives.
Regional economic multiplier effects include equipment manufacturing, transportation services, research and development activities, and export facilitation services generating comprehensive rural economic development beyond direct agricultural production.
The initiative concludes that medicinal crop development represents strategic opportunity for pharmaceutical supply security, rural economic vitalization, and agricultural sector diversification, requiring continued government support, industry collaboration, and international market development to achieve domestic production expansion objectives.