Interview with Takagi Kanichiro, President, Izumo Chikuzai Industry Co. BUSINESS PROFILES Bamboo: Big Growth Potential

Interviewer: Takamasu Kanji

ome people in North America and Europe may have never seen bamboo groves. Bamboos grow S in a wide range of tropical and temperate regions other than North America and Europe. Bamboo plants extend rhizomes underground and grow extremely fast and are characterized by their sword- shaped leaves and hollow trunks divided by joints about every 30-40 cm. Some of the bamboos grow to a height of more than 20 meters and have trunks measuring up to 20 cm in diameter. Among more than 1,200 bamboo species, the maozhu bamboo is one of the largest. This reporter interviewed Mr. Takagi Kanichiro, 68, who is a pioneer in building a business model for mass production of slim bamboo skewers and chopsticks using the maozhu bamboo as a material.

Photo: Takamasu Kanji What bamboo goods have you Starting with Glass- produced so far? Window Rails Takagi: In 1940, my father, Takagi Teiichi, began producing bamboo rails Upon hearing the word bamboo, for glass windows at his home town of many people today think of food Ð Matsue. He came back to Matsue from bamboo shoots Ð and craftwork Kobe where he had been engaged in an such as hand-made bamboo import business of rare metals like baskets. The plant has been used molybdenum concentrates from South since ancient times for purposes America and Peruvian-grown cotton. He ranging from construction material was forced to give up the trade business to craftwork. Bamboo skewers and because of the outbreak of World War II chopsticks represent some of the and sought a different business field. simplest forms of bamboo products. During the war, Japanese people were What kind of processing are you forced to contribute all their daily-use doing to the bamboo? Izumo Chikuzai Industry Co. President Takagi metal products to the military. My father Kanichiro began producing bamboo glass-window Takagi: Many people may think rails as an alternative to metallic ones. bamboo skewers are made by simply Takagi: I think bamboo skewers used to Bamboo rails are inferior in strength but splitting bamboos into slim, short sticks be produced even before the start of suited for glass-window rails because for one-time use. But, in reality, more recorded history. It was in the 1960s bamboo fibers are straight. That business than 10 production processes are when demand for bamboo skewers was authorized as a war industry, and he required to produce a variety of skewers skyrocketed enough to require the gained the military’s approval for and chopsticks. Safety consideration is industrial production as seen nowadays. production of bamboo rails. But this also needed because users put meat, fish, Japan achieved quick economic growth at may be unbelievable for today’s young sweets and other various foods into their that time, and yakitori, or grilled chicken generation. mouths on skewers or with chopsticks. on skewers, has since become a popular Immediately after the end of the war, We sell 12 types of skewers for various food item. Seasoned, charcoal-grilled my father began to produce bamboo bags food uses, a total of 90 skewer items that meat – not only chicken but eel, fish, and blinds and exported them mainly to are different in length and size. We pork and beef – has been found to be the United States. He was originally a offer them as disposable items for most tasty. People have noticed that trader. Many bamboo-processing around $2 per 100-unit pack. The grilling and skewering are the best workers had remained in his factory, and number of items for sale is 2,000, cooking method for meat. As bamboos he used rich bamboo resources around including ornamented skewers and are straight in fiber, bamboo sticks are Matsue. Exotic bamboo bags sold well bamboo-sheath containers. suitable to skewer foodstuff. They do not and bamboo blinds were used to screen break so easily and disposable bamboo pools at home. His company was When did you start the industrial skewers for one-time use are also sanitary honored as an export promoter in 1953 production of bamboo skewers? and safe. by a traders’ association in Kobe.

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Photos: Izumo Chikuzai Industry Co.

Bamboo skewers: a mighty tool for a variety of use ranging from food like meat, fish and sweets, to cooking like boiling, grilling, etc. Bamboo sheaths, also used as pouches and lunch boxes, are environment-friendly and sanitary.

Did the export business last? Takagi: The bamboo skewer market machines to China and began expanded steadily. But our brisk production there on a consignment Takagi: Rivals emerged in the latter half business did not last long. This was basis. Our company and our partner in of the 1950s not only at home but also because our rivals in Taiwan began Taiwan jointly launched the China abroad, particularly in Taiwan. Exports producing bamboo skewers and business. It was the first such attempt gradually became sluggish due to severe branched out into the Japanese market. by a Japanese maker of bamboo cost competition. But at that time, We could not match the rival in a price products. The attempt failed, however. demand for bamboo skewers rose rapidly war, so, we provided machines to a Skewers from China did not meet the in the domestic market. This was Taiwan company and launched quality requirements of the Japanese because yakitori and oden (a hotchpotch production there on a consignment market. I had no other choice but to of vegetables, eggs, fish cake, etc.) became basis. At first, we imported semi- discard them all. To put it simply, the hit food items as the Japanese economy finished products from Taiwan and Chinese skewers were of very sloppy grew. So, we shifted our focus to the conducted the final manufacturing workmanship. The concept of quality production of bamboo skewers. process in Matsue for the domestic control had not taken root at that time market. It was around 1964. My father when people’s communes played a key Didn’t you need to sharply shuffle the died around that time and I became economic role in China. I therefore manufacturing process to change head of the family business. built a new plant in Taiwan in 1978 to your product items? increase production there. On the I hear your company has launched other hand, I decided to import various Takagi: The production process was production in China. artworks from China and waited for mechanized with machines of my own the time to become ripe to launch design. Long-serving skilled workers Takagi: I visited China for the first time production there. grew older. We cut production costs by in 1968 when China was in chaos amid automating a series of production the Cultural Revolution. I had heard How long did you wait? processes – from the process of breaking that there were vast bamboo groves in up bamboos to smoothening and inland China south of the Yangtze Takagi: We launched our second polishing. I studied economics at school River. And China has a long history of attempt to begin consignment and engineering was not a part of my production of bamboo goods. For these production in China in 1987. In the vocabulary. But I had carefully watched reasons, I had anticipated that our meantime, I frequently went to China work operations at my father’s factory in bamboo business would pay in that and visited various locations there to my childhood. I liked repairing watches country. I wanted to confirm this with procure various artworks and also to and radios and was very much interested my own eyes in China. I heard thick search for a candidate site for our in mechanics. maozhu bamboos, which we use as our production base and for reliable materials, grow naturally in southern personnel who could be our future China. They were brought to Japan in business partners. I have visited China Production in the 18th century. more than 150 times so far. I was finally confident that we could launch Taiwan, Then in When did you move the production production in China. But it was more base to China from Taiwan? than 10 years after the first attempt. China Some other Japanese makers of bamboo Takagi: We searched for a partner products had already begun production It was then that domestic food firms immediately after the 1972 restoration in China. I felt that the concept of and restaurants in Japan became of diplomatic ties between Japan and quality control had finally taken root in your main customers, wasn’t it? China. And, in 1973, we sent China.

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We launched the website for business transportation of our products. An Import-promot- use at an early date after learning of its From the standpoint of recycling advantages from publications authored resources, bamboos are much more ing Company by Professor Murai Jun of Keio environmentally friendly than most University. We opened the website wood materials. As the maozhu bamboo What is your current production both in Japanese and English from the matures in three years, it can be system? outset. (The Internet address of the reproduced at a speed 10 times faster English site is http://www.icbamboo. than other types of wood. Its Takagi: Now we have five plants in com/newpage8.htm). Sales are proliferation potential through rhizomes southern China’s Fujian and Zhejiang traditionally called legwork. Maybe our is strong enough to devastate a forest. provinces. All of them are run jointly business style is something of a So, bamboo products can be offered for with our Chinese partners. In total, “dilettante business.” one-time use. They return to the soil 15,000 maozhu bamboo trees are But I am confident that we are even after being thrown away. The processed per day at these plants. That is maintaining the business principle of bamboo is an unlimited resource and the equivalent of 100 truckloads. I can quickly providing customers with can be used for many more purposes. say it is fairly large. We depend on products of high quality at low prices. China for almost all output now. Our Many customers who first placed orders What are you considering for future company was honored by the Ministry of with us have become our important business? International Trade and Industry (now clients. Our product lineup is the widest known as the Ministry of Economy, in this industry. We have steadily Takagi: Demand for bamboo products is Trade and Industry) as a promoter of maintained a 20% share of Japan’s quickly expanding as a home-flooring imports in 1995, 42 years after being bamboo skewer market and we never go material. Bamboo floors are rarely used in honored as an export promoter. into sales wars seeking to grab clients Japan. But they have won popularity in from competitors. I simply don’t like Europe, particularly in Italy and Germany. What are you doing in Matsue? such a practice. Our business partners in China are enthusiastically tackling that business. Takagi: We have increased the number You and your father have been of warehouses there. We built a new engaged in the bamboo product You said you have visited China warehouse in 2007, and now have four business for almost 70 years and more than 150 times. Are you fluent warehouses in Matsue. We are have experienced severe in Chinese? performing only the final-stage processing competition. You have repeated work there in response to special orders major changes in the business style Takagi: Unfortunately, I was too busy from customers. I am often asked why during the long period. doing business and could not learn we are building up stocking capacity at a Chinese fully. I rely on interpreters for time when manufacturers are struggling Takagi: I think it natural for business communication. I can communicate to reduce inventories. But it is most styles to change. You have to transform 80% of my messages by means of writing. reasonable to transport a container load yourself in order to survive in the But, thinking of our future business, it is of products by ship, store them at changing economic environment, not enough. So I have instructed my two warehouses in Matsue, and ship them particularly in the rapidly developing sons to study Chinese and English. from there to Japanese customers economies in East Asia. I think it is nationwide. We can use Japan’s wrong to simply seek government help Photo: Izumo Chikuzai Industry Co. advanced transport services to supply our when faced with some difficulty. products promptly in response to orders from customers. My way of business is completely different from that of others. Protecting the Our company’s workforce is only nine, including my two sons – Yoshiyuki and Environment, Too Kanji. Annual sales are ¥560 million, 5% of the figure being from exports. What kind of advantage do bamboos I am often asked if doing business in have as an industrial material? Matsue, a location far away from major market regions such as Tokyo and Takagi: I have been strongly interested Izumo Chikuzai Industry has been aggressively Osaka, may be disadvantageous. But we in the global environment, our biggest demonstrating its bamboo products at can use Japan’s advanced distribution issue. I installed a solar power overseas exhibitions. system and ship our products generation system in this building at an nationwide the day after receiving orders early date and sell surplus electricity to Takamasu Kanji is an editor and biographer. by fax. We can also acquire new Chugoku Electric Power Co. I switched He is also a senior advisor to the foreign news customers through our Internet site. to natural gas-powered trucks for editor of the New York Times.

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