Okayama Model Leading the Way to a Circular Forest Economy - The Seriousness of Industry, Government, Academia and Money Will Change Japan into a Resource Self-Sufficient Nation310

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Local National Universities Become Hubs for Social Implementation - Facing Local Issues with Data and Practice

As I was exposed to the practice of the "Okayama Model" of fully utilizing local forest resources at the Nikkei Regional Development Forum, which brought together top executives from industry, government, academia, and money in Okayama, I became convinced that this should not be merely a case study of one region. We will present the structure toward a recycling society supported by Japan's forests.

Functional collaboration centered on "people who connect

One of Okayama's greatest strengths lies in the fact that top executives from industry, government, academia, and money gather together and establish communication at the same table. Even on the stage of the forum, the prefectural governor, the president of a manufacturer, and executives from regional financial institutions gathered to frankly discuss current issues.

What I am convinced of here is the importance of "people. It is essential to have a "bridge person" who can intervene between industry, government, academia, and money to establish communication. In the case of Okayama, the local media and the head of the Chamber of Commerce and Industry played this role. The most important condition for the model to work is for them to become the hub and bring the heads of industry, government, academia, and money to the same table.

Visualization of lumber demand and mechanism to transform forestry sites into "earning power

For businesses utilizing forest resources to turn around, it is necessary to solve two issues at the same time: "yield improvement" and "demand visualization.

Currently, in the case of a business in Okayama, only "13%" of the logs are yielded from material production through sawing, laminated wood, and pre-cutting to the final product. At the material production stage, 35% of the logs are turned into fuel, and at the sawmill stage, 69% of the logs are turned into fuel in the process of producing wood products from the logs. Compared to fuel, wood products sell for more than 10 times the price, so improving losses at each stage will directly improve the profitability of the forest products industry as a whole.

Currently, upstream material producers only see the log market and have difficulty understanding how logs are used. The key to connecting the fragmented supply chain is "sharing and visualizing demand. Life Design Kabaya, a downstream company with about a 10% share of the prefecture's wooden construction market, has established a council with Okayama University, local government, and related companies to create a system to share demand throughout the supply chain. In addition, the company is working with Okayama University on a joint research project to create a database of wood species, dimensions, and costs for wooden components based on pre-cut data from wooden construction projects. By being able to see downstream demand forecasts for what kind of logs will be needed and when, upstream can make logging plans accordingly, thereby building a supply chain that is lean and interlocked.

It is also essential to have a viewpoint that transforms the local site itself into "earning power" in addition to selling "goods" in the form of lumber. Nishiawakura Village, located in the northeastern part of Okayama Prefecture and attracting nationwide attention for its forestry revitalization through the "100-year forest concept," is said to receive more than 1,500 visitors annually. The village is not only accepting visitors, but has also begun to develop a system in which visitors are compensated for their experience by staying in wooden cottages and other accommodation facilities. Rather than creating a "mini Tokyo" in a rural area, it is important to provide valuable experiences of the local forestry industry and animal damage control sites and turn them into businesses that can earn money independently in the region.

The "bottom-up" power that drives Japan

Underlying the promotion of the Okayama model is the power of bottom-up initiatives from the frontlines. As the private sector and local governments discussed frankly at the forum, a top-down approach, in which the national government tells people to "get on with it," will not work in today's Japan. Companies and municipalities that are facing real issues on the frontlines will push up the prefectural government, and this will be further reflected in the national government's policies. Without a "reverse flow" from the top-down approach, the regions and Japan will not change.

The Okayama model, in which "top-level collaboration among industry, government, academia, and money," "visualization of demand," and "bottom-up power" work as a reality, will be a powerful driving force for Japan's transformation into a true resource self-sufficient nation and a "platinum society" with resident investment and lifelong growth. (Hiroshi Komiyama, Chairman of Platinum Network and Honorary Editor-in-Chief of "Forest Circular Economy")

*Related Articles
The top executives from industry, government, academia, and academia are determined to create demand and reform the supply chain in order to implement wood-frame urban development in society.
The Okayama Model": Transforming Japan into a Nation Self-Sufficient in Resources and Urban Wood Construction, Challenged by Industry, Government, and Academia [Report on the Symposium on Forest Circular Economy, Part 1
Strong Cooperation among Leading Players in Industry, Government, and Academia to Fully Utilize Okayama's Forest Resources [Forest Circular Economy Symposium Report, Part 2

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• Wooden and woody construction in the town
• Wooden Construction and Demolition
• woodworking industry
• Kinki & Chugoku Area