Breaking Through the 2026 Wall: A Region-Contained Model Launches to Tackle Stricter Furusato Nozei Rules

Kitaichi Meat Co., Ltd. (headquartered in Higashi-ku, Sapporo; President & CEO: Ken'ichi Tamura; hereinafter "Kitaichi Meat") has announced the launch of a new regional revitalization project in partnership with Betsukai Town, Hokkaido (Nopporo-gun Betsukai-cho; Mayor: Kozo Sone; hereinafter "Betsukai Town") and North Pacific Bank, Ltd. (Chuo-ku, Sapporo; President & CEO: Hirohisa Tsuyama; hereinafter "North Pacific Bank"), in anticipation of tightening regulations on the furusato nozei (hometown tax donation) system.

Announced at a press conference held at a Sapporo hotel on Wednesday, March 25, 2026, the project aims to convert a closed junior high school into a meat processing facility, establishing a fully region-contained system from production through processing.

■ Shifting to a "Region-Contained Model" in Anticipation of Stricter Regulations

While furusato nozei continues to grow, post-2026 tightening of local product standards is forcing a rethink of existing business models.

Mayor Sone stated:

"Furusato nozei has grown significantly, but adapting to regulatory changes is unavoidable. Going forward, what matters is how much value we can generate within the region itself."

emphasizing the need to create value locally.

Against this backdrop, the project aims to bring processing operations—previously outsourced outside the region—back into the town, building a system that completes everything from production to processing within the local area. A key feature is minimizing initial investment by repurposing a closed school facility while maximizing the use of local resources.

■ A Public-Private-Financial Collaboration Model

Responding to regulatory tightening requires a framework that combines resources, expertise, and funding. In this project, roles are divided according to each party's strengths: Betsukai Town handles local resources and facility utilization; Kitaichi Meat manages processing and product development; and North Pacific Bank supports financing and business sustainability.

Additionally, North Pacific Bank has expanded its investment scope beyond traditional agricultural corporations to include "food industry corporations" supporting agriculture and livestock, with the entire North Pacific Bank Group providing comprehensive support including management guidance.

President & CEO Tsuyama stated:

"We will support this sustainable initiative—designed with regulatory changes in mind—as a model in which local governments, businesses, and financial institutions work together as one to support regional industry."