Kagoshima Invests $17 Million to Build Japan's Largest Matcha Processing Facility — Targeting U.S. Market with 300-Ton Annual Capacity

Japan's Kagoshima Prefecture Plans a $17 Million Matcha Facility — With the U.S. Market Squarely in Mind

Japan's matcha industry is scaling up in a major way. On March 23, 2026, JA Group Kagoshima (the agricultural cooperative association of Kagoshima Prefecture) held a press conference announcing a bold plan to construct a large-scale matcha processing facility in Kagoshima City. The investment totals approximately 2.6 billion yen (around USD $17 million), making it the largest matcha production facility in Kagoshima Prefecture.

The new facility is designed to produce up to 300 metric tons of matcha per year — a significant capacity that signals Japan's commitment to meeting surging global demand. Construction is underway with completion targeted for November 2027.

"America Is the Top Priority Right Now"

At the press conference, Hirofumi Yuzuki, Chairman of the Kagoshima Prefectural Economic Federation (県経済連), was direct about the target export market:

"There is a global matcha boom, and right now, America is the top priority."

This statement reflects what many in the Japanese tea industry are already seeing on the ground — the United States has emerged as the single largest growth market for Japanese matcha exports, driven by demand from specialty coffee shops, cafés, matcha bars, and health-conscious consumers.

What Is "Kagoshima Matcha" (かごしま抹茶)?

Kagoshima Prefecture, located at the southern tip of Kyushu island, is Japan's second-largest tea-producing region after Shizuoka. While Kagoshima has long been known for its high-volume sencha (Japanese green tea) production, the prefecture has increasingly shifted focus toward tencha — the raw, shaded leaf that is stone-ground into matcha powder.

Kagoshima teas are grown in a warm climate and are known for their bold, robust flavor profile. As the global matcha market matures, Kagoshima producers are investing heavily in quality and processing infrastructure to compete with the traditionally premium Uji matcha from Kyoto.

• Tencha (碾茶): The shade-grown, de-stemmed, de-veined green tea leaf that is stone-ground to make matcha. Quality tencha is the foundation of any premium matcha product.
• Matcha (抹茶): Finely stone-ground powder made from tencha. Grade, color, and umami content vary significantly depending on growing conditions, shading duration, and processing methods.

What This Means for U.S. Matcha Buyers and Importers

For café owners, beverage directors, and matcha buyers sourcing directly from Japan, this development has several important implications:

• Increased supply availability: A 300-ton annual output facility means Kagoshima will be able to meet larger-volume orders from international buyers — including food service and wholesale clients in the U.S.
• Competitive pricing potential: Larger-scale processing typically enables more competitive wholesale pricing, which could benefit buyers currently priced out of Uji-origin matcha.
• Brand differentiation: The JA Group is actively working to establish and strengthen the "Kagoshima Matcha" brand in international markets. Expect growing marketing efforts around this regional identity.
• Timeline for availability: With the facility set to complete in November 2027, significant volume from this new operation is likely to reach export markets in 2028 and beyond.

Industry Headwinds to Watch

Chairman Yuzuki also noted broader challenges facing Japan's agricultural sector. Rising fuel costs linked to ongoing Middle East geopolitical tensions are increasing transportation and production costs — a factor that could affect import pricing in the near term. He specifically cited elevated maritime shipping fees adding to already-high fertilizer costs as areas requiring close monitoring.

For U.S. importers, this is a reminder that Japanese matcha pricing is influenced not just by harvest conditions, but also by global logistics and energy markets.

Kagoshima's Growing Role in Japan's Matcha Export Strategy

This 2.6 billion yen investment is one of the clearest signals yet that Japan's agricultural sector is aligning with global matcha demand — and that Kagoshima intends to be at the center of that effort. For businesses importing Japanese matcha into the United States, staying informed about regional production developments like this is key to building resilient, quality-focused supply chains.

Source: FNN Prime Online / Kagoshima Television — March 23, 2026
https://www.fnn.jp/articles/-/1019103