Key Facts
• On June 25, Yokoto Farm filed for bankruptcy at Yamagata District Court Shinjo Branch.
• The farm, established in 2006, had a capital of $6,900 and was led by Tsutomu Yokoto.
• At its peak, the farm housed 100 dairy cows with advanced milking systems.
• Declining school milk demand and diverse beverage markets caused revenue drops.
• Rising feed costs led to loan repayment delays starting in 2015.
• COVID-19 school closures further reduced sales, forcing operational downsizing.
• The farm shifted to raising entrusted cattle but failed to repay equipment loans.
• Total debt amounts to approximately $1.4 million.
Summary
Yokoto Farm, a dairy and crop farming business in Shinjo City, Yamagata, filed for bankruptcy on June 25 due to financial struggles. Established in 2006, the farm once operated on a large scale with 100 dairy cows and advanced milking systems. However, declining milk demand, rising feed costs, and COVID-19-related school closures severely impacted revenue. Despite shifting to raising entrusted cattle, the farm could not repay equipment loans, leading to its closure. The total debt is estimated at $1.4 million.
