Sojitz Corporation

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Foods & Agriculture Business Division

Operates businesses that provide safe and reliable food. We are expanding our agribusiness, feed business, marine products business, foodstuffs business, among others.

Business Models Supporting Value Creation

  • Developing a wide range of businesses centered in Southeast Asia, such as grain port operations, flour milling, packaged breads, fertilizer production, and feed production
  • Establishing a top-class market share in the production and sale of compound chemical fertilizer in Thailand, the Philippines, and Vietnam
  • Developing a global tuna value chain based on the tuna farming business in Japan and the wholesale processing business in China

 

External Environment

Opportunities

  • Diversification of lifestyles in Asia
  • Increase in demand for foodstuffs due to population growth and economic development in Southeast Asia
  • Heightened concern for the reliability and safety of food and the protection of food resources

Risks

  • Price fluctuations due to an imbalance between supply and demand caused by climate change and changes in government policies
  • Impact to the environment on food production
  • Pressure on business revenue due to sudden fluctuations in exchange rates

Businesses

■Agribusiness

We operate top-class fertilizer businesses in Thailand, the Philippines, and Vietnam. We will capitalize on our strengths—the knowledge and expertise gained in these countries to promote expansion of the business into Myanmar and other neighboring countries.

■Feed business

In addition to trading raw materials for livestock feed in Japan, we are striving to expand our business in Vietnam by entering the grain port business in Vietnam and operating a feed manufacturing business.

■Foodstuffs business

We conduct sales of raw food materials and food products in Japan and overseas. In terms of food processing, we are involved in confectionery and sugar refinery businesses in Japan, flour milling in Vietnam and the Philippines, and a packaged bread business in the Philippines.

■Marine products business

We are constructing a tuna value chain that includes tuna farming in Japan, a processing and wholesale business in China, and sales in Japan and overseas; we are also strengthening our tuna processing and wholesale business in Japan and overseas.

Atlas Fertilizer Corporation (Philippines)

Dalian Global Food Corporation (China)

Growth Strategy

We will augment our prime assets to create a sustainable business model, contributing to higher living standards by providing reliable and safe food.

Koji Izutani

Managing Executive Officer, COO
Foods & Agriculture Business Division

Southeast Asia’s rising populations and economic development has brought more diverse lifestyles and an increase in demand for foodstuffs. Our Division aims to strengthen and increase our earnings capacity through diverse businesses related to food and agriculture, allowing Sojitz to convert the rapid changes in this region into further growth.

We operate market-leading fertilizer businesses in Thailand, the Philippines, and Vietnam as part of our agribusiness operations, and are utilizing this expertise to develop businesses in Myanmar and other surrounding countries. We will also venture into other agriculture-related businesses fields.

For our foodstuffs business, we are involved in processing businesses, in areas such as milling, sugar refining, confectionery, and bread making, both in Japan and overseas. We will continue to expand our model of supplying raw materials and conducting sales of food products, moving into Southeast Asia. More specifically, in 2017, we established a flour milling company, a food ingredients wholesaling company, and a packaged bread company in the Philippines. We have also been involved in a flour milling company in Vietnam since 2007.

For our marine products business, we will strengthen our tuna value chain, which includes everything from farming to processing and sales, by further developing our processing and wholesale business in Japan and overseas. In terms of our feed business, we plan to enter the grain port business in Vietnam, where we also operate a feed manufacturing business. We intend to leverage these businesses to meet rising fertilizer demands in the future.

In addition, we are cooperating with other divisions that have Vietnam-based businesses in areas such as prepared food, wholesale food, and convenience stores. We will also partner with leading local businesses to promote global business development primarily in Vietnam and the ASEAN region.

Initiatives

■Strengthening our fertilizer business and developing into surrounding areas

We aim to expand sales by implementing detailed promotion strategies for each region and each type of produce in Thailand, the Philippines, and Vietnam, and by increasing exports to neighboring regions. We will also venture into agriculture-related businesses by capitalizing on the long-standing initiatives of our fertilizer business, which has firmly established roots in local areas.

■Expanding marine products processing and wholesale

In December 2018, we increased our investment in a tuna processing and wholesale company in China. Along with our tuna aquaculture business at Sojitz Tuna Farm Takashima, we will work to expand sales while we collaborate with leading processing wholesalers in each country where there is demand, such as Japan, China, Europe, and the U.S.

■Strategic initiatives in Vietnam

In September 2018, Sojitz formed a strategic business alliance with the Pan Group, a major food and agribusiness firm in Vietnam. We are striving to accelerate our business expansion in Vietnam and overseas by combining the Pan Group‘s business foundation with technology from Sojitz‘s network of Japanese companies and customer base.

Organization

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