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.

Strengths of Division

  • Developing a wide range of businesses mainly in Southeast Asia, such as grain port operations, flour milling, bakery products, 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
  • Growing concern for the tranceability and safety of food and the preservation of food resources

Risks

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

Growth Strategy

We will grow 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.

In the food business, in addition to the sale of finished goods and the supply of raw materials such as wheat, we are focusing on developing other businesses such as flour-milling, bakery and confectionery production in Asia. More specifically, in 2017, we established a flour milling company, a food ingredients wholesaling company, and a bakery company in the Philippines. We have also been operating a flour milling company in Vietnam since 2007.

For our marine products business, we will strengthen our tuna value chain, 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 operate the grain port business and, a feed manufacturing business in Vietnam. We intend to leverage these businesses to meet rising animal protein 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.

Businesses

Atlas Fertilizer Corporation (Philippines)

Dalian Global Food Corporation (China)

■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 agri-products 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-farming business at Sojitz Tuna Farm Takashima, we will work to expand sales while we collaborate with leading fish-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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