Foods & Agriculture Business Division – Main Businesses & Vision –

Business Overview

Operates businesses that support the reliability and safety of food around the world, including agribusiness, and the marine products and foodstuffs business

【Main Products and Businesses】

▶  Agribusiness: Production and sales of compound chemical fertilizers, trading of raw materials for fertilizer production; agriculture
▶  Marine Products Business: Trading of marine products (shrimp, tuna, etc.); tuna processing and tuna farming business
▶  Feed Business: Trading of feed ingredients (corn, soybeans meal, etc.); grain port operations; feed production business
▶  Foodstuffs Business: Trading, and sales of wheat, candy, sugar, coffee, and fats and oils; operating flour businesses, confectionery businesses, and sugar businesses

Agribusiness

Warehouse for storing fertilizer in Thailand
Constructing the largest advanced chemical fertilizer manufacture and sales network in Southeast Asia, contributing to the development of agriculture in the region.
[Major Business Activities] A Leading Fertilizer Company in Southeast Asia
[Project Story] Fertilizer Manufacturing Business in Thailand
[News Releases] Sojitz Group Launches Compound NPK Fertilizer Import & Wholesale Business in Myanmar


Fertilizer Manufacturing and Sales Business in Vietnam

Marine Products Business

Tuna Farm Takashima in Nagasaki
Enhance expertise to provide a stable source of safe and delicious marine products, and expand the business to address rising demand in developing countries that are becoming ever more health conscious.
[Major Business Activities] The First General Trading Company to Enter the Tuna Farming Business
[Project Story] Tuna Farming Business in Japan
[News Releases] IoT and AI Verification Tests for Sojitz Tuna Farm Takashima’s Aquaculture Business

Feed Business

IFV’s flour mill and port facilities in Vietnam
Have invested in Interflour Vietnam Ltd., a company with the largest dedicated grain port in the ASEAN region, and are developing our feed and grain business using their facilities.
[Major Business Activities] Grain and Feed Value Chain in Vietnam
[Project Story] Grain & Feed Material Business in Vietnam

Foodstuffs Business

Yamazaki Biscuit Products in Japan
In addition to the trade of food materials and foodstuffs, we invest in refined sugar, confectionary, and flour manufacturers. Based on our experience, we will provide value that captures the diversifying needs in the food market
[Major Business Activities] History of Yamazaki Biscuit
[News Releases] Sojitz Enters Food Service Distribution Business in Thailand

Business Overview and Vision

Helping improve living standards by supplying reliable and safe food products and foodstuffs

  • ▶ Playing a part in food supply and contributing to raising the standard of living by helping to expand agricultural production, transfer production technologies and improve local dietary culture.
  • ▶ Increasing prime assets, with a focus on Japan and Southeast Asia, throughout the food value chain, from upstream businesses such as fertilizer production, agriculture, feed production and aquaculture; to midstream and downstream businesses, including grain collection and the manufacturing of food materials and food products.
  • ▶ Planning and implementing regional expansion into neighboring countries based on our most profitable businesses as well as expanding revenue for these businesses.

Strengths That Drive Value Creation

  • ▶ Strong local networks of operating companies, firmly rooted in Southeast Asia
  • ▶ Compound chemical fertilizer production and sales business with a leading market share in Thailand, Vietnam and the Philippines, supported by a training program to help farmers increase their income by expanding production
  • ▶ Wide ranging food and feed businesses in Vietnam, such as our equity-method associate Interflour Vietnam Limited (IFV), which owns the largest special-purpose grain port in the ASEAN region. IFV is also engaged in flour milling and the import of food and feed

Strategies and Initiatives

As the food market in Southeast Asia has grown, demands for higher quality food products and concern for the reliability and safety of food have increased. This trend has provided Sojitz with even more business opportunities. At the same time, food-related businesses are exposed to the risk of government regulations and weather fluctuation.

In our division, we are aiming to build a value chain that will play a key role in supplying reliable and safe foodstuffs to Japan and Asia, through increasing our portfolio of prime assets, expanding existing businesses, and promoting new business investments with a medium-to-long-term perspective for further growth. To accomplish this goal, we will proactively venture into new business areas to diversify our earnings structure and create new clusters of businesses capable of generating stable earnings. Our fertilizer business has already become one such steady source of earnings, and we will boost medium-to-long-term revenue by expanding into neighboring countries, including Myanmar. In the feed, livestock and wheat businesses, we are focused on regions where demand is projected to grow. By acquiring new assets and developing businesses from upstream to downstream segments, we will take on a wide range of business opportunities and increase revenue. For our marine product businesses, while expanding our existing tuna farming and processing operations, we will launch new processing and sales businesses to meet growing demand in developed countries, based on the diversification of dietary habits and increase in health consciousness.

Alongside these initiatives, we are focused on developing our human resources to increase business momentum and boost profitability. With many operating companies, our division provides an excellent environment for employees to grow. By creating and expanding opportunities to manage operating companies in various regions and business venues, we will train employees to understand front-line issues and enable them to manage businesses firmly rooted in the local community.

Compound chemical fertilizer manufacturing and sales business in Vietnam
(Japan Vietnam Fertilizer Company)

In consideration of expansion into new business areas going forward, we will create a more effective job rotation structure that provides broader overall experience, regardless of department or seniority. By further accelerating employee development, we will enhance our execution structure and work to become a division trusted by our stakeholders.

Focus Area: Fertilizer Business

Developing business and expanding sales in Myanmar, a new regional market

In the fertilizer business, we are striving to both expand existing operations and move into new regions. In Thailand, Vietnam and the Philippines, where we have a leading market share, we will continue to strengthen marketing activities and boost production capacity, in order to further capitalize on demand and increase exports to neighboring countries.

We recently established a sales company to expand sales in Myanmar, a new regional market where we anticipate growth in demand. In neighboring countries, we are conducting test marketing and analysis to develop sales and manufacturing operations.

Focus Area: Food Business (Including Foodstuff Materials)

Promoting the evolution of businesses and creating a value chain in Asia

We have developed industry knowledge and cultivated partnerships through many years of trading and business management. Leveraging this knowledge and experience, we will participate in the establishment of flour mills and distribution companies in Southeast Asia. The westernization of diets in this region also presents business opportunities. We will utilize Japanese technologies to expand the bakery business, thereby creating and strengthening the value chain. With integrated businesses extending from upstream to downstream, we will capture a wide range of opportunities to help create major clusters of revenue-generating businesses.

Opportunities

▶  Boosting trading volume of agricultural materials and crops, such as fertilizers and grains, caused by an increase in agricultural production
▶  Growing food needs in Asia due to the diversification of dietary habits
▶  Heightened concern for the reliability and safety of food

Risks

▶  Price fluctuations and increased transport costs in the event of supply-demand imbalance, due to factors including climate change and oversupply
▶  Decline in profit margins caused by factors such as changes in government policies and tightening of regulations

Organization

TOP

Search