Consumer Industry & Agriculture Business Division
Working on building sustainable business models in the fields of agribusiness, foodstuffs, marine products, animal feed, and forest products in order to contribute to food safety and security as well as comfortable living spaces, with the goal of achieving a higher quality of life for all.
Strengths of the Division
- ●Developing a wide range of businesses mainly in Southeast Asia, such as fertilizer production, feed production, grain port operation, flour milling, bakery products, confectionaries, woodchips, and papermaking
- ●Establishing a top-class market share in the production and sale of compound chemical fertilizer in Thailand, the Philippines, and Vietnam
- ●Participating in one of the largest biomass power plant projects in Japan, utilizing a stable woody biomass resource procurement network
- ●Diversification of lifestyles in Asia
- ●Increase in demand for foodstuffs and essential consumer goods due to population growth and economic development in Southeast Asia
- ●Growing need for the safety, security, and sustainability of food
- ●Price fluctuations due to an imbalance between supply and demand caused by climate change and changes in government policies
- ●Pressure on business revenue due to sudden fluctuations in exchange rates
Southeast Asia’s rising populations and economic development has brought more diverse lifestyles and an increase in demand for foodstuffs and essential consumer goods. Our division aims to strengthen and increase our earnings capacity through developing new businesses in the agribusiness, foodstuffs, marine products, animal feed, and forest products fields, allowing Sojitz to convert the rapid changes in this region into further growth.
In the Agribusiness Dept., we operate market-leading fertilizer businesses in Thailand, the Philippines, and Vietnam, and we will utilize this network to transform our business models towards farming service platforms. We will also work towards the revitalization of regional businesses in Japan in pursuit of greater added value in primary industries.
In the Foodstuffs and Marine Products Dept., in addition to the trade of wheat and wheat flour, we are strengthening our business strategy in the wheat supply chain such as grain port operations, flour milling, raw material wholesaling, bakery products, and confectionery production in southeast Asia. In the marine products business, we are building a supply system that can meet the need for the sustainable and stable supply of marine products. This system encompasses tuna farming as well as the processing and sales of certified marine products to ensure the sustainable usage of ocean resources. In the future, we aim to further utilize “AI” and other new technology to grow our business both in Japan and overseas by taking a “market-in” approach.
In the Forest Products Dept., we are contributing to safe, secure, and comfortable living spaces through our market-leading position in the plywood business in Japan. In addition, we have established a lumber procurement policy to ensure a sustainable supply of environmentally friendly wood resources sourced through socially responsible practices, and we are also participating in one of the largest biomass power generation projects in Japan.
The Vietnam Business Development Office operates a feed manufacturing business and is seeking to establish new businesses, such as an integrated protein supply chain originating from Vietnam, in Southeast Asia. In the agriculture field, we are pursuing digital transformations using IoT technology, and working to improve agricultural productivity and create digital economic zones.
With our tissue paper and industrial paper business in Vietnam, we will contribute to people’s lives by meeting the increasing demand for paper that has resulted from the modernization of the country.
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.