Consumer Industry & Agriculture Business Division｜Our Business

Division Strategy

We are creating a prosperous new future by identifying business opportunities in decarbonization and growth markets in the Asia region, while aiming to provide solutions to social issues faced by local communities and society.

Hideo Hatada

Executive Officer, COO
Consumer Industry & Agriculture Business Division

Centered on agriculture, forest products, and livestock, the Consumer Industry & Agriculture Business Division is developing essential businesses that help support people’s lifestyles. Existing business investment and trading operations in the fields of fertilizer, food products, and livestock feed are allowing us to grow earnings further. With a focus on the growing Southeast Asian market, we are working to expand our agriculture-related businesses and implement digital transformation (DX) and energy transformation (EX) initiatives to create new value that leverages our strong competitive edge. Based on our vision for 2030, the Consumer Industry & Agriculture Business Division has positioned the diversification of lifestyles as a business opportunity. For example, in the Philippines we operate a packaged bread business, while in Vietnam, we are focused on promoting a paradigm shift in meat distribution through the development of livestock and meat processing businesses that contribute to safe and reliable food supplies. We are also responding to the trend toward sustainability and decarbonization by accelerating the development of biomass-related businesses in order to build stable lifestyles and supply chains for renewable energy production using fuel from primary industries.

In Japan, we are focused on actively revitalizing agricultural businesses and local regions. Japan is seeing a rise in cases of abandoned farmland and facing depopulation in its agricultural regions, and solutions are therefore needed to address these issues and ensure food security. Through the expansion of our agricultural business via collaboration with local producers and the promotion of GAP-certified (Good Agricultural Practice) agricultural products, we will add new value to agricultural businesses and local regions using our unique stance as a general trading company. In our building material business, we aim to achieve sustainability by expanding our handling of Japanese lumber to promote use of eco-friendly products and support the revitalization of regional forested areas.

Strengths of the Division

Strong business foundation in Southeast Asia

Development of a wide range of businesses mainly in Southeast Asia, such as fertilizer production, feed production, grain port operation, flour milling, bakery products, confectioneries, building materials, afforestation, wood chips, paper-making, and biomass fuel procurement
Top-class share for compound chemical fertilizer in Southeast Asia

Establishment of a top-level market share in the production and sale of compound chemical fertilizer in Southeast Asia
Network for procuring
diverse woody biomass
resources

Participation in one of the largest biomass power plant projects in Japan, utilizing a stable woody biomass resource procurement network and development of a new biomass fuel source.

External Environment

Opportunities

Diversification of lifestyles in Southeast 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
Greater emphasis placed on sustainable procurement of woody biomass resources amid growing environmental awareness

Risks

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

Global Operations

Business Map

Fertilizer Business: Atlas Fertilizer Corporation (Philippines)

Papermaking Business: Saigon Paper Corporation (Vietnam)

Business Overview

■ Fertilizer Business

We aim to expand sales by implementing detailed promotion strategies for each region and each type of agri-product in Thailand, Vietnam, and the Philippines, by increasing exports to neighboring regions, and by implementing digital transformation. We will also develop new businesses matched to the needs of agricultural workers, in the areas of agriculture, finance, and information, by capitalizing on the long-standing initiatives of our fertilizer business, which has firmly established roots in local areas.

■ Animal Feed and Livestock Business

Sojitz is currently expanding Vietnam’s beef market using its expertise in the field. We have cultivated our feed manufacturing practices, cattle farming methods, meat processing technologies, and expertise in meat product marketing based on Japanese standards and practices. Through our partnership with Vietnam Dairy Products JSC (“Vinamilk”), the country’s largest dairy manufacturer, we aim to provide a stable supply of safe and reliable meat products and become Vietnam’s largest integrated meat operator. In 2024, we will complete construction of our meat processing facility to accelerate future initiatives.

■ Domestic Agriculture Business

Established in June 2022, Sojitz Nogyo Corporation is building systems that enable the year-round supply of GAP-certified agricultural products nationwide. As one of Sojitz’s initiatives, we are establishing production systems and creating local onion-producing districts across Japan, from Hokkaido to Kyushu, in order to provide grown-in-Japan onions that can be supplied year-round.

■ Biomass Fuel Business

Sojitz is working to establish a business model for value creation that leverages Sojitz’s unique dual-function capabilities of circular forest cultivation and wood recycling. Sojitz has begun developing new woody biomass and aims to provide a stable fuel supply.

■ Building Material Business

Sojitz supplies plywood, an area of expertise, as well as log housing materials (fiber boards, lumber products, building materials, housing fixtures and equipment, solar panels, LED lighting) while also providing construction and installation services in a wide variety of areas of the domestic market. With an extensive global procurement network, we are able to secure a stable supply while helping preserve the environment.

■ Papermaking Business

In June 2018, Sojitz invested in major Vietnamese papermaker Saigon Paper Corporation, thereby entering into the papermaking business in Vietnam. We have responded to the rising demand in this business through investments in production capacity augmentations and production efficiency improvements. Moreover, Saigon Paper is taking advantage of Sojitz’s varied lifestyle business networks in Vietnam to expand its sales channels.