Division Strategy

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

External Environment

Businesses

Business Map

■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.

■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. One initiative through this company is the trial production of onions in the Tohoku region. This trial was launched together with producers in Akita Prefecture and the National Agriculture and Food Research Organization with the goal of making the Tohoku region a producer of 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. In addition to handling wood pellets used in the creation of fuel for biomass power generation, Sojitz is also involved in the cultivation of fast-growing trees that mature at a faster rate than standard tree species.

■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.