Consumer Industry & Agriculture Business Division
With the objectives of contributing to sustainable production and consumption, the Consumer Industry & Agriculture Business Division is developing operations in the fields of agribusiness, foodstuffs, animal feed, livestock, forest products, and regional economic development.
Factors such as the COVID-19 pandemic and Russia’s invasion of Ukraine have severed supply chains while causing the materialization of risks of increases in energy and grain prices. This situation has prompted countries around the world to place increased emphasis on economic security, particularly with regard to food and energy. Major turning points, times when social values undergo great change, such as this always give rise to new business needs. I aim to transform these changes into opportunities and take an aggressive stance toward creating new businesses.
Centered on agriculture, forest products, and livestock, the Consumer Industry & Agriculture Business Division develops essential businesses that help support people’s life- styles. Existing business investment and trading operations in the fields of fertilizer, food products, and livestock feed are allowing us to grow earnings while creating new value by leveraging our strong competitive edge. The primary focus of these operations is the growing Southeast Asian market.
Based on our vision for 2030, the Consumer Industry & Agriculture Business Division has been positioning the diversification of lifestyles in Southeast Asia as an opportunity. For example, in Vietnam we are focusing on the development of livestock and meat processing businesses that contribute to safe and reliable food supplies to stimulate a paradigm shift in meat distribution. We are also responding to the trends toward sustainability and decarbonization by accelerating business investments related to biomass for developing reliable renewable energy production and supply systems using fuel from primary industries.
Strengths of the Division
- ●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
- ●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
Atlas Fertilizer Corporation（Philippines）
Saigon Paper Corporation (Vietnam)
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.
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.