Strengths of the Division

External Environment

Growth Strategy

The Consumer Industry & Agriculture Business Division sees business opportunities in the massively changing operating environment characterized by the trends emerging as the world prepares to move past the COVID-19 pandemic, the turbulent global conditions, and the pursuit of the United Nations Sustainable Development Goals. Maintaining an eye on the Japanese market, we are looking to incorporate market growth in response to megatrends and thereby bolster earnings power with growing Asian markets as our main focus.

In the fertilizer business, where we boast strong market shares in Thailand, Vietnam, and the Philippines, we are applying digital transformation methodologies to our current business model, which is based on our wide-reaching network, to transition to a model for developing agricultural platforms based on a market-oriented perspective.

In the food business, we are branching out from feed production in Vietnam to enter into the livestock industry in order to contribute to a stable supply of proteins in Southeast Asia. Meanwhile, with our value chain stretching from flour milling to bakery products in the Philippines, we are growing businesses that address the needs of this country by enhancing digital and other marketing activities.

As for forest products, initiatives are being ramped up in our traditional woodchips production business as well as in our biomass-related and our Vietnamese papermaking business. We thereby aim to develop businesses that contribute to the development of local communities while preserving the global environment.

Meanwhile, we are working to promote regional economic development through businesses that contribute to the local production and consumption of items like biomass fuel materials and feed for cattle. Specific examples of initiatives include using idle and other land to plant fast-growing Japanese aspen trees, which can be harvested in a mere five years, and sorghum, a Poaceae plant.

A focus on circular economies as well as market-oriented perspectives will be incorporated into every business in order to ensure that our business models are enduring and contribute to decarbonization.

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.

■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.

■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.

■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.