Strengthening the Organizational Structure of the East Japan and West Japan Divisions

「In March 2025, a production farm specializing in secondary seedling cultivation, located alongside the Plant Vaccine Research Institute, began operations at the consolidated subsidiary ベルグ福島株式会社. This enabled stronger sales and order acquisition north of Kanto and stable expansion of production of seedlings inoculated with plant vaccines.」

「Sales increased, mainly in Kanto and Kyushu, as a result of sales promotion leveraging the production and delivery structures at company-operated and partner farms nationwide. Sales of spring home-gardening products for home improvement stores also increased through measures including stronger route delivery.」

「Sales in the Kanto region increased through sales promotion leveraging the production and delivery structures at company-operated and partner farms nationwide. Sales in Kyushu also increased as the quality and production structure were recognized.」

「The group conducts sales activities nationwide and has established a system capable of stable ordering and production throughout the year by opening company-operated farms and implementing a division of labor through contract production, thereby overcoming agriculture's longstanding difficulty in ensuring a stable supply. Going forward, the group plans to continue expanding company-operated farms and developing new contract production partners in parallel with increases in production volume.」

「From June to July, sales increased in Hokkaido, Tohoku and Kyushu as improvements in quality and service were recognized.」

「After construction to expand production facilities at the Iwate Hanamaki Farm was completed in March 2022, the Company expanded its in-house production capacity and strengthened sales efforts to increase orders in the Tohoku and Hokkaido regions.」

「In Hokkaido and Tohoku, orders increased, mainly for cucumber seedlings, against a backdrop of reduced production capacity at seedling centers and other seedling producers. In Kyushu, however, orders for tomato seedlings decreased as competition with other industry participants intensified amid an apparent shift to other crops and reluctance to purchase caused by sluggish tomato market prices.」

「From June to July, sales increased as expanded production facilities at ベルグ福島 increased the supply capacity for cucumber seedlings inoculated with plant vaccines, expanding orders for Fukushima Prefecture, while sales promotion and quality evaluations increased orders for tomato seedlings for Hokkaido and Kyushu.」

「Sales promotion activities aimed at expanding orders during the November-to-January off-season increased orders for tomato seedlings for growers and large-scale vegetable gardens in Kyushu, Tohoku and Hokkaido, as well as cucumber seedlings in response to increased demand in the Koshinetsu region during March and April.」

「Various initiatives, including sales promotion activities aimed at expanding orders during the November-to-January off-season, led to increased orders for tomato seedlings for growers and large-scale vegetable gardens in the Kyushu, Tohoku and Hokkaido regions. Sales also increased through the flower-seedling nursery business acquired and launched in July 2019.」

「The company worked to expand orders during the off-season (November to January) by strengthening its production and supply structure through the expansion of production facilities at company-operated farms, improving delivery methods through the use of chartered transport and company-owned delivery services, and strengthening sales promotion.」

「In this business segment, the company worked to expand orders during the off-season (November to January) by strengthening its production and supply structure through the expansion of production facilities at company-operated farms, improving delivery methods through the use of chartered transport and company-owned delivery services, and strengthening sales promotion. Sales progressed steadily, supported by increased orders for melon seedlings and other products for Ibaraki Prefecture, onion seedlings and flower seedlings for home improvement stores, and the growing demand among seedling producers for the company's original tomato and cucumber plug seedlings and cell seedlings.」

「To expand orders during the off-season from November to January, the Company had been working to increase sales of melon seedlings for customers in Ibaraki Prefecture. The expansion of production facilities at Ibaraki Farm established a production system capable of stably supplying more seedlings from locations closer to growers, and, together with the delivery advantages, this led to an increase in orders.」

「In addition to improved productivity from expanded production capacity at Ibaraki Farm, milder winter weather nationwide reduced the use of heavy oil and other fuels that drive up winter expenses. As a result of lower manufacturing expenses, segment loss (operating loss) was ¥133.933 million, compared with segment loss of ¥148.590 million in the same quarter of the previous year.」

「In East Japan, efforts at the Ibaraki Farm to promote sales to production areas and improve quality resulted in a stable year-round supply structure and increased orders for pepper and melon seedlings for Ibaraki Prefecture. In addition, production capacity at the subsidiary ベルグ福島株式会社 was expanded, promoting sales in Fukushima Prefecture, a field-production area for cucumbers, and increasing sales.」

「Production capacity at the subsidiary ベルグ福島 and production facilities at the Ibaraki Farm were expanded, strengthening the production structure in East Japan. Orders for cucumber, pepper and tomato seedlings for Fukushima and Ibaraki prefectures have been progressing steadily.」

「As initiatives aimed at medium- to long-term growth, the group seeks to expand its business through a growth strategy centered on three pillars: nationwide farm expansion, diversification and globalization.」

「Specifically, the company will develop production farms tailored to the individual needs of each production area and region, moving from a uniform nationwide production structure to the development of individual farms rooted in their respective regions, in order to respond closely to local needs and expand its market share.」

「Personnel expenses and other costs in administrative departments increased in connection with strengthening the East Japan and West Japan divisional structure.」