Higher Seedling Production Costs Due to Rising Seed and Crude Oil Prices
First written in FY2016. 12 of 20 entries say "Worsened", first in FY2022-Q1. Latest entry: 2026-09-14.
Berg Earth moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 121 of 167 companies on the "Worse" side.
35 other companies' latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「In terms of earnings, personnel costs increased as the company made greater use of temporary staffing and other measures to secure the personnel needed during peak production periods, when securing such personnel has become increasingly difficult, in addition to higher raw material costs for seeds, growing media and other items.」
Higher raw material costs and labor costs resulting from increasing difficulty in securing personnel and greater use of temporary staffing have continued. Meanwhile, the company explains that appropriate price pass-through contributed to improved earnings. - 2026-03-16WorsenedEarnings
「Higher raw material costs resulting from seed price increases」
Higher seed prices again materialized as an increase in raw material costs during the quarter. - FY2025WorsenedAnnual report
「In addition to higher prices for raw materials, electricity and heavy fuel oil, the concentration of production during busy periods became more pronounced, …and labor costs also increased, including because of higher wage rates.」
Higher prices for raw materials, electricity and heavy fuel oil, along with higher labor costs, emerged as increased manufacturing costs. - FY2025-H1WorsenedAnnual report
「From December onward, fuel and electricity costs increased, partly because prices for heavy fuel oil and other fuels used in production rose.」
Higher fuel prices emerged as increased fuel and electricity costs during the interim consolidated accounting period. - FY2024-Q2WorsenedAnnual report
「In the agricultural and horticultural seed and materials sales business, 伊予農産株式会社 posted sales for 8 months in the previous fiscal year. Profit declined due to factors including higher promotional and sales activity expenses associated with efforts to strengthen sales, a higher cost-of-sales ratio resulting from increased sales of low-margin products, and lower profit margins due to higher procurement prices.」
Higher procurement prices and a higher cost-of-sales ratio resulting from increased sales of low-margin products emerged as lower profit margins and lower profit. - FY2024-Q1WorsenedAnnual report
「伊予農産株式会社 posted sales for 5 months in the previous fiscal year, and recorded an operating loss due to factors including higher promotional expenses associated with strengthened sales activities and lower profit margins resulting from higher procurement prices.」
The company specifically states that higher procurement prices contributed to lower profit margins and the operating loss. - FY2023-Q2WorsenedAnnual report
「However, in addition to higher manufacturing expenses from increased prices for heavy fuel oil and electricity, and for raw materials such as growing media and fertilizer due to surging crude oil prices, delivery charges are also trending higher. Accordingly, the Group has determined that it must address various challenges across the Group, including further improving production efficiency, reviewing raw materials, improving delivery methods to reduce costs, and reviewing prices to appropriate levels.」
Prices for fuel and electricity, raw materials such as growing media and fertilizer, and delivery charges continued to rise, emerging as higher manufacturing expenses. The company cites improving production efficiency, reviewing raw materials, improving delivery methods and reviewing prices to appropriate levels as countermeasures. - FY2023-Q1WorsenedAnnual report
「Meanwhile, sales in and north of the Kanto region declined due to higher raw material and energy prices and changes in planting schedules. In terms of earnings, manufacturing costs increased because of higher heavy fuel oil consumption due to the cold spell from mid-December onward and a substantial increase in electricity prices.」
In addition to higher raw material and energy prices, increased heavy fuel oil consumption due to the cold spell and higher electricity prices emerged as lower sales and higher manufacturing costs. - FY2022RestatedAnnual report
「Higher crude oil prices lead to higher winter seedling production costs through increased prices for heavy fuel oil and kerosene, as well as higher procurement prices for all types of seedling production materials.」
The company continues its policy of addressing the risk of higher fuel and seedling-material costs resulting from higher crude oil prices through supplier changes, breeding, collaboration with manufacturers, energy-saving equipment and price adjustments. - FY2022-Q3WorsenedAnnual report
「Prices for heavy fuel oil and electricity, as well as shipping materials, growing media and fertilizer, continued to rise due to surging crude oil prices, resulting in higher manufacturing costs.」
Higher prices for heavy fuel oil and electricity, shipping materials, growing media and fertilizer due to high crude oil prices continued, emerging as higher manufacturing costs. - FY2022-Q2WorsenedAnnual report
「In addition to higher manufacturing expenses from increased prices for heavy fuel oil and electricity, and for raw materials such as growing media and fertilizer due to surging crude oil prices, delivery charges are also trending higher. Accordingly, the Group has determined that it must address various challenges across the Group, including further improving production efficiency, reviewing raw materials, strengthening purchasing power, improving delivery methods to reduce costs, and reviewing sales prices.」
In addition to high crude oil prices, higher electricity charges, raw material costs for growing media and fertilizer, and delivery charges have emerged as factors pushing up manufacturing expenses. - FY2022-Q1WorsenedAnnual report
「The economic outlook remains uncertain, including because of higher petroleum product prices resulting from surging crude oil prices. …The increase in prices for heavy fuel oil and other products due to surging crude oil prices affected the business.」
Surging crude oil prices materialized as higher prices for petroleum products and heavy fuel oil, affecting manufacturing costs and winter earnings. - FY2019RestatedAnnual report
「When raw material prices and fuel unit prices rose in the past, the Group adjusted product selling prices while seeking to reduce costs by launching a breeding business at a group company, changing suppliers, collaborating with seed manufacturers, and using energy-saving materials and equipment.」
The company continues its policy of addressing these issues through its breeding business, supplier changes, collaboration with seed manufacturers, energy-saving equipment and sales-price adjustments. - FY2019-Q2MitigatedAnnual report
「Higher productivity resulting from expanded production capacity at the Ibaraki Farm and Berg Fukushima, together with lower fuel costs for heating equipment due to the mild winter, also contributed to the result.」
Higher productivity from expanded production capacity and lower fuel costs due to the mild winter reduced the burden of manufacturing costs. - FY2019-Q1MitigatedAnnual report
「The volume of heavy fuel oil and other fuels, which drive higher winter expenses, declined due to the nationwide mild winter, resulting in lower manufacturing expenses.」
The mild winter reduced the use of heavy fuel oil and other fuels, lowering the burden of winter manufacturing expenses. - FY2018MitigatedAnnual report
「When raw material prices and fuel unit prices rose in the past, the Group adjusted product selling prices while seeking to reduce costs by launching a breeding business at a group company, changing suppliers, collaborating with seed manufacturers, and using energy-saving materials and equipment.」
In addition to changing suppliers, using energy-saving equipment and adjusting prices, the company cites the launch of a breeding business at a group company as a countermeasure. - FY2017RestatedAnnual report
「When raw material prices and fuel unit prices rose in the past, the Group adjusted product selling prices while seeking to reduce costs by changing suppliers, collaborating with seed manufacturers, and using energy-saving materials and equipment.」
As measures to address higher seed and crude oil prices, the company continues to change suppliers, collaborate with seed manufacturers, use energy-saving equipment and adjust sales prices. - FY2016First statedAnnual report
「Higher crude oil prices lead to higher winter seedling production costs through increased prices for heavy fuel oil and kerosene, as well as higher procurement prices for all types of seedling production materials.」
The company cites changing suppliers, collaborating with seed manufacturers, using energy-saving materials and equipment, and adjusting sales prices as countermeasures, but indicates that these measures may not be sufficient because of customers' preference for low prices.