Securing growth potential through stable expansion of sales channels outside Hokkaido

「A growth strategy cannot be developed by limiting our business domain to the domestic market, which has entered a population-decline phase. It is essential to monitor changes in overseas markets, particularly in Asia, and to pursue domestic sales and exports of egg-related products, as well as business investment, in a balanced manner.」

「さらに事業領域の地理的拡大についてはこれまでの鶏卵、発酵鶏糞肥料の輸出のみならず、加工食品のアジア市場への輸出可能性を探るとともに、海外鶏卵企業への資本参加、買収も積極的に検討してまいります。」

「The eviary eggs, a multi-tier free-range product launched 3 years ago, have steadily increased in sales volume through expansion of sales regions and diversification of sales channels. We also began full-scale exports 2 years ago of chicken manure from our farm in Miyagi Prefecture that produces eviary eggs to Southeast Asia, and volumes have been steadily increasing.」

「As a means of expanding our sales markets, we will continue to focus on exporting eggs and fermented chicken-manure fertilizer to Asia. In addition, we will actively consider M&A and capital participation opportunities in Japan and overseas and work to expand our business domain through these initiatives.」

「The free-range eggs launched last September have gained a certain level of recognition as household table eggs. Going forward, we will develop demand for commercial use by hotels and restaurants and for processing into products such as mayonnaise, while also exporting to overseas markets.」

「Full-scale sales of cage-free eggs produced at our farm in Miyagi Prefecture began in September 2022. Establishing these sales in markets extending from Tokai through Kanto to Hokkaido is a priority. We will conduct marketing activities to raise awareness of the product among consumers who place a high value on animal welfare, and expand the sales area from household packs to commercial use.」

「Full-scale sales of cage-free eggs produced at our farm in Miyagi Prefecture began in September this year. Making these sales firmly established in markets extending from Tokai through Kanto to Hokkaido is an urgent priority.」

「Using 3 farms and GP plants in Iwate and Miyagi prefectures and our sales branches in Morioka and Sendai as bases, we will continue expanding sales channels and volumes in southern Tohoku and the Kanto region. We also began exporting Hokkaido-produced eggs to the Hong Kong market in March last year and aim to expand sales channels further.」

「Amid the impact of COVID-19 and declining demand for commercial-use eggs for food service and processing, we focused on expanding sales of household eggs and value-added eggs and developing the Tohoku, Tokyo metropolitan area and export markets. As a result, egg sales volume increased slightly year on year during the cumulative period.」

「Against this backdrop, our group offset the decline in demand for commercial-use eggs in Hokkaido by expanding sales to Tohoku and the Tokyo metropolitan area, and began exporting eggs to Hong Kong as a new market. As a result of these initiatives, sales weight increased 2.6% year on year.」

「Using Daiichi Portree Farm Co., Ltd. in Iwate Prefecture, acquired in 2014, and our sales branches in Morioka and Sendai as bases, we will continue expanding sales channels and volumes in southern Tohoku and the Kanto region. In addition, we began exporting Hokkaido-produced eggs to the Hong Kong market in March this year and aim to expand sales channels overseas, primarily in Asia.」

「Going forward, we will expand sales channels and sales volumes in southern Tohoku and the Kanto region by increasing the production capacity of the acquired farms.」

「Against this backdrop, our group focused on increasing sales through the Sendai branch, using the newly established Kimeki Farm and Tagajo GP plant as production and processing bases. Net sales increased 1.4% year on year to ¥3,222,927 thousand.」

「In December 2018, we established a new GP plant in Tagajo, Miyagi Prefecture, and in January 2019 acquired a farm in Kurihara, Miyagi Prefecture, establishing new production and processing bases in southern Tohoku. This enables us to serve southern Tohoku in detail and, together with our existing farm and GP plant in Iwate Prefecture serving northern Tohoku, cover the entire Tohoku region. We will continue to increase sales and profit by strengthening direct sales to supermarkets and sales of specialty eggs, while further strengthening sales activities with the Kanto region in view.」

「Sales in Tohoku to local supermarkets have exceeded 40%. We will further strengthen sales toward our initial target of a 50% direct-sales ratio. The sales ratio of specialty eggs in Tohoku has also risen to 25%, contributing to improved profitability.」

「Sales in Tohoku to local supermarkets have reached approximately 40%. We will further strengthen our sales activities toward the initial target of 50%.」

「The continued growth of our group requires the stable expansion of sales channels, and we believe that expanding beyond Hokkaido is an unavoidable step in our strategy. As a first step, in April 2014 we acquired all shares of Daiichi Portree Farm Co., Ltd., based in Iwate Prefecture, entered Honshu, and have worked to expand our sales channels.」