Declining Demand for Agricultural Materials Due to a Shrinking Agricultural Workforce and the Shift to Direct-Seeding Cultivation
First written in FY2022. 4 of 7 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2026-H1.
0 other companies' latest entry also says "Other".
- FY2026-H1Decline in paper pot sales alongside increased sales of agricultural equipmentAnnual report
「Although the selling price of paper pots, which are seedling pots for transplant cultivation, increased, sales fell below the same period of the previous year due to a decline in sales volume. Sales of agricultural equipment exceeded the same period of the previous year because sales volume increased.」
While demand continues to decline due to lower paper pot sales volumes, sales of agricultural equipment exceeded the same period of the previous year due to higher sales volumes, indicating differing trends by product. - FY2025MitigatedAnnual report
「Sales of paper pots, which are seedling pots for transplant cultivation, for beet cultivation are declining as sugar beet cultivation methods shift from transplant cultivation to direct seeding. However, sales of paper pots for vegetables, mainly for onions, are expanding both in Japan and through exports, offsetting the decline in sales for beet cultivation.」
Although demand for paper pots for beet cultivation continues to decline, the decline is being offset by expanding domestic and export sales of paper pots for vegetables, mainly for onions. - FY2025-H1Decline in paper pot sales following the reversal of front-loaded demandAnnual report
「Sales of paper pots, which are seedling pots for transplant cultivation, fell below the same period of the previous year due to the reversal of front-loaded demand in the previous fiscal year. Sales of agricultural equipment exceeded the same period of the previous year due to price revisions and other factors.」
Paper pot sales declined due to the reversal of front-loaded demand in the previous year, while agricultural equipment sales increased due to price revisions and other factors, showing differing demand trends by product in the Agricultural Materials business. - FY2023MitigatedAnnual report
「Sales of paper pots, which are seedling pots for transplant cultivation, for beet cultivation are declining as sugar beet cultivation methods shift from transplant cultivation to direct seeding. However, sales of paper pots for vegetables, mainly for onions, are expanding both in Japan and through exports, offsetting the decline in sales for beet cultivation.」
While demand for paper pots for beet cultivation continues to decline, the decline is being offset by expanding domestic and export sales of paper pots for vegetables, mainly for onions. - FY2023-Q2MitigatedAnnual report
「Agricultural Materials segment revenue increased 28.7% year on year to ¥1,513 million, and the segment posted a ¥76 million profit, compared with a segment loss of ¥27 million in the same period of the previous year, due partly to higher sales of paper pots for vegetables.」
The Agricultural Materials segment reported higher sales and profit due to increased sales of paper pots for vegetables and other products, easing the impact during the current quarter of declining demand caused by the shrinking agricultural population and the shift to direct seeding. - FY2023-Q1MitigatedAnnual report
「Agricultural Materials segment revenue increased 11.1% year on year to ¥994 million due to higher sales volume of agricultural materials and paper pots for vegetables and other factors, while segment profit increased 16.3% to ¥108 million.」
The Agricultural Materials business reported higher sales and profit because sales volumes of agricultural materials and paper pots for vegetables increased, easing the impact of declining demand during the current quarter. - FY2022First statedAnnual report
「The market for agricultural materials is declining as the agricultural population and the number of farming households decrease. For paper pots, which are seedling pots for transplant cultivation, sales for beet cultivation are declining as sugar beet cultivation methods shift from transplant cultivation to direct seeding.」
It identifies for the first time the decline in the agricultural population and number of farming households, and the resulting decline in demand for paper pots as sugar beet cultivation shifts from transplanting to direct seeding, as new structural risks for the Agricultural Materials business.