Worsening Business Environment in the Food Industry Due to Labor Shortages, Higher Logistics Costs and Rising Raw Material Prices
First written in FY2020-Q1. 6 of 17 entries say "Restated". Latest entry: 2026-08-06.
Mitsui DM Sugar moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 104 companies on the "Worse" side.
20 other companies' latest entry also says "Mitigated".
- FY2026RestatedAnnual report
「Meanwhile, on the cost side, persistently high ocean freight, packaging materials and logistics costs resulting from surging energy prices were absorbed through stable procurement of raw materials, while consulting and manufacturing costs related to constructing a new core system increased.」
While the company continued to offset high external costs through stable procurement of raw materials, costs related to constructing a new core system and other expenses were identified as new factors putting pressure on profits. - FY2026-H1MitigatedAnnual report
「On the cost side, we absorbed the persistently high costs of ocean freight, packaging materials and logistics resulting from soaring energy prices through stable procurement of raw materials, mainly because overseas raw sugar prices remained weak.」
Although energy prices, ocean freight, packaging materials and logistics costs remained elevated, the company states that it addressed the cost impact by securing stable supplies of raw materials. - FY2025-H1RestatedAnnual report
「Overall, we absorbed the persistently high costs of ocean freight, packaging materials and logistics, driven by the yen's depreciation and soaring energy prices, through the continued implementation of higher selling prices and stable procurement of raw materials.」
While the weaker yen and persistently high energy prices, ocean freight, packaging materials and logistics costs continued, we continued to address the impact by raising selling prices and securing stable supplies of raw materials. - FY2024RestatedAnnual report
「Increases in costs including raw material costs, ocean freight, packaging materials and logistics costs have had a substantial impact,」
Continued increases in raw material costs, ocean freight, packaging materials and logistics costs are affecting profits. - FY2024-Q3RestatedAnnual report
「In terms of profit, higher costs for raw materials, ocean freight, packaging materials and logistics had a significant impact. To absorb these costs, shipment prices were increased by ¥12 per kg in July and by a further ¥10 per kg in October.」
Continued increases in raw material costs, ocean freight, packaging materials and logistics costs are significantly affecting profits. - FY2024-Q2RestatedAnnual report
「Meanwhile, from a profit perspective, increases in various costs, including raw material costs, ocean freight, packaging materials and logistics costs, continue to have a substantial impact.」
Continued increases in raw material costs, ocean freight, packaging materials and logistics costs are having a substantial impact on profits. - FY2024-Q1RestatedAnnual report
「Meanwhile, various costs, including raw material costs, ocean freight, packaging materials and logistics costs, have continued to rise due to persistently high overseas raw sugar prices and the weaker yen, significantly affecting profits.」
Higher raw sugar prices, the weaker yen, raw material costs, ocean freight, packaging materials and logistics costs continue to put substantial pressure on profits. - FY2023-Q3WorsenedAnnual report
「Shipment prices were increased by ¥6 per kg in December in response to higher raw-material costs, ocean freight, factory energy costs, packaging materials and logistics costs resulting from elevated overseas raw sugar and crude oil prices and the weaker yen. However, these various cost increases have continued, and prices were increased by a further ¥6 in January.」
Continued increases in raw material costs, ocean freight, factory energy costs, packaging materials and logistics costs were indicated, with higher costs continuing to affect operating profit even after multiple price increases. - FY2023-Q2WorsenedAnnual report
「In response to persistently high overseas raw sugar and crude oil prices and the rapid depreciation of the yen, we raised shipping prices several times due to increases not only in raw material costs but also in ocean freight, factory energy costs, packaging materials and logistics costs. Nevertheless, profits were significantly affected.」
In addition to the previous increases in raw material and logistics costs, broad-based cost increases continued, including factory energy costs, packaging materials and ocean freight, and profits were significantly affected even after prices were raised. - FY2023-Q1MaterialisedAnnual report
「Although we worked to maintain stable operations in refined sugar production, costs increased substantially due to the impact of elevated overseas raw sugar prices, the weaker yen, and higher fuel prices and logistics costs.」
Higher raw sugar prices, the weaker yen, fuel prices and logistics costs resulted in actual cost increases in the refined sugar business. - FY2022WorsenedAnnual report
「The business environment surrounding our Group has become even more challenging due to further changes in Japan's workforce and working population as the birthrate declines and the population ages, intensifying competition to acquire talent, further progress in economic partnerships with other countries, higher crude oil prices, the weaker yen, surging raw material prices, and global political and economic instability caused by the spread of COVID-19 and heightened geopolitical risks.」
In addition to the existing issues of labor shortages, higher logistics costs and rising raw material prices, crude oil prices, the weaker yen, geopolitical risks and intensified competition to acquire talent were added as factors contributing to the deterioration of the business environment. - FY2022-Q2MaterialisedAnnual report
「In response to elevated overseas raw sugar prices, which had remained high since the previous fiscal year, the weaker yen and increased global ocean freight costs during the COVID-19 pandemic, shipping prices were raised by ¥6 in July.」
Increased global ocean freight costs during the COVID-19 pandemic and the weaker yen were reflected in higher domestic market prices and shipping prices. - FY2020MaterialisedAnnual report
「Logistics costs increased due to labor shortages, and fixed costs such as depreciation increased because of equipment upgrades undertaken to maintain stable operations. However, efforts to procure raw sugar appropriately improved raw material costs, and operating profit exceeded the previous fiscal year.」
Higher logistics costs resulting from labor shortages were incurred during the fiscal year, and higher fixed costs due to equipment upgrades were also disclosed. - FY2020-Q3MaterialisedAnnual report
「Costs were affected by higher logistics and fuel costs due to labour shortages and increased depreciation expenses due to equipment upgrades for stable operations. However, as a result of efforts to procure raw sugar appropriately, raw material costs improved and operating profit exceeded the same period of the previous year.」
Higher logistics and fuel costs resulting from labor shortages were identified as actual drivers of cost increases. - FY2020-Q1First statedAnnual report
「The business environment in the food industry is also becoming increasingly challenging due to higher logistics costs resulting from labor shortages and rising raw material prices.」
Although the Risks Related to Business, etc. section states that there are no new risks, the Analysis of Operating Results explicitly states for the first time that the food industry's business environment has become more challenging due to higher logistics costs caused by labor shortages and rising raw material prices.