Risks Related to Raw Milk Supply and Demand, Shortages of Dairy Raw Materials, and Rising Raw Material Prices
First written in FY2016. 9 of 25 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2026.
Megmilk Snow Brand moved to the "Worse" side of this theme in 2017.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the dairy industry, milk consumption has remained below the previous year’s level, partly due to the impact of price revisions. Meanwhile, raw milk production is expected to decline in fiscal 2026, and skim milk powder production is also expected to fall below the previous year’s level. However, inventories are expected to increase due to weak demand.」
It identifies declining milk consumption, lower raw milk production, lower skim milk powder production and rising inventories as supply-demand risks. - FY2025WorsenedAnnual report
「In the food industry, steady market expansion is expected, driven by the inbound tourism effect on dining-out demand and the development of high-value-added products in response to growing health consciousness. At the same time, a challenging operating environment is expected to persist, including higher raw material prices and transportation costs.」
It explicitly cites increases in raw material prices and transportation costs and explains that the risk of continued cost inflation remains. - FY2025-H1WorsenedAnnual report
「In the food industry, demand for eating out is recovering, supported in part by increased inbound demand. At the same time, the operating environment remains challenging due to higher global raw material prices and logistics costs.」
While recognizing the recovery in demand for eating out, the Company explicitly identifies higher logistics costs in addition to the previously cited increases in raw material prices and explains that the challenging operating environment continues. - FY2024SoftenedAnnual report
「Although the pace of increases in global raw material and energy prices has eased, elevated prices for food and a range of other products continue to affect consumer purchasing behavior.」
The Company states that the pace of increases in raw material and energy prices has eased, while elevated product prices continue. - FY2024-Q3SoftenedAnnual report
「In the food industry, demand for eating out is recovering, supported in part by increased inbound demand. At the same time, although the pace of increases in raw material prices has eased, elevated prices for food and a range of other products continue to affect consumer purchasing behavior.」
The Company states that the pace of increases in raw material prices has eased, while elevated product prices continue, indicating that part of the cost-inflation risk has been mitigated. - FY2024-Q2RestatedAnnual report
「In the food industry, demand for eating out is recovering, supported in part by increased inbound demand. At the same time, higher global raw material and energy costs are keeping prices for food and a range of other products elevated, affecting consumer purchasing behavior.」
While recognizing the recovery trend in demand for eating out, the Company states that higher global raw material and energy costs and elevated product prices continue. - FY2024-Q1RestatedAnnual report
「In the food industry, demand for eating out is recovering as restrictions related to the COVID-19 pandemic have eased, supported in part by increased inbound demand. At the same time, persistently high global raw material and energy prices have led to continued price increases for food and a range of other products, affecting consumer purchasing behavior.」
The Company explains that persistently high raw material and energy prices and continued price increases continue to affect consumer behavior and the earnings environment. - FY2023WorsenedAnnual report
「Raw material and energy prices soared due to foreign exchange movements and the situation in Ukraine. The Company pursued price revisions and changes in product sizes, but was unable to absorb all of the cost increases.」
In addition to soaring raw material and energy prices, the Company identifies foreign exchange movements and the situation in Ukraine as contributing factors, explaining that the impact on earnings remained even after pricing measures. - FY2023-Q3RestatedAnnual report
「Profit declined due to higher raw material, operating, and fixed costs, among other factors.」
Higher raw material, operating and fixed costs continue to emerge as actual factors behind lower profit in the Dairy Products business. - FY2023-Q2WorsenedAnnual report
「Profit declined due to higher raw material, operating and fixed costs. Profit declined due to higher raw material and operating costs and lower sales volumes. Profit declined due to lower gross profit resulting from higher raw material costs.」
In the Dairy Products, Beverage and Desserts, and Feed and Seedling segments, higher raw material and other costs actually contributed to lower profit, with operating profit down 21.8%, 79.1% and 43.3% year on year, respectively. - FY2023-Q1MaterialisedAnnual report
「Profit declined due to higher raw material and operating costs and lower sales volume, among other factors.」
Higher raw material and operating costs have actually emerged as factors behind lower profit in the Dairy Products, Beverage and Desserts, and Feed and Seedling segments. - FY2022-Q3WorsenedAnnual report
「In addition, soaring global raw material and energy prices have created an extremely challenging environment.」
In addition to the previously recognized risk of higher raw material costs, the Company explicitly identifies soaring global raw material and energy prices, broadening the scope of cost-inflation pressures. - FY2022-Q2MaterialisedAnnual report
「Operating profit declined due to the reactionary decline in household product sales and higher raw material costs.」
Higher raw material costs have actually emerged as a factor behind lower profit in the dairy products segment. - FY2021RestatedAnnual report
「Domestic raw milk supply and demand have repeatedly shifted between surplus and tight supply. In periods of surplus, excess product inventories intensify sales competition, while in periods of tight supply, lower production volumes reduce production efficiency.」
The Company continues to recognize procurement and earnings risks from domestic raw milk surpluses and tight supply, international market conditions, abnormal weather and higher raw material prices. - FY2020WorsenedAnnual report
「In addressing higher costs, costs increased over the three years from fiscal 2017 by approximately ¥4.4 billion for raw materials, including milk, approximately ¥3.6 billion for logistics, and approximately ¥1.4 billion for energy, but the company was unable to take sufficient measures.」
Higher raw material, logistics and energy costs reached a combined total of approximately ¥9.4 billion over 3 years, indicating that the previously identified risk of higher raw material prices had materialized in a specific amount and that the response had been insufficient. - FY2020-Q3MaterialisedAnnual report
「Operating profit increased substantially despite higher raw material and operating costs, including the impact of higher raw milk transaction prices, due to the effect of the difference in selling unit prices following price revisions and the benefits of efforts to operate advertising and promotional expenses efficiently.」
Higher raw material and operating costs, including higher raw milk transaction prices, continue to be reflected in the actual business results. - FY2020-Q2MaterialisedAnnual report
「In addition to these conditions, the dairy industry continues to face a challenging environment, including substantial cost increases such as higher raw milk transaction prices from April 2019.」
Substantial cost increases, including higher raw milk transaction prices from April 2019, continue to emerge as part of the business environment and higher raw material costs in the current period. - FY2020-Q1MaterialisedAnnual report
「In addition to these conditions, the dairy industry continues to face a challenging environment, including substantial cost increases such as higher raw milk transaction prices from April 2019.」
Substantial cost increases, including higher raw milk transaction prices from April 2019, have actually emerged as part of the business environment and higher raw material costs in the current quarter. - FY2019MaterialisedAnnual report
「Operating profit declined due to the impact of higher raw material, operating and fixed costs, despite profit growth factors from price revisions and changes in product sizes.」
Higher raw material costs, including increases in raw milk prices, have actually emerged as a factor behind the decline in operating profit company-wide. - FY2019-Q3MaterialisedAnnual report
「Although product-mix improvements and the selling-price differential resulting from price revisions and changes in package sizes supported earnings, operating income declined because raw material costs and other costs increased, partly due to the impact of milk-price revisions.」
Higher raw material and other costs resulting from the impact of milk price revisions continue to emerge as an actual factor behind the decline in operating profit. - FY2019-Q2MaterialisedAnnual report
「Although product-mix improvements and the selling-price differential resulting from price revisions and changes in package sizes supported earnings, operating income declined due to higher raw material costs resulting from milk-price revisions and higher fixed costs, as well as the impact of the Hokkaido Eastern Iburi Earthquake that occurred in September.」
Higher raw material costs due to milk price revisions and other factors have emerged as an actual factor behind the decline in operating profit. - FY2017ReframedAnnual report
「Domestic raw milk supply and demand have repeatedly shifted between surplus and tight supply. In periods of surplus, excess product inventories intensify sales competition, while in periods of tight supply, lower production volumes reduce production efficiency.」
The Company organizes the previously recognized risks of higher raw material prices and shortages of milk ingredients as supply-demand fluctuation risks encompassing domestic raw milk surpluses and tight supply, international market conditions, abnormal weather and feed prices. - FY2016First statedAnnual report
「Amid the still challenging external environment, including higher procurement costs due to soaring raw material prices and shortages of milk ingredients resulting from lower domestic raw milk production,」
The Company describes higher raw material costs and shortages of milk ingredients due to lower domestic raw milk production as external conditions that remain present in the current period.