Risk of Concentration of Sales and Procurement Transactions with Mitsubishi Corporation and Mitsui & Co., Ltd.
First written in FY2016. 3 of 11 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 6 of 14 companies on the "Worse" side.
5 other companies' latest entry also says "Other".
- FY2026Declining concentration among major suppliers and explanation of independenceAnnual report
「In addition, because the transaction amounts involving Mitsubishi Corporation, MITSUI & CO.,LTD. and 株式会社ＭＣアグリアライアンス, as major sales agents and suppliers, are substantial, the Company expects that it would be difficult to immediately find alternative companies if these business relationships were terminated or otherwise discontinued. However, it believes that this possibility is low.」
The Company continued to disclose its dependence on 3 major companies, while adding an explanation regarding the fairness and independence of transaction terms. MITSUI & CO.,LTD. accounted for 39.2% of raw-material purchases and MC Agri Alliance for 28.6%. - 2026-05-27RestatedGovernance
「Although we belong to the corporate groups of Mitsubishi Corporation and MITSUI & CO.,LTD., we are not subject to business restrictions such as matters requiring approval by either company and conduct our business activities independently. We do not believe that transactions with either company or our personnel and capital relationships with them will have any material impact on our business results or financial position. In addition, because we make independent management judgments and decisions at meetings of the Board of Directors and management meetings, we believe that our independence is sufficiently assured.」
The company updated its disclosure regarding its relationships with Mitsubishi Corporation and MITSUI & CO.,LTD. as major sales agents and major suppliers, including voting rights ownership percentages and personnel relationships, while continuing to explain that it faces no business restrictions imposed by either company and maintains its independence through independent management judgments and decisions. - FY2024Disclosed the concentration ratio of major suppliersAnnual report
「MITSUI & CO.,LTD. ... Major supplier of raw materials (39.3%) ... 株式会社ＭＣアグリアライアンス ... Major supplier of raw materials (32.0%)」
For major suppliers, the Company disclosed raw-material purchase ratios of 39.3% for MITSUI & CO.,LTD. and 32.0% for MC Agri Alliance. The disclosure also continues to state that it may be difficult to secure alternative companies if transactions with major sales agents or suppliers are terminated. - FY2023Lower sales and procurement concentrationAnnual report
「Mitsubishi Corporation and MITSUI & CO.,LTD. are the Company's major sales agents. In the fiscal year under review, transactions with these 2 companies accounted for 51.9% of total sales. MITSUI & CO.,LTD. and 株式会社ＭＣアグリアライアンス are the Company's major suppliers. In the fiscal year under review, purchases from these 2 companies accounted for 66.2% of total purchases.」
Sales concentration among major sales agents declined from 52.5% to 51.9%, while purchase concentration among major suppliers declined from 68.6% to 66.2%. The disclosure continues to state that it would be difficult to find alternatives if these business relationships were terminated. - FY2022Slightly lower sales concentration and lower procurement concentrationAnnual report
「Of these, Mitsubishi Corporation and MITSUI & CO.,LTD. are our major sales agents, and during the fiscal year, transactions with these 2 companies accounted for 52.5% of total sales. MITSUI & CO.,LTD. and MC Agri Alliance Co., Ltd. are our 2 major suppliers, and during the fiscal year, purchases from these 2 companies accounted for 68.6% of total purchases.」
Both sales concentration, which declined from 52.7% in the previous fiscal year to 52.5%, and procurement concentration, which declined from 70.4% to 68.6%, decreased, but concentration among major business partners continues to be disclosed as a risk. - FY2021Higher sales concentration and lower procurement concentrationAnnual report
「Of these, Mitsubishi Corporation, MITSUI & CO.,LTD., and MC Agri Alliance Co., Ltd. are major business partners. During the fiscal year, transactions with these 3 companies accounted for 52.7% of total sales and 70.4% of total purchases.」
Sales concentration among the 3 major companies increased from 51.9% in the previous fiscal year to 52.7%, while procurement concentration declined from 72.6% to 70.4%. - FY2020Higher procurement concentration and lower sales concentrationAnnual report
「Of these, Mitsubishi Corporation, MITSUI & CO.,LTD., and MC Agri Alliance Co., Ltd. are major business partners. During the fiscal year, transactions with these 3 companies accounted for 51.9% of total sales and 72.6% of total purchases.」
Regarding concentration among the 3 major companies, the sales ratio declined from 55.0% in the previous fiscal year to 51.9%, while the purchase ratio increased from 63.8% to 72.6%. - FY2019RestatedAnnual report
「Of these, Mitsubishi Corporation, MITSUI & CO.,LTD., and MC Agri Alliance Co., Ltd. are major business partners. During the fiscal year, transactions with these 3 companies accounted for 55.0% of total sales and 63.8% of total purchases.」
The concentration of transactions with the 3 major companies continues to be disclosed, with the sales ratio at 55.0% and the purchase ratio at 63.8%. - FY2018ReframedAnnual report
「Of these, Mitsubishi Corporation, MITSUI & CO.,LTD., and MC Agri Alliance Co., Ltd. are major business partners. As of the end of the fiscal year, transactions with these 3 companies accounted for 55.6% of total sales and 59.5% of total purchases.」
The scope was reorganized from the previous focus on Mitsubishi Corporation and MITSUI & CO.,LTD. to the risk of concentration among 3 major business partners, including MC Agri Alliance. The sales and purchase ratios were quantified at 55.6% and 59.5%, respectively. - FY2017RestatedAnnual report
「As of the end of the fiscal year, sales accounted for 56.2% of total sales, while purchases accounted for 65.0% of total purchases.」
The transaction ratios with Mitsubishi Corporation and MITSUI & CO.,LTD. were quantified at 56.2% for sales and 65.0% for purchases. The sales ratio increased from the previous fiscal year while the purchase ratio declined, so the direction was not assessed one-sidedly and the disclosure was continued. - FY2016First statedAnnual report
「As of the end of the fiscal year, sales accounted for 54.1% of total sales, while purchases accounted for 67.1% of total purchases.」
While explaining transactions conducted through trading companies and transactions with other trading companies and stating that the level of dependence cannot be assessed simply, the company notes that securing alternative companies may be difficult if the transactions are terminated.