Risk of Raw Material Sourcing and Price Volatility for Surimi and Other Ingredients
First written in FY2016. 19 of 33 entries say "Materialised", first in FY2018. Latest entry: FY2026.
Ichimasa Kamaboko moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
26 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Although we worked to improve productivity and achieve ongoing cost reductions, profit fell below the same period of the previous year, mainly because of the significant impact of higher raw material costs, including surimi, the principal raw material, and higher labor costs.」
Higher costs for surimi and other raw materials emerged in full-year performance as a factor weighing on profit that outweighed cost reduction and productivity improvement efforts. - FY2026-H1MaterialisedAnnual report
「Profit fell below the previous year's level because of the significant impact of higher raw material and labor costs, including surimi, the principal raw material, despite efforts to improve productivity and reduce costs on an ongoing basis.」
Higher costs for surimi and other raw materials emerged in interim-period performance as a factor weighing on profit that outweighed cost reduction and productivity improvement initiatives. No numerical raw material price itself is shown. - FY2025MaterialisedAnnual report
「Uncertainty in the external environment continues, including elevated prices for raw materials and materials, higher energy prices, the weaker yen, tighter and prolonged US tariff policies, and the continuing instability of the global situation.」
Elevated raw material and materials prices, higher energy prices and the weaker yen have actually emerged in the business environment for the fiscal year. For surimi, the company is responding by monitoring market information, diversifying fish species, fishing grounds and suppliers, and considering substitute materials. - FY2025-H1MaterialisedAnnual report
「Profit fell below the previous year's level because surging raw material and energy prices continued, despite efforts to reduce costs through rationalization and labor-saving measures in the packaging business and to improve production efficiency.」
Continued surging raw material and energy prices actually emerged in performance as a factor behind lower profit in the mushroom business compared with the previous year. - FY2024MitigatedAnnual report
「In addition, although the global semiconductor shortage is beginning to ease in the procurement of production equipment and equipment parts, temporary production stoppages and higher procurement prices remain possible because of longer delivery lead times resulting from increasingly serious labor shortages.」
The company states that the global semiconductor shortage, among procurement risks, is beginning to ease, indicating that some supply constraints have weakened from previous levels. However, the possibility of longer delivery lead times due to labor shortages remains. - FY2024-Q2MitigatedAnnual report
「Although various costs, including oils and fats and packaging materials, increased, the rise in prices for surimi and other raw materials, the main raw material, abated. In addition, production efficiency improved following the start-up of the second head-office plant dedicated to the core Salad Stick product in April 2023, while electricity charges were below expectations. As a result, earnings exceeded the same quarter of the previous year.」
It is explained that the rise in prices for surimi and other raw materials paused, and that the cost pressure from raw material price fluctuations eased partially during the quarter. However, costs for fats and oils, packaging materials and other items continued to rise. - FY2024-Q1RestatedAnnual report
「However, prices for surimi and other raw materials and for electricity, gas and other energy have remained elevated due to factors including the prolonged invasion of Ukraine and the weaker yen.」
The company continues to recognize that prices for surimi and other raw materials and for electricity, gas and other energy have remained elevated against a backdrop of the prolonged invasion of Ukraine and the weaker yen. - FY2023WorsenedAnnual report
「We also procure many auxiliary materials domestically and overseas, and supply shortages and price increases may occur because of poor agricultural harvests caused by abnormal weather associated with global warming in major producing regions, as well as outbreaks of avian influenza and other infectious diseases. In addition, the procurement of production equipment and equipment parts may be affected by longer delivery lead times due to the global semiconductor shortage and labor shortages, production stoppages and higher procurement prices.」
In addition to surging surimi prices, the company explicitly identifies supply shortages of auxiliary materials caused by poor harvests and avian influenza, as well as longer delivery lead times and higher prices for production equipment and parts, as procurement risks, thereby broadening the scope of risk factors. - FY2023-Q3WorsenedAnnual report
「However, many costs, including prices for surimi and other raw materials and for electricity, gas and other energy, have risen far beyond expectations due to the prolonged invasion of Ukraine, the weaker yen and the spread of avian influenza.」
In addition to previously identified surimi and energy price increases and the weaker yen, higher egg prices resulting from the spread of avian influenza have emerged as a new cost-increase factor, broadening the factors behind the risk of raw material price fluctuations. - FY2023-Q2RestatedAnnual report
「However, many costs have risen far beyond expectations, including prices for surimi and other raw materials and for electricity, gas and other energy, as well as labor costs amid labor shortages, due to factors including the prolonged Russian invasion of Ukraine, the widening Japan-US interest rate gap resulting from US Federal Reserve policy rate hikes, and the sharp depreciation of the yen against the backdrop of Japan's trade deficit. The business environment surrounding our group has become more difficult than ever.」
The company continues to recognize that prices for surimi and other raw materials, energy prices and labor costs have risen far beyond expectations. - FY2023-Q1WorsenedAnnual report
「However, many costs have risen far beyond expectations, including prices for surimi and other raw materials and for electricity, gas and other energy, as well as labor costs amid labor shortages, due to factors including the prolonged Russian invasion of Ukraine, the widening Japan-US interest rate gap resulting from US Federal Reserve policy rate hikes, and the sharp depreciation of the yen against the backdrop of Japan's trade deficit. The business environment surrounding our group has become more difficult than ever.」
Prices for surimi and other raw materials, energy and labor have risen far beyond expectations, and the business environment is described as being "more difficult than ever." - FY2022WorsenedAnnual report
「In addition, amid a global semiconductor shortage, if production equipment and equipment parts take longer to deliver or procurement prices rise, production may be suspended and our group's business results and financial position may be affected.」
In addition to surging prices for surimi and other raw materials, longer delivery lead times and higher procurement prices for production equipment and parts due to the semiconductor shortage have been added as new procurement risks. It is explained that raw material and energy prices have risen substantially beyond expectations in the business environment. - FY2022-Q3WorsenedAnnual report
「Various costs, including sharply higher prices for surimi and other raw materials and energy, particularly crude oil, as well as higher labor costs amid increasingly chronic labor shortages, have risen substantially beyond expectations. These prices may rise further amid unstable social conditions.」
Raw material and energy prices and labor costs have risen substantially beyond expectations and may rise further because of social conditions. The risk of fluctuations in raw material prices has become more serious. - FY2022-Q2MaterialisedAnnual report
「In addition, various costs have risen beyond expectations, including prices for surimi and other raw materials, energy prices amid the recovery of the global economy, and labor costs amid increasingly chronic labor shortages. The business environment surrounding our group is becoming even more difficult.」
Surimi and other raw material prices have risen sharply, while higher energy prices and labor costs have added to the burden. The risk of fluctuations in raw material and procurement prices has actually emerged as a cost burden. - FY2022-Q1MaterialisedAnnual report
「In addition, various costs are rising, including prices for raw materials such as surimi and for energy, as well as labor costs, which are increasing against a backdrop of labor shortages. The business environment surrounding our group is becoming increasingly difficult.」
Higher prices for surimi and other raw materials have continued, while rising prices for cooking oil, eggs and energy have added to the pressure. The risk of fluctuations in raw material and other costs has actually emerged in business performance. - FY2021MaterialisedAnnual report
「As demand for processed seafood products grows in developed and emerging markets and various raw material prices remain elevated, Japan's declining purchasing power is causing it to lose out to other countries in procurement. Securing raw materials is becoming a critical management issue that could threaten the foundation of the business.」
It is explained that raw material prices have remained elevated as demand for processed seafood products grows, making the securing of raw materials an increasingly important issue. Diversifying procurement across multiple fish species, fishing grounds and purchasing channels is also described as a response measure. - FY2021-Q3MaterialisedAnnual report
「On the earnings front, demand for processed seafood products expanded on economic growth in emerging markets and the global shift toward healthier lifestyles. Surimi prices remained elevated, but earnings exceeded the same quarter of the previous year, partly due to internal factors such as production-line rationalization and a review of product items, as well as external factors such as lower energy unit prices.」
Surimi prices continued to remain elevated against a backdrop of expanding demand for processed seafood products. Cost pressure persisted, but profit exceeded the previous year's level due to rationalization and other measures. - FY2021-Q2MaterialisedAnnual report
「On the earnings front, demand for processed seafood products expanded on economic growth in emerging markets and the global shift toward healthier lifestyles. Surimi prices remained elevated, but earnings exceeded the same quarter of the previous year, partly due to internal factors such as production-line rationalization and a review of product items, as well as external factors such as lower energy unit prices.」
Against a backdrop of expanding demand for processed seafood products, surimi prices remained elevated, and the risk of raw material price fluctuations actually emerged as part of the business environment. - FY2020WorsenedAnnual report
「In addition, if raw material prices rise in the future beyond the levels assumed by our group because of factors including restrictions on fishing operations due to infections among employees of surimi processing vessels operating in the Gulf of Alaska, our group's business results and financial position may be affected.」
In addition to the previous factors of fishing restrictions, landings and demand, restrictions on fishing operations due to infections among processing-vessel employees have been added as a factor affecting raw material procurement and price increases. - FY2020-Q3MaterialisedAnnual report
「In terms of profit, seafood demand expanded amid a global focus on health, and conditions remained difficult because of higher surimi prices. However, results exceeded those of the same quarter of the previous year due to cost reduction measures, including more efficient staffing of production lines and lower energy consumption aimed at improving production efficiency, as well as lower energy unit prices resulting from lower crude oil prices.」
Seafood demand expanded amid a focus on health, and higher surimi prices continued to emerge as cost pressure on business earnings. - FY2020-Q2MaterialisedAnnual report
「The company continued to face difficult conditions due to soaring surimi prices as demand for seafood expanded amid a worldwide shift toward healthier lifestyles. However, as a result of promoting cost-reduction activities, including more efficient staffing of production lines and lower energy consumption, with the aim of improving production efficiency, performance exceeded that of the same quarter of the previous year.」
Against a backdrop of expanding seafood demand driven by a global focus on health, surimi prices continued to rise, and this has been disclosed as cost pressure on business earnings. - FY2020-Q1MaterialisedAnnual report
「In terms of profit, conditions remained difficult because of higher surimi prices resulting from stronger global demand for seafood. However, as a result of cost reductions, including more efficient staffing of production lines and lower energy consumption, aimed at improving labor productivity, results exceeded those of the same quarter of the previous year.」
Surimi prices continued to rise amid stronger global demand for seafood, and this actually emerged as cost pressure on business earnings. - FY2019-Q3MaterialisedAnnual report
「The company has promoted cost reductions focused on labor-saving, but profit fell below that of the same quarter of the previous year due to surging surimi prices resulting from strong global demand for seafood, as well as higher labor and energy costs associated with rising wage rates.」
It is explained that higher surimi prices resulting from stronger global demand for seafood, together with higher labor and energy costs, actually contributed to lower profit in the quarter. - FY2019-Q2MaterialisedAnnual report
「The company has promoted cost reductions focused on labor-saving, but profit fell below that of the same quarter of the previous year due to higher surimi prices resulting from strong global demand, as well as higher labor and energy costs associated with rising wage rates.」
It is explained that higher surimi prices resulting from stronger global demand, together with higher labor costs due to wage increases and higher energy costs, actually contributed to lower profit in the quarter. - FY2019-Q1MaterialisedAnnual report
「Our group continues to operate in a difficult business environment, with surimi prices rising on strong demand in China, Europe and elsewhere, labor costs increasing because of labor shortages, and logistics costs rising.」
It is explained that surimi prices rose during the quarter because of strong demand in China and Europe and foreign exchange effects, actually contributing to lower profit. quantified is false because no specific amount or percentage is stated. materialized is true. - FY2018MaterialisedAnnual report
「Profit fell below that of the previous fiscal year due to higher raw-material prices, higher labor costs resulting from labor shortages, and higher energy costs.」
It is explained that higher raw material prices actually contributed to lower profit in the fiscal year. Surimi and other materials continue to be procured through multiple purchasing channels as part of efforts to secure stable supplies and maintain appropriate prices. - FY2017RestatedAnnual report
「We procure surimi, primarily Alaska pollock surimi, along with other seafood raw materials through multiple purchasing channels, and work to secure a stable supply of raw materials and maintain appropriate prices.」
While explaining measures to procure surimi and other materials through multiple channels, the company continues to identify risks of price increases arising from fishing restrictions, resource depletion, supply and demand, crude oil prices and foreign exchange rates. - FY2017-Q3RestatedAnnual report
「Profit exceeded that of the same quarter of the previous year because raw-material and energy costs declined, partly due to foreign-exchange effects, and the company worked to reduce costs through efficiency improvements and rationalization.」
A decline in raw material and energy costs is also reported for the quarter, but no new changes related to raw material procurement or price fluctuation risks are described. - FY2017-Q2MitigatedAnnual report
「Profit exceeded that of the same quarter of the previous year because raw-material and energy costs declined, partly due to foreign-exchange effects, and the company worked to reduce costs through efficiency improvements and rationalization.」
It is explained that raw material and energy costs declined during the quarter, reducing the cost impact of raw material price fluctuations during the period. - FY2016First statedAnnual report
「If an event affects raw material market conditions, such as changes in landed volumes caused by tighter fishing regulations or declining resources, or if prices rise due to changes in the supply-demand balance for raw materials, auxiliary materials and packaging materials, or fluctuations in crude oil prices and foreign exchange rates, it may affect the Group's business results and financial condition.」
The Company identifies fishing regulations, declining resources, supply and demand, crude oil prices and foreign exchange rates as factors that may drive up raw material prices.