Seafood Market Fluctuations and Price Pass-Through
First written in FY2023. 12 of 13 entries say "Materialised", first in FY2024-Q1. Latest entry: FY2026.
Okamura Foods moved to the "Worse" side of this theme in 2023, 4 years after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 7 of 8 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For salmon roe, shortages of domestic raw materials due to the poor catch of autumn chum salmon in Hokkaido and other factors pushed up market selling prices. The selling price of our salmon roe products also remained above the assumed level, resulting in higher sales value.」
The shortage and rising market prices of salmon roe raw materials led to higher selling prices and improved profitability in domestic processing, while overseas processing saw its gross margin decline due to higher raw material prices and delays in passing those increases on to customers, resulting in divergent impacts by business. - FY2026-H1MaterialisedAnnual report
「The shortage of raw materials for salmon belly meat has continued. Price increases implemented in response to higher raw-material prices, including the effects of foreign exchange and purchase-market prices, resulted in lower sales volumes of products and merchandise. In addition, gross margins declined because price increases could not be passed through quickly enough.」
The shortage of raw materials for salmon belly meat and higher raw-material prices continued, materialising as lower sales volumes following price increases and lower gross margins due to delays in passing on price increases. Meanwhile, in domestic processing, the unit selling price of roe products exceeded expectations because of the shortage of raw materials. - FY2025MaterialisedAnnual report
「The global shortage of salmon belly meat as a raw material has continued due to soaring salmon prices. As a result, sales volumes of the product declined, but strong demand in Japan and overseas lifted the selling price per unit and improved profit margins.」
The shortage of raw materials caused by soaring salmon prices resulted in lower sales volumes, while demand improved selling prices per unit and profit margins. - FY2025-H1MaterialisedAnnual report
「The long-term rise in salmon prices and their continued elevated levels have resulted in a persistent global shortage of salmon belly meat as a raw material, which had been one of the company's core products. Meanwhile, higher purchase prices have increased unit costs and reduced profit margins.」
The global shortage of salmon raw materials and higher purchase prices affected actual sales volumes, unit costs and profit margins. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, salmon prices remained high, although they declined slightly near the fiscal year-end due to seasonal factors, while roe prices began to stabilise in the second half but were generally in a declining phase over the fiscal year as a whole. In addition, due to rising costs and increased investment in people and physical assets, profit margins in every business declined from the previous consolidated fiscal year.」
High salmon prices, declining roe prices, rising costs and increased investment caused profit margins across all businesses to decline for the full fiscal year from the previous fiscal year. - FY2024-Q3MaterialisedAnnual report
「Salmon and roe were both in a rising market-price phase in the previous consolidated fiscal year, but during the cumulative third quarter of the current consolidated fiscal year, salmon prices remained high while roe prices were in a declining phase. In addition, due to rising costs and increased investment in people and physical assets, profit margins in every business contracted from the previous consolidated fiscal year.」
High salmon prices and declining roe prices coincided, while rising costs and increased investment also contributed to profit margins contracting across all businesses from the previous consolidated fiscal year. - FY2024-Q2MaterialisedAnnual report
「In recent years, market prices for the company's core products, ikura and sujiko, had continued to rise, but entered a price-adjustment phase from the second half of the previous fiscal year as market inventories increased, and this situation continued during the cumulative second quarter of the current consolidated fiscal year. Although the overall average unit purchase price declined as new-season roe was procured in the autumn, the resulting time lag had a greater negative effect on profit margins, and the gross margin declined year on year.」
The price adjustment in the roe market and the decline in gross margin caused by the time lag between raw-material procurement and product sales continued. In addition, passing on price increases became difficult during the salmon market-price surge, and the decline in profit margins continued. - FY2024-Q1MaterialisedAnnual report
「In recent years, market prices for the company's core products, ikura and sujiko, had continued to rise, but entered a price-adjustment phase from the second half of the previous fiscal year, and this situation continued during the cumulative first quarter of the current consolidated fiscal year. For products such as salmon for raw consumption, passing on price increases became difficult during the market-price surge, resulting in lower profit margins.」
The company disclosed the price-adjustment phase in roe markets and the decline in profit margins caused by difficulty passing on price increases during the salmon market-price surge as actual operating conditions. - FY2023First statedAnnual report
「In recent years, against a backdrop including an unstable global situation, market prices for salmon and roe raw materials handled by the Group have risen significantly. As a subsequent correction may be expected, the company considers the current environment conducive to the materialisation of this market-price volatility risk.」
The company states that profit margins fluctuate because of a time lag between market-price changes at procurement and sales, and plans to respond through timely information gathering and procurement and sales management.