Ingredient procurement risks from adverse weather and food-safety requirements
First written in FY2017. 8 of 14 entries say "Restated". Latest entry: FY2027-H1.
Life Foods moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2025: 23 of 32 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Although the food service industry has continued to recover as foot traffic has increased and inbound demand has expanded, the challenging operating environment persists, owing to the rising cost of fixtures and equipment caused not only by higher raw material costs but also by the naphtha shortage, persistently high energy costs, rising labour costs due to labour shortages, and declines in customer numbers caused by unfavourable weather.」
In addition to the previously cited procurement risks arising from unfavourable weather and poor crop yields, unfavourable weather was identified as a factor contributing to declines in customer numbers. - FY2026RestatedAnnual report
「If supply volumes decline because of higher raw material prices, particularly rice prices, resulting from poor crop yields caused by adverse weather or other factors, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk recognition regarding the impact of adverse weather and poor crop yields on procurement volumes and purchase prices continues to specifically identify rice prices. - FY2025WorsenedAnnual report
「If supply volumes decline because of higher raw material prices, particularly rice prices, resulting from poor crop yields caused by adverse weather or other factors, securing sufficient volumes and the impact on purchase prices may be considered」
Regarding procurement risks associated with adverse weather and poor crop yields, it specifically identifies higher raw material prices, particularly rice prices. - FY2024RestatedAnnual report
「If supply volumes decline because of higher raw material prices resulting from the prolonged Russia-Ukraine situation or poor crop yields caused by adverse weather and other factors, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk of the prolonged Ukraine situation, adverse weather and poor crop yields affecting procurement volumes and purchase prices continues to be identified. - FY2024-Q3WorsenedAnnual report
「Meanwhile, costs remain a challenge, and difficult operating conditions continue because of heightened geopolitical risks resulting from the prolonged Russia-Ukraine situation and soaring raw material costs caused by the weaker yen.」
In addition to the previously identified adverse weather and higher raw material prices, the prolonged Russia-Ukraine situation and higher raw material costs caused by the weaker yen are explicitly identified as factors affecting the cost environment. - FY2024-Q1WorsenedAnnual report
「Higher costs associated with an egg shortage caused by avian influenza.」
Regarding food ingredient procurement, an egg shortage caused by avian influenza was identified as an actual supply and cost factor. - FY2023RestatedAnnual report
「If supply volumes decline because of higher raw material prices resulting from the prolonged Russia-Ukraine situation or poor crop yields caused by adverse weather and other factors, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
In addition to the impact of adverse weather and poor crop yields on procurement volumes and purchase prices, the disclosure continues to identify higher raw material prices resulting from the prolonged Russia-Ukraine situation. - FY2022RestatedAnnual report
「If poor crop yields result from adverse weather or other factors, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk of adverse weather and poor crop yields affecting procurement volumes and purchase prices continues to be noted. - FY2020RestatedAnnual report
「If broader conditions arise, such as poor crop yields caused by adverse weather, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk of adverse weather and poor crop yields affecting procurement volumes and purchase prices continues to be disclosed. - FY2019RestatedAnnual report
「If broader conditions arise, such as poor crop yields caused by adverse weather, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk of adverse weather and poor crop yields affecting procurement volumes and purchase prices continues to be disclosed. - FY2018RestatedAnnual report
「If broader conditions arise, such as poor crop yields caused by adverse weather, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
The risk of adverse weather and poor crop yields affecting procurement volumes and purchase prices continues to be disclosed. - FY2017First statedAnnual report
「We have addressed food ingredient issues that have become increasingly prominent in recent years by drawing on the flexibility of our cafeteria-style restaurants to change the menu immediately. However, if broader conditions arise, such as poor crop yields caused by adverse weather, securing sufficient volumes and the impact on purchase prices may affect our business performance.」
In addition to the impact of adverse weather and poor crop yields on securing volumes and purchase prices, it states that food safety requirements may drive up procurement costs.