Risk of lower fertilizer prices from the TPP and agricultural reform

「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「In addition, measures by the government and the National Federation of Agricultural Cooperative Associations, our largest customer, to reduce production material prices are further accelerating price competition in the industry.」

「The government and the National Federation of Agricultural Cooperative Associations, our largest customer, are taking measures to reduce production material prices, intensifying price competition in the industry.」

「The government and the National Federation of Agricultural Cooperative Associations, our largest customer, are taking measures to reduce production material prices, intensifying price competition in the industry.」

「The National Federation of Agricultural Cooperative Associations, our largest customer, is implementing a centralized purchasing system aimed at reducing fertilizer prices, further intensifying price competition in the shrinking fertilizer market.」

「To stem the decline of Japanese agriculture, the government has established the Agricultural Competitiveness Enhancement Program as one of its measures, under which it is taking steps to reduce production material prices and promote the reorganization of the production materials industry. The National Federation of Agricultural Cooperative Associations, our largest customer, is also making purchases through a centralized purchasing system aimed at reducing fertilizer prices, further intensifying price competition in the shrinking fertilizer market.」

「In the fertilizer industry, while domestic demand is declining, the government is taking measures under the Agricultural Competitiveness Enhancement Program to lower the prices of production materials and promote the reorganization of the production-materials industry. In addition, the National Federation of Agricultural Cooperative Associations, our largest customer, is purchasing through a centralized purchasing system aimed at reducing fertilizer prices, making price competition in the shrinking market increasingly intense.」

「The National Federation of Agricultural Cooperative Associations, the company's largest customer, has expanded the fertilizer brands covered by its centralized purchasing system aimed at reducing fertilizer prices this fiscal year, further intensifying price competition in a shrinking market.」

「The government is also taking measures under the Agricultural Competitiveness Enhancement Program to lower the prices of production materials and promote industry consolidation. The National Federation of Agricultural Cooperative Associations, our largest customer, has expanded the range of items covered by its centralized purchasing system this fiscal year to reduce fertilizer prices. As price competition within the industry intensifies, the struggle for share in a shrinking market is accelerating.」

「The government is also taking measures under the Agricultural Competitiveness Enhancement Program to lower the prices of production materials and promote industry consolidation. The National Federation of Agricultural Cooperative Associations, our largest customer, has expanded the range of items covered by its centralized purchasing system this fiscal year to reduce fertilizer prices. As price competition within the industry intensifies, the struggle for share in a shrinking market is accelerating.」

「The government is taking measures under the Agricultural Competitiveness Enhancement Program to promote lower production-input prices and industry restructuring. In addition, the National Federation of Agricultural Cooperative Associations, the company's largest customer, will expand the items covered by its centralized purchasing system aimed at reducing fertilizer prices this fiscal year, accelerating the scramble for a shrinking market amid intensifying price competition.」

「The government is taking measures under the Agricultural Competitiveness Enhancement Program to promote lower production-input prices and restructuring in the production-input industry. In addition, the National Federation of Agricultural Cooperative Associations, the company's largest customer, is purchasing some compound fertilizers through a centralized purchasing system aimed at reducing fertilizer prices, intensifying price competition in the industry and leading to a scramble for persistently weak demand.」

「In August, the Agricultural Competitiveness Enhancement Support Act came into force, and measures have been implemented to promote lower production-input prices and restructuring in the production-input industry. In addition, the National Federation of Agricultural Cooperative Associations, the company's largest customer, began purchasing some compound fertilizers through a centralized purchasing system aimed at reducing fertilizer prices, intensifying price competition in the industry and leading to a scramble for persistently weak demand.」

「The Agricultural Competitiveness Enhancement Support Act came into force in August, and measures have been taken to reduce production material prices and promote the reorganization of the production materials industry. In addition, the National Federation of Agricultural Cooperative Associations, our largest customer, began purchasing some compound fertilizers this autumn through a centralized purchasing system aimed at reducing fertilizer prices, intensifying price competition in the industry and leading to increased competition for persistently weak demand.」

「In May, the Agricultural Competitiveness Enhancement Support Act promoted by the government and ruling parties was promulgated, and preparations are under way to implement agricultural reforms, including reductions in production-input prices and rationalization of agricultural-product distribution. In addition, the National Federation of Agricultural Cooperative Associations, the company's largest customer, is seeking to reduce fertilizer prices through substantial brand consolidation and centralized purchasing, and its impact on the fertilizer industry is certain to be felt.」

「As part of its efforts to reduce production-input costs, the National Federation of Agricultural Cooperative Associations has also announced plans for the full-scale handling of imported fertilizers and substantial consolidation of the fertilizer brands it purchases, making its impact on the fertilizer industry certain to be felt.」

「The fertilizer industry continues to face declining demand due to the aging of agricultural workers, a shortage of successors and the expansion of abandoned farmland. In November 2016, as part of their agricultural policy reforms, the government and ruling parties formulated the Agricultural Competitiveness Enhancement Program, aimed at reducing production-input prices and rationalizing the distribution of agricultural products, and its impact on the fertilizer industry is certain to be felt.」

「In response to the TPP (Trans-Pacific Partnership), which the government and ruling parties broadly agreed on, they have begun full-scale discussions on agricultural reforms that would increase farmers' income, particularly reductions in the prices of production inputs such as fertilizer, raising concerns about the impact on future fertilizer prices.」