Risk of declining fertilizer demand and intensifying domestic and international competition
First written in FY2016. 12 of 28 entries say "Restated". Latest entry: FY2025.
Katakura & Co-op Agri moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 40 of 87 companies on the "Worse" side.
13 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Domestic fertilizer prices also remain high, and the trend of sluggish demand due to deferred purchases, reduced application volumes and a shift to lower-priced fertilizers continues.」
Declining demand and the shift to lower-priced fertilizers continued, resulting in fertilizer business sales down 1.8% year on year. - FY2025-H1MaterialisedAnnual report
「Sales of ¥14,609 million, down 3.7% year on year, due to the impact of the sharp decline in fertilizer prices since June of the previous year」
The decline in fertilizer prices since June of the previous year is reflected in actual results as a factor behind lower sales. - FY2024-Q3RestatedAnnual 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.」
It is stated that there have been no significant changes in the risks associated with declining fertilizer demand and intensifying domestic and international competition. - FY2024-Q2RestatedAnnual report
「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.」
It is stated that there have been no significant changes in the risks associated with declining fertilizer demand and intensifying domestic and international competition. - FY2024-Q1RestatedAnnual report
「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.」
It is stated that there have been no significant changes in the risks associated with declining fertilizer demand and intensifying domestic and international competition. - FY2023-Q3RestatedAnnual 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.」
It is stated that there have been no significant changes in the risks associated with declining fertilizer demand and intensifying domestic and international competition. - FY2023-Q2RestatedAnnual report
「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.」
It is stated that there have been no significant changes in the risks of declining fertilizer demand and intensifying domestic and international competition. - FY2022-Q3RestatedAnnual 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.」
It is stated that there have been no significant changes in the risks associated with declining fertilizer demand and intensifying domestic and international competition. - FY2021-Q3WorsenedAnnual report
「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.」
It is stated that price competition within the industry has intensified further as a result of measures by the government and our largest customer to lower production-material prices. - FY2021-Q2RestatedAnnual report
「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.」
Intense price competition in the fertilizer industry continues under measures by the government and our largest customer to lower production-material prices. - FY2021-Q1RestatedAnnual report
「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 company continues to describe intense price competition in the fertilizer industry under measures by the government and the National Federation of Agricultural Cooperative Associations to lower production-material prices. - FY2020RestatedAnnual report
「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.」
Competition in the fertilizer market continues to intensify as a result of the government's measures to lower prices and reorganize the industry and the National Federation of Agricultural Cooperative Associations' centralized purchasing system. - FY2020-Q3WorsenedAnnual report
「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.」
It is stated that price competition in the shrinking fertilizer market has become even more intense as a result of the government's measures to lower prices and reorganize the industry and the National Federation of Agricultural Cooperative Associations' centralized purchasing system. - FY2020-Q2WorsenedAnnual report
「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.」
The fertilizer market is shrinking, and price competition is described as having become “even more intense,” indicating a stronger risk of intensifying competition than in the previous report. - FY2020-Q1RestatedAnnual report
「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.」
Intense price competition continues as a result of declining domestic demand, the government's measures to lower prices and reorganize the industry, and the centralized purchasing system of our largest customer. - FY2019MaterialisedAnnual report
「Meanwhile, in terms of profit, narrowing margins to win orders for centrally purchased products resulted in operating profit of ¥1,213 million, down 1.0% year on year, ordinary profit of ¥1,270 million, down 0.9%, and net profit attributable to owners of the parent of ¥1,001 million, down 6.6%.」
As a result of narrowing margins to accommodate increased orders for centrally purchased products, sales increased while operating profit, ordinary profit and net profit attributable to owners of the parent declined. - FY2019-Q3MaterialisedAnnual report
「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 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. Meanwhile, although orders increased as a result of narrowing margins to win orders for centrally purchased products, profit declined, and segment profit was ¥898 million, down 21.6% year on year.」
The government measures and the expansion of items covered by the centralized purchasing system have been implemented. As a result of narrowing margins to respond to price competition, fertilizer business profit has declined even as orders increased. - FY2019-Q2MaterialisedAnnual report
「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's measures and the expansion of items covered by the National Federation of Agricultural Cooperative Associations' centralized purchasing system have been implemented, and fertilizer prices are actually falling while competition in the market is intensifying. - FY2019-Q1WorsenedAnnual report
「The National Federation of Agricultural Cooperative Associations, our largest customer, has expanded the product categories covered by its centralized purchasing system this fiscal year to reduce fertilizer prices. As price competition in the industry intensifies, competition for the shrinking market is accelerating.」
The expansion of items covered by the centralized purchasing system has led to lower fertilizer prices and intensifying competition within the industry, increasing the struggle for share in a shrinking market. - FY2018RestatedAnnual report
「The National Federation of Agricultural Cooperative Associations, our 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 increased competition for persistently weak demand.」
The risk of lower selling prices due to sluggish fertilizer demand, centralized purchasing and intensifying price competition continues. - FY2018-Q3RestatedAnnual report
「In the fertilizer business, sales volumes were maintained at the previous year's level, but sales declined 3.6% year on year to ¥26,117 million due to the substantial impact of two price reductions in the previous year and lower sales in the chemicals business.」
The impact of the two substantial price cuts implemented in the previous year is still reflected in lower sales this quarter, but no new price cuts are mentioned. - FY2018-Q2WorsenedAnnual report
「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.」
The enactment of the Agricultural Competitiveness Enhancement Support Act and the partial implementation of the centralized purchasing system have made reductions in production material prices and intensifying industry price competition concrete developments. - FY2018-Q1MaterialisedAnnual report
「In the first quarter of the current fiscal year, fertilizer sales volumes exceeded the previous year due to shipments brought forward in anticipation of price increases from June onward, but sales fell 3.1% year on year to ¥8,779 million due to lower selling prices.」
Although fertilizer sales volumes exceeded the previous year, the decline in selling prices was reflected in actual results as a 3.1% year-on-year decrease in sales. - FY2017MaterialisedAnnual report
「On the profit side, fertilizer prices were substantially reduced in June and November, and the impact of a higher cost ratio due to inventory held before the price reductions and other factors resulted in operating profit of ¥604 million, down 40.5% year on year, and ordinary profit of ¥610 million, down 39.0%.」
Substantial fertilizer price reductions actually occurred and were reflected in lower full-year operating profit and ordinary profit through a higher inventory cost ratio. - FY2017-Q3WorsenedAnnual report
「In the first nine months of the current fiscal year, sales increased 49.0% year on year to ¥27,092 million due to higher fertilizer sales volumes and an expanded business scale resulting from the business integration. On the profit side, fertilizer prices were substantially reduced in June and November, and the impact of a higher cost ratio due to inventory held before the price reductions and other factors resulted in operating profit of ¥11 million, down 96.0% year on year, and ordinary profit of ¥19 million, down 92.9%.」
Fertilizer price reductions occurred in November as well as June, and operating profit and ordinary profit declined sharply through the higher inventory cost ratio and other factors, indicating that the impact of price competition and price reductions has worsened since the previous quarter. - FY2017-Q2MaterialisedAnnual report
「In the first six months of the current fiscal year, sales increased 99.9% year on year to ¥17,944 million due to higher fertilizer sales volumes and an expanded business scale resulting from the business integration. However, sales fell short of the initial forecast due to lower fertilizer demand caused by unfavorable weather and deferred purchases before the fertilizer price reduction from June. On the profit side, the impact of a higher cost ratio due to inventory held before the price reduction and other factors resulted in operating profit of ¥137 million, down 37.7% year on year, and ordinary profit of ¥142 million, down 38.5%.」
Fertilizer price reductions, deferred purchases before the reductions and higher inventory cost ratios actually occurred, resulting in sales falling short of the initial forecast and lower profit. - FY2017-Q1MaterialisedAnnual report
「In the first quarter of the current fiscal year, sales increased 95.5% year on year to ¥9,063 million due to higher fertilizer sales volumes and an expanded business scale resulting from the business integration. However, profit declined as a result of fertilizer price reductions from June, with operating profit down 5.5% year on year to ¥247 million, ordinary profit down 11.6% to ¥235 million, and quarterly profit attributable to owners of the parent down 22.7% to ¥117 million.」
Fertilizer price reductions actually occurred and were reflected in operating profit, ordinary profit and quarterly profit attributable to owners of the parent declining. - FY2016First statedAnnual report
「If competition among manufacturers in the domestic fertilizer market intensifies as demand declines and selling prices fall, or if industry consolidation and reorganization causes other companies to become more competitive than the Group, this could affect the Group's operating performance and financial position.」
The factors identified are price declines accompanying lower demand, industry reorganization and increased competitiveness of other companies.