Strengthening the supply chain from cultivation through sourcing, processing and sales

「In the agricultural field, bumper and poor harvests caused by weather conditions and fluctuations in market prices are key risk factors. The company is working to reduce volatility by securing stable overall procurement volumes through expanding fields, or contract farms, for each crop.」

「With a view to achieving sustainable agriculture and a stable food supply system, we are strengthening the development of technologies related to smart agriculture and freshness preservation while expanding the volume of agricultural products handled. We are also using our logistics infrastructure to procure raw vegetables through cooperation with other companies and to build a supply-chain platform for fresh-produce distribution and processing. Gold Pack Co., Ltd. Azumino Plant (Azumino City, Nagano Prefecture) Agri & Foods Small paper-container beverage filling line 3,113 January 2026」

「While focusing on strengthening the foundation of the agricultural business in Hokkaido, our main business area, we will further reinforce the value chain from the procurement, processing and sale of rice and produce, and combine it with a nationwide logistics network. Through these efforts, we aim to build a rice and produce distribution and processing platform that supplies safe, reliable agricultural products in the form and at the timing that meet customer needs.」

「From the third quarter, the Company newly consolidated Marushin Seika Co., Ltd., which operates a wholesale produce business in Kyushu.」

「The Company promoted the strengthening of its fresh produce distribution and processing platform through the mutual use of the procurement, processing, sales and logistics functions held by each company.」

「Through collaboration among the 3 companies, the company aims to build a fresh-produce distribution and processing platform that supplies safe and reliable fresh produce in forms and at times that meet customer needs by strengthening the value chain from procurement through processing and sales and combining it with a nationwide logistics network.」

「The Foods business performed steadily as commercial demand from convenience stores, hotels and other customers recovered in the ham and delicatessen field, while sales of frozen foods for home use gained traction through the development of new sales channels.」

「Although it was affected by higher raw material prices, productivity improvements, particularly in logistics and procurement, resulting from the integration and reorganisation of Group companies carried out in the previous fiscal year contributed to performance.」

「On 1 October this year, we reorganized group companies, including by consolidating development and sales functions into the new company Air Water Agri & Foods Co., Ltd., while advancing a structural shift toward a new food distribution and processing business that integrates food processing technologies and logistics functions.」

「In this segment, as the COVID-19 pandemic brought major changes in demand for food, we reviewed our production and sales structure, which had been centered on food-service products for hotels and restaurants. We focused on developing products such as frozen foods and prepared foods for retail customers that address demand for shorter preparation times and convenience, as well as products for home delivery, while strengthening our e-commerce business and developing new sales channels. At the same time, we are pursuing a structural shift toward a new food distribution and processing business that combines food processing technologies with logistics capabilities.」

「The agricultural products and processing segment was affected by weak demand for processed vegetables for commercial use through the second quarter due to the downturn in the food-service industry. In the third quarter, however, vegetable volumes handled increased on the back of a good harvest, while production rationalization progressed, resulting in performance above the same period of the previous year.」

「In the ham and delicatessen business, the company minimized the impact of weaker commercial demand by responding to lifestyle changes that reduced outings, developing products for takeaway and delivery, and focusing on sales of home-cooking products and frozen vegetables.」

「In March this year, the company also began operating a state-of-the-art PET bottle filling line at its Hokkaido production plant, strengthening its production capacity in preparation for future growth in orders.」

「Given the importance of strengthening the stable procurement of raw vegetables amid successive adverse weather conditions in Japan and a shortage of agricultural workers, the company will diversify production regions for raw-vegetable procurement and strengthen relationships with contract farmers.」

「In addition to the effect of newly consolidating businesses acquired through M&A in the agricultural products and processing business in the previous consolidated fiscal year, the current consolidated fiscal year benefited from the effect of newly consolidating Ecofroz S.A. of Ecuador, which produces and sells broccoli and was acquired through M&A during the current consolidated fiscal year.」

「The Agricultural Products Business expanded sales as a result of opening new stores in the retail produce field, but was affected by sharp fluctuations in vegetable market prices. In the processing and wholesale fields, overall vegetable crops, including Hokkaido-grown pumpkins, were poor due to insufficient sunlight, but the business worked to secure procurement volumes and performed steadily. In the Food Solutions Business, the impact of weak sales continued in the sweets field, while the ham and sausage field also faced a challenging operating environment due in part to the Hokkaido Eastern Iburi Earthquake. Nevertheless, sales of frozen vegetables such as broccoli expanded, and production efficiency improved in the processed foods field, resulting in steady profitability. Gold Pack Co., Ltd., Eniwa Plant, aseptic PET-bottle beverage filling equipment, 5,000, March 2020」

「In the agricultural business, sales in fresh produce retailing expanded as the company opened new stores, while sales of agricultural machinery, in which it has a high market share in Hokkaido, continued to perform well. In the processing and wholesale businesses, sales were affected by low market prices for potatoes and other products compared with the previous fiscal year, as well as poor harvests of other vegetables caused by insufficient sunlight. However, sales of processed products such as grated daikon remained firm, and performance was generally flat.」

「In the agricultural products business, sales of fresh produce grew as new stores were opened in the fresh-produce retail sector, while sales and maintenance of agricultural machinery, in which the company has a high market share in Hokkaido, remained firm. In the food solutions business, performance in the ham and sausage sector was at the same level as in the year-earlier period despite weak sales in the sweets sector, while stable procurement of raw materials and higher productivity in processed foods supported firm profit performance.」

「In processed foods, sales of frozen vegetables, including broccoli, also expanded. As productivity improved through equipment renewal investments and other measures implemented in prior years, the Food Solutions business as a whole achieved results roughly in line with the previous year.」

「In the ham and sausage business, the core prosciutto business remained solid as a result of acquiring new customers. The Group also worked to reduce costs, including by optimizing logistics and delivery across Group companies and centralizing raw-material sourcing and procurement.」

「The Food Solutions business performed well as the ham and sausage segment remained firm on expanded sales of prosciutto, while the processed foods segment benefited from expanded sales of frozen vegetables, including broccoli, and improved productivity in vegetable processing.」

「ゴールドパック㈱, Azumino Plant (Azumino, Nagano Prefecture), agriculture and food-related, new paper-container filling equipment, 1,583, March 2018」

「In fresh produce distribution, the company implemented measures to improve profitability at individual stores, increased the handling of group products and worked to expand its value chain.」

「Together with the commercial food brand 「さぶーる」, the Hokkaido retail brand 「春雪」 and the Kanto retail brand 「相模ハム」, this established a structure for more effective nationwide business expansion.」

「From the first quarter of the fiscal year, the Company newly consolidated Air Water Farm Co., Ltd., which continues to produce stable supplies of fresh produce using its accumulated cultivation expertise.」

「The addition of Kyushuya Co., Ltd., a fresh-produce retailer, from the second-quarter consolidated accounting period and Takaya Shoten Co., Ltd., a market wholesaler, from the third-quarter consolidated accounting period strengthened the group's supply-chain foundation from cultivation through procurement, processing and sales.」