Risk of falling vegetable prices due to a bumper harvest
First written in FY2018-Q2. 7 of 15 entries say "Materialised", first in FY2018. Latest entry: FY2026.
Air Water moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
2 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the agri unit, store operations were rationalized in fresh produce retailing, while sales of Hokkaido potatoes in fresh produce distribution fell sharply in the second half of the fiscal year, resulting in an overall flat performance for the full year.」
Market-price and production fluctuation risks for agricultural products had an actual earnings impact in the form of lower sales of Hokkaido-grown potatoes. - FY2025MaterialisedAnnual report
「Operating profit fell below the previous fiscal year due to the impact of higher pork raw-material costs in the ham and delicatessen business, fewer adoptions for convenience-store products in the sweets business, and the recognition of one-time expenses.」
Higher pork raw material costs emerged as an actual factor behind the decline in operating profit in the Agri & Foods segment, making the risk of raw material price fluctuations more tangible. - FY2024-Q3RestatedAnnual report
「In the Agribusiness, poor crop growth and unstable market prices continued in the agricultural products and processing fields, mainly in Hokkaido. However, the retail produce business performed steadily, supported by a nationwide recovery in customer traffic as the COVID-19 pandemic subsided and the contribution from opening new agricultural produce direct-sales outlets.」
Although unstable agricultural commodity prices have continued, the company explained that a recovery in customer traffic at fresh-produce retailers and the effect of opening new direct-sales outlets provided support. - FY2023RestatedAnnual report
「In the fresh produce retail business, which operates stores in department stores and other locations, sales remained sluggish due to weaker consumer sentiment resulting from inflation. However, the business as a whole performed well owing to the effect of newly consolidating ㈱プラス's agricultural direct sales business in the Kansai region.」
Regarding market and consumer-environment risks for fresh produce, sluggish sales due to high market prices and inflation have continued, while the consolidation effect of the direct-sales business provided an offset. - FY2023-Q3ReframedAnnual report
「The agricultural business performed well, supported by the direct-to-consumer agricultural produce business operated in the Kansai region by Plus Co., Ltd., newly consolidated from November 2021. However, the wholesale and processing business was affected by a poor harvest of certain agricultural products in Hokkaido, while sales in the fresh-produce retail business operated through department stores and other outlets struggled because both vegetables and fruit remained at high prices.」
The way vegetable market risk is manifesting has changed from falling prices caused by bumper harvests to sluggish fresh produce retail sales caused by high prices for vegetables and fruit. - FY2022-Q3MaterialisedAnnual report
「In Other businesses, the fresh-produce retail field was affected by lower vegetable market prices and a delayed recovery in visitor numbers.」
Low vegetable market prices continued to have a tangible impact on results in the fresh produce retail business. Delayed recovery in customer footfall was also cited as a constraint on the sales environment. - FY2021-Q2RestatedAnnual report
「The agricultural and processing segments faced difficult conditions because operations at factories were temporarily suspended due to the processing of inventories of crops that had produced bumper harvests in the previous fiscal year and a decline in commercial demand.」
The company continued processing agricultural inventories resulting from the previous year's bumper harvest, which, combined with lower commercial demand, led to temporary plant shutdowns. The impact of bumper harvests on market prices and inventories continues. - FY2020MaterialisedAnnual report
「In the agricultural products and processing business, which cultivates, processes and sells vegetables, results were also significantly affected by lower market prices following bumper crops of key products, including Hokkaido potatoes and pumpkins.」
Lower market prices resulting from a bumper vegetable harvest had a significant impact on earnings in the agricultural and processing segments. - FY2020-Q2RestatedAnnual report
「Against this backdrop, the ham and delicatessen and sweets businesses were affected by intensifying market competition. The agricultural products and processing business, which cultivates, processes and sells vegetables, was also affected by falling vegetable market prices.」
Low fresh produce prices continue to affect actual performance in the agricultural products and processing businesses. - FY2020-Q1MaterialisedAnnual report
「The agricultural products business, which cultivates, processes, and sells vegetables, was also affected by lower market prices for vegetables.」
Lower vegetable market prices continue to have a direct impact on performance in the agricultural business. - FY2019-Q3MaterialisedAnnual report
「The Agricultural Products business expanded sales as a result of opening new stores in the fresh produce retail sector, but was affected by sharp fluctuations in vegetable prices.」
Sharp fluctuations in vegetable prices are described as having had an actual impact on the fresh produce retail business. - FY2019-Q2RestatedAnnual report
「The processing and wholesale segment was affected by lower market prices for potatoes and other products than in the previous fiscal year, as well as poor harvests of other vegetables due to insufficient sunlight and other factors. However, firm sales of processed products such as grated daikon supported an overall flat performance.」
Rather than a new decline in market prices directly caused by a bumper crop, low market prices for potatoes and other products have continued from the previous fiscal year. The impact has been offset through sales of processed products. - FY2018MaterialisedAnnual report
「The agricultural business was affected by insufficient arrivals of crops due to unfavourable weather and by soaring prices, while in the summer, favourable weather produced a bumper harvest that led to depressed prices.」
The risk of weak prices caused by a bumper harvest, which had disappeared from the previous quarter's disclosure, re-emerged for the full fiscal year and was disclosed together with the risk of price spikes caused by adverse weather. - FY2018-Q3DroppedAnnual report
「The agricultural products business was affected in the fresh produce retail sector by insufficient arrivals of leafy vegetables and other products due to unsettled weather, as well as by higher prices. This was offset in the agricultural processing sector by greater efficiency and productivity in vegetable processing, including through capital investment.」
The impact of lower vegetable market prices resulting from a bumper harvest, which was described in the previous quarter, is not mentioned in this filing. Instead, it describes shortages of incoming produce and higher prices caused by unfavorable weather. - FY2018-Q2First statedAnnual report
「The Agricultural Products business was affected by lower vegetable market prices resulting from the good harvest from early spring in the fresh-produce retail and wholesale businesses, but remained broadly flat, partly due to increased sales of processed grated daikon and potato products.」
The company has for the first time described the decline in vegetable market prices following the strong harvest since early spring as having a direct effect on its fresh produce retail and wholesale business. It explained that the overall business was broadly flat due to increased sales of processed products.