Business constraints arising from disasters, livestock diseases, tariffs and quality labeling regulations
First written in FY2016. 7 of 13 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2025-H1.
Starzen moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「The procurement environment was difficult, partly due to the impact of a sharp rise in domestic pork prices following last year's extreme heat and outbreaks of classical swine fever in various regions.」
The risk of supply constraints caused by extreme weather and animal diseases has emerged in the procurement environment as a sharp rise in domestic pork prices following extreme heat and outbreaks of classical swine fever. - FY2024-Q2MaterialisedAnnual report
「The outbreak of classical swine fever in Kyushu, the first in the region, disrupted the domestic pork supply system.」
The risk of supply constraints caused by animal diseases has materialized as an outbreak of classical swine fever in Kyushu and disruption to the domestic pork supply system. - FY2024-Q1MaterialisedAnnual report
「In the meat industry, supply concerns have emerged, including the spread of African swine fever in Europe, a decline in the US cattle herd due to drought, and outbreaks of avian influenza in South America, while meat import prices remain high.」
The risk of supply constraints caused by animal diseases and extreme weather has emerged in the actual business environment through specific outbreaks and impacts in Europe, the US and South America, together with persistently high import prices. - FY2023RaisedAnnual report
「① If imports or movement are restricted following the outbreak of animal diseases such as African swine fever, classical swine fever, BSE (bovine spongiform encephalopathy), foot-and-mouth disease or avian influenza, there is a risk that supply-demand balances will be significantly affected, causing sharp market-price fluctuations or restricting product procurement. ② If tariff-related safeguards or other regulations are invoked, there is a risk of sharp market-price fluctuations or restricted product procurement. ③ The Group's products are subject to laws and regulations concerning quality labeling. If new regulations are introduced in the future, there is a risk that additional measures will be required to comply with them.」
In addition to existing disease and tariff risks, African swine fever, classical swine fever, avian influenza and quality-labeling regulations have been specifically identified, broadening the scope of procurement restrictions, market-price fluctuations and additional compliance costs arising from regulation. - FY2023-Q2MitigatedAnnual report
「Akune Meat Distribution Center Co., Ltd. ¥1,680 million ¥1,678 million, Kurihara Farm Co., Ltd. ¥970 million ¥913 million, Unzen Ariake Farm Co., Ltd. ¥852 million ¥802 million, Hokkaido Hamanaka Beef Farm Co., Ltd. ¥625 million ¥682 million, Ashoro Asahigaoka Farm Co., Ltd. ¥449 million ¥556 million, Sai Farm Co., Ltd. ¥577 million ¥532 million, Other ¥554 million ¥505 million, Total ¥5,711 million ¥5,672 million」
The total potential amount payable under guarantees of debt decreased from ¥5,711 million at the end of the previous consolidated fiscal year to ¥5,672 million at the end of the second quarter of the current fiscal year. - FY2023-Q1MaterialisedAnnual report
「Sales to the US market were sluggish due to the impact of higher tariffs after the low-tariff import quota for beef was exceeded.」
The risk of business constraints from tariffs and other regulations has materialized as higher tariffs after the low-tariff import quota for beef exported to the US was exceeded, resulting in sluggish exports. - FY2022MitigatedAnnual report
「To address these risks, the Group has manufacturing, storage and sales locations throughout Japan and has established a system that enables a certain degree of mutual support even if such risks materialize.」
A mutual-support response using manufacturing, storage and sales locations throughout Japan has been identified to address operating and shipping constraints caused by natural disasters and climate change. - FY2021RaisedAnnual report
「If a natural disaster such as a major earthquake or fire, an associated large-scale power outage, a major typhoon or heavy snowfall, or other extreme weather causes severe damage to production and storage facilities or infrastructure such as roads and ports used for shipping, production and shipments may be disrupted for an extended period until recovery is completed.」
In addition to conventional disaster, disease and regulatory risks, the risks have been organized as natural disaster risks including extreme weather and climate change, with the potential impact on facilities, infrastructure and employees specified. - FY2019MaterialisedAnnual report
「Extraordinary losses resulted from an increase in disaster-related losses and impairment losses on investment securities, despite a decrease in losses on disposal of non-current assets.」
Disaster risk materialized, and disaster-related losses of ¥45 million were recognized as extraordinary losses. - FY2019-Q3MaterialisedAnnual report
「Disaster-related losses — 45」
Losses related to natural disasters of ¥45 million were recognized as extraordinary losses in the first 3 quarters of the current consolidated fiscal year, quantifying the impact of disaster risk. - FY2019-Q2MaterialisedAnnual report
「The impact of Typhoon No. 21 and the Hokkaido Eastern Iburi Earthquake included inventory write-downs caused by power outages and flooding at refrigerated and frozen warehouses. However, customers highly valued the prompt response made possible by maximizing the benefits of owning our own trucks amid logistics disruptions.」
Power outages, flooding and logistics disruptions caused by natural disasters, previously identified as risks, actually occurred and resulted in inventory write-downs. - FY2018WorsenedAnnual report
「In the event of a major earthquake, fire, large-scale power outage or other disaster, the production, processing and transportation of meat, the Group's principal products handled, may be affected. Disruption to the domestic supply-demand balance could cause sharp fluctuations in meat market prices and have a significant impact on the Group's results. In the event of radioactive contamination caused by a nuclear accident or a similar disaster, reputational damage relating to meat could reduce sales volumes and lower selling prices, adversely affecting the Group's results.」
In addition to production, processing and transportation constraints caused by conventional disasters, the impact of reputational damage from nuclear accidents and other events, including lower sales volumes and prices, has been identified. - FY2016First statedAnnual report
「In the event of a major earthquake, fire, large-scale power outage or other disaster, the production, processing and transportation of meat, the Group's principal products handled, may be affected. If imports or movement are restricted following the outbreak of animal diseases such as BSE (bovine spongiform encephalopathy), foot-and-mouth disease or novel influenza, the Group's business activities may be constrained. If tariff-related safeguards or other regulations are invoked, the Group's business activities may be constrained.」
Disasters, diseases and regulations that could halt or restrict production, processing and transportation are described as interconnected external risks.