Consumer Industry & Agriculture Business Division
The Consumer Industry & Agriculture Business Division is engaged in businesses in the areas of agribusiness, food, feeds and livestock, forest resources, and community development, with a focus on sustainable consumption and production.
Strengths of the Division
- ●Development of a wide range of businesses mainly in Southeast Asia, such as fertilizer production, feed production, grain port operation, flour milling, bakery products, confectioneries, building materials, afforestation, woodchips, and papermaking
- ●Establishment of a top-level market share in the production and sale of compound chemical fertilizer in Thailand, Vietnam, and the Philippines
- ●Participation in one of the largest biomass power plant projects in Japan, utilizing a stable woody biomass resource procurement network
- ●Diversification of lifestyles in Asia
- ●Increase in demand for foodstuffs and essential consumer goods due to population growth and economic development in Southeast Asia
- ●Growing need for the safety, security, and sustainability of food
- ●Greater emphasis placed on sustainable procurement of lumber resources amid growing environmental awareness
- ●Price fluctuations due to an imbalance between supply and demand caused by climate change and changes in government policies
- ●Pressure on business revenue due to sudden fluctuations in exchange rates
The Consumer Industry & Agriculture Business Division suffered temporary impacts from the COVID-19 pandemic. However, the division is expected to enjoy consistently strong demand for food and lifestyle-related products going forward, stimulated by the diversification of lifestyles seen in conjunction with population growth and economic development centered on Southeast Asia. With growing Asian markets as our main focus, we are looking to incorporate market growth in response to megatrends and thereby bolstering earnings power.
In the fertilizer business, where we boast strong market shares in Thailand, Vietnam, and the Philippines, we are applying digital transformation methodologies to our current business model, which is based on our widereaching network, to transition to a model for developing agricultural platforms based on a market-oriented perspective.
In the food business, we are branching out from feed production in Vietnam to enter into the livestock industry in order to contribute to a stable supply of proteins in Southeast Asia. Meanwhile, with our value chain stretching from flour milling to bakery products in the Philippines, we are growing businesses that address the needs of this country by enhancing digital and other marketing activities.
As for forest products, initiatives are being ramped up in our traditional woodchip production business as well as in our biomass-related businesses and our Vietnamese household paper and industrial paper product business. We thereby aim to develop businesses that contribute to the development of local communities while preserving the global environment. A focus on circular economies as well as market-oriented perspectives will be incorporated into every business in order to ensure that our business models are enduring.
Atlas Fertilizer Corporation（Philippines）
Saigon Paper Corporation (Vietnam)
■Strengthening of Fertilizer Business and Exports to Neighboring Regions
We aim to expand sales by implementing detailed promotion strategies for each region and each type of agri-product in Thailand, Vietnam, and the Philippines, by increasing exports to neighboring regions, and by implementing digital transformation. We will also develop businesses matched to the needs of agricultural workers by capitalizing on the long-standing initiatives of our fertilizer business, which has firmly established roots in local areas.
■Household Paper and Industrial Paper Product Business
In June 2018, Sojitz invested in major Vietnamese papermaker Saigon Paper Corporation, thereby entering into the household paper and industrial paper product business in Vietnam. We have responded to the rising demand in this business through investments in production capacity augmentations and production efficiency improvements. Moreover, Saigon Paper is taking advantage of Sojitz’s varied lifestyle business networks in Vietnam to expand its sales channels.
Establishment of a Beef Product Sales Company in Vietnam
In March 2021, Sojitz established Japan Vietnam Livestock Co., Ltd., together with Vietnam Livestock Corporation JSC, a member of the Vinamilk Group, a major Vietnamese dairy product manufacturing conglomerate.
The Vinamilk Group’s strong market presence and sales network will be combined with Sojitz’s livestock sales expertise to supply the Vietnamese market with safe, secure, and high-quality beef products. We also hope to use this joint business with the Vinamilk Group as an opportunity to engage in collaborative ventures with the conglomerate in other Sojitz businesses in Vietnam.