Dairy farm owned by business partner Synlait Limited in New Zealand

Securing stable food supply sources through active investment

Food supplies have come under considerable pressure in recent years, driven by a rapid global increase in demand for food and rising demand for biofuels. In the Foods & Retail Business Unit, we position the upstream part of the food value chain as our priority business area, and are endeavoring to secure stable food supply sources. A particular focus of our investment is to secure, for food use, soybeans, rapeseed, palm oil and other foodstuffs now increasingly being diverted from food production for use in biofuels. At the same time, we are moving forward with investments in the fish farming industry, a key industry in the marine resources sector, in order to support the population growth and changing consumer preferences occurring in countries such as China and India. We have made an equity participation in Allied Pacific (H.K.) Co., Ltd., a holding company for shrimp farming and processing businesses in China, and intend to develop this business as a supplier of valuable products with global-standard quality control.

Strengthening links between wholesalers and retailers

In wholesale distribution, our subsidiary MITSUI FOODS CO., LTD. has formed a business alliance with a leading Japanese wholesaler, KOKUBU & CO., LTD., aiming to enhance its capabilities and business efficiency. In the retail field, we are strengthening our alliance with Seven & i Holdings Co., Ltd., the holding company for supermarket and general merchandise chain operator Ito Yokado and convenience store group Seven Eleven Japan. We are using our retail support capabilities to pursue a broad range of business with Seven & I Holdings in areas including new business proposals and product sourcing. With the retail industry increasingly demanding lower distribution costs, stable supply and faster delivery, we intend to work with our subsidiaries, associated companies and business partners to develop comprehensive, sophisticated demand chain management systems for both sales and distribution.

Expanding distribution through global business development

We intend to expand our distribution network by strengthening our overall value chain in overseas markets such as the Americas, Europe and Asia, participating at all levels-from the sourcing of foodstuffs through to distribution, sales support and risk management. Working with strong business partners, we aim to improve the efficiency of our existing businesses and improve our supply-side capabilities. Examples of initiatives we are pursuing include our involvement in Ventura Foods, LLC, a joint venture with leading U.S. agricultural corporation CHS Inc. that supplies cooking oils to the institutional market in the United States, and the development of temperature-controlled distribution in China.