Sakata no Tane

Basic Information

Stock Code
1377
Industry
Fisheries and Forestry
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Kanagawa Prefecture
Establishment Year
December 1942
Listing Year
May 1987
Official Website
https://www.sakataseed.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kaneko Seed, Hokuto, Hobe, Berg Earth

Overview

Sakata no Tane is a leading company in the seed industry established in 1942, with strengths in breeding vegetable and flower seeds, and is a global seed manufacturer boasting high profitability both domestically and internationally.

Current Situation

Sakata no Tane achieved consolidated sales of 61.667 billion yen in the fiscal year ended May 2020 and is actively pursuing overseas expansion. It boasts top-class profitability in Japan with its seed business centered on vegetable and flower seeds. In recent years, it has established a variety development base in Turkey to strengthen its international competitiveness. It possesses high seed breeding technology, with a track record of developing numerous varieties such as double-flowered petunias, Prince melon, and Andes melon. It is focusing on sustainability and environmental protection, succeeding in innovative technology developments like soil diagnostic biosensors through industry-academia-government collaboration. It is streamlining sales channels by reviewing its directly operated store strategy and deciding to close Garden Center Yokohama. Moving forward, it will focus on global variety development and new business initiatives while aiming to contribute to sustainable agriculture.

Trivia

Interesting Facts

  • Developed and sold the world's first fully double-flowered petunia
  • Known as the breeder of Prince Melon and Andes Melon
  • First company in Japan's seed industry to list on the Tokyo Stock Exchange
  • Practicalized the world's first soil diagnostic biosensor through industry-academia-government collaboration
  • Long-established seed company with over 100 years of history since founding
  • Developed new pansy varieties in collaboration with Takara
  • Known as a pioneer in mail-order business
  • Operated domestic garden centers for over 70 years
  • Developed Japan's first agriculture, forestry, and fisheries certified F1 cabbage variety
  • Focusing on providing technology for precision agriculture

Hidden Connections

  • Has shareholder relationships with major food companies like Kikkoman
  • Established subsidiaries in India and South Africa to promote international expansion
  • Conducts technology development in collaboration with Tokyo University of Technology and AIST
  • Developed new pansy varieties with Rika-chan and expanded through cross-media
  • Head office located in Kohoku New Town, Yokohama City, Kanagawa Prefecture
  • Established agricultural corporation subsidiary for production and sales of fresh produce
  • Related to Nissan Motor Group through affiliated advertising production company

Future Outlook

Growth Drivers

  • Expansion of seed demand in global markets
  • Advancement of smart agriculture utilizing IoT and AI technologies
  • Sustainable agriculture solutions corresponding to environmental load reduction
  • Creation of high-value-added varieties and acquisition of new customers
  • Strengthening international competitiveness using overseas breeding bases
  • Sales promotion through expansion of mail-order and EC channels
  • Deepening agricultural technology research and industry-academia-government collaboration
  • Growing consumer interest in gardening hobbies and health consciousness
  • Response to diversifying and specializing agricultural needs
  • Enhancing brand value through strengthened community collaboration

Strategic Goals

  • Expand overseas sales ratio to over 50%
  • Practicalize and launch smart agriculture technologies to market
  • Promote development and dissemination of sustainable seeds
  • Achieve 30% reduction in greenhouse gas emissions
  • Expand global market share of new varieties
  • Double mail-order and EC sales
  • Enrich community contribution activities and promote sustainability
  • Reduce costs through improved production efficiency domestically and overseas
  • Maintain annual R&D investment growth of over 10%
  • Develop products and services responding to diverse customer needs

Business Segments

Seedling Supply for Agricultural Corporations

Overview
Stably supplies high-quality, versatile seedlings to agricultural corporations.
Competitiveness
Advanced know-how in breeding technology and quality control
Customers
  • Large-scale agricultural corporations
  • Seedling specialty stores
  • Joint purchasing cooperatives
  • Agricultural research institutions
  • Government-related agricultural organizations
  • Importers and exporters
  • Crop producers
Products
  • Vegetable seeds
  • Flower seeds
  • Breeding materials
  • F1 hybrid seeds
  • Seedlings and bulbs
  • Organic cultivation seeds

Raw Material Supply for Research and Breeding Institutions

Overview
Provides cutting-edge breeding materials and technologies to research institutions.
Competitiveness
Research achievements through industry-academia-government collaboration
Customers
  • University laboratories
  • Independent administrative agencies
  • Agricultural test fields
  • Variety improvement research institutes
  • Biotechnology companies
Products
  • Genetic breeding materials
  • Soil diagnostic biosensors
  • Field trial seeds
  • Environmentally adapted seeds

Horticultural Materials Sales

Overview
Provides horticultural materials and supplies through diverse distribution channels.
Competitiveness
Product development capabilities based on plant knowledge
Customers
  • Horticulture stores
  • Home centers
  • Housing-related companies
  • Landscaping contractors
  • Public facilities
Products
  • Growing soil
  • Fertilizers
  • Agricultural equipment
  • Gardening gloves
  • Greenhouse kits

Competitive Advantage

Strengths

  • Advanced breeding technology and proprietary variety development capabilities
  • Extensive overseas expansion and global variety development
  • Brand trust backed by long history
  • Technological innovation through industry-academia-government collaboration
  • Wide product lineup and sales channels
  • International certification for quality inspection
  • First seed industry company listed on the Tokyo Stock Exchange
  • Strong customer base through mail order and direct sales
  • Initiatives toward sustainable agriculture
  • Solid financial base and asset holdings
  • Advanced quality control system
  • Diverse collaboration products
  • Extensive logistics network domestically and internationally
  • Proprietary sales and marketing strategies
  • Customer touchpoints through specialty stores and direct sales

Competitive Advantages

  • World-first fully double-flowered petunia breeding and high acclaim
  • Strengthened international expansion by establishing variety development bases overseas including Turkey
  • Secured Japan's first ISTA-approved inspection office certification to guarantee quality
  • World-first practical implementation of soil diagnostic biosensor through industry-academia-government collaboration
  • Revolutionary breeding technology for F1 cabbage 'Steki Sweet Cabbage'
  • Strengthened brand penetration through directly operated stores like Garden Centers
  • Responds to market needs with diverse variety lineup
  • Customer base and market development capabilities from mail order origins
  • Achieved differentiation through development of high-value-added seeds
  • Promotion of product development considering sustainability
  • Sales channel expansion utilizing global network
  • Over 100 years of history supporting trust and brand power
  • Accumulated know-how in breeding and variety improvement of diverse plants and animals
  • Stable management backed by diverse capital relationships and major shareholders
  • Active media exposure and promotional activities

Threats

  • Intensifying international competition leading to price competition in overseas markets
  • Adverse effects of climate change on crop cultivation
  • Production constraints from strengthened pesticide and chemical fertilizer regulations
  • Risk of damage to test farms and facilities from natural disasters
  • Risk of intellectual property infringement and product imitation
  • Concerns over increased import/export costs due to exchange rate fluctuations
  • Impact from management changes in major trading partners
  • Increased R&D costs accompanying rapid technological advancements
  • Shrinkage of domestic agricultural market due to population decline
  • Emergence of new breeding technologies by competitors
  • Increased burden of global regulatory compliance
  • Changes in market needs due to aging of agricultural workers

Innovations

2023: Established variety development base in Turkey

Overview
Installed an advanced variety development base in Turkey to strengthen the international market.
Impact
Accelerates variety development adapted to diverse climate conditions.

2021: Practical implementation of soil diagnostic biosensor

Overview
Commercialized 'Soil Dock' through industry-academia-government collaboration and launched to market.
Impact
Brings innovation to disease prediction and countermeasures in agricultural fields.

2020: Introduced new F1 hybrid varieties

Overview
Successfully developed F1 hybrids achieving high disease resistance and high yield.
Impact
Supports improvement in farmers' production efficiency.

2024: Started development of IoT-enabled smart greenhouse technology

Overview
Initiated development of next-generation technology for real-time management of greenhouse conditions.
Impact
Aims to improve cultivation quality and reduce production costs.

Sustainability

  • Promoting development of seeds for organic farming to protect soil health
  • Supporting low-environmental-impact agriculture with biosensors
  • Reviewing manufacturing processes to reduce greenhouse gas emissions
  • Promoting utilization of renewable energy
  • Adopting environmentally considerate packaging materials
  • Operating programs to support sustainable agriculture education
  • Promoting participation in local nature conservation activities
  • Strengthening waste recycling systems
  • Supporting biodiversity conservation activities
  • Environmental protection through optimized pesticide use