Bergearth

Basic Information

Stock Code
1383
Industry
Fisheries and Agriculture/Forestry
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Ehime Prefecture
Establishment Year
February 2006
Listing Year
November 2011
Official Website
https://bergearth.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kaneko Seedling, Sakata no Tane, Aikawa Bokuen, Axes, HOBE, Taiyō Kiso Kōgyō, Akatsuki Iijima Kōgyō, Brass, K.T.K., Nittō Seami, Kyōritsu Jōhō Tsūshin, OAT Agrio

Overview

Bergearth is a leading company in the agriculture and seedling industry established in 2001, boasting the top domestic share of grafted seedlings and promoting corporate agricultural management.

Current Situation

Bergearth recorded consolidated sales of approximately 7.1 billion yen and net profit of approximately 39 million yen for the fiscal year ending October 2024. It produces 23 million grafted vegetable seedlings annually, maintaining the top production volume in Japan. It operates multiple farms nationwide using closed-type seedling facilities and information systems for advanced cultivation management. It has established sales channels to agricultural cooperatives and home centers, securing a stable customer base. It is actively expanding its business areas through the establishment of subsidiaries and farm expansions. It develops environmentally friendly seedling technologies and improves production efficiency to achieve sustainable agricultural management. The shareholder composition is dominated by the founder's family, with strong regional ties. In recent years, it has invested in facility renewal and advanced production technologies to further enhance profitability. In the future, it aims to strengthen market competitiveness through production scale expansion and new variety development.

Trivia

Interesting Facts

  • Bergearth holds the top domestic share in grafted seedling production.
  • Produces 23 million grafted seedlings annually and supplies them nationwide in Japan.
  • Utilizes closed-type facilities in seedling production for thorough management.
  • Founder Kazuhiko Yamaguchi is a prominent leader in the seedling industry.
  • Own farms in 5 locations nationwide for risk diversification.
  • Established direct sales channels to agricultural cooperatives and home centers.
  • Actively introducing energy-saving technologies for seedling facilities.
  • Also involved in intermediate distribution of agricultural products for diversified operations.
  • Expanding business base overseas through subsidiaries.
  • Also develops and sells gardening supplies and farm machinery beyond grafted seedlings.
  • Engaged in research on sustainable agricultural technologies.
  • Focuses on collaboration with regional agriculture for regional contributions.
  • Bases in Nagano Farm, Ibaraki Farm, etc., across the nation.
  • Holds multiple seedling-related patents.
  • Promoting in-house development of environment control systems.

Hidden Connections

  • Supplies seedlings to the Chinese market through related company Qingdao Mefuku Yōen Horticulture Co., Ltd.
  • Spun off from Yamaguchi Horticulture to independently develop seedling and crop businesses.
  • Iyō Bank provides regional support financially as a major shareholder.
  • Deep collaboration with agricultural cooperatives contributing to local agriculture promotion.
  • Contributes to reducing production burden for small and medium farmers through efficient grafting technology.
  • Promotes agriculture considerate of local ecosystems through pesticide reduction technology.
  • Achieved domestic top share in disease-resistant crop seedlings through long-term R&D.
  • Transitioned from JASDAQ to Tokyo Stock Exchange Standard market, enhancing market valuation.

Future Outlook

Growth Drivers

  • Increasing demand for high-quality grafted seedlings
  • Expansion of facility vegetable cultivation and technological innovation
  • Growing needs for agricultural automation domestically and internationally
  • Rising interest in sustainable agricultural technologies
  • Response to long-term food security
  • Strengthening new variety breeding and multi-variety deployment
  • Advanced production management through IT utilization
  • Mass demand creation from formation of agricultural corporations
  • Expansion potential in global markets
  • Development of technologies corresponding to environmental regulations
  • Support from regional agriculture promotion policies
  • New market development through customer diversification

Strategic Goals

  • Achieve annual grafted seedling production of 30 million plants
  • Improve energy-saving rate of seedling facilities by over 50%
  • Double management efficiency through IT utilization
  • 50% or more ratio of organic and environmentally considerate seedlings
  • Further expansion of domestic and international sales channels
  • Overseas business expansion through subsidiaries
  • Strengthen training and education systems for human resource development
  • Maintain market competitiveness through new technology development
  • Establish sustainable agricultural management model
  • Advanced production environment risk management system

Business Segments

Seedling Supply for Agricultural Corporations

Overview
Provides grafted seedlings, seedling-related products, and systems to agricultural corporations to support production efficiency.
Competitiveness
Strength in domestic top share of grafted seedlings and advanced production management technology.
Customers
  • Agricultural cooperatives
  • Agricultural production corporations
  • Local government agriculture departments
  • Agricultural consultants
  • Horticultural businesses
  • Greenhouse cultivators
  • Food processors
  • Large-scale farms
  • Direct shipment producers
  • Consumer cooperatives
Products
  • Grafted seedlings
  • Seedling management systems
  • Custom seedling sets
  • High disease-resistant seedlings
  • Year-round supply seedlings
  • Farm machinery and supplies
  • Facility seedling support
  • Production planning consulting
  • Cultivation management tools
  • Environment control devices

Gardening Supplies Sales

Overview
Provides a wide range of supplies and equipment for gardening and agricultural sites.
Competitiveness
Supported by extensive product lineup specialized for agricultural sites.
Customers
  • Garden centers
  • Home centers
  • Landscaping companies
  • Hobby gardeners
  • Agriculture-related companies
  • Greenhouse operators
  • Sales agents
  • Construction companies
  • Local governments
  • Event organizers
Products
  • Seedling pots
  • Insect-proof nets
  • Growing medium
  • Irrigation equipment
  • Greenhouse supplies
  • Fertilizers
  • Farm machinery
  • Soil improvement supplies
  • Shading sheets
  • Tool sets

Farm Crop Sales Business

Overview
Supplies high-quality vegetables produced at multiple farms to markets and retailers.
Competitiveness
Stable production and quality control leveraging grafted seedling technology.
Customers
  • Wholesalers
  • Retailers
  • Agricultural cooperatives
  • Food processors
  • Restaurants
  • Local production for local consumption groups
  • Contract farming growers
  • Local governments
  • Delivery services
  • Direct sales stores
Products
  • Tomatoes
  • Eggplant
  • Cucumbers
  • Bell peppers
  • Melons
  • Seasonal vegetables
  • Organic vegetables
  • Specially cultivated vegetables
  • Fresh vegetable sets
  • Raw materials for processing

Seedling Facility Operation and Technical Support

Overview
Provides operational support for seedling facilities and IT management systems to improve production efficiency.
Competitiveness
On-site operational experience and system development capabilities.
Customers
  • Seedling facility operators
  • Agricultural corporations
  • Farm machinery manufacturers
  • Technical consultants
  • Local governments
  • Research institutions
  • Environmental technology companies
  • Construction companies
  • Design offices
  • Agricultural ventures
Products
  • Seedling environment control equipment
  • Production management systems
  • Environment monitoring equipment
  • Labor-saving equipment
  • Seedling facility design
  • Technical consulting
  • Facility maintenance services
  • IT support systems
  • Scatter-prevention supplies
  • Greenhouse equipment

Competitive Advantage

Strengths

  • Domestic top grafted seedling production volume
  • Advanced seedling technology and facility management
  • Farm network deployed across multiple regions
  • Strong sales network to agricultural cooperatives and home centers
  • Abundant varieties and specialized product lineup
  • Long years of seedling R&D expertise
  • Strong leadership from the representative
  • Regionally integrated customer relationships
  • Sustainable production management technology
  • Information systems supporting productivity improvements
  • Stable financial base
  • Customer-focused product development capabilities
  • Diverse seedling facility operation experience
  • Consolidated total assets exceeding 5.6 billion yen
  • Integrated production-to-sales system

Competitive Advantages

  • Domestic top market share with annual production of 23 million grafted seedlings
  • High production efficiency and quality from closed facilities and information management
  • Risk diversification through farm network in 5 locations nationwide
  • Established stable sales channels to agricultural cooperatives and home centers
  • Long-term seedling technology development and utilization of patented technologies
  • Strong collaboration with regional agriculture for high reliability
  • Flexible response to market needs through multi-variety deployment
  • Business expansion through active subsidiary establishment and acquisitions
  • Development of high-value-added seedling products leveraging technology
  • Investment capacity secured by stable finances
  • Environmentally considerate seedling production system
  • Waste reduction and thorough quality control via production management systems
  • Product development responsive to customer needs
  • Utilization of both BtoB and BtoC sales channels
  • Positioned as an advanced model for corporate agricultural management

Threats

  • Increased production risks from weather fluctuations
  • Crop pest and disease damage risks
  • Technological innovations and price competition from industry rivals
  • Seed law amendments and strengthened agricultural regulations
  • Market impacts from agricultural policy changes
  • Rising prices of raw materials and seedling supplies
  • Difficulty maintaining production due to labor shortages
  • Farm operation halt risks from natural disasters
  • Potential influx of low-cost seedlings from overseas markets
  • Changes in consumer agricultural product purchasing trends
  • Increased production costs from stricter environmental regulations
  • Long-term production environment deterioration from climate change

Innovations

2024: Renewal of seedling management system for production efficiency improvement

Overview
Introduced a system utilizing the latest IT technology to enhance real-time monitoring of seedling environments and analysis of production data.
Impact
Stabilized production quality and reduced operating costs by 10%

2023: Introduction of energy-saving technology for closed-type seedling facilities

Overview
Improved facility environment control technology and introduced energy-saving equipment that optimizes growth environments.
Impact
15% reduction in energy costs, 5% improvement in growth speed

2022: Development of disease-resistant variety grafted seedlings

Overview
Developed new disease-resistant grafted seedlings for major vegetables and strengthened stable shipment.
Impact
20% reduction in disease incidence, improved production efficiency

2021: Integration of production management systems across multiple regional farms

Overview
Centralized production information from each farm to achieve efficient material allocation and production planning.
Impact
5% reduction in production losses and improved delivery compliance

2024: Development of pesticide-reduction seedling technology for sustainable agriculture

Overview
Successfully developed technology significantly reducing pesticide use through combination of biological control and grafting.
Impact
30% reduction in pesticide use, reduced environmental impact

2020: Introduction of remote monitoring system

Overview
Introduced IoT-based system enabling remote management of seedling facility environments.
Impact
Improved management efficiency and rapid anomaly detection

Sustainability

  • Promotion of pesticide reduction and environmental load minimization in seedlings
  • Development and dissemination of energy-saving seedling facilities
  • Farm operations considering biodiversity conservation
  • Promotion of recycled material use
  • Sustainable agricultural management through collaboration with regional agriculture