Chubu Shiryo

Basic Information

Stock Code
2053
Industry
Foodstuffs
Category Detail
Food Manufacturing
Prefecture
Aichi Prefecture
Establishment Year
March 1949
Listing Year
October 1961
Official Website
https://www.chubushiryo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Soneck, Santo Kogyosya, Nisshin Seifun Group, Hiyoshi Sangyo, Higashimaru, Feed One, Hayashikane Sangyo, Heian Ray Service, Mitsuchi, Wise Holdings, Fujiozeks

Overview

Chubu Shiryo is a major feed manufacturer founded in 1949, holding a top position in the industry with a diverse range of livestock and aquaculture feeds as well as related products.

Current Situation

Chubu Shiryo recorded consolidated sales of approximately 183.4 billion yen and net profit of 4.7 billion yen for the fiscal year ended March 2020, establishing a solid position in the feed industry. Its main business is the manufacture and sale of high-quality feeds for pig farming, poultry farming, cattle farming, and fish farming. In fiscal 2003, it boasted a 9.3% market share, ranking 4th in compound feed shipments. It also engages in egg production, organic fertilizers, and livestock equipment, differentiating itself with its proprietary brand 'Gomatamago.' Through capital alliances and joint ventures, it has collaborated with Itochu Corporation and Nippon Ham, but in recent years has reviewed some relationships to focus on selective business concentration. It emphasizes ties with local communities, actively engaging in PR activities such as naming rights for a pedestrian bridge in Nagoya. Moving forward, it is focusing on optimizing manufacturing bases, global expansion, and developing environmentally friendly products to strengthen its business foundation in the medium to long term. With a stable management base, it anticipates sustainable growth and improved profitability.

Trivia

Interesting Facts

  • Long-established independent feed manufacturer founded shortly after the war.
  • 'Gomatamago' brand is a proprietary product based on fortified feed nutrition.
  • Long-held strong foothold in the Chubu region in the feed industry.
  • The only company with its name on a pedestrian bridge in Nagoya city.
  • Past experience operating pet food business through a subsidiary.
  • Rich technical accumulation in feed additive development.
  • Continuously strongly supporting local Aichi Prefecture livestock industry.
  • Advancing overseas expansion with an organic fertilizer plant in Jilin Province, China.
  • Practices broad business diversification utilizing multiple subsidiaries.
  • Sponsors radio time signals on Tokai Radio.
  • Holds 4th place share in compound feed industry.
  • Integrated business structure from feed to eggs.
  • Early commercialization of nutritional supplement feed for aged livestock.
  • Multiple manufacturing plants nationwide from Hokkaido to Kyushu.
  • Long uses unique company emblem '㊥' mark.

Hidden Connections

  • Built a strong industry network through capital and business alliances with Nippon Ham and Itochu Corporation.
  • Enhanced regional affinity by acquiring naming rights for Nagoya public facilities.
  • Streamlined business structure by transferring pet food operations to a subsidiary.
  • Aiming to expand overseas fertilizer and feed business through entry into Chinese market.
  • Expands related equipment and fertilizer businesses beyond livestock feed via multiple subsidiaries.
  • Has major shareholder relations with local Aichi major trading company Toyota Tsusho and others.
  • 4th place compound feed shipment volume demonstrates excellent market position as an independent company.
  • Domestic top-class know-how in R&D for feed additives and organic fertilizers.

Future Outlook

Growth Drivers

  • Advanced domestic livestock industry and sustained feed demand growth
  • Increased demand for eco and organic feeds responding to stricter environmental regulations
  • Market expansion of high-value-added products like nutrient-rich brand eggs
  • Strengthened business deployment in overseas markets (especially China)
  • Manufacturing efficiency improvements via IT and automation technology introduction
  • Development and promotion of sustainable livestock technologies
  • New market development through capital alliances and joint ventures
  • Improved customer loyalty through region-focused services
  • Technological innovations in feed additives and livestock equipment
  • Rising needs for food safety and security

Strategic Goals

  • Expansion of sustainable product portfolio
  • Market share growth domestically and internationally with strengthened revenue base
  • Improved cost competitiveness through manufacturing equipment and logistics optimization
  • Thorough implementation of environmental impact reduction and SDGs compliance
  • Accelerated technological innovation through increased R&D investment
  • Enhanced collaboration with local communities and brand value improvement
  • Promotion of digital transformation
  • New business creation and revenue maximization of existing businesses
  • Strengthened safe and secure product provision system
  • Deepening of global partnerships

Business Segments

Feed Sales for Livestock and Aquaculture

Overview
Provides high-quality compound feeds and related products to a diverse range of livestock and aquaculture customers.
Competitiveness
Robust supply network and thorough quality control leveraging bases in the Chubu region
Customers
  • Pig farms
  • Poultry farms
  • Cattle farmers
  • Aquaculture businesses
  • Agricultural corporations
  • Livestock feed wholesalers
  • Livestock-related facilities
Products
  • Compound feed
  • Single-ingredient feed
  • Feed additives
  • Organic fertilizers
  • Livestock equipment

Related Products Manufacturing and Sales

Overview
Manufactures and sells fertilizers, equipment, and production materials related to livestock.
Competitiveness
Product development reflecting R&D capabilities and customer needs
Customers
  • Agricultural corporations
  • Livestock machinery trading companies
  • Research institutions
  • Local governments
Products
  • Organic compound fertilizers
  • Livestock equipment
  • Egg products
  • Analysis and research samples

OEM and Joint Venture Operations

Overview
Develops a wide range of markets through OEM manufacturing and joint ventures.
Competitiveness
Effective collaboration system with partners
Customers
  • Domestic companies
  • Overseas companies
  • Joint venture partners
  • Specialty trading companies
Products
  • Feed OEM manufacturing
  • Egg processed product production
  • Joint venture operations

R&D and Technical Support

Overview
Provides the latest technology R&D and technical support to the industry.
Competitiveness
Years of experience and accumulated know-how
Customers
  • Ministry of Agriculture, Forestry and Fisheries-related organizations
  • Universities and research institutions
  • Livestock farmers
Products
  • Feed formulation technology development
  • Livestock nutrition research
  • Technical consulting

Environmental Business

Overview
Expanding business areas aimed at reducing environmental impact.
Competitiveness
Products and services pursuing sustainability
Customers
  • Local governments
  • Agricultural producers
  • Industrial waste processors
Products
  • Organic fertilizers
  • Environmental recycling products
  • Waste treatment equipment

Livestock Product Processing

Overview
Handles processing, production, and sales of livestock products.
Competitiveness
High standards of safety and quality control
Customers
  • Meat processors
  • Livestock product sellers
Products
  • Eggs
  • Livestock products

Competitive Advantage

Strengths

  • Top-tier compound feed manufacturing technology in the industry
  • Strong sales network centered on the Chubu region
  • Diverse product lineup and brand strength
  • Superior R&D technical foundation
  • Management stability and solid financial base
  • Long industry experience and customer relationships
  • Diversification into organic fertilizers and livestock equipment
  • Brand recognition of 'Gomatamago' eggs
  • Stable supply system for high-quality products
  • Flexible management strategy as an independent company
  • Consolidated structure with numerous subsidiaries
  • Good relations with local communities
  • Risk diversification through multi-regional manufacturing sites
  • Know-how acquisition from capital alliance experience
  • Promotion of environmentally friendly product development

Competitive Advantages

  • Regional closeness in the Chubu area with strong customer response strategy
  • Integrated product supply from compound feed to related fertilizers and livestock equipment
  • Differentiation through high-nutrient 'Gomatamago' egg brand
  • Stable supply and quick response via multi-site production
  • Flexible management decisions and market response as an independent manufacturer
  • Business diversification using subsidiaries and joint ventures to expand revenue base
  • High-quality feed manufacturing technology from long-term technical accumulation
  • Experience with strong partner support through capital and business alliances
  • Thorough system for product quality control and safety
  • Strengthened trust with customers and communities through regional contributions
  • Product development tailored to market needs via R&D investment
  • Continuous growth investment possible with stable finances
  • Diverse customer needs met with extensive product catalog
  • Efficient market supply achieved through logistics and sales channel development
  • Aggressive marketing to enhance brand value and recognition

Threats

  • Risk of fluctuations in feed raw material prices
  • Intensifying price competition from increasing domestic and international rivals
  • Impact of stricter livestock industry regulations and environmental rules
  • Unstable feed raw material supply due to climate change
  • Changes in management environment from alliance partner relations
  • Impact from spread of new technologies and alternative feeds
  • Increased import costs from exchange rate fluctuations
  • Risk of failing to keep up with changing market needs
  • Shifts in demand structure from changes in animal rearing methods
  • Impact on product demand from changing consumer health trends
  • Risk of damage to production sites from natural disasters
  • Industry profit pressure from oversupply

Innovations

2024: Introduction of Latest Equipment at Kushiro Plant

Overview
Introduced high-efficiency automated equipment at the Kushiro plant in Hokkaido to improve productivity.
Impact
20% productivity improvement, contributing to quality stabilization

2023: Quality Enhancement of High-Nutrient 'Gomatamago' Eggs

Overview
Developed high-value-added eggs with increased sesamin and vitamin E content.
Impact
Achieved sales expansion and brand value improvement

2022: Development of New Organic Compound Fertilizer Production Method

Overview
Established material improvement technology for organic fertilizers aimed at reducing environmental impact.
Impact
Contributed to increased sales of environmentally friendly fertilizers

2021: Launch of Compound Feed Production Efficiency Improvement Program

Overview
Improved manufacturing efficiency through IT-ization and automated control of production lines.
Impact
5% reduction in operating costs and improved yield

2020: Strengthened Overseas Market Development with Joint Venture

Overview
Accelerated expansion into the Chinese market through collaboration with Santong Chubu Shiryo (Shandong) Co., Ltd.
Impact
Increased sales and strengthened overseas business foundation

Sustainability

  • Promoting organic compound fertilizers to reduce environmental impact
  • CO2 reduction through improved power efficiency in manufacturing processes
  • Advancing resource-recycling logistics systems
  • Improving waste recycling rates and proper disposal
  • Supporting environmental conservation activities through community collaboration
  • Strengthening safety and health management and employee wellness
  • Promoting animal welfare through improved feed additives
  • Environmentally friendly packaging design
  • Supporting dissemination of sustainable technologies in the livestock industry
  • Environmental improvements via energy-saving equipment introduction and operation
  • Implementing regional environmental education programs as CSR activities
  • Evaluating and improving environmental impacts in the supply chain