Nichiwa Sangyo

Basic Information

Stock Code
2055
Industry
Foodstuffs
Category Detail
Food Manufacturing
Prefecture
Hyogo Prefecture
Establishment Year
August 1924
Listing Year
October 1961
Official Website
http://www.nichiwasangyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Chubu Feed, Higashimaru, Feed One, Hayashikane, Yutaka Foods, Almetax

Overview

Nichiwa Sangyo is a long-established feed manufacturer based in western Japan, founded in 1924. It holds a leading position in the industry through compound feed production for poultry, swine, cattle, and fish farming, as well as livestock operations.

Current Situation

In fiscal 2023, Nichiwa Sangyo achieved consolidated sales of approximately 49 billion yen, primarily in western Japan, with the feed business accounting for 96.5% of sales. The company has established a solid position in feed production for poultry, swine, and cattle, and also engages in livestock product production centered in Kyushu. Technologically, it is strengthening production through joint ventures and product diversification, with a focus on supporting sustainable livestock farming. Its strengths lie in regionally rooted management and a stable customer base, and it is expanding into the Tohoku region. The company strives to reduce environmental impact and improve quality, actively investing for sustainable growth. Moving forward, it aims to enhance market competitiveness through new aquaculture technologies and strengthened livestock-related services, targeting leadership in western Japan.

Trivia

Interesting Facts

  • Pioneer company that began compound feed manufacturing in Japan in 1924.
  • Regionally rooted manufacturer with strong sales network mainly in western Japan.
  • Adopts vertically integrated business model fusing feed manufacturing and livestock processing.
  • Supports livestock industry from both feed and health management through animal pharmaceutical sales.
  • Partnered with joint venture Michinoku Feed to expand into Tohoku region.
  • Maintains research institute in Kobe, Hyogo Prefecture, for ongoing aquaculture feed quality research.
  • Contributes to livestock health maintenance through in-house developed feed additives.
  • Boasts stable funding base backed by major shareholder Toyota Tsusho.
  • Highly evaluated as a company committed to regional environmental preservation.
  • Manufactures and sells wide range of livestock feed from poultry to aquaculture.
  • Also sells livestock processed products, focusing on brand strengthening.
  • Kobe plant in Higashinada-ku has been operational since 1968 as production center.
  • Fiscal year-end March 31, maintaining steady management policy.
  • History of contributing to growth of livestock industry both domestically and internationally.
  • Implements high-quality control in milling, mixing, and forming as feed manufacturing technologies.

Hidden Connections

  • Toyota Tsusho listed as major shareholder, indicating strong ties between trading company and industry.
  • Strengthens inter-regional collaboration with Tohoku joint venture to improve production efficiency.
  • Synergy with livestock product processing and sales feeds back into feed quality improvement.
  • Close network with veterinarians and medical institutions through animal pharmaceutical sales.
  • Western Japan-focused sales strategy creates clear differentiation from competitors.
  • Supports productivity improvement for local farmers through aquaculture and feed technology R&D.
  • Actively participates in regional revitalization through collaboration with Hyogo Prefecture administration and agricultural groups.
  • Research institute in Kobe serves as specialized R&D base for livestock technologies.

Future Outlook

Growth Drivers

  • Growing demand for efficiency in domestic livestock industry
  • Customer base expansion through strengthened regionally rooted services
  • Deepening R&D of high-function feed and additives
  • Strengthened product rollout for environment and sustainability
  • Business efficiency through livestock digitization and IoT utilization
  • Expansion into new markets like Tohoku
  • Value enhancement of livestock through health-conscious consumer needs
  • Quality-focused trends in domestic and international livestock industry
  • Production efficiency improvement through strengthened joint venture collaboration
  • Revenue diversification through brand strengthening in livestock product processing and sales
  • Market expansion in animal pharmaceuticals
  • Promotion of technical collaboration in international livestock sector

Strategic Goals

  • Achieve 30% leading share in domestic western Japan market
  • Expand sales over 60 billion yen
  • Obtain sustainable certification for major feed products
  • Achieve 40% reduction in environmental impact at manufacturing bases
  • Strengthen nationwide production network including Tohoku
  • Promote management efficiency through digital technology utilization
  • Strengthen brand deployment and market development for livestock processed products
  • Expand sales and increase customers in animal pharmaceutical business
  • Develop and launch new aquaculture feed products
  • Deploy agriculture-livestock integration initiatives for regional revitalization

Business Segments

Feed Manufacturing and Sales

Overview
Centered on manufacturing and sales of livestock compound feed, also provides additives and pharmaceuticals for health maintenance.
Competitiveness
Regionally specialized manufacturing bases and diverse product lineup
Customers
  • Poultry farms
  • Swine farms
  • Cattle farms
  • Aquaculture operators
  • Livestock associations
Products
  • Compound feed
  • Single feed
  • Feed additives
  • Animal pharmaceuticals

Livestock Product Production

Overview
Produces and sells high-quality livestock products mainly in Kyushu. Handles processing and has established stable supply systems.
Competitiveness
Quality control through integration of livestock operations and feed manufacturing
Customers
  • Food processing companies
  • Retailers
  • Commercial food wholesalers
  • Restaurant chains
Products
  • Chicken
  • Pork
  • Beef
  • Eggs

Feed Raw Material Intermediation

Overview
Engages in buying and selling intermediation of feed raw materials such as grains to support stable supply.
Competitiveness
Wide-area supply network linked with joint venture in Tohoku
Customers
  • Feed manufacturers
  • Aquaculture processors
  • Agricultural corporations
  • Logistics companies
Products
  • Corn
  • Soybeans
  • Fish meal
  • Feed oils and fats

Livestock-Related Services

Overview
Provides various services for livestock operation efficiency and quality improvement.
Competitiveness
Comprehensive support leveraging extensive on-site know-how
Customers
  • Poultry farms
  • Swine farms
  • Cattle farms
  • Veterinary facilities
Products
  • Breeding consulting
  • Health management systems
  • Quality management support

Animal Pharmaceutical Sales

Overview
Provides pharmaceuticals and supplements to support animal health maintenance.
Competitiveness
Comprehensive health support integrated with feed business
Customers
  • Livestock farmers
  • Veterinarians
  • Animal protection groups
Products
  • Antibiotics
  • Vaccines
  • Supplements

R&D Support

Overview
Meets research institution needs through manufacturing and sales of laboratory animal feed.
Competitiveness
Reliability from strict quality control
Customers
  • Universities
  • Research institutions
  • Biotech companies
Products
  • Laboratory animal feed
  • Research reagents

Feed Processing Equipment Provision

Overview
Sells and maintains machinery equipment necessary for feed manufacturing processes.
Competitiveness
Technical support based on long years of feed manufacturing know-how
Customers
  • Feed manufacturers
  • Agricultural corporations
  • Factories
Products
  • Crushers
  • Mixers
  • Feed forming machines

Logistics and Delivery Services

Overview
Supports supply through efficient logistics services for feed and livestock products.
Competitiveness
Regionally rooted delivery network
Customers
  • Farmers
  • Food processors
  • Feed sellers
Products
  • Feed delivery
  • Live animal delivery
  • Product distribution support

Environmental Management Services

Overview
Provides various services to reduce environmental impact in the livestock industry.
Competitiveness
Contributions and track record in regional environmental preservation
Customers
  • Farmers
  • Livestock companies
  • Environmental consultants
Products
  • Wastewater treatment
  • Waste management
  • Environmental improvement proposals

Supplies Sales

Overview
Provides breeding materials and equipment for livestock and aquaculture sites.
Competitiveness
Diverse lineup tailored to on-site needs
Customers
  • Livestock farmers
  • Aquaculture farms
  • Agricultural corporations
Products
  • Breeding mats
  • Breeding equipment
  • Agricultural materials

Market Research and Consulting

Overview
Supports information provision and strategy building in the livestock and feed markets.
Competitiveness
Practical proposals based on industry on-site experience
Customers
  • Agricultural companies
  • Investors
  • Government agencies
Products
  • Market analysis reports
  • Business strategy support

Technology Licensing

Overview
Supports business expansion through licensing of proprietary technologies.
Competitiveness
Reliability based on long years of feed manufacturing know-how
Customers
  • Domestic and foreign companies
  • Research institutions
Products
  • Compound feed technology
  • Veterinary-related technology

Competitive Advantage

Strengths

  • Industry trust and brand power from long history
  • Stable supply network leveraging western Japan base
  • Wide lineup of livestock feed products
  • Production capacity enhancement via joint ventures
  • Regionally rooted customer support system
  • Integrated deployment of diverse livestock-related businesses
  • Advanced technology in feed quality control
  • Integrated system linked with livestock product processing
  • Comprehensive support through attached animal pharmaceutical sales
  • Stable capital and financial base
  • Employees with specialized knowledge and rich experience
  • In-house development of feed additives and pharmaceuticals
  • Continuous investment in R&D
  • Efforts in regional environmental preservation
  • Strong joint venture partnerships

Competitive Advantages

  • Strong local sales network in western Japan market
  • Efficient feed manufacturing system linked with joint ventures
  • Broad product range for poultry, swine, cattle, and aquaculture
  • Vertical integration of livestock processing and feed manufacturing
  • One-stop service through animal pharmaceutical sales
  • Support system from long-term stable major shareholders
  • Customer trust gained through advanced quality control
  • High market development capability utilizing diverse sales channels
  • Regionally rooted environmentally considerate operations
  • Continuous product improvement by specialized technical staff
  • Strengthened wide-area collaboration with Tohoku joint venture
  • Flexible response to various livestock needs
  • Equipment investment capacity from solid financial base
  • Secured stable procurement of feed raw materials
  • Technical collaboration through laboratory animal feed provision to research institutions

Threats

  • Risk of demand decline due to shrinking domestic livestock industry
  • Profit pressure from feed raw material price fluctuations
  • Intensifying market share competition from rivals
  • Rising production costs due to stricter environmental regulations
  • Risks from livestock diseases and health issues
  • Market penetration of imported feed and substitutes
  • Price competition accompanying inter-regional rivalry
  • Impact of changes in agricultural policies and subsidies
  • Raw material procurement instability from abnormal weather
  • Decline in farmers due to aging population
  • Competitiveness decline from delayed response to technological innovations
  • Entry of overseas companies into Japanese market

Innovations

2024: Introduction of Automation in Feed Manufacturing Process

Overview
Introduced the latest automated production line at Kobe plant to improve production efficiency.
Impact
Achieved 20% increase in production capacity and labor cost reduction

2023: Development of New High-Nutrient Swine Feed Product

Overview
Commercialized new compound feed excellent for growth promotion and health maintenance.
Impact
Contributed to improved customer satisfaction and new customer acquisition

2022: Introduction of Livestock Product Quality Management System

Overview
IT-ized freshness management for livestock processed products to strengthen distribution quality.
Impact
Succeeded in improving market evaluation of products and reducing waste losses

2021: Strengthened Production Collaboration with Tohoku Joint Venture

Overview
Expanded cattle feed production through collaboration with Michinoku Feed.
Impact
Realized business area expansion and production system diversification

2021: Development of New Feed Additive for Reduced Environmental Impact

Overview
Developed additive with odor suppression effect on livestock excreta.
Impact
Supports environmentally responsive livestock with customer environmental awareness

2020: Launch of Online Livestock Support Services

Overview
Began providing breeding advice and health management online.
Impact
Improved customer satisfaction and opened new remote support channels

Sustainability

  • Promotion of local production for local consumption of feed raw materials and reduction of environmental impact
  • Promotion of recycling livestock by-products into organic fertilizers
  • Introduction and continuous improvement of energy-saving production equipment
  • Deployment of environmental preservation activities in collaboration with local communities
  • Product development and sales considering animal welfare