Agriculture Comprehensive Research Institute

Basic Information

Stock Code
3541
Industry
Wholesale Industry
Category Detail
Food Wholesalers
Prefecture
Wakayama Prefecture
Establishment Year
October 2007
Listing Year
June 2016
Official Website
https://www.nousouken.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kito Shinryo, ATAO, Edia, Trace OP, Yamatane

Overview

Agriculture Comprehensive Research Institute is an innovative company in the food wholesale industry established in 2007, operating a distribution platform that directly connects farmers and retailers.

Current Situation

Agriculture Comprehensive Research Institute primarily operates direct sales outlet services for urban supermarkets, achieving a total distribution amount of 10 billion yen in the fiscal year ending August 2020. Its core direct sales outlet business for farmers realizes the distribution of fresh, traceable agricultural products. In its direct wholesale business, it promotes the brand mark '100% Farm Direct' to ensure safety. With multiple collection bases nationwide, starting from its Wakayama headquarters, it has established sales offices and centers in major cities to improve distribution efficiency. In recent years, it has advanced capital and business alliances with JR East Japan and explored rail transportation to innovate logistics. Amid the COVID-19 pandemic, it has strengthened its growth base through expanded off-market transactions, balancing farmer income growth with providing high-freshness agricultural products to consumers. Moving forward, it will expand distribution scale, enter new markets, and focus on regional brand development and strengthening direct shipments from production areas. In the medium to long term, it aims to diversify its direct sales outlet platform and utilize IoT for business efficiency, contributing to the sustainable development of agriculture.

Trivia

Interesting Facts

  • One of the first agriculture ventures to list on the Tokyo Stock Exchange Mothers market.
  • Proposed a new value concept of traceable produce distribution to the industry.
  • Operates a nationwide distribution network despite headquarters in Wakayama Prefecture.
  • Successfully created new markets for non-standard produce through direct farmer connections.
  • Began exploring rail transport utilization through logistics alliance with JR East Japan.
  • Direct sales outlet platform shortens distances between buyers and producers.
  • Contributing to improved rural farmer incomes through expanded off-market transactions.
  • '100% Farm Direct' brand mark has gained high consumer trust.
  • Dramatically improved distribution efficiency by establishing multiple new collection centers.
  • Strengthening inspection and certification systems for food safety and security.
  • Enables direct sales to urban consumers using online sales.
  • Actively involved in enhancing brand value of Wakayama regional specialties.
  • Direct distribution reform evaluated as a model supporting the future of Japanese agriculture.
  • Founder started the company after sensing crisis in agriculture during student days.
  • Emphasizes direct contributions to agriculture despite being in wholesale.

Hidden Connections

  • Advancing into rail logistics through capital and business alliance with JR East Japan.
  • '100% Farm Direct' brand shaped through close collaboration with producer groups.
  • Opening new markets in distribution efficiency through fusion of agriculture and IT.
  • Active joint projects with local governments for regional specialty brand development.
  • Developed strong transactions with multiple urban supermarkets through direct sales outlet growth.
  • Rare existence as the first agriculture venture to list on Tokyo Mothers.
  • Influencing the industry by building direct-from-origin model to solve social issues.
  • Unique strategy to reduce waste and increase incomes by promoting non-standard product circulation.

Future Outlook

Growth Drivers

  • Expanding direct sales needs from urban supermarkets
  • Rising focus on food safety and security
  • Diversification and expansion of digital sales channels
  • Market expansion for non-standard produce circulation
  • Accelerated nationwide rollout of regional brands
  • Cost reductions through logistics efficiency
  • Increasing demand for environmentally friendly and organic agriculture
  • Promotion of agriculture smartization and IoT technology introduction
  • Improved consumer trust in direct-from-origin produce
  • Product development innovation through strengthened producer collaboration
  • Heightened attention to direct distribution triggered by pandemic
  • Sales channel expansion based on strengthened alliances with major distributors

Strategic Goals

  • Achieve top national market share in direct distribution platform business
  • Reach total distribution amount of 50 billion yen
  • Exceed 80% circulation ratio of '100% Farm Direct' certified produce
  • Over 50% utilization rate of environmentally friendly logistics like rail
  • Improve penetration rate of smart agriculture systems
  • Create over 30 sustainable regional brands
  • Over 70% sales ratio via digital channels
  • Full implementation of food safety and traceability for agricultural products
  • Begin developing overseas markets for agricultural products
  • Realize 15% average increase in farmer incomes

Business Segments

Agricultural Produce Direct Distribution Service

Overview
Directly connects farmers and supermarkets to achieve stable supply of high-quality agricultural products.
Competitiveness
Proprietary direct sales outlet platform operation capabilities and collection network
Customers
  • Urban Supermarkets
  • Agricultural Produce Direct Sales Operators
  • Distributors
  • Local Governments
  • Food Processing Companies
Products
  • Agricultural Produce Collection Service
  • Farmer Direct Shipment Platform
  • Quality Inspection System
  • Brand Certification Support
  • Logistics Management System

Direct Wholesale Business

Overview
Purchases agricultural products from producers and wholesales them safely and securely to supermarkets and others.
Competitiveness
Branding with visible farmer faces and innovation in off-market distribution
Customers
  • Retailers
  • Supermarket Chains
  • Food Service Industry
  • Food Processors
  • Wholesalers
Products
  • Purchase of Non-Standard Produce
  • Direct-from-Origin Wholesale
  • Brand Mark '100% Farm Direct' Assignment
  • Safety and Quality Assurance Service
  • Logistics Optimization Service

Logistics and Collection Center Operations

Overview
Optimizes collection and logistics at multiple bases to deliver fresh agricultural products quickly to markets.
Competitiveness
Nationwide efficient collection and delivery network
Customers
  • Producer Groups
  • Retail Logistics Departments
  • Local Governments
  • Distribution Companies
Products
  • Collection Yard Operations
  • Logistics Efficiency System
  • Quality Control Equipment
  • Transportation Network Development
  • Storage and Preservation Service

Brand Strategy Support

Overview
Supports branding and market expansion of agricultural products to promote value enhancement.
Competitiveness
Visible branding capabilities through collaboration with farmers
Customers
  • Producer Cooperatives
  • Agricultural Corporations
  • Regional Brand Promotion Groups
Products
  • Brand Value Assessment
  • Marketing Support
  • Safety Standards Certification Support
  • Sales Channel Development Consulting
  • PR and Advertising Planning

Sales Platform Development Support

Overview
Provides and supports operation of platforms enabling digital sales of agricultural products.
Competitiveness
Advanced expertise in IT solutions tailored to agricultural sites
Customers
  • Agricultural Cooperatives
  • Producer Groups
  • Local Governments
  • Online Sales Operators
Products
  • E-commerce Site Development
  • Sales Management System
  • Payment Service Integration
  • Customer Management Tools
  • Data Analysis Service

Quality Inspection and Safety Management Service

Overview
Guarantees quality and safety of agricultural products to enhance consumer trust.
Competitiveness
Thorough inspection system and technical support
Customers
  • Producer Groups
  • Wholesalers
  • Retailers
Products
  • Quality Inspection Equipment
  • Safety Verification Service
  • Traceability Management
  • Inspection Data Analysis
  • Risk Management Support

Education and Training Business

Overview
Provides training services to enhance specialized knowledge and skills in agricultural distribution.
Competitiveness
Practical education curriculum rooted in agricultural sites
Customers
  • Agricultural Workers
  • Producer Groups
  • Local Governments
  • Agriculture-Related Companies
Products
  • Distribution Training Programs
  • Quality Management Courses
  • Sales Channel Development Seminars
  • IT Utilization Education
  • Business Succession Support

Data Analysis and Market Insights

Overview
Provides data analysis and marketing support for optimizing agricultural product distribution.
Competitiveness
Advanced analytical capabilities based on extensive industry data
Customers
  • Producers
  • Wholesalers
  • Retailers
  • Market Research Firms
Products
  • Sales Data Analysis
  • Demand Forecasting Service
  • Consumer Trend Surveys
  • Distribution Optimization Reports
  • Trend Analysis

Food Safety Standards Certification Support

Overview
Supports acquisition of various food safety certifications to enhance reliability.
Competitiveness
Specialized services in food safety
Customers
  • Producers
  • Processors
  • Wholesalers
Products
  • Certification Acquisition Consulting
  • Standards Compliance Evaluation
  • Education and Training
  • Internal Audit Support
  • Material Management Guidance

Joint Logistics Business

Overview
Builds and operates logistics networks through collaboration among multiple parties.
Competitiveness
Proven track record in efficient logistics and cost optimization
Customers
  • Producer Groups
  • Wholesalers
  • Retail Chains
Products
  • Joint Delivery Service
  • Logistics Cost Reduction Measures
  • Delivery Efficiency Support
  • Refrigerated and Frozen Logistics
  • Delivery Management System

Regional Brand Creation Consulting

Overview
Consulting business to brand regional specialties and enhance value.
Competitiveness
Multifaceted support leveraging regional resources
Customers
  • Local Governments
  • Production Area Groups
  • Regional Revitalization Companies
Products
  • Market Research
  • Product Development Support
  • Promotion Planning
  • Distribution Channel Development
  • Brand Evaluation Analysis

IoT and Smart Agriculture Support

Overview
Promotes smart agriculture using IoT technology to maximize revenue.
Competitiveness
Practical support through fusion of advanced technology and agricultural knowledge
Customers
  • Agricultural Corporations
  • Producer Groups
  • Farm Machinery Manufacturers
Products
  • Environmental Sensors
  • Smart Collection Management
  • Data Analysis Tools
  • Automated Logistics Integration
  • Efficiency Support Services

Competitive Advantage

Strengths

  • Proprietary distribution platform directly connecting farmers and retailers
  • Branding capabilities for traceable produce
  • Nationwide collection and logistics network
  • Logistics innovation through capital and business alliances with JR East Japan
  • Diverse agricultural product distribution unbound by standards
  • High freshness provision via direct-from-origin shipments
  • Safety-emphasizing brand mark '100% Farm Direct'
  • Competitive edge from increased off-market transactions
  • Active efforts in regional brand development
  • Market pioneering as an agriculture venture

Competitive Advantages

  • Guarantees freshness and safety of agricultural products through proprietary direct sales outlet business
  • Realizes rapid logistics with extensive collection network
  • Pursues logistics cost reduction by exploring rail transport through business alliances
  • Enhances brand value and gains customer trust through collaboration with agricultural sites
  • Contributes to farmer income growth by promoting circulation of non-standard products
  • Establishes direct sales channels to urban supermarkets
  • Maintains high safety standards through quality assurance and inspection systems
  • Expands sales platforms using IT and digital technologies
  • Enhances transparency in agricultural product distribution with traceability system
  • Achieves differentiation through support for creating regional specialty brands

Threats

  • Intensifying price competition in the wholesale industry
  • Fluctuations in crop supply due to poor weather
  • Increased distribution costs from strengthened regulations
  • Market share competition from new entrants
  • Risk of declining consumer trust due to food safety issues
  • Distribution restrictions and supply-demand imbalances amid COVID-19
  • Market fluctuations from competitors' delays in digitalization and efficiency
  • Logistics delays from transportation infrastructure disruptions
  • Long-term destabilization of agricultural environments due to climate change
  • Uncertainty in demand from changes in consumer food preferences
  • Profitability risks from volatile crop prices
  • Distribution constraints between regions and biases in production areas

Innovations

2020: Capital and Business Alliance with JR East Japan

Overview
Began exploring agricultural product mail-order logistics using rail transport to build new logistics routes.
Impact
Contributes to improved distribution efficiency and freshness retention

2020: Significant Expansion of Off-Market Transactions

Overview
Achieved off-market transactions at over 1,500 stores amid COVID-19, advancing distribution reform.
Impact
Contributes to farmer income growth and freshness retention

2020: Introduction of '100% Farm Direct' Brand Mark

Overview
Established certification system guaranteeing agricultural product safety and quality to enhance consumer reassurance.
Impact
Strengthens sales support and improves customer trust

2021: Expansion of New Collection Centers

Overview
Opened new centers in Toyama Town and Ota Ward to strengthen distribution efficiency.
Impact
Achieves expansion of distribution scale and faster logistics

2022: Enhancement of Digital Sales Platform

Overview
Expanded online sales by introducing e-commerce sites and sales management systems.
Impact
Diversifies sales channels and improves responsiveness to customer needs

2022: Introduction of Traceability Management System

Overview
Expanded system to manage production area information and distribution history for greater transparency.
Impact
Strengthens food safety and gains consumer trust

2023: Promotion of Smart Agriculture Equipment Use

Overview
Introduced environmental sensors and temperature management systems to improve logistics quality and reduce labor.
Impact
Contributes to freshness retention and cost reduction

2023: Advancement of Local Organic Produce Branding

Overview
Promotes organic produce certification acquisition and sales channel expansion through regional collaboration.
Impact
Expands market for high-value products and improves farmer revenue

Sustainability

  • Supporting farmer income growth and sustainable agriculture
  • Reducing transportation distances and CO2 emissions through direct-from-origin shipments
  • Strengthening food safety with certifications and brand marks
  • Reducing waste through logistics efficiency
  • Promoting regional revitalization and local production for local consumption
  • Promoting organic produce dissemination
  • Thorough traceable distribution connecting producers and consumers
  • Improving transparency through digitalization
  • Adopting environmentally friendly packaging materials
  • Sustainable customer education and consumer awareness
  • Supporting introduction of smart agriculture technologies
  • Building optimal distribution models tailored to regional agricultural characteristics