Feeding Asia - 日本商工会議所 · 2014. 10. 9. · Feeding Asia - Making the most of the Opportunities - Shigeki Dantani Member of the Board, Executive Vice President Sojitz

Feeding Asia - Making the most of the Opportunities -

Shigeki Dantani

Member of the Board,

Executive Vice President

Sojitz Corporation

Plenary Session Five 13th October, 2014

Copyright © Sojitz Corporation 2010 2

1. Economic and Dietary Trends in Asia

2. Japanese and Australian Policy

3. Food Value Chain and Sojitz

4. Summary and Our Proposal Supplementary Materials: Sojitz Group

1. Economic and Dietary Trends in Asia


Singapore Japan

Brunei

China Malaysia Thailand

Indonesia Philippines Vietnam Laos Cambodia Myanmar

Trends and Forecast for Per Capita GDP in Asia

Source: Japan Asean Center


Population Trends and Forecast for Asia According to Income Layer & Ratio

Source : METI report

(*) Asian Emerging countries : China, Hongkong, Taiwan, Korea, India, Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines


Production and Consumption of Agricultural Products in Asia and Around the World

(in million tons)

CY2010 CY2022 CY2010 CY2022 Growth(%)

World 677.3 802.8 667.3 803.5 20.4%Asia 257.7 308.7 282.0 335.4 18.9%World 840.7 1,027.7 848.6 1,028.5 21.2%Asia 233.2 279.1 265.1 324.0 22.2%World 451.6 524.3 447.8 524.4 17.1%Asia 405.2 467.4 385.4 442.9 14.9%World 253.9 326.8 250.8 327.2 30.5%Asia 26.5 32.1 91.6 115.8 26.4%World 58.8 72.1 58.8 72.1 22.6%Asia 13.0 17.1 14.4 20.0 38.9%World 103.6 126.4 103.6 126.4 22.0%Asia 58.3 74.5 61.0 79.8 30.8%World 80.4 106.6 80.5 106.6 32.4%Asia 23.7 32.9 25.3 38.1 50.6%

Beef

Pork

Chicken

Production Consumption

Wheat

Corn

Rice

Soybean

Source: Forecasted by Ministry of Agriculture, Forestry and Fisheries of Japan


GDP Per Capita vs Packaged Food Consumption in Asia (1999-2018)

'99

'99

'99 '99

'13

'18

'13

'18

'13 '18

'13

'18

'13

'18

0

10

20

30

40

50

60

70

80

90

100

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

（kg/per capita)

(USD/per capita)

Thailand

Philippines

Indonesia

Vietnam

Myanmar


GDP Per Capita vs Consumption of Chilled and Frozen Processed Food (1999-2018)

'99

'99

'99

'99

'13

'18

'13

'18

'13

'18

'13

'18

'13 '18

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

(kg per capita)

(USD per capita)

Philippines

Thailand

Indonesia

Vietnam

Myanmar

2. Japanese and Australian Policy


Extending Japanese Government Policy and Washoku (Japanese Food)

New Growth Strategy 2014

METI’s “Collaboration between

Agriculture, Commerce and Industry”

“Washoku; Traditional Dietary

Cultures of the Japanese,” named an

Intangible Cultural Heritage by UNESCO.


Export of Japanese Agricultural, Forestry and Fishery Products; and Food Produce Ⅰ

Export amount : USD 5,675 million (CY2013) To Asia : 73%

Exports by % of Economy (2013FY）

(Australia 65) (in millions USD)

Exports by Product (2012 vs 2020 projection)

Doubled

Source: MAFF, USD 1 = JPY 97

Target amount : USD 10,464 million (CY2020) Processed food will account for 50%.


Export of Japanese Agricultural, Forestry and Fishery Products; and Food Produce Ⅱ

To achieve projected Japanese food exports:

1) Improve the export environment

2) Promote the Japan Brand

3) Create success cases through the establishment

of model export zones/items

Support for promotion of Japanese food export

Organizations Types of support

MAFF METI

JETRO JBIC

NEXI

JFC

JICA

• information • consultation services • Financial support (loan, investment, insurance, etc.) • Economic cooperation • Monetary support for promotion of exports

Others 34 programs total (as of June 2014)

0.9

2.4

0.0

2.0

4.0

6.0

8.0

2009 2020 Source: MAFF (data: AT Kearnery)

Asian market: About 3 times larger

Global/Asian food market (Trillion USD)

7.2

3.6


Australia’s Agriculture and Food Sector in the Asian Century

Building sustainable

security in the region ✓Supporting regional and global food security through trade and technical expertise

From “Case study” of “Australia in the Asian Century – White paper” (October 2012)

Australia's agriculture & food production system

Globally competitive

Building capabilities

✓Enhance access to markets in Asia through stronger supply-chain management skills

A productive and resilient Australian

economy

✓Greater innovation through joint government and industry investment

Deeper and broader

relationships

✓Enhance private and public engagement in the region ✓Build better relationships between governments, industry and community

Operating in and

connecting to growing

Asian markets ✓ Reducing tariff and

technical barriers ✓ Reducing farm and export subsidies ✓ Strengthening supply chains

3. Food Value Chain and Sojitz


Food Value Chain and Sojitz’s Activities in Vietnam

Upstream Downstream

Primary Processing

✓Flour milling

✓Oil crushing

✓Compound feed production

Distribution/Retail

✓Distribution

✓Cold chain

✓Supermarkets

✓Convenience stores ✓Restaurants

Agricultural Production

✓Wheat

✓Corn

✓Soybeans

✓Rice

✓Coffee

Secondary Processing

✓Bread

✓Noodles

✓Confectioneries

✓Beef/pork/ chicken ✓Daily-use products

Fertilizer

✓Fertilizer

◆Sojitz’s Activities in Vietnam CBH

Group

Salim Group Japan Vietnam

Fertilizer (Manufacture and sales

of fertilizer)

Interflour Vietnam (Port/silo operations,

flour milling)

Huong Thuy Manufacture and trading (Food import/

distribution, etc.) Kyodo Sojitz Feed

(Feed production)

Long Duc Investment / Long Binh Industrial Zone Development (Development/management/operation of industrial park)

20%

80% Interflour

4. Summary and Our Proposal


Summary and Our Proposal

Australia and Japan are…

- Synergetic and complimentary partners.

In such fields as…

- Stable supply / value-added supply chain / the food processing

industry / marketing/ branding.

To be specific…

- Year-round supply.

- Matching Australian grain and agricultural products with

Japanese processing and supply chain management techniques.

- Promotion of safe and secure, ingredients for Australian

and Japanese cuisine, e.g. by utilizing washoku.

Supplementary Materials

Sojitz Group


The History of Sojitz Group

Nissho Company 1902 Suzuki & Co., Ltd. established

Iwai Sangyo Company 1896 Iwai & Co., Ltd. established

Nichimen Corporation 1892 Japan Cotton Trading Co., Ltd. established

Nissho Iwai Corporation 1968 Nissho Company and Iwai Sangyo

Company merged

2003 Nissho Iwai-Nichimen Holdings Corporation established through the transfer of shares by Nichimen Corporation and Nissho Iwai Corporation, which become its subsidiaries

1982 Company name changed to Nichimen Corporation

2004 Subsidiaries Nichimen Corporation and Nissho Iwai Corporation merged to form Sojitz Corporation Name of holding company changed to Sojitz Holdings Corporation

2005 Sojitz Holdings Corporation merged with subsidiary Sojitz Corporation and company name changed to Sojitz Corporation

2014 10th Anniversary of Sojitz Corporation


Sojitz Group's Global Network

Number of Branches & Offices Domestic: 7 Overseas: 89

Number of Subsidiaries & Affiliates Domestic: 118 Overseas: 311

Number of Employees Non-consolidated: 2,282 Consolidated: 16,130

(As of June 30, 2014)

The Sojitz Group is a general trading company with a worldwide network comprising over 400 group companies

and operations in some 50 countries.


Sojitz Organizational Chart

General Shareholders’ Meeting

Administration Departments. Board of Directors

President & CEO

Board of Corporate Auditors

Corporate Auditors

Machinery Division

・Automotive Unit

・Infrastructure Project & Industrial Machinery Unit

・Marine & Aerospace Unit

Energy & Metal Division

・Energy Unit

・Metal & Utility Unit

Consumer Lifestyle Business Division

・Foods & Agriculture Business Unit

・Forest Products & Lifestyle Unit

Chemicals Division

・Chemicals Unit

・Ecological Materials & Resources Unit

(As of April 1, 2014)

Businesses

Foods & Agriculture Business Unit

Grains and feed materials Foodstuffs Agribusiness


NORTHERN TERRITORY

WESTERN AUSTRALIA

SOUTH AUSTRALIA

QUEENSLAND

TASMANIA

NEW SOUTH WALES

VICTORIA

★ Canberra

● Sydney

● Perth

● Melbourne

Salt Planster Produce

Dampier Salt Limited

Worsley Alumina Refinery Southdown Iron Ore Mine

• Moolarben • Wyong

Coal Mines

Coal Mines

• Jellinbah East • Minerva • Athena • Lake Vermont • Yamala

Plantation

• GPFL 6,200ha

Machinery Division

Energy & Metal Division

Chemicals Division

Consumer Lifestyle Business Division

Sojitz’s Business in Australia

Rare Earths Produce

Lynas Corporation Limited

Documents

Feeding Asia - 日本商工会議所 · 2014. 10. 9. · Feeding Asia - Making the most of the Opportunities - Shigeki Dantani Member of the Board, Executive Vice President Sojitz