Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segment
Strategy by Business Segment
Agri-Marine Products Division
✔ Leveraging strengths in raw ingredients
procurement to optimal effect
During the past fiscal year, the division’s consolidated net income declined as
we liquidated marine product-related affiliates and took other measures that
led to the booking of one-time losses. Now that an end to actions to deal with
problematic projects is in sight, the conditions are ripe for a sharp recovery in
performance beginning in the current fiscal year. By leveraging fully the
division’s dominant industry position in the procurement of raw ingredients,
we plan to promote product development and its efficient distribution
that meet consumer needs, as we strive to establish a value chain
from raw ingredients procurement to end product supply.
Division Strategies and Strengths
Tetsuro Sakamoto
Corporate Vice President, COO
Marubeni has traditionally maintained a strong presence in
grain trading. Turnover in wheat and corn is the highest of any
general trading company, and Marubeni’s record in soybean
trading also ranks it near the top in this area. Grains are a
fundamental ingredient for the food industry, making stable
supplies all the more important. The division’s in-house procurement
function includes Columbia Grain International, Inc.,
(CGII), one of the largest grain procurement and export bases
on the U.S. West Coast. At the same time, the division is also
focusing on developing Marubeni’s grain procurement network
by trading with some of the U.S.’ most prominent names in the
field. Among its actions, the division has concluded a strategic
alliance with major grain supplier Archer Daniels Midland Company
(ADM) that covers the production, import and marketing
of feed grains and oilseeds, and forged a business alliance with
grain processor and food products giant General Mills, Inc. in
order to expand its grain procurement network. In Japan, the
division maintains a leading grain silo network, operates
Marubeni Nisshin Feed Co., Ltd., the country’s leading privatesector
feed compounding company, and is moving ahead with
greater integration of distribution channels linking producing
regions overseas to supply points in Japan.
As Japan’s socioeconomic structure matures, the country’s
food market is becoming increasingly consumer-oriented.
Marubeni has positioned food retail distribution as a priority
investment field, and is constructing a value chain by channeling
feedback on consumer needs into upstream areas through
initiatives targeting downstream sectors close to the consumer.
In this vein, Marubeni previously entered capital alliances
with The Maruetsu, Inc. and Tobu Store Co., Ltd., two
leading supermarket operators in Japan’s Tokyo Metropolitan
Area. In March 2005, Marubeni also developed a capital partnership
with The Daiei, Inc. (Daiei), one of Japan’s largest
supermarket chains, and will take part in management as
Daiei’s corporate rehabilitation sponsor. The scope of this partnership
with Daiei will span the entire Marubeni Group, and the
Agri-Marine Products Division will play a central role. As it
does, the division aims to move briskly to push forward management
reforms at Daiei, achieve that company’s corporate
rehabilitation goals, and boost its corporate value.