Feeding Asia. - Making the most of the Opportunities - Shigeki Dantani Member of the Board, Executive Vice President Sojitz Corporation

Transcription

1 Plenary Session Five 13 th October, 2014 Feeding Asia - Making the most of the Opportunities - Shigeki Dantani Member of the Board, Executive Vice President Sojitz Corporation

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 Copyright Sojitz Corporation

3 1. Economic and Dietary Trends in Asia

4 Trends and Forecast for Per Capita GDP in Asia Singapore Japan Brunei China Malaysia Thailand Indonesia Philippines Vietnam Laos Cambodia Myanmar Source: Japan Asean Center Copyright Sojitz Corporation

5 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 Copyright Sojitz Corporation

6 Production and Consumption of Agricultural Products in Asia and Around the World Wheat Corn Rice Soybean Beef Pork Chicken (in million tons) Production Consumption CY2010 CY2022 CY2010 CY2022 Growth(%) World % Asia % World , , % Asia % World % Asia % World % Asia % World % Asia % World % Asia % World % Asia % Source: Forecasted by Ministry of Agriculture, Forestry and Fisheries of Japan Copyright Sojitz Corporation

7 GDP Per Capita vs Packaged Food Consumption in Asia ( ) (kg/per capita) Indonesia '13 '18 '13 '18 Thailand '18 Vietnam '99 '99 '13 '18 '13 '13 Myanmar '18 Philippines 10 0 '99 '99 (USD/per capita) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Copyright Sojitz Corporation

8 GDP Per Capita vs Consumption of Chilled and Frozen Processed Food ( ) 4.0 (kg per capita) '13 '18 Philippines 2.5 Thailand 2.0 '99 ' '13 Vietnam '18 '18 Indonesia '13 '13 '99 '99 (USD per capita) '18 Myanmar '13 0 '99 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Copyright Sojitz Corporation

9 2. Japanese and Australian Policy

10 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. Copyright Sojitz Corporation

11 Export of Japanese Agricultural, Forestry and Fishery Products; and Food Produce Ⅰ Export amount : USD 5,675 million (CY2013) To Asia : 73% Target amount : USD 10,464 million (CY2020) Processed food will account for 50%. Exports by % of Economy (2013FY) (Australia 65) (in millions USD) Exports by Product (2012 vs 2020 projection) Doubled Source: MAFF, USD 1 = JPY 97 Copyright Sojitz Corporation

12 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 JBIC NEXI JFC MAFF JETRO METI JICA Others Types of support information consultation services Financial support (loan, investment, insurance, etc.) Economic cooperation Monetary support for promotion of exports 34 programs total (as of June 2014) Global/Asian food market (Trillion USD) Asian market: About 3 times larger Source: MAFF (data: AT Kearnery) 7.2 Copyright Sojitz Corporation

13 Australia s Agriculture and Food Sector in the Asian Century Greater innovation through joint government and industry investment Enhance private and public engagement in the region Build better relationships between governments, industry and community Supporting regional and global food security through trade and technical expertise A productive and resilient Australian economy Deeper and broader relationships Australia's agriculture & food production system Globally competitive Building capabilities Building sustainable security in the region Operating in and connecting to growing Asian markets Enhance access to markets in Asia through stronger supply-chain management skills Reducing tariff and technical barriers Reducing farm and export subsidies Strengthening supply chains From Case study of Australia in the Asian Century White paper (October 2012) Copyright Sojitz Corporation

14 3. Food Value Chain and Sojitz

15 Food Value Chain and Sojitz s Activities in Vietnam Upstream Downstream Fertilizer Agricultural Production Primary Processing Secondary Processing Distribution/ Retail Fertilizer Wheat Corn Soybeans Rice Coffee Sojitz s Activities in Vietnam CBH Group Japan Vietnam Fertilizer (Manufacture and sales of fertilizer) Salim Group Interflour 80% 20% Flour milling Oil crushing Compound feed production Interflour Vietnam (Port/silo operations, flour milling) Bread Noodles Confectioneries Beef/pork/ chicken Daily-use products Distribution Cold chain Supermarkets Convenience stores Restaurants 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) Copyright Sojitz Corporation

16 4. Summary and Our Proposal

17 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. Copyright Sojitz Corporation

18 Supplementary Materials Sojitz Group

19 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 1982 Company name changed to Nichimen Corporation 2003 Nissho Iwai-Nichimen Holdings Corporation established through the transfer of shares by Nichimen Corporation and Nissho Iwai Corporation, which become its subsidiaries 2005 Sojitz Holdings Corporation merged with subsidiary Sojitz Corporation and company name changed to Sojitz Corporation 2004 Subsidiaries Nichimen Corporation and Nissho Iwai Corporation merged to form Sojitz Corporation Name of holding company changed to Sojitz Holdings Corporation th Anniversary of Sojitz Corporation Copyright Sojitz Corporation

20 Sojitz Group's Global Network The Sojitz Group is a general trading company with a worldwide network comprising over 400 group companies and operations in some 50 countries. 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) Copyright Sojitz Corporation

21 Sojitz Organizational Chart General Shareholders Meeting Board of Directors President & CEO Board of Corporate Auditors Corporate Auditors Administration Departments. Machinery Division Automotive Unit Infrastructure Project & Industrial Machinery Unit Marine & Aerospace Unit Energy & Metal Division Energy Unit Metal & Utility Unit Foods & Agriculture Business Unit Businesses Grains and feed materials Foodstuffs Agribusiness Chemicals Division Chemicals Unit Ecological Materials & Resources Unit Consumer Lifestyle Business Division Foods & Agriculture Business Unit Forest Products & Lifestyle Unit (As of April 1, 2014) Copyright Sojitz Corporation

22 Sojitz s Business in Australia Machinery Division Coal Mines Energy & Metal Division Chemicals Division Jellinbah East Minerva Athena Lake Vermont Yamala Consumer Lifestyle Business Division NORTHERN TERRITORY Lynas Corporation Limited Rare Earths Produce WESTERN AUSTRALIA SOUTH AUSTRALIA QUEENSLAND Moolarben Wyong Coal Mines Dampier Salt Limited Perth NEW SOUTH WALES Salt Planster Produce Worsley Alumina Refinery Southdown Iron Ore Mine VICTORIA Melbourne TASMANIA Sydney Canberra GPFL 6,200ha Plantation Copyright Sojitz Corporation