Contribution to the food value chain

04Contribution to the food value chain

Working with customers to refine our technologies, products, and services for enhanced value

Global demand for oils and fats is increasing, and as society and the environment change, people are using oils and fats more frequently and in different ways. The Nisshin OilliO Group uses technology to further enhance the value of plant resources and to collaborate with customers to achieve the solutions society needs. We contribute to the food value chain by creating value and consistently providing products and services that engender a sense of security.

Shared values

  • Contribute to the advancement of domestic food and animal production industries by providing a stable supply of oils, fats, and meal.
  • Work with customers to expand solutions by creating new functions and uses for oils and fats and other plant resources.
  • Maximize the functions of oils and fats to prevent edible food from being thrown away.
  • Utilize plant resources to satisfy new preferences and ensure a stable supply of food.

CSV goals for FY2030

Solutions that pursue user benefits in the BtoB market

210%

(FY2028)

Profit growth rate of the Global Oil & Fat and Processed Oil & Fat business (compared with FY2023)

Establishment of production and marketing infrastructure in three global regions: North America, Europe, and Asia

(FY2028)

Capital investment and policy advancement in the Global Oil & Fat and Processed Oil & Fat business

175%

(FY2028)

Profit growth rate of confectionery fats (compared with FY2023)

130%

(FY2028)

Profit growth rate of marketing-based functional products* for the domestic BtoB market (compared with FY2023)

Stable supply of oils, fats, and meal that underpin the diet in Japan

5.5%

(FY2028)

ROIC of the Oil, Fat & Meal and Processed Food & Materials business

Reconstruction of an optimal supply system for oils, fats, and meal for the next 50 years (before 2035)

Maintenance and establishment of stable supply systems for oils, fats, and meal with an eye on future demand trends

*
Product groups that have the potential to increase profits and improve profit margin to achieve an ROIC of 7%, which is one of the performance targets of Vision 2030

Social environment and issues

  • International competitiveness of the domestic oilseed processing business will decline due to the progress of TPP and other trade agreements, and the intensification of international competition in securing food resources.
  • Consumers’ and corporations’ desire for new products and value will increase.
  • Japan will face labor shortages as the working-age population declines.
  • Efforts to address global food shortages and food loss will intensify.
  • Industries that underpin the food supply will develop in countries and regions with growing populations and middle-income brackets.

Impact on the Group ▲: Risk ●: Opportunity

  • ▲ Reduced profitability of the oilseed processing business due to contracting domestic animal production industry and competition from imported meal.
  • ● Oils and fats must fulfill more sophisticated functions and roles, mainly to address labor shortages and food loss.
  • ● Providing products and services that contribute to resolving societal issues leads to expanded business opportunities.
  • ● In developing countries, the food industry can develop and lead to business opportunities.
  • ● Advances in alternative food production technologies expand options for food production schemes.

Specific efforts to resolve issues

  • Promoting alliance strategies and other measures to ensure the sustainability of the oilseed processing business.
  • Implementing innovative sales processes to strengthen continuous development and proposals to resolve the ever-changing issues of customers.
  • Developing applications to combine oils and fats with other materials to develop new foods, raw materials for food processing, and more.
  • Advancing technological development for maintaining flavor and extending “best before” dates.
  • Working on alternative lipid production by striving to establish new food production schemes, acquire new oilseed resources and functional materials, and the like.
  • Responding to new trends in food (e.g., replacing meat and dairy with plants to meet continually growing demand) to fulfill expectations to help eliminate food shortages in the future.