May 22, 2024
Reference
Materials
Code number: 2001
NIPPN CORPORATION
https://www.nippn.co.jp/en/index.html
Table of Contents
1. | Basic Knowledge of the Flour Milling Industry | ・・・ | P3 |
2. | Current State of the Flour Milling Industry (1) - (5) | ・・・ | P4 |
3. | Wheat Price Revision Rules - Imported Wheat | ・・・ | P9 |
4. | Factors and Mechanisms That Cause Wheat Flour | ||
Prices to Fluctuate (1) - (4) | ・・・ | P10 | |
5. | Changes in Government Selling Prices (1) - (2) | ・・・ | P14 |
6. Government Selling Prices of Imported Wheat for the
Period Ended April 2024 | ・・・ | P16 | |
7. | Current Status of Wheat Bran Market (1) - (2) | ・・・ | P17 |
8. Progress of International Trade Negotiations -
Our Response | ・・・ | P19 | |
9. | Growing Calendar for Wheat | ・・・ | P20 |
10. | NIPPN Company Profile | ・・・ | P21 |
11. | NIPPN Group Overview | ・・・ | P22 |
12. | NIPPN's History | ・・・ | P23 |
13. | Main Business Locations | ・・・ | P24 |
14. | Changes in Operating Results (1) - (2) | ・・・ | P25 |
15. | Business Segments | ・・・ | P27 |
16. | Flour Milling Business | ・・・ | P28 |
17. | Food Business (1) - (3) | ・・・ | P29 |
18. | Other Business | ・・・ | P32 |
19. | Overseas Business | ・・・ | P33 |
20. | Corporate Governance Structure | ・・・ | P34 |
2
Basic Knowledge of the Flour Milling Industry
Yokohama Plant
Current State of the Flour Milling Industry
Wheat Price Revision Rules - Imported Wheat
Factors and Mechanisms That Cause Wheat Flour Prices to Fluctuate
Changes in Government Selling Prices
Wheat fields in the U.S.
Chicago Board of Trade
Government Selling Prices of Imported Wheat for the Period Ended April 2024
Current Status of Wheat Bran Market
Progress of International Trade Negotiations - Our Response
Growing Calendar for Wheat
3
Current State of the Flour Milling Industry (1)
Number of flour milling companies and plants
Changes in the volume of wheat processed for domestic
flour milling
Million tons
95 | ||||||||||||||||||||
90 | ||||||||||||||||||||
88 | ||||||||||||||||||||
83 | ||||||||||||||||||||
81 | ||||||||||||||||||||
77 | ||||||||||||||||||||
74 | ||||||||||||||||||||
118 | 114 | 72 | ||||||||||||||||||
66 | ||||||||||||||||||||
109 | 104 | 102 | 64 | 63 | ||||||||||||||||
98 | ||||||||||||||||||||
95 | ||||||||||||||||||||
42 | 93 | |||||||||||||||||||
42 | 87 | |||||||||||||||||||
39 | 86 | |||||||||||||||||||
39 | 38 | 85 | ||||||||||||||||||
37 | 36 | 36 | ||||||||||||||||||
36 | 36 | |||||||||||||||||||
35 | 36 | |||||||||||||||||||
32 | 29 | |||||||||||||||||||
27 | 27 | |||||||||||||||||||
27 | ||||||||||||||||||||
27 | 27 | |||||||||||||||||||
10 | 10 | 10 | 27 | 27 | ||||||||||||||||
10 | 9 | 8 | 8 | 23 | ||||||||||||||||
7 | ||||||||||||||||||||
7 | 7 | 7 | ||||||||||||||||||
31 | 30 | 31 | 28 | 28 | 26 | 24 | 23 | |||||||||||||
17 | 16 | 15 | ||||||||||||||||||
Number of companies
Number of
plants
7.00
Wheat produced in | |
Japan | |
6.00 | |
5.00 | |
4.00 | |
3.00 | |
Wheat produced in | |
2.00 | foreign countries |
1.00 | |
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal year
Less than 50 50~less than 100 100~less than 200 200 or more
Unit: tons (daily production capacity)
0.00 | |||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Fiscal year
Flour Milling Industry Share (FY2023) | Percentage by country of origin | ||||||||||
(average import volume from FY2019 to FY2024) | |||||||||||
(Survey by Nikkan Keizai Tsushin Co., Ltd.) | Produced in | (From Trade Statistics of Japan, | |||||||||
Ministry of Finance) | |||||||||||
Japan | |||||||||||
Other | Nisshin Flour | Produced in Australia | |||||||||
Milling Inc. | 17.5% | Produced in the United | |||||||||
States of America | |||||||||||
20.1% | 39.1% | ||||||||||
Big Four | |||||||||||
Companies | 13.8% | 38.2% | |||||||||
NIPPN | |||||||||||
79.9% | |||||||||||
CORPORATION | |||||||||||
24.4% | Showa Sangyo | 9.3% | Produced in | ||||||||
Canada | |||||||||||
Co., Ltd. | |||||||||||
7.1% | 30.4% | ||||||||||
Nitto Fuji Flour | |||||||||||
Milling Co.,Ltd. |
4
Current State of the Flour Milling Industry (2)
D i s t r i b u t i o n o f w h e a t i n J a p a n
Produced | Private Sector Distribution Liaison | ||
in Japan | Council | ||
Producers' organizations and actual consumers jointly | |||
Production volume: | exchange information and determine the structure of | ||
approx. 1 million tons | private distribution transactions. | ||
Number of wheat farmers: | Private Circulation | ||
approx. 100,000 | |||
Flour milling company
(63 companies)
Producing area
councils
Promote the setting of quality improvement and production cost reduction targets and their implementation with the participation of producers, consumers, extension organizations, municipalities, etc.
Bidding transactions approx. 30%
Relative transactions approx. 70%
Demand:
approx. 5.46 million tons
(Estimated for
FY2024)
Produced in
foreign
countries
Total imports: approx. 4.55 million tons
U.S.A.
Approx. 2.27 million tons
Canada
Approx. 1.59 million tons
Australia
Approx. 0.69 million tons
Others
Imported
centrally by the
government
through national
trade
Government (Ministry of Agriculture,
Forestry and Fisheries)
- Imports of wheat varieties that are in short supply in Japan and wheat varieties for which domestic wheat cannot be used due to quality
・Marginal gain from imports of foreign wheat are used to subsidize domestic wheat production
Soy sauce
companies,
etc.
Sell
Demand:
approx. 100,000
tons
Survey by Ministry of Agriculture, Forestry and Fisheries
5
Current State of the Flour Milling Industry (3)
Protein content
Main raw wheat
types used
Brand name
Flour for bread | |
Main | Flour for |
noodles | |
applications | |
Flour for | |
confectionery | |
Home use | |
Industrial use | |
Other | |
F l o u r | T y p e s | a n d | U s e s | ||||
Bread flour | All purpose flour | Pastry flour | Cake flour | Durum semolina | |||
11.5 ー 13.0% | 10.5 - 12.5% | 7.5 - 10.5% | 6.5 - 9.0% | 11.0 - 14.0% | |||
Dark Northern Spring | Hard Red Winter | Standard White | |||||
(DNS) | (HRW) | (ASW) | Western White | Durum | |||
Western Red Spring | Prime Hard | Wheat produced in | (WW) | (DRM) | |||
(1CW) | (PH) | Japan | |||||
DNS | HRW | ASW | WW | DRM | |||
1CW | PH | ||||||
Loaf of bread | Loaf of bread | Udon noodles | Castella | Spaghetti | |||
Sweetened bread | Hiyamugi, somen | Cakes | Macaroni | ||||
French bread, etc. | noodles | Japanese | |||||
Cookies | confectionery | ||||||
Chinese-style | |||||||
Japanese | Tempura flour | ||||||
noodles | |||||||
confectionery | Cookies | ||||||
Yakifu, karinto, gluten, starch | Snacks, starch glue |
Baking adhesive (industrial use), feed
(Based on materials from the Ministry of
Agriculture, Forestry and Fisheries of Japan)
6
Current State of the Flour Milling Industry (4)
Breakdow n of Wheat Flour Production
Wheat distribution volume: approx. 5.6 million tons
(Wheat produced in Japan: approx. 0.97 million tons)
(Wheat produced in foreign countries: approx. 4.52 million
tons)
From the outlook on wheat supply and demand for FY2025
Annual flour consumption per capita ≒ 31.7 kg
Wheat flour:
approx. 80%
Wheat Bran:
approx. 20%
Raw grain silos
Wheat flour | |
Industrial use 1% | For feed, etc. 13% |
Home use 3% | |
For bread 40% | |
For confectionery 11% | |
For noodles 33% | |
From the summary of the survey of flour milling plants for FY2023 |
Wheat Bran (for feed)
Wheat Bran
7
Current State of the Flour Milling Industry (5)
The Current State of Japanese Agriculture - Background
o f | W h e a t | S y s t e m | R e f o r m |
(1) Decline in food self- | sufficiency rate | (2) Decrease in farmer population |
1990 | 2022 | ||
Self-sufficiency rate of staple grains | 67% → | 61% | |
Food self-sufficiency ratio based on the total calorific value supplied | 48% → | 38% | |
Import | 63% | ||
Produced | 37% | ||
in Japan |
Changes in farm population, etc.
Million | Farm population (farm household | ||||
people | members) | ||||
13.88 | Farm employment population | ||||
Core agricultural workers | |||||
15.00 | |||||
10.00 | |||||
5.00 | 4.82 | 2.93 | 3.49 | ||
2.49 | 1.36 | ||||
0.00 | |||||
1990 | 2020 (approximate) |
(3) Progressive aging of farm households | (4) Increase in abandoned lands |
Percentage of Core Agricultural Workers by Age Group
26.8% | 12.2% | 4.9% | 25.5% |
69.6% | |||
61.0% | Under 39 years old | ||
65 years old or older | |||
40~64 years old | |||
1990 | 2020 (approximate) |
Abandoned land area
Ten thousands
hectares
50
40
30
20 | 42 |
10 | 22 |
0
19902015
Source: Ministry of Agriculture, Forestry and Fisheries, "Census of Agriculture and Forestry"
8
Wheat Price Revision Rules - Imported Wheat
Government purchase price (variable) Announced monthly ・Weighted average price for the last 6 months*
(*) Last 6 months: September of the previous year to March of the current year in the
case of the April revision
March of the current year to September of the current year in the case of October revision
+
Markups (marginal gain from import) Yearly fixed ・Domestic wheat production promotion measures
appropriation + government administrative expenses
+
Port fees | Yearly fixed |
・Suction fees, etc.
Makea decision | Government selling prices |
The Ministry of Agriculture, Forestry and Fisheries states that pricerevisions are to be carried out twice a year in principle in order to mitigate the effects of fluctuations in international markets.
Chicago Wheat Market Trends
(Dollars/bushels)
Source: Reuters/ES=Jiji Press
Note: CBOT (Chicago Board of Trade) near-month prices for each weekend of the week
Trends in Wheat Supply and Demand
Production and Consumption | Inventory ratio at end | |
(million tons) | of period |
Production
Consumption
Inventory ratio atend of period
Optimal inventory level: 25-26%
Source: USDA, "Grain World Market and Trade"
Trends in marine freight, crude oil, and exchange rates
Marine freight | Crude oil | Exchange rate | 160 |
140 | |||
120 | |||
100 | |||
80 | |||
60 | |||
40 | |||
20 | |||
0 |
Source : World Maritime analysis, Nihon Keizai Shimbun | Dollars per barrel (crude oil price) |
: Overseas Economic Data, Cabinet Office, | Yen/dollar (exchange rate) |
Government of Japan | Dollars per ton (shipping costs) |
9
Factors and Mechanisms That Cause Wheat Flour Prices to Fluctuate (1)
Institutional
factors
Changes to the sales system for imported wheat
Introduction of a system linked to market prices
Introduction of the SBS system
Impact of changes in the demand structure on food production, | Weather | ||
etc. | factors | ||
Unseasonable | |||
Increasing demand | Rise in the price of | Economic development | weather |
and population growth in | |||
for bioenergy | corn | Drought | |
developing countries | |||
Floods, etc. | |||
Switching from wheat | Increased demand for | Increase in demand | Change in |
to corn and other | wheat as feed in the | ||
for food | circumstances | ||
crops | United States | ||
Political instability in | |||
Decrease in wheat | exporting countries | ||
Decrease in wheat production | such as Russia and | ||
stocks | |||
Ukraine, etc. | |||
R i s e i n t h e p r i c e o f w h e a t |
Economic factors
Exchange rate
High price of
crude oil
Rise in marine
freights
Inflow of
speculative
funds
Export
controls
Change in Circumstances (Part 1)
Increased wheat | Recovery of |
production due to | |
wheat stocks | |
weather and price | |
conditions |
Change in Circumstances (Part 2)
Reduction of tariffs and
markups due to the TPP11, Japan-US trade agreement, etc.
Change in Circumstances (Part 3) | ||
Such as the COVID-19 | Global | Withdrawal |
of | ||
and the Chinese default | economic | |
speculative | ||
issue | slowdown | funds |
F a l l i n t h e p r i c e o f w h e a t
10
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Nippn Corporation published this content on 19 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2024 07:51:05 UTC.