KANEKO SEEDS CO., LTD.

Business Details

The company engages in the contract production, procurement, and sale of Vegetable Seeds (in-house developed varieties of onion, pumpkin, cabbage, etc.), Forage & Feed Crop Seeds, and Virus-Free Seedlings & Seed Potatoes, and also undertakes Landscaping & Slope Protection Construction Contracting. While primarily serving domestic farmers and agricultural corporations, the segment also conducts overseas seed production and sales through consolidated and non-consolidated subsidiaries in the Philippines and Thailand. It is one of the group's core businesses, accounting for approximately 14.1% of consolidated net sales.

Recent Overview

Higher revenue but profit declined 3.0% year on year due to yen depreciation and increased seed disposal

In the Seeds & Seedlings Business for FY2026 (ending May 2026), net sales reached ¥9,573 million (up 1.0% year on year), driven by steady progress in onion seed exports and domestic sales, progress in introducing spinach and zucchini to production areas, and growth in forage crop seed sales. On the other hand, rising overseas seed production prices due to yen depreciation and increased disposal of quality-degraded seeds pushed up costs, resulting in segment profit of ¥531 million (down 3.0% year on year). For the next fiscal year, the company expects increased sales of vegetable seeds, forage crop seeds, and green manure crop seeds, centered on exports.

Key Products

Growth Drivers

• Expansion of exports of onion, pumpkin, and cabbage seeds (progress in variety development for Southeast Asia and South Asia)
• Increased sales of forage crop seeds and green manure crop seeds against a backdrop of growing demand for domestically produced feed
• Expansion of domestic vegetable seed demand through progress in introducing spinach, zucchini, etc. to production areas
• Steady domestic vegetable seed demand supported by rising awareness of food security
• Strengthened production cost management and stable supply through overseas seed production bases (Philippine and Thai subsidiaries)
• Promotion of global variety development under the "high-tech and internationalization" policy of the new medium-term management plan

Risks

• Cost pressure from rising overseas seed production prices due to continued yen depreciation
• Risk of rising cost ratio due to increased disposal of quality-degraded seeds
• Cost pressure from insufficient pass-through of rising import prices for forage crop seeds
• Timing uncertainty in sales recognition for overseas seed exports due to disruptions in international logistics causing quarter-to-quarter shifts
• Risk of poor harvests and quality deterioration at seed production sites due to global warming and climate change
• Long-term risk of shrinking domestic demand due to the aging of farmers and shortage of successors