Berg Earth co.,ltd.
1383・Standard Market・Fishery, Agriculture & Forestry
Business
Berg Earth Co., Ltd. is an agriculture-related company whose core business is the production and sale of grafted vegetable seedlings, mainly fruiting vegetables such as cucumbers, tomatoes, and eggplants. Its customers include vegetable-producing regions and mass retailers such as home centers nationwide, and it has built a nationwide production network combining directly operated farms and contracted partner farms. The company also operates an agricultural and horticultural seed materials sales business (purchase and sale of agricultural materials and seeds) and a retail business (two comprehensive gardening stores), and meets the agricultural sector's needs for division of labor and labor-saving through a group structure of 11 companies. Consolidated net sales for FY2025 (ending October 2025) were ¥7,303 million, with the vegetable seedling and seedling-related business accounting for approximately 87% of net sales.
Business Model
A "division of labor in agriculture" model that professionally substitutes for the seedling-raising process that farmers used to handle in-house. The company produces high-quality seedlings using its proprietary root-cutting grafting technology and closed-type seedling-raising facilities, achieving stable year-round supply through a division-of-labor structure combining directly operated farms (Ehime, Fukushima, Ibaraki, Nagano, etc.) and partner farms. It aims to raise unit prices through original products such as Earth Straight seedlings and Virus Guard seedlings, while also pursuing cross-selling through its agricultural materials sales and retail businesses.
Company Strengths
Rootless grafting of solanaceous vegetables requires extensive experience to master, and few seedling producers are said to perform it. The company has established a proprietary cultivation method, improving efficiency through a production system in which grafting work is consolidated at the head office farm before being expanded to secondary seedling-raising sites. Including the closed-type seedling facility introduced in 2006, technical entry barriers function to exclude competitors.
The company has a track record of deliveries to seven regions nationwide, from Hokkaido and Tohoku to Kyushu and Okinawa, achieving vegetable seedling sales of ¥6,380 million in FY2025 (ending October 2025). The Tsurusawa Farm, which began operations in March 2025, has expanded production capacity for the Kanto region and areas further north. The order backlog stood at ¥608 million, up 14.6% year on year, reflecting continued demand growth.
Sales of original proprietary products such as Earth Straight seedlings, Virus Guard seedlings, high-graft high-leg seedlings, and Twin seedlings reached ¥2,275 million (up 8.9% year on year), showing a growth rate exceeding that of overall sales. Research and development of plant vaccine-inoculated seedlings is also underway, driving the expansion of high-value-added products that do not rely on chemical pesticides.
ENVALITH's Perspective
Performance Trend
Net sales for the first half (H1) of FY2026 (ending October 2026) (November 2025–April 2026) were ¥3,496 million (up 9.1% year on year), accelerating from the 1.4% increase recorded in the same period a year earlier. The consolidation of PSP, full-year operation of the Bergu Fukushima Tsurusawa Farm, expansion in demand for watermelon seedlings, and progress in price pass-through all contributed in combination. Operating loss was ¥43 million, a substantial improvement from a loss of ¥232 million in the same period a year earlier. The gross profit margin was flat at 20.0% (20.0% in the same period a year earlier), but relative restraint in SG&A expenses drove the improvement in earnings. The full-year forecast remains unchanged at net sales of ¥8,000 million, operating profit of ¥110 million, and net income of ¥54 million. Over the past five fiscal years, operating profit/loss had been chronically in the red, aside from a profit of ¥77 million in FY2023, but with the entrenchment of price pass-through and expansion of production capacity, the earnings structure is entering a phase of improvement.
Growth Strategy
Building a food value chain by deepening into adjacent areas such as seed coating processing, based on strengthening the profitability of the seedling business
Promoting expanded production capacity and higher in-house production ratio through year-round operation of the Berg Fukushima Tsurusawa Farm. Continued appropriate price pass-through led the vegetable seedlings/seedling-related business segment to turn profitable with a segment profit of ¥177 million in the interim period of FY2026 (ending October 2026). Efforts to strengthen responses to items with growing demand, such as watermelon seedlings, are also progressing.
Made PSP Corporation (Pi-E-Es-Pi Kabushiki Kaisha) a wholly owned subsidiary effective December 31, 2025 (acquisition consideration: ¥1). Incorporated the company's seed coating processing technology (capable of handling large-volume, small-volume, and difficult-to-process items) and the PeSP seedling brand into the group, contributing early to improved profitability in the agricultural and horticultural seed materials sales business. Recorded goodwill of ¥73,632 thousand (provisional), to be amortized equally over five years.
Promoting sample-work sales activities for Musashino Tane Co., Ltd.'s private-brand variety seeds and original fertilizers. Aiming to enrich the product lineup through stronger collaboration with agriculture-related manufacturers, and to build an integrated value chain spanning seedling sales through seeds, materials, and processing technology.
Strengthened the financial base by expanding the number of transacting banks from six to seven and increasing the overdraft credit limit from ¥900,000 thousand to ¥1,100,000 thousand. While utilizing temporary staffing to address labor shortages during peak seasons, the company is also promoting the development of a mid- to long-term system for training and securing skilled technicians.
Last updated: July 17, 2026