CHUBUSHIRYO CO.,LTD.

Business Details

The segment's core business is the manufacture and sale of livestock feed (for poultry, hogs, and cattle) and aquaculture feed. It depends heavily on imported grains for feed raw materials, giving the business a structure in which grain market prices, foreign exchange rates, and ocean freight rates directly affect earnings. Consolidated subsidiary Toyo Suisan handles R&D for aquaculture feed and fishery product production, while equity-method affiliates Mirai Feed and Sanko Chubu Feed (Shandong) complement livestock and aquaculture feed manufacturing and sales. This segment accounts for roughly 90% of consolidated net sales, making it the core business.

Recent Overview

Segment profit rose sharply, up 63.9% year on year, on higher sales volume and improved raw material positioning

In the Feed segment for FY2026 (ending March 2026), revenue was ¥191,181 million (down 0.1% year on year) due to a decline in average selling prices, while segment profit rose sharply to ¥6,486 million (up 63.9% year on year). Livestock feed benefited from increased sales volume driven by expanded sales of poultry and hog feed and improved margins from better raw material positioning. Aquaculture feed also saw higher profit from increased sales volume, lower raw material market prices, margin improvement from revised formulations, and rising fishery product prices. Note that in response to rising corn prices from the summer onward and the rapid depreciation of the yen from autumn onward, the company raised compound feed prices in January.

Key Products

Growth Drivers

• Increased sales volume from expanded sales of poultry and hog feed
• Improved profit margins from better raw material positioning
• Strengthened earnings power through a higher proportion of differentiated and environmentally conscious feed
• Introduction of new products in aquaculture feed through expanded sales of low-fishmeal/fishmeal-free feed and revised formulations
• Enhanced product competitiveness (new product development and improvement of existing products) leveraging hog, cattle, and aquaculture research facilities
• Improved profitability by using an ROIC tree to break down management issues by department

Risks

• Risk of rising raw material costs due to fluctuations in imported grain (corn, etc.) market prices
• Risk of increased import costs from a weaker yen
• Risk of feed price stabilization fund contributions remaining elevated or increasing further
• Risk of a sharp decline in livestock demand due to outbreaks of diseases such as avian influenza or African swine fever
• Risk of profit pressure from rising depreciation expenses associated with aggressive capital investment
• Risk of changing demand structure due to Japan's declining population and shifts in livestock and fishery product trade trends