FEED ONE CO.,LTD.
2060・Prime Market・Foods
Livestock Feed Business
Feed One's core business, encompassing compound feed manufacturing/sales and livestock production/sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue | ¥223,744 million | ¥232,259 million | ↓ |
| Segment profit | ¥10,243 million | ¥8,533 million | ↑ |
| Segment EBITDA | ¥12,987 million | ¥11,073 million | ↑ |
| Segment assets | ¥87,408 million | ¥88,924 million | ↓ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥3,590 million | ¥2,865 million | ↑ |
| Depreciation and amortization | ¥2,743 million | ¥2,539 million | ↑ |
Business Details
This segment centers on the manufacturing and sale of compound feed (livestock feed), and also encompasses livestock businesses such as the production and sale of pigs and eggs. The company manufactures products directly and also utilizes contract manufacturing through consolidated subsidiaries and affiliates. Sales are supplied to livestock producers through a nationwide network of sales subsidiaries and distributors. Accounting for approximately 77% of consolidated group revenue, this is the largest segment and is positioned at the core of the Medium-Term Management Plan 2026.
Recent Overview
Revenue declined on lower sales volume and prices, but thorough profitability management drove a 20.0% year-on-year increase in profit.
In the livestock feed business for FY2026 (ending March 2026), sales volume and average selling prices of livestock feed fell below the prior-year period, resulting in revenue of ¥223,744 million (down 3.7% year on year). On the other hand, profitability improved due to lower raw material costs amid a soft Chicago corn market, together with price revisions reflecting raw material price trends and thorough profitability management, leading to a sharp increase in segment profit to ¥10,243 million (up 20.0% year on year) and segment EBITDA to ¥12,987 million (up 17.3% year on year). Capital expenditure also expanded to ¥3,590 million from the prior year, reflecting continued strengthening of the production framework.
Key Products
Growth Drivers
- Improved profit margins from lower raw material costs amid a soft corn market and thorough profitability management
- Normalization of the earnings environment through timely feed price revisions reflecting raw material price trends
- Streamlining of manufacturing operations and cost reduction through the absorption-type mergers of Tomakomai Feed Co., Ltd. and Tohoku Feed Co., Ltd. (excluded from consolidation in FY2026 (ending March 2026))
- Enhanced product differentiation and production capacity through investment in plant production equipment and research facilities (capital expenditure of ¥3,590 million)
- Strengthened cross-business collaboration centered on the livestock feed business ahead of the final year of the Medium-Term Management Plan 2026 (FY2027, ending March 2027)
Risks
- Heavy reliance on overseas procurement for the majority of primary raw materials (corn, etc.), making raw material costs highly susceptible to weather conditions in producing regions, geopolitical risk, ocean freight rate fluctuations, and exchange rate movements
- Risk of shipment suspensions and mass disposal of products due to sharp fluctuations in livestock product market prices (pork, eggs, etc.) or disease outbreaks (avian influenza, etc.)
- Risk that large swings in reserve fund contributions under the compound feed price stabilization system push up selling, general and administrative expenses and squeeze earnings
- Structural risk of shrinking domestic livestock feed demand due to declining numbers of livestock farming households and an aging producer population
- Risk of receivables collection issues due to deteriorating customer finances amid soaring feed prices or weak livestock/marine product markets
Last updated: June 16, 2026