katakura & co-op agri corporation
4031・Standard Market・Chemicals
Business
Katakura Co-op Agri Co., Ltd. is a long-established fertilizer manufacturer founded in 1920, which took its current name following a business integration with Co-op Chemical in 2015. The company has 6 consolidated subsidiaries and 1 equity-method affiliate. Its core operation is the Fertilizer Business (approximately 82% of net sales), which manufactures and sells Compound & Chemical Fertilizers, Paste Fertilizer, and other products. It also operates a Chemical Products Business handling cosmetic ingredients and phosphoric acid products, a Real Estate Business including a leased building in Shibuya-ku, Tokyo, and Other Businesses such as food products and transportation. Its main customer is the National Federation of Agricultural Cooperative Associations (JA Zen-Noh), which accounted for 62.4% of net sales in FY2026 (ending March 2026). The Tsukuba Research Institute serves as its R&D hub, driving the development of smart agriculture and soil analysis technologies.
Business Model
In the Fertilizer Business, which accounts for approximately 82% of net sales, the company adopts a vertical cooperative distribution model, procuring raw materials from and selling products through JA Zen-Noh. It aims to secure sales volume while passing on costs through price revisions. In the Chemical Products Business, the company is expanding high-value-added products such as synthetic mica and cosmetic ingredients both domestically and internationally, aiming to improve profit margins. The Real Estate Business generates stable cash flow through rental income from the "KCA SHIBUYA bldg." and plays a role in supporting the financial foundation during the structural reform period.
Company Strengths
Since its founding in 1920, the company has built a nationwide network of branches and sales offices, maintaining long-term raw material procurement and product sales relationships with JA Zen-Noh, Marubeni, and others. In FY2026 (ending March 2026), sales to JA Zen-Noh reached ¥26,630 million (62.4% of net sales), and the company possesses a stable sales base through cooperative distribution channels.
Centered on the Tsukuba Research Institute, established in 1986, the company invested ¥319 million in R&D expenses in FY2026 (ending March 2026) to develop proprietary products such as Paste Fertilizer, slow-release fertilizers, Biostimulant Materials, and synthetic mica. The company has also launched a Soil Diagnostic Service utilizing near-infrared spectroscopy and AI, advancing technological development into the agricultural solutions field.
The Chemical Products Business recorded net sales of ¥7,677 million and segment profit of ¥369 million in FY2026 (ending March 2026), expanding high-value-added products such as HALAL-certified cosmetic ingredients and synthetic mica into Europe and Asia. The Real Estate Business recorded segment profit of ¥184 million following the completion of the "KCA SHIBUYA bldg." (August 2025), functioning as a stable revenue source that complements fluctuations in earnings from the Fertilizer Business.
ENVALITH's Perspective
Performance Trend
Revenue has remained at a significantly reduced level from its peak of ¥51,031 million in FY2023 (ended March 2023), with FY2026 (ending March 2026) revenue at ¥42,651 million (+3.1% year-on-year), a marginal increase. Operating profit recovered from a loss of ¥852 million in FY2024 (ended March 2024) to ¥650 million in FY2025 (ended March 2025), but declined to ¥504 million in FY2026 (ending March 2026). Net income turned into a loss of ¥1,227 million due to the recognition of ¥1,980 million in restructuring costs as an extraordinary loss. As an external factor, persistently high raw material prices and foreign exchange fluctuations have pressured costs in the Fertilizer Business. Meanwhile, cash flow from operating activities improved substantially to ¥5,274 million (versus ¥152 million in the prior period), driven by the collection of trade receivables (a decrease of ¥2,868 million) and the recognition of restructuring provisions (a non-cash expense). The equity ratio stood at 46.8%, indicating that financial soundness has been maintained.
Growth Strategy
With fertilizer production base restructuring and chemical products overseas expansion as twin pillars, the company aims to achieve operating profit of ¥1,090 million in FY2028 (ending March 2028)
Ceased production at 5 of the 6 target plants and consolidated production items to significantly reduce fixed costs. Concurrently promoting the introduction of a manufacturing-sales separation system and rationalization of administrative departments. Restructuring costs of ¥1,980 million were already recorded in FY2026 (ending March 2026), and this is the most critical initiative directly linked to profitability improvement from FY2027 (ending March 2027) onward.
Launched a Soil Diagnostic Service utilizing near-infrared spectroscopy and AI, and built a proposal-based sales model leveraging remote sensing. Through expansion into the biostimulant field, the company is promoting a transition from simple fertilizer sales to a business model that solves agricultural challenges.
Promoting expansion of sales channels for HALAL-certified cosmetic ingredients for Southeast Asia through an Indonesian sales trading company, strengthening the expansion of synthetic mica for Europe and Asia, and developing next-generation functional materials. The company is also expanding its business domain with strategic investments such as M&A in view. In FY2026 (ending March 2026), segment sales decreased 1.5% year on year due to a decline in sales volume of phosphoric acid and feed-grade calcium phosphate.
Through the full-scale operation of "KCA SHIBUYA bldg.," completed in August 2025, the company recorded segment profit of ¥184 million in FY2026 (ending March 2026). The company continues to optimize the utilization of its held assets, functioning as a revenue source that stably supports the financial base during the period of structural reform.
Last updated: July 19, 2026