TAKAKITA CO., LTD.

Business Details

As a comprehensive agricultural machinery manufacturer since its founding in 1912, the company manufactures and sells dairy and livestock forage harvesters (Chopper Series, etc.) used for harvesting grass, forage rice, and forage corn, as well as Soil Preparation Machinery (Organic Fertilizer Spreaders, Compost Spreaders, etc.) and Snow Removal Machinery. Its main customers are three major agricultural machinery manufacturers: Kubota, Yanmar Agribusiness, and Japan New Holland. In addition to the domestic market, the company operates in overseas markets including South Korea, Europe, and North America.

Recent Overview

Sales declined due to weakness in the livestock and dairy market and a rebound in South Korea, but paddy field, soil preparation, and snow removal machinery recovered in the second half

Net sales of the Agricultural Machinery Business for FY2026 (ending March 2026) were ¥6,133 million (down 6.5% year on year). In the livestock and dairy market, rising production costs due to persistently high import feed, fertilizer, and fuel costs continued for an extended period, dampening machinery investment sentiment. Orders for the Chopper Series and other products also declined due to the effect of expanded cultivation of food-use rice. Overseas, while the European and US markets were firm, sales declined in South Korea due to a rebound following pre-price-hike rush demand. From the second half onward, sales of Soil Preparation Machinery such as organic fertilizer spreaders and Snow Removal Machinery trended firmly, and profitability improved due to increased aftermarket parts sales and improved factory utilization from progress in in-house production. Segment profit was limited to ¥307 million (down 5.3% year on year), but the profit margin was maintained at 5.0%, in line with the previous fiscal year.

Key Products

Growth Drivers

• Increased demand for paddy field market machinery (soil preparation-related and multi-purpose machinery, etc.) driven by rising rice prices, and cultivation of latent demand in paddy field, upland farming, and orchard fields through new product introductions
• Stimulation of demand for soil preparation machinery such as organic fertilizer spreaders through application of the Green Investment Promotion Tax System based on the MIDORI Strategy (Strategy for Sustainable Food Systems)
• Continued underlying support for investment demand in the dairy and livestock market from continued adoption of the livestock cluster project, and expectations of recovery in investment sentiment from rising milk and livestock prices
• Expected demand recovery in the South Korean market following completion of inventory adjustment, and diversified overseas expansion into Australia, Latin America, India, and ASEAN regions
• Improved factory utilization and cost reduction effects from progress in in-house production accompanying the establishment of a new welding plant, and improved profit margin from product price revisions
• Strengthening of a stable profit base through expansion of the aftermarket (replacement parts sales) business

Risks

• Prolonged rise in production costs due to persistently high import feed, fertilizer, and fuel costs in the livestock and dairy market, and weak farmer investment sentiment for machinery
• Change in demand structure for forage crop machinery (Chopper Series, etc.) due to expanded cultivation of food-use rice
• Structural contraction of the domestic market due to the aging of agricultural workers and decline in the number of farming households
• Impact on manufacturing costs from difficulty procuring raw materials and supplies and from rising prices including fuel costs, against a backdrop of factors such as heightened tensions in the Middle East
• Volatility risk in overseas markets, including a rebound from pre-price-hike rush demand in the South Korean market
• Customer concentration risk, with the top three customers—Kubota, Yanmar Agribusiness, and Japan New Holland—accounting for approximately 57% of net sales (FY2026, ending March 2026: combined ¥3,747 million for the three companies)
• Impact on earnings from expanded losses at equity-method affiliates (equity in losses of affiliates: FY2026 (ending March 2026): -¥140 million; FY2025 (ending March 2025): -¥86 million)