Sumitomo Chemical’s Health & Crop Sciences division sales up 4% in FY 2015

Sales of Sumitomo Chemical’s Health & Crop Sciences division which includes agrochemicals, feed additives and pharmaceutical chemicals for fiscal year 2015 ended March 31, 2016 rose by 3.9% compared with the previous fiscal year, to ¥359.0 billion ($3.3 billion at current rate). Operating income grew by 38% to ¥77.5 billion ($713 million). Sales of crop protection chemicals grew due to increased shipments overseas. The weaker yen also had a positive effect on sales. 

 

Masakazu Tokura, President of Sumitomo Chemical commented that, “The considerable  increase in income due to higher sales volumes is mainly because sales of agricultural chemicals, biorational crop protection products and methionine are expected to rise. ”

 

“Major agrochemicals manufacturers with global operations are currently having a tough time, with increases in inventory due to unseasonable weather. We are similarly affected, too, but we think it is only a temporary impact. We plan to more than double sales of biorational crop protection products over the next five years.”

 

“I think our Company’s strengths lie in our crop protection products research and development abilities, our sales of unique agricultural materials, and our global sales network. Sumitomo Chemical has research and development bases for crop protection products in Japan, the US and France. To continuously release new crop protection products, we create candidate compounds for next-generation crop protection products in Japan, and then develop and register the products in each country. We presently have several major candidate compounds in the pipeline being developed toward market release around 2020. Another strength is that we have good access to sales channels in the major countries worldwide for global sales of the crop protection products we develop in this way.”

 

“One more distinctive feature is that the Company is developing businesses in unique areas as a world leader, such as the biorational business including biorational crop protection products and biorational crop enhancement products, the post-harvest business which contributes to maintaining the quality of crops after harvest, and the seeds and seed processing business.” 

 

 

Masakazu Tokura said that, “In the Health & Crop Sciences Sector, net sales and operating income are expected to increase to 440 billion yen and 86 billion yen, respectively, in fiscal 2018. In recent years we have been expanding our crop protection products business overseas by forming alliance with leading manufacturers, starting with Nufarm and including Monsanto. In the biorational area, we began operating a new plant for active ingredients of biorational crop protection products, acquired a mycorrhizal fungi business, and continue to increase the product portfolio.”

 

“Biorationals is one of the focuses of company’s ‘Accelerate The Launch Of Next-Generation Businesses’ plan. The main focused sectors of the biorationals business are microbial pesticides (core products: DiPel®, XenTari®), Plant growth regulators (ProGibb®, Promalin®, ReTain®, ProTone®) and microbial agricultural materials (mycorrhizal fungi).”

 

“The demand for food is expected to increase along with the continued rise in global population, but there are limits to the supply of arable land and fresh water. Increasing agricultural productivity will be essential for resolving the food issue. Sumitomo Chemical is working to develop crop stress management products which have the effect of boosting crop yields by increasing plant resistance to environmental stress from low and high temperatures and drought, in addition to our existing crop protection products which are effective against disease and insect stress. Moreover, the Company is developing our business as a total solutions provider which contributes to boosting agricultural productivity, comprehensively providing diverse products and services related to agriculture, not just crop protection products. Our rice business which we acquired in Japan last year has started from Japan, and we are considering development in Asia and Africa in the future. We intend to contribute to resolving the food issue by providing the agricultural solutions which we have cultivated.”