Japanese Agrochemical Makers’ Results Hit by Slow Market, Strong Yen

The fiscal 2009 performances of three Japanese companies specializing in the production of agrochemicals were battered by lackluster demand in the domestic market and s strong yen that dragged down their overseas sales figures.

The domestic agrochemical market is still short of positive factors. Forecasting unfavorable business conditions in fiscal 2010, the three companies are looking to measures such as intensifying their marketing of existing core products as well as new products, building up their production efficiency to bolster their bottom lines.

Nihon Nohyaku, whose fiscal 2009 extended from October 2008 through September 2009, suffered a drop in domestic sales for its agrochemicals from the previous year, but healthy Asia-led overseas demand bumped up its offshore sales. To improve its performance at home, the company said it intends to actively promote its V-Get paddy fungicide, Phoenix insecticide, Ippon paddy herbicide and newly registered Accel insecticide. Overseas, it will focus on Phoenix’s market penetration, strengthening its business alliance in Europe, broadening the application scopes of its existing products and developing its new products in the US market.

Kumiai Chemical Industry, whose fiscal 2009 spanned from November 2008 through October 2009, reported domestic agrochemical sales that were unchanged from the previous year, with higher sales for its horticultural fungicides offsetting a decline in sales for its paddy herbicides. It saw waning sales overseas for its herbicides for cotton cultivation. The company said that securing the market base for its new paddy herbicide pyrimisulfan is a priority, and it also will pursue sales expansion abroad for products like its Nominee paddy herbicide.

Hokko Chemical Industry’s fiscal 2009 was from December 2008 through November 2009. Its overall sales decreased because of a plunge in its domestic agrochemical sales in a backlash to a rush by customers to purchase before a price revision in December 2008. In fiscal 2010 it will step up the marketing of all its agrochemical products, including new ones. For its business in fine chemicals, it will concentrate on value-added products and heightened productivity to cut costs and improve profit margins. It envisages returning to profitability by taking these steps.