Nihon Nohyaku Working to Extend Its Reach Worldwide

Agrochemical manufacturer Nihon Nohyaku is actively expanding its overseas network to achieve its 2010-2012 medium-term business plan’s target of raising the ratio of its overseas sales to overall sales to more 30% in 2012, from 27% in 2009, laying the groundwork for a further boost to 50%. While the domestic market is shrinking, markets abroad are continuing to grow.

In China, Japanese and Western agrochemical manufacturers alike have been plagued by a proliferation of low-cost generics and imitation products, but the situation is changing as Chinese consumers’ growing awareness of food safety and security fuels demand for high-safety, high-quality agrochemicals. The company, therefore, plans to upgrade its representative office there into a subsidiary over the course of the plan. In addition to pesticide registration and brand promotion, the subsidiary will be tasked with developing and distributing products and increasing the group’s Chinese sales from 600 mn yen($6.4mn) in 2009.

In the world’s fastest-growing market of India, Nihon Nohyaku’s sales reached 2.1 bn yen in 2009. The nationwide promotion of its products is underway with Rallis India, the agrochemical arm of the India conglomerate Tata Group. It also plans to open a representative office by 2012 to strengthen its marketing system.

In Europe and the US, the focus will be on R&D to introduce new products in these markets. The company said that it intends to acquire fields for experiments in the US, the world’s largest agrochemical market, to develop products that are tailored to the needs of US farmers. In Europe, Nichino Europe was established in 2007 for the direct development and direct sale of its products in the region, and options such as local production are under considerations.

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