Procurement

Procurement —Sustainable potato procurement—

The number of farmer households in Japan has continued to decrease due to giving up farming as a result of a population outflow to urban and aging, while the management area of farmland per unit farmer has become larger. Potato farmers are no exception. There are issues such as increasing the yield per area and streamlining and labor saving of operations.
In response to these issues, the Calbee Group is implementing a variety of measures.
Going forward, we aim to create new service-oriented business models such as agricultural consulting and agricultural work agency services by leveraging the related technologies and expertise we have cultivated in this potato business. In addition, these technologies and expertise can be applied beyond potatoes, and we will take on the challenge of commercializing other crops.

Changes in the Number of Farmers and the Management Area in Hokkaido
Changes in the Number of Farmers and the Management Area in Hokkaido
Data: Ministry of Agriculture, Forestry and Fisheries, “Agriculture and Forestry Census”
Calbee Group’s Potato Procurement (FY2019/3)
406,000 tons
Domestic Potato Demand Trends by Use
Domestic Potato Demand Trends by Use
Source: Survey by Regional Crop Division with Director for Policy Planning, Ministry of Agriculture, Forestry and Fisheries

Offering of services leveraging the strengths of existing businesses

Offering of services leveraging the strengths of existing businesses

Consulting on Cultivation Techniques

Calbee Potato, Inc. has long been involved in a variety of potato procurements by building close networks with producers, government, universities, and other manufacturers in the same industry. With the aim of labor saving and improving productivity of potato production through the introduction of cutting-edge technologies, we will provide consulting on the production process (cultivation planning, harvesting, and transportation) through the relationships between contract producers and fieldmen (potato specialists).

Cultivation support by fieldman
Cultivation support by fieldman

IT Cultivation Support

By incorporating IT into potato cultivation, which has been supported by the expertise and skills of each experienced producer, we believe that IT will not only enable labor saving but also enable us to respond optimally to dramatic climate change in recent years. The Calbee Group will introduce and promote these technologies to contracted fields by understanding the effectiveness of their introduction to contract producers.
Through consulting and the use of IT, we will evolve our potato cultivation and supply system, and aim to build service-oriented business models.

Transplantation using GPS
Transplantation using GPS

Field management using satellites and IT
Field management using satellites and IT

Supply Chain Management

The Company enforces its procurement policies throughout its supply chain. We share the Calbee Group Procurement Policy with our suppliers in order to advance procurement activities that are sustainable from a global perspective.
From a traceability point of view, we verify the quality of our potatoes and guarantee their safety. A bar code that contains information concerning production area, variety, producer, growth history, and harvest date is attached to potato containers. We use this information to verify the conditions of potatoes and to conduct optimal production management. The Company is also actively pursuing sustainable procurement in terms of palm oil by cooperating with suppliers and responding to environmental and human rights issues.

FUJI OIL Group’s Initiatives

One of the primary causes of environmental and human rights issues facing palm plantations is said to be small-scale farmers’ management of low-production plantations. Together with Wild Asia, a local NGO, the FUJI OIL group and the group which provides the Calbee Group with its palm oil, aims to balance farm and country administration that is conscious of improving productivity and of environmental and human rights issues facing small-scale farmers in the Group’s supply chain. The FUJI OIL group also provides educational support related to these issues.

Results in the fiscal year ended March 31, 2019

Domestic potato procurement
332 Thousands of tons

Sustainability TOP