Nagano, Japan-headquartered Maruichi Sansho is forming an aquaculture business division after acquiring Dainichi for JPY 11.15 billion (USD 78.6 million, EUR 70.6 million).
Dainichi, founded in 1982 and based in Uwajima, is engaged in feed manufacturing, producing 14,000 metric tons annually, as well as fish cultivation, importing, processing, and sales. It has Aquaculture Stewardship Council certification for its madai (sea bream) farm, and Marine Eco-Label Japan certification for its red sea bream and yellowtail farms. It also farms bluefin tuna and Japanese trout. It had JPY 26.7 billion (USD 180 million, EUR 164 million) in revenue in 2023.
“With the Shikoku area as its main procurement base and utilizing the processing capabilities of its own company and the group, the strength of the business is its strong sales channels, especially for the restaurant industry, and its pipeline to overseas markets, mainly North America and Asia,” Maruichi Sansho said in a press release.
Maruichi Sansho said it made the move to acquire Dainichi due to shifting dynamics in Japan’s seafood industry.
"In Japan, fish farming is facing a major turning point in its existing business model, with the number of farming areas and individual operators decreasing, while advances are being made in freezing technology, research and development of artificial seedlings and fishmeal substitutes, and the smartification of the farmed fish business through the adoption of digital technologies such as IT and AI,” Maruichi Sansho said. “Amid changing conditions in the fishing industry, including a decline in domestic catches of wild fish and growing global demand for seafood, the Maruichi Sansho Group has positioned aquaculture of marine products as one of its key businesses. The group is actively working on building an innovative business model to revitalize production areas and boasts a robust sales network, particularly in the Koshinetsu, Kanto, and Chukyo regions, centered around major retailers.”
Maruichi Sansho, which had USD 1.8 billion (EUR 1.6 billion) in revenue in 2023, hopes to capitalize on Dainichi’s overseas sales by establishing an aquaculture business division with the goal of achieving JPY 2 billion (USD 13.5 million, EUR 12.3 million) in profit by 2030 “through synergies, development of new markets, and entry into new businesses.”
“In the ‘production areas’ business area in the marine products field, amid changes in Japan's fishing environment, such as a decrease in the amount of domestic wild fish landed and an increase in global demand for fish, we are positioning the marine product farming business as one of our core businesses and aiming to build a business model for revitalizing production areas,” the company said. “This ‘collaboration-type’ domestic aquaculture business mode [will succeed] by creating business synergies and bring innovation to the distribution of domestically farmed fish.”
Dainichi said the acquisition will help it grow.
“By joining the Maruichi Sansho Group, we expect to further leverage our production area networks and our expertise in aquaculture and processing,” it said in a press release.
