Abstract
This paper introduces SUGIYO Co, Ltd. as local sea food manufacture which entered into the agricultural industry, producing vegetables at Noto Peninsula. It reviews the way SUGIYO entered into agriculture and spun the section off into a separate company as Agricultural Production Corporation, SUGIYO Farm. Further, it examines how management of SUGIYO Farm is developed. SUGIYO entered into agriculture for adding its own brand value as well as for the sake of CSR for Noto area. It established independent accounting system by spin-off and undertakes processing and selling business. The backgrounds of this development are unstable supply and low yield of raw material because amount of production varies with the seasons or weather although processing plant operates full year. In addition, there were challenges of inefficiency in high-variety low-volume production and weak bargaining power in price determination. SUGIYO Farm aims to overcome these challenges and ensure profits in a comprehensive way by expanding farm size, establishing a processing plant and managing a directly-selling store independently from SUGIYO. It is important for SUGIYO Farm to play a significant role in Noto area with taking advantage of being a historical company rooted in local society.
