Structure Analysis of Japanese Trading Company Groups in the Feed Grain and Formula Feed Value Chain of the United States and Japan

Abstract

In this paper, a structure analysis of Japanese trading company groups in the feed grain and formula feed value chain of the United States and Japan vos conducted. In the grain business, it is basically difficult to add value by differentiating, so cost reduction by demonstrating economies of scale is a means to increase profitability. Therefore, while Japanese trading companies are developing sales channels in China, they are promoting the integration of grain dealers in the United States and expanding the amount of grain handled. Since formula feed is highly substitutable, it is difficult to create added value, and cost reduction is important to enhance competitiveness. Therefore, feed manufacturers are promoting diversification of raw material procurement, direct transactions with large-scale producers, and direct delivery by large lots.