In recent years, large-scale agricultural corporations have been working on mergers and acquisitions (M&A) to achieve further management growth. It is necessary to clarify the significance and issues of this new trend in agricultural management research. Therefore, this symposium discusses the possibilities of M&A as a method of business growth in agriculture in Japan, as well as the conditions and issues.
First, we summarize the position of management growth in agricultural management research and consider how M&A are positioned in this context. Second, we will consider the actual situation of M&A and management growth of agricultural corporations based on questionnaire surveys of such corporations. Based on these theoretical studies, the agricultural corporation manager reports on the possibilities and issues of M&A in the third and fourth reports, focusing on their own management cases.
In this symposium, the three main points of discussion are as follows:
(1) What are the advantages and challenges of the M&A approach as an external growth strategy for agricultural management compared to other strategic alliances? (2) Agricultural management generally has a strong relationship with local communities. What specific problems may arise with stakeholders such as farmers in the region, whether it is possible to adjust their relationships, and what points should be noted? (3) What are the important points in facilitating M&A and strategic alliances as growth strategies in the agricultural sector in the future? What are the expectations of related institutions and agricultural management research?
We aim to position and theoretically organize M&A s as a new external growth strategy in the field of agricultural management.
This study clarified the factors contributing to internal and external growth in agricultural corporations. In addition, this study examines whether M&A can be an effective method and the possibilities of its approaches. The results will be used to provide a basic finding on the direction of M&A.
This study investigated the following. First, this study reviewed an overview of management growth in general management studies to clarify the research position of M&A as an effective method of management growth. Second, previous studies on management growth in agricultural corporation management (e.g., management strategy, diversification, innovation, etc.) were reviewed. Third, using the results of a nationwide questionnaire survey of agricultural corporations, we analyzed the actual status and characteristics of the growth stage of each farming type. Finally, the direction of M&A in terms of future management growth is discussed.
Based on these analyses, the following three points were clarified. First, each management stage emphasizes different management objectives in rice and vegetable farms. Second, different business diversifications were developed at different management stages. In terms of diversification, both rice and vegetable farms were found to be diversifying into 2-4 categories. Many managements have developed businesses in “contract production” and “market shipment.” Third, despite the emphasis on “human resource management” in the growth strategy, the main impediment to innovation was the “lack of competent employees” as a disincentive. This result suggests the importance of human resource management.
Finally, M&A (including strategic alliances) was considered effective as a method for acquiring the necessary management resources (land, labor, capital, information, etc.).
This study clarifies the actual situation and characteristics of Mergers and Acquisitions (M&A) undertaken by agricultural corporations as a management growth strategy. The analysis was based on a questionnaire survey of agricultural corporations. Based on the results, a comparative analysis was conducted with small and medium-sized enterprises (SMEs). In addition, a comparative analysis was conducted by type of farming operation.
The main outcomes are as follows: First, agricultural corporations conducted M&A to the same extent as SMEs firms. This indicates a strong need to cover M&A in agricultural management research.
Second, when conducting M&A, agricultural corporations place a high priority on gaining an understanding of stakeholders. This is because while SMEs are more likely to consider selling their management resources for economic rationality, agricultural corporations are concerned that selling their farmland to a third party will diminish their reputation among local stakeholders.
Third, different types of farming operations place varying emphasis on different factors when conducting M&A. Specifically, the institutional vegetable farming corporations placed more importance on the debt status of the sellers, the fruit tree farming corporations on the synergy effect, and the livestock farming corporations on scale expansion and the relationship with the local community.
This study clarified the status and characteristics of M&A activities of agricultural corporations through a comparison of SMEs and farming types. This will enable farm managers and support organizations to consider M&A activities based on the characteristics of each type of farming types; as a result, it is expected to promote the business growth of agricultural management entities.
To develop rice-field agriculture, we believe it is important for advanced management to expand nationwide and promote large-scale operations, as well as to utilize their management know-how for sustainable management. For this purpose, M&A is considered to be one of the effective means. This study discusses the significance of M&A in the management growth of rice-farming corporations and the challenges it faces. We analyzed the efforts of Houmi Noukou, Inc., a company that has been expanding on a national scale since its establishment. In addition to its main base in Niigata Prefecture, the Houmi Group also operates an affiliate company, Adisuki, Inc. in Yamaguchi Prefecture. Additionally, Houmi Group has a capital and business alliance with Grain-farm. Co., Ltd in Fukushima Prefecture. We analyzed the background leading to investment in these two companies and subsequent progress. Houmi Group was found to have expanded its earnings from the business of collecting and selling rice through the establishment of subsidiaries and capital and business alliances. In each of these operations, Houmi Group has established a stable and efficient production system by utilizing the various know-how it acquired. The following are important in the preparation and execution phases of M&A: (1) establishing contacts with potential partners and support organizations, (2) conducting sufficient research on the partner’s assets and management capabilities, (3) coordinating with the local community, (4) clarifying contractual terms such as articles of incorporation, and (5) securing a certain level of management rights. In particular, coordination with the local community requires not only efforts on the part of the organization but also support from government agencies, and a mechanism must be created to promote M&A smoothly.
Suzunari Corporation is a vegetable-farming corporation founded in Shizuoka in 2008. Subsequently, Suzunari Corporation established several agricultural companies by forming alliances with various companies. As a result, as of 2022, the Suzunari Group has three vegetables grown outdoors companies, two protected horticulture companies, and two other companies.
In the future, the Suzunari Group is pushing for the following M&A. First, a collaboration with the farmer who has consolidated farmland or greenhouse with desirable specifications. Second, to establish a frozen or cut vegetable factory. Last, to partner with the farmers who are working hard.
This discussion aims for a theoretical inquiry to reveal the institutionalization mechanisms of moral responsibility with care for others and the basic structure of responsive accounting for preventing the degradation of common fishing resources based on critical review about current fishery accounting.
We first disclosed the limitations of current fishery accounting that overlooked the fundamental question about job responsibilities and accountability, and that the evaluation targets focus solely on market equivalent exchange.
Next, we confirmed that the moral responsible system considering for others inter-subjectively generated, including unstable factors, by constant efforts of costal fishing village people.
Based on these theoretical considerations, we shaped three basic elements of the responsible accounting system that operates on institutionalized moral responsibility. The first is the positive circularity of job responsibility and accountability; second, the introduction of the common commerce concept for grasping the totality of interactions in coastal fishery individuals; third, the installation of responsive net profit statements based on the new concept.