Risk Control When Procuring Potato Raw Materials
Calbee, Inc.
| Publication date | February 26, 2019 |
|---|---|
| Sector | Agriculture, Forestry, Fisheries, Natural Disasters / Coastal Areas, Industrial and economic activities |
Company Overview
Ever since its founding, the Calbee Group has offered products that embrace nature’s gifts and contributed to healthy life styles. They aim to become a company that is respected, admired, and loved by its stakeholders and are advancing this as their vision. This vision is important to the Company and defines its overall values and approach when conducting business activities. Under this corporate philosophy and vision, the company aims “To be a global foods company that delivers flavor and fun to the world.”
Adaptation Initiatives
Raw potatoes are the main material of Potato Chips. Figure 1 shows the quantity of Calbee Group’s potato procurement. Figure 2 shows the demand trends for domestic potatoes by use.
In summer 2016, Hokkaido, their main production area of potatoes, was struck by typhoons and the fiscal year ended March 31, 2018 started off with a potato shortage. The company was forced to suspend sales for several of their potato-based products, which greatly inconvenienced customers. They face the risk that these large-scale disasters might become more frequent in the future.
In order to stably procure high-quality potatoes, they prepare for risks such as natural disasters with initiatives that include those listed to the below.
- Develop domestic potato-production areas outside of Hokkaido
- Support potato producers by providing information and mitigating labor
- Promote from other uses of potatoes, other crops such as rice(Figure 3)
- Developing varieties that are strong against pests and suitable for storage
