President's Message

In 2023, the Lacto Japan Group formulated its long-term vision LACTO VISION 2032. We are working to realize this vision of becoming a complex food company by 2032 by broadening the scope of our key measures. These measures include expanding our business vertically by enhancing the added value of existing products and proposing new products to enhance our product mix as well horizontally by going beyond the framework of an import company to expand our functions. 

 

The key to enhancing our product mix is expanding sales of functional food ingredients. In 2020, we established the Business Development Division, which develops new products such as functional food ingredients derived from raw milk. A prime example of such an ingredient is milk-derived protein, which is steadily growing in sales through the increasing emphasis on health in Japan. The components and characteristics of milk-derived protein vary depending on the manufacturing process. For many years, we have been doing business with major suppliers of dairy products that boast technological capabilities worldwide. Accordingly, we have developed a deep understanding of each company’s product characteristics, which enables us to propose ingredients in line with the diverse needs of manufacturers and brand owners of protein products. By drawing on these strengths, we will not only sell functional food ingredients but also enhance the functionality of products so that we can propose new added-value solutions through the combination of dairy products and functional food ingredients. 

 

Meanwhile, the key to expanding our functions is the Cheese Manufacturing and Sales Division in Asia. The Cheese Manufacturing and Sales Division began operating in Singapore in 2003 and has since expanded business to other parts of Asia, with the development of manufacturing and processing plants in Thailand and Indonesia. In 2016, I was assigned to Singapore and witnessed the expansion of the dairy market in Asia. I am convinced that demand for cheese and other dairy products will only continue to expand going forward. To accelerate the expansion of the Cheese Manufacturing and Sales Division in Asia, we are constructing a new plant in Singapore and aim to triple our production volume in 10 years. In the future, we will consider the possibility of producing new products other than cheese that have the potential to generate synergies with our other businesses. 

 

In addition to growing our business horizontally and vertically, we aim to evolve into a complex food company by further expanding the procurement and sales networks that the Group has developed over the course of its history and refining the strengths of our trading functions. 

 

I was appointed the president of Lacto Japan. In this role, I am responsible for developing closer relationships with the management of our business partners and creating a comfortable work environment for our frontline employees. I would like to continue to visit our worksites whenever possible and engage in tasks together with our employees. One of the major roles of senior management is to communicate the Group’s business activities, performance, and initiatives for future growth to those outside the organization. Therefore, I will also actively engage in IR activities. I ask for the continued understanding and support of our shareholders and investors as we strive to achieve sustainable growth by responding to their feedback in earnest.