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Reorganization of the White Fish Business in North America - Further enhancement of the White Fish Business in North America as GFC becomes an affiliate of the Nissui Group


  Factory trawler owned by Glacier Fish Company (GFC) at sea on Alaskan fishing grounds.

As the cornerstone of “Global Links”

Per capita seafood consumption in the U.S. has been steadily rising, reflecting stronger consumer health concerns. Even so it can hardly compare with the seafood consumption in Japan. Furthermore, according to data by the U.S. National Marine Fisheries Service, per capita seafood consumption peaked in 2004 with 16.6lbs/ year and has leveled off since then. Particularly in 2008, with the downturn in the restaurant industry, soaring fish prices and the impact of the relatively stable prices of chicken, consumption is believed to have slumped substantially. However, in the long-term, demographic factors, the shift toward an aging society, the increase in the Hispanic population and rising consumer health concerns are all thought to have positive impacts on consumption. There are many prospective elements that are thought to contribute to a rising arc in seafood consumption.

In terms of precooked frozen seafood, consumption peaked in 2005 and has been on a declining trend since then. One reason for this phenomenon is that as consumers come into more frequent contact with seafood, they are more likely to purchase products with lower levels of processing such as fillet portions to cook at home rather than purchasing the conventional breaded deep-fried products. This trend is thought to have more than a little effect on consumer purchases. Currently, frozen foods may be temporarily out of favor with the consumers, but from a long-term perspective, there is no denying that seafood is steadily but surely becoming a part of their regular diet.

Through this additional investment in GFC, Nissui has succeeded in securing a stable supply of Alaska Pollock, which are the ingredients of white-meat fish. Consequently, an integrated supply chain of even greater stability, from procurement to processing/sales has been put in place. Accordingly, Nissui's white fish business in North America as a function of the afore-mentioned “Global Links” is also expected to evolve to even greater heights. This move is also expected to generate a supply of products of other fish, such as Pacific whiting, Pacific cod and yellowfin sole to each of the Group companies. In particular, commercialization of yellowfin sole products, whose TAC in the Bering has not been fully utilized, is a definite possibility. Furthermore, it should also fuel the product development of other marine resources, which are not being fully utilized at the moment.

Nissui, which will commemorate its 100th anniversary in 2011, launched a new mid-term management plan (the new TGL plan) in 2006. The objective of the new TGL plan has been for the Nissui Group companies to coordinate their procurement, production, processing and sales functions in order to forge a "Global Links" that would link the world's production bases with the dinner tables around the world and to provide the consumers the world over with delectable and high-quality seafood at a reasonable price. Through its linkage to the resources and markets of South America, Asia and Europe, the business model in North America is expected to become the cornerstone of Nissui Group’s Global Links and play an integral part into the future.

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