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Beyond the Limits of the Domestic Market: A Long-Established Mandarin Orange Farm Takes on a Second Orchard: Overseas ExpansionShinguchi Farm Co., Ltd.

Shinguchi Farm Co., Ltd., located in Yawatahama City, Ehime Prefecture, is a mandarin orange farm with a history of 108 years. They handle everything from cultivation to sales in a naturally rich environment, delivering "safe, secure, and high-quality" citrus fruits nationwide. Their next target was the overseas market, and that's when they encountered STANDAGE's "Omakase Trading" service.

assignment

  • Intensification of price competition in the domestic market
  • Shortage of expertise and personnel in trade
  • Stagnation in the information gathering stage for trade

current situation

  • Establishing a system that allows for focused agricultural management by outsourcing export operations.
  • Acquisition of primary information in overseas markets
  • Promoting market selection and sales channel development with a view to medium- to long-term strategies.

Could you tell us what led you to introduce STANDAGE's automated trading service this time?

"The market is limited if we only consider the domestic Japanese market." We became acutely aware of this last winter, when mandarin orange shipments reached their peak. Our company produces high-quality mandarin oranges, and we wanted to sell them at a price that reflected their value, but the domestic market was saturated. Price competition was particularly fierce, and we were often forced to make deals that barely covered our profits.

Amidst this situation, we began to consider expanding into overseas markets, particularly the Asian market where there is a high demand for high-quality fruits. However, this was our first attempt at trade. We didn't know where to start, and we were stuck at the information gathering stage.

The turning point came when my father was introduced to "Omakase Trading" by someone connected to STANDAGE. We were greatly attracted to the fact that they have a system in place to handle everything related to trade, and that they take care of the complicated export procedures. It was exactly the end-to-end support system we were looking for. That was the deciding factor in adopting it.

What exactly did it entail?

Developing overseas sales channels involves a wide range of tasks, including exhibiting at trade shows, negotiating with buyers, and developing local sales strategies. While this would normally require a tremendous amount of time and money, STANDAGE handles all of this for us. What we particularly appreciate is their understanding of our products' appeal and their ability to effectively communicate that appeal to overseas buyers through their sales activities.

Currently, we are focusing on the Asian market, particularly Singapore, and are preparing to exhibit at local trade shows. We feel confident in their ability to carefully research detailed export regulations, such as product characteristics and pesticide usage, to identify the most suitable market.

What results have you achieved since implementing it?

Although it's only been about six months since we implemented it, we've shifted our focus from the domestic market to the new possibilities of overseas markets. The real-time information we receive, such as local market data, changing needs, and market prices, has clarified the direction of our future strategies.

In practical terms, thanks to their accurate guidance in complex processes such as preparing necessary export documents, researching quality standards, and understanding pesticide regulations for each exporting country, we feel we can focus on our core agricultural business.

What kind of support do you expect from Omakase Trading in the future?

Ultimately, we aim to increase the sales ratio to overseas markets to 50%. Currently, price competition in the domestic market is fierce, and consumers tend to choose based on price. However, overseas, the image of "Made in Japan = high quality" is deeply ingrained, and we can expect to sell at a fair price.

Furthermore, in the future, we aim to build a brand value that will make people say, "It has to be Shinguchi Farm's mandarins." We expect STANDAGE to continue providing comprehensive support, including advice on market selection, expansion of sales channels, and addressing local needs.

Shinguchi Farm's mandarins are grown on terraced fields in Yawatahama, Ehime Prefecture, bathed in plenty of sunlight, nurtured by nature's bounty and meticulous handiwork, resulting in mandarins characterized by their rich sweetness and deep flavor.

Comment from Mr. Shinguchi of Shinguchi Farm

As this was our first time expanding overseas and we were completely unfamiliar with the process, we felt confident entrusting our business to "Omakase Trading" because STANDAGE's staff provided meticulous support every step of the way. Furthermore, their flexibility in responding to the specific needs of each company and their willingness to incorporate our opinions are major advantages.

We expect to see even greater results in the future, and we encourage any companies facing similar challenges in the domestic market to consult with STANDAGE.

*The information presented reflects the situation at the time of the interview.

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