Berg Earth co.,Ltd. (1383) Stock Price

Berg Earth is an agricultural company that specializes in grafted vegetable seedlings. The company's core business is the production and sales of grafted seedlings for fruiting vegetables such as cucumbers, tomatoes, and eggplants. It supplies high-quality seedlings that are resistant to disease and pests to vegetable producers and garden centers across Japan. Grafting technology requires advanced expertise and significant capital investment, making it a sector with high barriers to entry.

The company's primary customers are vegetable producers, agricultural corporations, and home gardening enthusiasts nationwide. Revenue is primarily driven by the vegetable seedling and seedling-related business. The aging of farmers and the expansion of facility-based cultivation have created favorable market conditions, as more producers are purchasing seedlings rather than growing them in-house. Berg Earth operates production facilities across the country and has established a system to ensure stable supply throughout the year.

The business consists of three segments. In the vegetable seedling and seedling-related business, the company develops proprietary high-value products including the "e-seedling series" and "Virus Guard seedlings," utilizing root-cutting grafting technology and closed-system seedling cultivation facilities. The seed and agricultural materials sales business handles the sale of seeds, growing media, and agricultural supplies. The retail business operates through Fun Garden, a consolidated subsidiary, which sells gardening products to consumers through physical stores and the internet.

Berg Earth has launched a new medium-term management plan targeting revenue of 8,000 million yen by October 2026. With vegetable seedling production as its core business, the company operates under the management philosophy of providing "quality seedlings anytime, anywhere, at any price." The company plans to achieve an operating profit of 110 million yen in its flagship seedling business. The foundation of this growth strategy is a mindset shift from "quantity to quality, revenue to profit, and agriculture to manufacturing," with the aim of enhancing long-term corporate value through 2033.

The core of the company's differentiation strategy is the development of new plant vaccines and original plant varieties. Through these technological innovations, the company is creating high-value-added products and building a food value chain that deepens its business beyond traditional seedling operations. Additionally, through collaboration with its subsidiary PSP Corporation, the company is accelerating nationwide expansion of vegetable seedling production and seed coating processing to strengthen competitiveness through scale expansion.

New market development is positioned as a key strategy for expanding business areas starting from seedling operations. The company is reviewing its entire process from raw material procurement to sales, promoting cost reduction and profit generation through organizational optimization. Furthermore, by leveraging partnerships with partner farms across the country, the company aims to expand its business foundation through rebuilding stable production and sales systems.

On the technology front, the company is simultaneously advancing the construction of stable production systems through new facilities such as closed-type seedling cultivation systems and strengthening business infrastructure including human resources and systems. Through developing proprietary seed varieties and new agricultural materials such as original growing media, the company is evolving into an enterprise that will revolutionize agriculture in Japan and worldwide to "enrich people's food and lifestyles."