During the fiscal term under review, the Japanese economy experienced a moderate recovery, supported by such factors as relative stability in crude oil prices. However, the business environment surrounding the Company was increasingly harsh, reflecting the enforcement of the Planned Reduced Production of Raw Milk; a worldwide trend toward environment-friendly substitute energy sources, which is predicted to cause a shortage in the absolute volumes of primary crops; and increasing uncertainties over the supply/demand situation of imported raw materials. In addition, the recurrence of bird flu further strengthened customers’ awareness of food safety, which required our even more stringent quality control to address the resulting demand.

Facing such uncertainties and intensifying competition, the Company fundamentally reviewed its current Medium-Term Business Plan and formulated a new Medium-Term Business Plan to optimize our accumulated expertise, actual results and competitive edge in the current market situation. Under this new Plan, we will form a customer-first business structure and strive for stable growth and to expand revenues.

Our shareholders’ continuous understanding and support are highly appreciated.