JAPAN – Meiji Holdings, a major Japanese dairy company, is set to invest US$279 million in the construction of a new yogurt production facility in Atsugi, Kanagawa.
The new plant investment which is part of a move to streamline and modernize Meiji’s yogurt manufacturing operations in Japan, will replace three existing yogurt factories located in Taiwa, Chigasaki, and Toda.
Production at the Taiwa facility will cease in November 2025, while operations at the Chigasaki and Toda plants will end in March and July 2027, respectively.
According to the dairy major, the consolidation aims to improve efficiency and address several challenges currently faced by the dairy industry, including shifting consumer preferences, labor shortages, and food waste.
The new facility in Kanagawa is expected to produce various yogurt products, including plain and drinking yogurts. It is projected to generate an annual production value of around ¥35 billion.
In addition to its economic impact, the plant will incorporate advanced production technologies designed to extend product shelf life.
“From an environmental perspective, it will utilize renewable energy sources such as energy-efficient heat pumps and solar panels, aiming to achieve zero CO2 emissions and contribute to a carbon-free, smart factory.”
Despite the substantial investment, Meiji anticipates that the financial impact on its consolidated results for the fiscal year ending March 31, 2025, will be minimal.
For the fiscal year ending March 2024, Meiji reported a 4.1% increase in net sales to ¥1.1 trillion and an 11.8% rise in operating profit to ¥84.3 billion.
However, the company’s profit attributable to shareholders fell by 27% to ¥50.7 billion, due in part to a ¥22.5 billion impairment related to the sale of investment securities.
The move follows a similar reorganization effort in Hokkaido, where Meiji is also building a new dairy plant to replace the aging Nishi Shunbetsu and Honbetsu facilities.
The new Hokkaido plant, which will cover 230,258 square meters, is expected to continue producing a range of products previously made at the old facilities, including non-fat dry milk, concentrated skimmed milk, butter, cream, and milk protein.
The subsidiary of Meiji Holdings Co., said the facility will have production capacity of 430,000 tons of raw milk a year, with the expectation that this will eventually increase to 500,000 tons.
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