Sales volumes of KG Group poultry business companies in Japan exceeded 500 thousand EUR

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KG Group sales volumes in Japan that have been growing for the past three quarters have exceeded 500 thousand EUR

In Japan, KG Group chicken products are being supplied to retail chains, restaurants and even to one of the largest amusement/theme parks Universal Studios Japan.

The group of companies started trading with Japan following the authorization granted to Lithuania for the export of chicken products. After the exhibition Foodex Japan 2018, new trading relationships were established, therefore, it is expected that sales revenue will grow further in 2019.

Not only trading relationships between Japan and poultry business companies but also those with Lithuania are increasing in intensity. According to Statistics Lithuania, the export of meat and fish products from Lithuania to Japan is increasing annually. In 2016, the value was 2.6 million EUR; in 2017, sales volumes reached 3.2 million EUR; and according to half-year data in 2018, it is evident that the export in this sector has already amounted to 1.8 million EUR.

“Although Japan mainly imports tobacco and optic goods as well as furniture from Lithuania, meat products trail in fourth place according to revenue generated by sales. Annual growth of sales of food products shows that Lithuania has been able not only to comply with the requirements of extremely demanding Japanese market, but has also acquired trust. The fact that KG Group is increasing sales volumes in Japan is the proof of the recognition of Lithuania as a reliable exporter of poultry,” – Vytautas Tėvelis, the President of Lithuanian Poultry Association, told.

“Japanese importers considered KG Group strategic business model from field to table to be the greatest advantage, thus, we were able to start negotiations regarding the supply of production on the sole grounds that we offered chicken of Lithuanian origin. We are appreciated and trusted because we ensure the quality and traceability of production in all business chains. If we were to violate the requirements, it would be impossible to return to this market. This is one of the most demanding and subtle markets in the world. For two companies from Lithuania and Japan, different in terms of culture, to be able to reach agreement, they both have to encompass Japanese mindset,” – Tautvydas Barštys, KG Group Manager told.

“We have been working with Scandinavian and European markets for more than 14 years and have implemented the highest quality standards. However, regardless of this, to be able to initiate collaboration with Japan, the customers required various additional documents. They were interested not only in processes, equipment and product ingredients, but also, for example, in the composition of water used in factories and the compliance with quality requirements imposed. The next step was to produce a product the flavour of which would be culturally familiar. Finally, we had to gain a status of a reliable partner and plan further development. We are about to sign an agreement for the supply of production with one of the largest retail chains in Tokyo. Thus, strategic goal for the next year in Japan is to be closer to the consumer,” continued the Manager of KG Group Tautvydas Barštys.

Japan is one of the largest importers of agricultural products. Due to unique relief, only approx. 15% of the territory of the country is suitable for agricultural activity. For this reason, about half of agricultural products have to be imported. Chicken products are mostly imported from Brazil and Thailand.

Vilniaus paukštynas, AB and Kaišiadorių paukštynas, AB, together with Kauno Grūdai, AB and controlled subsidiaries, form one of the most modern and economically strongest production mergers in Lithuania, namely, group of companies KG Group.

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