Sakata Seed Corporation (Headquarters: Yokohama City, Kanagawa Prefecture, Japan; President: Hiroshi Sakata)’s wholly-owned subsidiary Sakata Seed Sudamerica LTDA. (Headquarters: Bragança Paulista, Sao Paulo, Brazil; hereinafter, “SDA”) will establish a local company in Colombia, which has the third-largest vegetable seed market in South America. This will be the fifth South American company for the SAKATA Group. Registration is scheduled to be completed in early July 2024, and operations are expected to commence in September of the same year. The establishment of this local company will accelerate SAKATA Group’s local sales efforts in Colombia, and further enhance SAKATA Group’s global structure through more collaboration with other bases.
The local company will be named Sakata Colombia S.A.S. ("Sakata Colombia") and will be located in the capital city of Bogota. Capitalized at US$300,000 (approximately 47 million yen*), Sakata Colombia will be wholly owned by SDA. Its business will be importing and selling vegetable seeds. Sakata Colombia will have five employees at the time of establishment, and the target for unconsolidated sales is approximately US$5.8 million (approximately 900 million yen*) in the fifth year.
Colombia has a GDP of approximately $343.6 billion (2022 figures according to the World Bank), making it the third largest scale in South America after Brazil and Argentina. Until now, SDA had sold seeds to Colombia through local distributors. By establishing a local company, we expect to increase sales of seeds those which SAKATA Group has strengths in other regions of South America, such as tomatoes, onions, and peppers, and to enhance its presence in the Colombia market.
SAKATA Group is working to strengthen its businesses in South America, through SDA. With the establishment of Sakata Colombia, the Group aims to further increase its market share in the South American region and become the number one seed company in South America, while enhancing SAKATA Group’s global structure through more collaboration with other bases.
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*
This is calculated at a rate of 157 yen to one US dollar.