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• Capital Injected into 40% of Shares of Rice Milling Company in United States - With prospect of global sales growth against backdrop of expanding markets for Japanese food overseas -

Capital Injected into 40% of Shares of Rice Milling Company in United States - With prospect of global sales growth against backdrop of expanding markets for Japanese food overseas -

2010-03-24

Toyota Tsusho Corporation (hereinafter referred to as "Toyota Tsusho" ; Headquarters: Nagoya City, Aichi Prefecture; President: Junzo Shimizu) reached an agreement with Sun Valley Rice Investments, LLC (hereinafter referred to as "SVR"; Headquarters: Arbuckle, Colusa County in the State of California), a rice milling company in the United States, to purchase 40% of SVR shares owned by SVR. Toyota Tsusho will make a full scale entrance into rice distribution for Japanese food markets, which are showing signs of significant growth overseas, as a joint management partner with SVR in the future.

Established in the year 2000 in Northern California of the United States, SVR is a second-tier rice milling company. SVR consolidates shipments, mills and sells Californian Rice, predominantly superior quality rice grown in the northern part of the state, to ethnic food markets, primarily for Japanese cuisine as represented by Sushi, in North America, Europe and Southeast Asia. At the present time SVR is managed by the LaGrande family, leading and influential members of the rice production and milling industry in the United States, with strengths in strict quality control and a capability to respond to the various needs of customers.

In response to the increasing demand for rice due to expanding Japanese food markets, Toyota Tsusho decided it would be necessary to secure a Japanese food sales channel, while SVR determined that in order to further expand the company's global distribution routes and cater to the needs of markets around the world, it would be more appropriate to form a partnership with a Japanese trading company with international business networks, rather than continuing to manage the business on their own, which led to the signing of the agreement. Toyota Tsusho will dispatch one or more executives to join the management at SVR in the near future.

SVR will be able to enhance their integrated process for the procurement of raw materials, manufacture and quality control to secure demand in the future by utilizing the capital injection from Toyota Tsusho. SVR will also benefit from international networks and logistic functions available through Toyota Tsusho, which will be used for the purpose of expanding sales. Toyota Tsusho intends to engage in sales and the distribution of food products other than rice, through the sale routes available at SVR, while expanding the company's general food value chain overseas.

[Corporate summary of invested company]
Company name:Sun Valley Rice Investments, LLC.
Headquarters location:Arbuckle, Colusa County, State of California
Representative officer:Kenneth LaGrande
Number of employees:120
Main business lines:Storing, milling and selling rice

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