Nichimo Corporation reported a notable rebound in earnings for the first three quarters of fiscal year 2025 (ending December 2025), driven largely by stronger exports of frozen raw fish to the Chinese market.
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The Japan-based seafood trading and processing group announced that consolidated operating profit rose approximately 15% year-on-year to 3.16 billion yen (approximately US$20.63 million), while revenue increased 7% to 111 billion yen (approximately US$724.61 million) during the reporting period. According to the company, robust sales of Alaskan frozen raw fish destined for China were the primary engine behind the recovery.
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Raw Material Trade Leads the Recovery
Unlike previous growth cycles fueled by higher value-added processing, this round of profit improvement stemmed primarily from expanded raw material trade volumes.
Within the company’s food business segment, exports of frozen raw fish from Alaska, United States to China’s processing sector strengthened significantly. These gains helped offset declining performance in traditional businesses such as fish paste products.
Nichimo confirmed that the exported products consisted entirely of frozen raw fish sourced from Alaska, primarily supplied to Chinese processors rather than sold as finished consumer goods.
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Surimi Business Under Pressure
The rebound in overall performance contrasts sharply with ongoing weakness in the company’s surimi operations.
Nichimo reported that continuously rising raw material costs pushed up finished product prices, dampening demand in key markets. Additionally, weak surimi production in South America further weighed on segment performance. As a result, both revenue and profit from the surimi business declined during the reporting period, becoming a significant drag on overall food segment results.
Meanwhile, profits in the processed food division remained largely flat, as higher procurement costs eroded margins.
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China’s Strategic Role in the Whitefish Supply Chain
Nichimo emphasized that trade with China is jointly coordinated by its Tokyo headquarters and its U.S. subsidiary, Nichimo International, ensuring stable procurement in Alaska and efficient fulfillment to Chinese customers.
Even amid continued U.S. tariff policies and China’s ongoing restrictions on imports of Japanese seafood products, this triangular trade model — sourcing raw materials from a third country and exporting them to China — has maintained relatively stable operating conditions.
Industry analysts note that this shift reflects broader structural changes in the global whitefish supply chain. With global seafood consumption growth slowing and profit margins in deep processing under pressure, China’s role has increasingly evolved into that of a large-scale raw material “consumer” and processing hub.
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For Japanese seafood companies, direct exports of finished seafood products to China remain constrained. However, participating in raw material trade by organizing supply from regions such as Alaska and other parts of the United States remains one of the few viable and profitable pathways.
Structural Recovery, Not Yet Systemic Improvement
Despite the headline profit growth, Nichimo’s recovery shows clear structural characteristics.
The company acknowledged that overall food business profitability did not significantly improve, and previously established surimi-related operations in South America have been scaled back. The current rebound appears more closely tied to temporary strength in raw material exports to China rather than a comprehensive improvement in operating efficiency or product mix.
Against a backdrop of shifting global whitefish resources and intensifying supply competition between Russia and the United States, Nichimo’s latest results underscore the substantial weight of the Chinese market in global raw fish trade flows.
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Looking ahead, fluctuations in demand from China’s processing sector or further increases in raw material prices could test the sustainability of this earnings recovery.
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