Tofu Maker’s stock rockets with modern twist on ancient craft.

  • Japan’s Yamami Co., a producer of tofu, has incorporated automation in its production process to handle high production rates.
  • The tofu manufacturer is predicting record-high profits and revenue for its financial year ending in June 2024 as its stocks appreciate in value.

The tofu maker has witnessed its shares surge by 138% so far this year, thanks to mass production and automation processes. The growth in shares stands out among domestic competitors who are struggling due to high resource prices eating into their already narrow margins.

The company’s newest factory situated at the foot of Mount Fuji can churn out 15,000 units of the plant-based protein source per hour. This rate is several times greater than that of industry competitors. A profitable factor for Yamami Co. is the availability of pristine groundwater, whose temperature is stable – a crucial factor for tofu making.

Yamami’s production plants have efficiently granted the firm a competitive edge of scale, reducing costs and allowing the sale of tofu at lower prices than market competitors. This has increased Yamami’s market share as consumers opt for cheaper tofu products, even amid doubled import prices for soybeans.

Yamana, Yamami’s company president, said that his fascination with machines played a significant part in the company’s automation advancements. He was appointed president in 2021, taking over from his father.

With the company’s recent opening of a plant close to Tokyo, Yamami aims to compete in Japan’s largest market. Distance proves critical to tofu production as the product spoils quickly. Despite its concentration on Tokyo market expansion in the near term, Yamami could potentially expand its customer base overseas.