ZEN-NOH : National Federation of Agricultural Cooperative Associations

We, the ZEN-NOH Group, are the trusted and reliable go-between linking producers and consumers.
  1. Message from ZEN-NOH Representatives
  2. Overseas Business Locations

Business Overview

  1. Rice
  2. Fruits and Vegetables
  3. Farm Products
  4. Livestock Sales
  5. Dairy Farming
  6. Livestock Production
  7. Agricultural Marketing and Planning
  8. Fertilizer
  9. Agrichemicals
  10. Materials
  11. Agricultural Machinery
  12. Petroleum Products
  13. LP gas
  14. Daily Necessities

About ZEN-NOH

  1. ZEN-NOH's Mission
  2. Corporate Identity
  3. Organization Profile
  4. Organization Chart and Executives
  5. Locations and Contact Information
  6. Financial Information
  7. Stores Nationwide(Restaurant Business)
  8. Overseas network and diversification of origination areas

LP gas

About the Gas Business

Humans have been expanding the possibilities of food preparation through cooking, helping customers to enjoy richer and more diverse eating habits. The LP gas that ZEN-NOH supplies ensures that families have the thermal energy they need for household cooking. LP gas is a clean-burning form of energy with low environmental impact—including low emissions of CO2—the leading cause of global warming. LP gas can also be used to heat bath water.

To ensure a stable supply of LP gas from the JA Group—branded as Kumiai Propane—we purchase the gas from domestic producers and also import it directly from countries in the Middle East, such as Saudi Arabia. We have dedicated divisions and managers responsible for security, and we are strengthening our security and safety policies to ensure that our customers can use LP gas with confidence.

Trends in the Sales of LP Gas Products

Trends in the Sales of LP Gas Products

LP gas sales are declining due to reduced overall demand, a result of the spread of all-electric homes and the impact of global warming. Nonetheless, as the diversification in energies used continues, we are seeing more widespread use of home power generators and water heating systems that use the clean energy LP gas offers. A certain level of demand for these products is expected to continue.

Main Types of LP Gas Products

LP Gas Product Distribution

ZEN-NOH’s Domestic Market Share

Domestic demand for LP gas products (for household and commercial use) was about 7.90 million tons in FY 2014. ZEN-NOH is a major LP gas distributor.

Product ZEN-NOH Share of Domestic Demand (%)
LP gas 4.7
LP Gas Product Distribution Flowchart
LP Gas Product Distribution Flowchart
Reference: Taxes on LP Gas Products

The following taxes are included in the prices of LP gas products.

Name Amount (yen/ton)
LP gas Petroleum and coal tax: ¥1,600/ton

Goals of the LP Gas Business

Sakaide import terminal Sakaide import terminal Bulk gas truck Bulk gas truck
  1. Improve customer satisfaction
    • We want our gas products to inspire greater customer satisfaction than other forms of fuel in terms of security, price and service, and strive to make ours the business that JA members and users select.
    • As a lifeline service for our customers, we strive to offer a security system that operates around the clock, 365 days a year so that we can ensure a reliable supply of LP gas. We are working to bolster our security (and safety) systems, and other services through telecommunications.
  2. Strengthen business competitiveness and reduce costs
    • Besides striving to reduce business costs, we are providing services to our customers that are transparent, fairly priced, standardized, and highly secure. We are strengthening the business competitiveness of the JA Group as a whole, enabling us to better compete against other companies in the industry and against competing energy providers.
    • By promoting the introduction of methods for directly supplying LP gas from small trucks to household gas tanks (bulk supply method), we are striving to improve the efficiency of our business structures and cut distribution costs.

Bulk Supply Method

We typically delivered LP gas in canisters to individual homes, but the bulk supply method of delivery—which involves direct transfer from a small truck to the user's dedicated LP gas tank at home—allows us to deliver product more efficiently to large-volume consumers. This method reduces the number of deliveries made to users and naturally saves on distribution costs.

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