ITOCHU Corporation (“ITOCHU,” hereafter) announced today that the trace agricultural chemical azoxystrobin in excess of the trace-standard stipulated by the Food Sanitation Act (trace amount of 2.5mg/kg for a trace standard of 0.5mg/kg) was detected from retained samples of Australian barley imported by ITOCHU and supplied to Nishida Barley Processing Co., Ltd. based on an SBS agreement concluded in July 2017 (Three Party Agreement Between Importer, Purchaser and Government / Barley Sales Agreement (29) No. CB14).

After being contacted by its business associates in relation to this matter, ITOCHU promptly informed the Ministry of Agriculture, Forestry and Fisheries, contacted and reported the matter to its business partners, and asked business partners to take measures such as halting the shipment of the product in inventory. At the same time, ITOCHU asked the inspection organization to perform a detailed analysis of the retained sample and reported this to the relevant health departments. Last night, the analysis results were received, the details of which were provided to the Ministry of Agriculture, Forestry and Fisheries, culminating in today’s announcement.

While the detected amount of azoxystrobin determined through this testing does not pose a danger to health, ITOCHU expressed its deepest apologies for the considerable concern and inconvenience it has caused consumers and its business partners.

Moving forward, ITOCHU will work with customers and its other business partners to ascertain the situation regarding the affected barley and any products processed with the barley. We will also take appropriate action in accordance with law upon consultation with the relevant health departments, work to investigate the cause of this incident and prevent a repeat occurrence, and will make utmostefforts to further reinforce our food safety management systems.