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Ryokan

A former Japanese dairy manufacturer based in Izumozaki, Niigata, known for its Ryokan-brand milk and dairy products, which ceased operations and went bankrupt in 2023.

Last updated September 27, 2026

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Overview

Ryokan (株式会社良寛) was a Japanese dairy manufacturer headquartered in Izumozaki, Niigata Prefecture. The company's name and brand derive from the Buddhist monk Ryokan, who was born in Izumozaki. It began in 1952 as a voluntary association of five dairy farmers called the Nishikoshi Dairy Association, aiming to rationalize their operations. In April 1964, it was incorporated as the Izumozaki Dairy Cooperative (農事組合法人出雲崎酪農組合). The company produced its main product, Ryokan Milk, at its own factory, and also offered a range of dairy products under its own brand, including Ryokan Coffee, Ryokan Milk Pudding, Ryokan Yogurt, and Ryokan Fruit Jelly. Its primary sales area was the Chūetsu region of Niigata Prefecture, and it built a customer base that included cooperatives, food supermarkets, school lunches, and business establishments. For the fiscal year ending December 2003, sales were approximately 1.742 billion yen. In April 2017, it reorganized into a stock company and changed its trade name to Ryokan Co., Ltd. After incorporation, it participated in various business meetings and sought to develop new sales channels. However, due to declining milk demand, intensifying competition, and decreasing demand for school lunches amid a declining birthrate, sales trended downward and profitability worsened. The spread of COVID-19 led to further deterioration as school lunches were canceled. Despite efforts to turn the business around by introducing higher-value-added new products, rising raw material and transportation costs dealt a further blow. For the fiscal year ending December 2021, sales fell to approximately 991 million yen, with a deficit of 85.8 million yen, and excess liabilities expanded to 115.76 million yen. Consequently, on February 7, 2023, Ryokan suspended operations and entrusted post-processing to lawyers. The lawyers commented that the business had been performing poorly for a long time and faced cash flow difficulties, leading to the suspension. On February 16, 2023, the Nagoya District Court Nagaoka Branch issued a bankruptcy commencement decision. Total liabilities were approximately 500 million yen. The company is now defunct.

History

Ryokan's history began in 1952 when five dairy farmers in Izumozaki, Niigata Prefecture, formed a voluntary association called the Nishikoshi Dairy Association (西越酪農組合) to rationalize their operations and began producing and selling milk. In April 1964, the association was incorporated as the Izumozaki Dairy Cooperative (農事組合法人出雲崎酪農組合). The following year, in 1965, the factory was relocated to Daimon, Izumozaki, Niigata Prefecture. In 1985, the company began producing low-temperature pasteurized milk and yogurt. In 1988, it started producing pudding. In 2009, it added Ryokan Fruit Jelly to its product line. For the fiscal year ending December 2003, sales reached approximately 1.742 billion yen. In April 2017, the cooperative was reorganized into a stock company and changed its name to Ryokan Co., Ltd. (株式会社良寛). After becoming a stock company, it participated in various business meetings and worked to develop new sales channels. However, the business environment deteriorated due to declining milk demand, intensifying competition, and a declining birthrate that reduced demand for school lunches. The spread of COVID-19 further worsened performance as school lunches were canceled. Despite efforts to introduce higher-value-added new products to rebuild management, rising raw material and transportation costs added pressure. For the fiscal year ending December 2021, sales fell to approximately 991 million yen, with a deficit of 85.8 million yen, and excess liabilities expanded to 115.76 million yen. On February 7, 2023, Ryokan suspended operations and entrusted post-processing to lawyers. The lawyers stated that the company had been performing poorly for a long time and faced cash flow difficulties, leading to the suspension. On February 16, 2023, the Nagoya District Court Nagaoka Branch issued a bankruptcy commencement decision. Total liabilities were approximately 500 million yen. The company is now defunct.

  • 2023

    Suspended operations on February 7; bankruptcy proceedings commenced on February 16.

  • 2017

    Reorganized into a stock company and changed trade name to Ryokan Co., Ltd.

  • 2009

    Started production of Ryokan Fruit Jelly.

  • 1988

    Started production of pudding.

  • 1985

    Started production of low-temperature pasteurized milk and yogurt.

  • 1965

    Factory relocated to Daimon, Izumozaki, Niigata.

  • 1964

    Reorganized as a legal entity 'Izumozaki Dairy Cooperative'.

  • 1952

    Founded as a voluntary association 'Nishikoshi Dairy Association' and began manufacturing and selling milk.

Products and positioning

Local dairy brand serving Niigata Prefecture, with a focus on school lunch and community sales channels.

  • Ryokan Milk

  • Ryokan Coffee

  • Ryokan Milk Pudding

  • Ryokan Yogurt

  • Ryokan Fruit Jelly

Sources3 sources

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