The Agricultural Marketing Journal of Japan
Online ISSN : 2424-0427
Print ISSN : 1341-934X
Research on Contract-Based Dealings with Producing Districts Made by Volume Sellers via a Wholesale Market
Akitoshi KIMURA
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JOURNAL FREE ACCESS

2001 Volume 10 Issue 2 Pages 46-51

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Abstract
The purpose of this research is to clarify the present situation and future problems of contract-based dealings, which promote volume sellers to strengthen partnership with producing districts using a wholesale market where wholesalers/middle-wholesalers function. A hearing investigation was made for buyers of vegetables and fruits at eight supermarkets, including leading global ones, in each block. The result shows that the target items of contract-based dealings were mostly major or important products in a vegetables and fruits market. This is because this type of dealing, due to a strong relationship with producing districts, makes it possible to obtain "differentiated products" and to purchase considerable amounts of such products on a regular basis. Even if prices are set in advance, they actually go up or down depending on the market price at each delivery time. Although the contract-based dealings with producing districts can easily lead to off-the-market distribution, volume sellers have been using this kind of dealing just because they can entrust the tasks such as volume control, negotiation with producing districts,distribution-related matters, etc., to wholesalers or middle-wholesalers. On the other hand, on-the-market-type contract-based dealings still have problems in volume control, risk arisen from changing market prices, unstable volume-availability and quality, etc..
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© 2001 The Agricultural Marketing Society of Japan
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