Abstract
Due to the recent increase in demand for processed food, researchers are now paying attention to the cut-fruit market. This paper focuses on the domestic apple as cut-fruit and examines the following two issues. First, we verify the actual conditions of domestic apple procurement by cut-fruit manufacturers. Second, we examine the problem of contract farming of apples from the view point of game theory. The results are as follows. First, cut-fruit manufacturers are procuring the requisite standard apples for cut-fruit manufacturers from agricultural cooperatives that can provide specific apples in large quantities. Second, there are possibilities that contract farming has problems such as opportunistic behaviors due to the market price fluctuation and diversity of quality in an orchard. Third, we should take the procurement channel from agricultural cooperatives into account for coping with processed fruit demand.
