Abstract
This paper aims to reveal the roles of agricultural cooperatives in concluding contract deals between agricultural cooperatives and preserves manufacturers, which supplies all harvested apples for processing. The results are as follows. First, agricultural cooperatives have grasped farmer's behaviors, so that, manufacturers can save the monitoring cost for opportunistic behavior of farmers. Second, agricultural cooperatives have supplied other apples for manufacturers, so it is difficult for manufacturers to break an agreement of contract, regarding such elements as price, in order to maintain those transactions. Third, agricultural cooperatives enable attainment of economies of scales by assembly of apples and procurement of young plants. Fourth, agricultural cooperatives enable savings on transaction costs for recruitment of farmers and negotiation with each farmer.
