The Current Conditions and Problems in Local Wholesale Markets of the South Osaka Area under the Transforming of the Fruits and Vegetables Marketing Systems

Abstract

The purpose of this article is to try to throw light on the current conditions and problems in the Local Wholesale Market of fruits and vegetables under the reorganization of the distributional surroundings at wholesale markets by taking an instance of the South Osaka Area. The distribution of fruits and vegetables in Osaka markets has a double character; one of the Central Wholesale Markets playing a leading part by carrying out an enormous distribution through-out a wide range, the other, of the Local Wholesale Markets accordingly playing a secondary auxiliary part by performing regional distribution. The relationship between the Central Wholesale Markets and the Local ones has so far been viewed as that of opposition caused by great differences in power for assembling and marketing between them. But, it is now clear that relationship between them has undergone a new change and development because of: 1) large-scale shipment of products, 2) limited markets where products are on sale, 3) and retail markets controlled by supermarkets that is rapidly encroaching on them. This result has been brought about by efforts made not only to take advantage of the assembling and distribution function of the Central Wholesale Markets, but also, at the same time, to fulfill the regional distribution function belonging to the Local Wholesale Markets. In concrete terms it is symbolized by a strategy: 1) to buy from intermediate wholesalers only a needed amount of products for which their districts are made famous, along with 2) strengthening ties with producing regions by adopting contract-cultivation for the purpose of stabilizing the sales amount of fresh Fruits and Vegetables produced in that region as they are highly demanded by supermarkets.