Distribution Cost Structure of Rice Exports:

A Case Study on A Company in Ibaraki Prefecture

Abstract

Rice export has become crucial for maintaining domestic production in the face of a reduction in domestic consumption by 100,000 tons every year. As a result, the quantity and value of rice exports are increasing. The key to boosting rice exports is to improve cost competitiveness. Earlier studies have focused on aspects of the production. However, this study shows the distribution cost structure, which has been hitherto overlooked, and highlights the important points for improving cost competitiveness. This study used A company as a case study, which collects and export rice in Ibaraki Prefecture. The study yielded the following conclusions. First, the increase in rice export was contingent on the purchase price imposed on producers, which in turn stipulated the Free on Board (FOB) price at export ports. Second, this study did not confirm the difference in distribution cost affecting cost competitiveness.