Abstract
The aim of this study is to investigate the supply structure of crude tea in Higashihagima District, Makinohara City, Shizuoka Prefecture, in order to determine how the quality of crude tea is decided through business transactions. This study analyzes the types of transactions between factories with crude tea and tea merchants according to the different types of businesses associated with each crude tea factory. In Higashihagima District, factories with crude tea are classified as individual factories growing raw leaves, individual factories purchasing raw leaves, agricultural corporations, and limited companies. The types of individual factories both growing raw leaves and purchasing raw leaves have closer transactional relations with tea merchants in specific areas due to direct and indirect transactions with agents. These relations create a high quality supply of crude tea. On the other hand, the types of agricultural corporations and limited companies have only economic ties with tea merchants in the greater area through the intermediary transactions of agents and agricultural co-operative associations. These relations result in a large supply of crude tea, but which lacks in quality. As a result, in Higashihagima District, the supply structure of crude tea, the transactional relations of factories with crude tea and tea merchants, and the relations between these factories and farmers who grow raw tea leaves have become complex.