A Study on the Corporate Entry into Agriculture by Joint Venture

With a Focus on the Growth of the Agricultural Production Corporation

Abstract

The objective of this study is to clarify the advantages of agricultural production corporation for establishing a new agricultural corporation by joint venture with a big non-agricultural company. The implications were derived from an interview survey of 3 agricultural production corporations established by joint venture. The main outcome is as follows : There are three advantages for the growth of an agricultural production corporation on its corporate entry into agriculture by joint venture, namely, the ability to (1) acquire capital and market at the same time, (2) acquire human resources from the company, and (3) avoid the risk of declining freedom of management action.