The Impact of Introducing a Growth Prediction System in the Contract Farming of Vegetables

Abstract

The objective of this study is to clarify the present state of the contract farming of vegetables and to evaluate the impact of introducing a growth prediction system in an agricultural corporation in Japan. The main findings are as follows. First, the study revealed that the corporation determines the volume of procurement and production according to the volume of sales. Having multiple customers in multiple types of business helps diversify risk. Second, the study found significant impacts of a growth prediction system on land productivity, labor productivity, labor input per unit area, and unit selling price of vegetables.