The development of the fertilizer market in Taiwan, 1910s-1930s(Information, trust, and market quality,PANEL DISCUSSIONS: 78th annual conference)

Abstract

The purpose of this article is to examine the transaction mechanism that increased the demand of fertilizers among Taiwanese peasants. The following three points are discussed. First, there were two supply routes for the purchase of fertilizers. One was from nokai (the agricultural association), the other was from merchants. Second, when the peasants purchased fertilizers, they confronted two problems: financial difficulties and deceptive trading practices. Despite the institutional measures that were taken, such as the establishment of banks or laws, they were not effective in countering these problems. Finally, the peasants solved these problems by choosing "reliable" suppliers, which was why the demand for fertilizers kept increasing. Nokai was one of the reliable suppliers, because it provided financial facilities and did not have the incentive to engage in deceptive trade. Some of the rice merchants were also reliable suppliers for the peasants. When purchasing fertilizers, many peasants did not choose fertilizer merchants but chose rice merchants instead, because they supplied fertilizers on a credit basis. For rice merchants, fertilizers were a necessary item to collect rice, so they had no incentive to be fraudulent.