This paper discusses the best mix of local production for local consumption, introduces an extensive distribution network, and clarifies how this contributes to the reconstruction of regional agriculture. The author took up a case study of Tsushima City, Nagasaki Prefecture, and approached this issue from the viewpoints of the actual situations of local production for local consumption and the shipment out of the island. Due to the decrease of shipments of agricultural and forestry products out of the island of Tsushima, they now remain on the island, and farmers' markets are thriving. As the islanders desire fresh agricultural products, the activities of supermarkets and farmers' markets of agricultural cooperatives responding to their desires make sense. However, due to the trend of declining population in Tsushima City, at a rate faster than national average, local distribution will become saturated at some time in the future and it is expected that competition will occur among these farmers' markets. In order to solve this problem, a two-front response of regional distribution and shipment to out of the island is necessary. Thus, local production for local consumption should be based upon a semi-open regionalism, not a completely closed one. Both demand and supply of agricultural products in Japan eventually will decrease. It is important to aim at local production for local consumption, but it should not be a primary concern. Large-scale farmers and agricultural production corporations have to seek diverse distribution strategies corresponding to export and demand for processing and food business as well as the domestic market. In other words, although the best mix of local production for local consumption and an extensive distribution network is a target, they are the results of economic activities as well.
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