This study examines the economic outcome of a change in the distribution system of fresh seafood in Japan. In particular, it analyzes the seafood distribution in the area of Itoshima, a peninsula located between Fukuoka and Nagasaki.
Traditionally, the distribution of fresh seafood in Japan has been organized by the local fishery cooperatives (JF). In this model, the fishermen sell their catch to JF which is responsible for the entire sales process and economic results. However, the clear division of responsibilities has not yielded any economies of specialization for the fishermen whose income tend to decline.
To improve their income situation, fishermen and JF Itoshima have implemented a new distribution system based on self-organization. Fishermen are responsible for the entire sales process. They make entrepreneurial decisions about prices and product. JF provides the platform, a Direct Sales Store. So far, the project has been an economic success; the fishermen’s income has significantly improved.
However, the existence of two competing Direct Sales Stores in Itoshima has also led to structural distribution problems. The majority of the fishermen sells through the “Shima no Shiki” store which emphasizes quality. But the amount of unsold goods puts a strain on performance. To avoid this issue, a minority of fishermen sells through the “Ito sai sai” store instead, which focuses on volume and low prices. This frequently causes supply shortages at “Shima no shiki” and is also detrimental to the premium positioning of Itoshima’s fishery industry.
This study discusses the distribution problem and ways to overcome it.
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