The Japanese government has been developing policy in Japanese agriculture in a new international environment. A new Food Law, i e, the Law Concerning the Stabilization of Supply, Demand and Price of Staple Food was established in 1994 The old Food Control Law had been provided for all governmental control over the production, purchase and pricing of rice, but the new Law confines its role mainly to Storage.
On conditions that the government runs a projection for the supply and demand of rice to ensure the stabilization of supply and demand and to establish the price of rice and plan the smooth implementation of production adjustments and to coordinate a flexible stockpiling system to secure proper and smooth distribution, a simulation study was made to obtain a basic information about the operation of stockpiles and the amount of planned distribution of govenmental purchases and imports. Assuming that rice is shipped through the voluntarily marketed rice channel or through government channels, a system dynamics model of the rice distribution was constncted.
We reveal that our simulation greatly helps to understand and study that the voluntarily marketed distribution plan may be approved to maintain stockpiles and to withhold some rice from the market if necessary.
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