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This paper examines the production area of potted plants and flowerbed seedlings in Kawasato, Saitama Prefecture in the face of low market price of flowers. Farmers in Kawasato shifted from the greenhouse production of vegetables and vegetable seedlings to flowers in order to lower the production cost at the time of oil crises during the 1970s. Production technology of vegetable seedlings provided the basis of potted plant and flowerbed seedling production. A producers' cooperative association established by pioneering farmers and the existence of local flower market contributed to the emergence of a flower production core in Kawasato. Farmers became specialized in flowers during the 1980s by industrializing the system of production and expanding the production scale. Moreover, agricultural structure improvement projects and growers' cooperative association promoted the production and marketing of flowers. However, as the wholesale price of potted plants and flowerbed seedlings decreased due to oversupply since the beginning of the 1990s, flower growers were forced to come up with new strategy for survival. Mass production systems of flower seedlings were introduced. Farm size was enlarged. Employed labor was applied to production and shipment and the division of labor was established. Cooperative marketing association was established, which shipped flowers to local and remote flower markets. Thus, growers in Kawasato succeeded in responding flexibly to the low market price of flowers. Continued introduction of technological innovation in production and marketing plays an important role in sustaining a flower production area.

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