2000, Volume 3, Paper 33
ISSN: 2209-6612

Direct Supply Relationships with Japanese Consumer Co-operatives – A Market Opportunity

Rick Ada – Principal Agricultural Economist, Queensland Department of Primary Industries, Toowoomba QLD

Abstract

Japanese consumer co-operatives are the largest food retailers in Japan representing more than 25 per cent of Japanese households, with a membership of over 20 million. The co-operatives have established direct supply relationships with fresh food producers as a means of ensuring product safety and freshness for their customers. Known as sanchoku, this direct supply is characterised by supply chain relationships that encourage close contact between producers and consumers.

This paper outlines research conducted into the consumer co-operative movement and the requirements to access this large and growing market. It concludes that the co-operatives represent a significant opportunity for Australian food exporters to provide a differentiated product to the Japanese market. The results of case studies of two Australian producer groups, firms that have used the research results to gain market entry to the co-operatives, are highlighted and generalisations are made regarding the necessary considerations for producers wishing to export to Japanese co-ops.

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