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Alternative Marketing Systems for Organic Agricultural Products in Japan: Accumulating Social Capital to Protect the Ecology

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Alternative Marketing Systems for Organic Agricultural Products in Japan: Accumulating Social Capital to Protect the Ecology Kasetsart J. (Soc. Sci) 26 : 103 - 117 (2005) «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 : 103 - 117 (2548) Alternative Marketing Systems for Organic Agricultural Products in Japan: Accumulating Social Capital to Protect the Ecology Wanna Prayukvong ABSTRACT This study was undertaken to observe the marketing of organic agricultural products in Japan using collectively based systems such as the teikei system and sanchoku schemes, and to determine whether such methods differ from the mainstream marketing of normal agricultural products. Data was collected through a review of secondary sources and in-depth interviews with representatives of successful consumersû and farmersû groups involved in the Japanese organic agriculture movement undertaken. The results of the study show that the difference between the alternative marketing systems of the organic agricultural sector in Japan and other traditional marketing schemes is that social capital plays a much more defined role in the alternative system. The marketing systems in use in organic agriculture bypass the middlemen who are common in normal marketing chains. In addition, alternative marketing systems are focused not only on exchanging products but also, perhaps more importantly, on creating an alternative community by establishing a relationship between farmers and consumers who have the same goals of conserving the environment and maintaining their community. Key words: organic agricultural products, alternative marketing, social capital, Japan INTRODUCTION Although Japan has experienced considerable economic success in agricultural development, the Organic agriculture in Japan industrialisation of agriculture has resulted in inevitable Japan is currently one of the most important negative impacts on environment. Rising demand economies in the world. Although economic success for safe food and a growing interest in sustainable has created an imbalance between the industrial and agriculture are encouraging an increasing number of agricultural sectors, agriculture remains important in players in the Japanese agricultural sector to look at Japan. The agricultural sector has enhanced other options to produce as safe agricultural products. productivity by adopting modern industrial agricultural Demand for food safety is not a new techniques such as mechanisation, the use of chemical phenomenon in Japan. Over the years Japan has inputs, and the adoption of high yield seed varieties, faced a range of environmental problems as a result even though the average farm size remains small. of the unsafe use of modern chemicals, notably the Faculty of Management Science, Ubon Ratchathani University, Ubon Ratchathani 34190, Thailand. 104 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 serious consequences of Minamata disease continuing to expand in parallel with growing (methylmercury poisoning resulting from the dumping demand for safe food, and organic food has now of factory waste) which became apparent in the early become part of the mainstream food market. 1950s. Minamata disease is only one famous and At present, the approximate area planted with tragic example of many cases of illness and organic agricultural products in Japan is 5,000 ha, environmental contamination caused by industrial representing just 0.1% of the total agricultural chemicals over a period of rapid economic growth planted area in 1999. (Zennoh, 2001) Table 1 shows and industrialisation in Japan. the estimated total sales value of organic products The Japanese organic agriculture movement through the mainstream wholesale market in Japan began more than 30 years ago when consumers, (not including the various types of alternative market especially in urban areas, became concerned about which are discussed in this paper). levels of chemical contamination in food sold on the Table 1 shows that the percentage value of market. Some consumers began to use existing organic products within the overall agricultural consumer co-operative structures to obtain safe food, market in 1998 was small, at just 0.18%. This value such as the sanchoku system, a system which might be expected to be higher if figures from arranges direct transactions between producer and alternative markets are also included. The land area consumer co-operatives to reduce the length of the dedicated to organic farming is 0.1% of the total marketing and supply chain. The Japan Organic agricultural area. The annual value of organic Agriculture Association (JOAA), a voluntary non- products per unit area, calculated by dividing total profit organization, was established among farmers area farmed organically by the total value of organic in 1971, and the concept of Yuki (organic) began to products sold, is about 43 million yen per hectare, develop in Japanese society. The organic agriculture which is nearly twice as high as the corresponding movement not only introduced farmers to the idea figure for conventionally-grown agricultural products. of growing produce without chemical additives, but This suggests that the revenue from organic farming also stressed the importance of supportive human may quite high in comparison to revenues from relationships between producers and consumers - the conventional farming. basis of the now well-established teikei system (a The market for organic agricultural products trading partnership system for organic food used by initially evolved as small farmers provided food to producers and consumers committed to a particular consumersû groups, allowing a strong trust relationship set of social and agricultural principles). The and shared ideals to develop between producers and Japanese organic agriculture movement is currently consumers. More recently, however, the situation Table 1 Estimated total wholesale value of agricultural products in 1998 (billion yen). Item Total Organic Low chemical Safe products product Value % Value % Value % Perishable products 70,800 180 0.25 1,870 2.6 2,050 2.9 Rice 45,000 35 0.08 380 0.8 415 0.9 Total 115,800 215 0.18 2,250 1.9 2,465 2.1 Source: Zennoh J.A. Organic: Not using chemical fertilizer & pesticide. Low chemical: Minimum using level of chemical fertilizer & pesticide. Safe products: Using chemical fertilizer & pesticide at a safety level. %: Percentage of total market value for agricultural products for this product type. «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 105 has changed, and the organic food movement is informants resulted in some ambiguities and omissions faced with the issues of an aging population, in primary data, but the general trends within the changing dietary patterns, and changing lifestyles, results are clear and are supported by information especially among people in urban areas. Other issues from secondary sources. are the growth in imported agricultural products and The next section of the paper describes the reduced protection for Japanese farmers from concept of social capital and its importance in international competition, as required under relationships within Japanese society. This is international trade agreements. Japanûs Ministry of followed by a description of conventional marketing Agriculture, Forestry and Fisheries has recently systems for agricultural produce in Japan and a introduced regulations for labeling organic agricultural comparison between conventional and alternative products under the Japanese Agricultural Standards marketing systems. The discussion on the level of (JAS) scheme, allowing the import of organic social capital in the organizations of each system and agricultural products. How the grassroots organic the conclusion of alternative marketing systems for agriculture movement will fare in these changing organic produce in Japan. times is not yet clear. The sale of organic agricultural products in Social capital: Intangible capital Japan has now entered the mainstream market, where Colemanûs 1988 study into compulsory produce is sold through both the wholesale market education (1988) develops a conceptual framework and direct marketing. Alternative marketing systems to explain social capital and how it can be used to such as the sanchoku and teikei systems continue to create human capital. According to Colemanûs exist and remain important, operating on direct concept, social capital is defined by its function. It marketing principles. This research study examines is not a single entity but a variety of different entities the organizations involved in alternative marketing with two elements in common. All forms of social systems for organic food in Japan; factors which capital relate to some aspect of social structure, and result in successful marketing and distribution; and they facilitate certain actions of the actors present - problems experienced by alternative marketing whether individuals or corporate actors - within this organizations. The objective of the study was to structure. Social capital exists in three forms: examine whether and how the alternative marketing obligations and expectations, information channels, of organic agricultural products differs from and social norms. mainstream marketing of general agricultural products, Putnum (1993) expanded the concept of with particular emphasis on the teikei and sanchoku social capital further in his longitudinal study of systems. Italy. He found that the crucial factors contributing Data was collected through a review of to success in socio-economic development in the secondary sources (agricultural statistics, articles, region of Italy studied was civic involvement or civic and other
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