Kasetsart J. (Soc. Sci) 26 : 103 - 117 (2005) «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 : 103 - 117 (2548) Alternative 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 . 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 ; 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 reports on organic products and related tradition. Putnum equates social capital with features areas) and in-depth interviews with representatives of social organization such as networks, norms, and of successful consumersû and farmersû groups social trust that facilitate coordination for mutual involved in the Japanese organic agriculture movement, benefit or collective benefits. which were undertaken during a field trip in Japan Uphoff (1999) developed the ideas of Coleman in September 2001. Limited time for field work and and Putnum further by using structural and cognitive the use of the English language as the medium of elements to define social capital. According to communication between an interpreter assisting a Uphoff, çthe structural category is associated with Thai researcher in interviewing Japanese-speaking various forms of social organization, particularly 106 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 roles, rules, precedents and procedures as well as a the ùtragedy of the commonsû (Thomas, 1996). The wide variety of networks that contribute to cooperation, concept of social capital has now entered the and specifically to mutually beneficial collective discourse of the World Bank, which has not only action (MBCA), which is the stream of benefits that supported a considerable amount of research on result from social capital. The cognitive category social capital at the country level, but has also derives from mental processes and the resulting ideas emphasized its importance as a key indicator of are reinforced by culture and ideology, specifically sustainable development (World Bank, 2001). norms, values, attitudes and beliefs that contribute Japan is typically portrayed as a highly to cooperative behaviour and MBCA. Both the group-oriented society which has traditionally nurtured social structures and cognitive realms are linked in both categories of social capital within the Japanese practice by the subjective behavioural phenomena way of living. Examples of cognitive type social known as expectations.é A summary of Uphoffûs capital in Japanese society include a civic culture complementary categories of social capital is shown which combines a high discipline and punctuality, in Table 2. and trust, which is deeply ingrained in the Japanese Social capital is intangible capital which way of living and helps to ensure transactions are distinct from other forms of capital. Unlike physical based on a principal of reciprocity. In a nation where capital, but like human capital, social capital agricultural land areas are limited and there is a accumulates in an organization or society as a result constant threat from severe natural phenomena such of its use. It is therefore both a requirement for and as earthquakes, social attitudes have evolved in a product of collective action. Social capital has a Japan which value the need for co-operation, public goods characteristic, not being subject to appreciate the scarcity of natural resources and the rivalry and being non-exclusionary in its use. need to preserve such resources, and see collective Although the concept of social capital has not ownership and sharing as a way of reducing the risks been universally accepted and still has many critics, which emerge when one person is the sole owner of it is an attractive idea for governments and key resources. The historical division of roles within development agencies because it can assist decision- society, such as samurai and farmers, led to makers in making social investment that increases reciprocal arrangements under which, for instance, the efficiency and probability of success in samurai were able to provide protection while development. It also reduces the costs of social farmers provided food. The Japanese word otagai interaction and can be a solution to the problem of sama means reciprocity. Table 2 Complementary categories of social capital. Structural Cognitive Sources Roles and rules Norms Networks and other Values interpersonal relationships Attitudes Procedures and precedents Beliefs Domains Social organizations Civic culture Dynamic factors Horizontal linkage Trust, solidarity, Vertical linkage Cooperation, generosity Common elements Expectations that lead to cooperative behaviour, which produces mutual benefits. Source: Uphoff, 1999. «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 107 An example of the element of social capital capital is embedded in alternative marketing systems relating to social structures is demonstrated by a for organic agricultural products in Japan, making business environment where a wide range of the significantly different to a mainstream marketing networks, associations, clubs and voluntary groups system. are important. Japan has become famous for industrial supply chains which involve large numbers Marketing systems for agricultural products in of small and medium enterprises (SMEs). Porter Japan: mainstream versus alternative (1998) has cited the success of the Japanese SME The major distribution channel in the model in support of his theory of competitive mainstream Japanese marketing system for agricultural advantage and the cluster concept. produce is wholesaling auction markets, especially Although social capital is embedded in the auction markets for perishable products such as fruit, history of every country, Japan is one of the few vegetables and meat. A typical marketing channel nations where it has been preserved, and even from producers to consumers is shown in Figure 1. extended from the community to the inter-community Producers retain ownership of their produce until it and national levels as a crucial asset in development is purchased by a retailer or store owner at auction. of the country. However, levels of social capital at Agricultural co-operatives and auction houses receive the present time are not as strong as they were in a fixed percentage of the sale price. The products the past. The use of technology and other for sale at an auction are classified by producer and developments have enabled individuals to survive on quality attributes. The agricultural co-operatives and their own without the need of support from others. auction houses involved in the sale have a strong The entry of western culture, emphasizing incentive to maximize the prices paid to producers, individualism and consumerism, has led to new as they receive a fixed percentage of the sale price, generations being unwilling to follow traditional but this does not appear to have succeeded in making culture as strictly or closely as preceding generations Japanese agriculture attractive to a new generation have done. But although the current generation may of farmers. The number of full time Japanese have lost some elements of cognitive social capital, farmers continues to decrease and most farmers have structural social capital retains a strong base in reached or are approaching old age (MAFF, 1999). society. Recognition of the success of the previous Direct marketing between farmers and generation in using social capital to create a new professional distributors to supermarkets is another nation after the World War Two remains deeply marketing channel encountered in Japan. This implanted in the present Japanese generation, and approach eliminates one stage in the marketing social capital continues to be manifested through chain, but does not differ substantially to the auction factors such as company loyalty. system. This study aims to demonstrate that social The price of goods in a mainstream market

Figure 1 A typical mainstream marketing channel in Japan (Kazuo,1987). 108 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 is determined by the consumerûs need and the systems developed as follows. appearance and quality of the product. The origin çAll over the country, the Japanese worked of the product, conditions under which it was grown, long hours with few vacations for little pay. Eager and issues such as human dignity and the environment to further spur incentive, in 1960, Prime Minister are of no concern. The sale of organic agricultural Hayato Ikeda promised to double personal income products in mainstream markets is based on market within ten years. Although he remained true to his mechanism or supply and demand alone, with prices pledge, the cost to the Japanese people was an annual being determined by profit motives. inflation rate of 10 percent. Motivated by the The situation is different for organic fundamental need to combat rising prices, in June agricultural products, which are distributed through 1965, one housewife from Tokyo organized 200 alternative markets. Alternative marketing provides women to buy 300 bottles of milk. It was one of the more than just a direct link between producers and first collective purchases.é (Seikatsu club consumer consumers by an organization or agent. It also co-operative, n.d.) encourages everyone involved to think about equity The alternative agricultural marketing issues and construct relationships which link farmers movement in Japan is based largely around the and consumers together within the community. sanchoku and teikei systems. Both systems have Examples of equity issues are a philanthropic developed in parallel with the mainstream market. approach aimed at tackling poverty and creating They emphasize not only the commercial value of social justice and ecological awareness which aims the product, but also the value of the quality of to conserve the environment by supporting farmers human life (for both farmers and consumers), and whom use less external input. This system allows social and ecological awareness. However, they the social capital embedded in society to play a differ in details of organization or structural form of crucial role in weaving a relationship between social capital such as size and structure of organization, consumers and farmers and created a new institutional and include the various level of cognitive form of arrangement or community social capital in the exchange between consumers A range of different agents operate in an and farmers. alternative market system, including consumer or farmer cooperatives, NGOs representing farmers or The sanchoku system: consumer co-operatives consumers, delivery agents, and others. Even though working through a delivery agent the amount traded in alternative market systems is Japanese consumer co-operatives, or sie kyo, currently small when compared with the mainstream were originally founded before World War Two, but market, alternative markets are growing at a healthy they were shut down by the militaristic government rate. The sustainable development agenda, which of the time before starting again in the 1960s. Under aims to balance social, environmental, and economic the sanchoku system, co-operatives operate through needs, supports the growth of alternative market a distribution agent who acts as a consumer systems. representative serving the needs of members. Although Alternative marketing systems came to the agentûs role is not unlike that of a middleman prominence in Japan more than 40 years ago, based in the conventional market, personal profit is not the on an effort to solve the problems of the time by central aim of their work. forming co-operative to use existing social capital to The sanchoku marketing system is based create a collective purchasing network. The Seikatsu around three basic principles which can be summarized Club, a Japanese consumer co-operative (see below), as follows: (Ada et al., 2000) describes the context in which alternative marketing 1. The origin of the product and the name «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 109 of the producer should be clear to the consumer. shopping time and contributing to a better household 2. The consumer should know the method economy through planned purchases of essential of production. The essence of the sanchoku system household items. It provides a weekly meeting for is that producers are contracted by consumer co- the members, who are mainly women, and also operatives to supply primary products directly from fosters and strengthens the spirit of mutual sharing the farm or fishery to the co-operative. and caring among members. (Ada et al., 2000) 3. There should be exchanges between The han system is efficient and effective, and consumers and producers. Consumers are encouraged has been enhanced by the advent of optical character to visit suppliersû farms and special events are readers and computerization to handle the weekly organized by co-operatives to allow members to see order forms and direct debit payment from membersû how their food is produced. bank accounts. At the present time, the membership Consumer co-operatives have contributed to of han groups has been decreasing for a variety of the development of social capital in its cognitive reasons such as the influence of Western culture, form in urban areas by starting on a small scale new technology, and increases in the number of among members who were usually housewives and convenience stores. Consumer co-operatives have establishing joint management through volunteer nevertheless tried to maintain this service as much staff. Social capital in the structural form has as they can. developed as groups have subscribed to the sanchoku Communication between consumer co- principles, set up their own rules for managing operatives and their members is another example of themselves, and agreed on principles and activities how relationships are enhanced. Leaflets from which would allow them to achieve their goals. The farmers, packaging, and producer information contain structural form of social capital in a co-operative not only important details about the product, usually falls under the control of the staff and including its origin, the production process, and management team of the co-operative. methods for using it, but also pictures and histories Japanese consumer co-operatives have used of producers. Weekly or monthly catalogues from a variety of activities to weave relationships between which members order products show farmersû faces themselves and their members. Han, or joint buying, and give information about them. These methods of is the first example of these activities which we will communicating with members generate a cognitive examine. Han is an important characteristic of form of social capital at the same time as conveying Japanese consumer co-operatives, accounting for information. around 45% of total regional co-operative sales. The Consumer co-operatives also arrange a number objective of han is to reduce the price of products of different activities for members relating to the and to provide a fresher, healthier product to environment, welfare, society and culture. These are members, but it also encourages the accumulation of organised by various committees which consist of social capital by developing relationships among both members and co-operative staff. Typical members and between co-operatives through the activities include study groups, forums about topics placing of joint advance orders. of interest, workshops about cooking or home Using the joint buying system, members maintenance, parties among han members, or farm living in the same neighborhood form a han group, visits. which places weekly orders using a catalogue for Another example of relationship building delivery in the following week. This system does not among Japanese consumer co-operatives is the involve the large investment required for stores and production of Co-op products, including is seen by many members as very convenient, saving processed food and general merchandise. These 110 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 products are made at the national level by organizations group in Japan. There are 437 retail co- such as the Japanese Consumer Co-operatives Union operative societies located throughout Japan, with at (JCCU) or Seikatsu Club Consumersû Cooperative least one major co-operative in each of the 47 Union (SC › see below) and distributed to the prefectures. (JCCU, 1994) prefecture level or individual co-operatives. There are now more than three thousand Co-op Brand The teikei system: organizational diversity but products and each product are guaranteed for safety common goals and reliability and laboratory tested. A current Teikei is an alternative distribution system example that demonstrates a concern for providing independent from the mainstream market. Though safe products is the banning of products derived from the forms of teikei vary, it is basically a direct genetically modified organisms (GMOs). distribution system through which producers and Every co-operative supports the distribution consumers contact each other and negotiate to of Co-op Brand products, and sale of Co-op Brand support their own deliveries. The teikei system products not only generates profits to co-operatives usually delivers produce to set delivery stations, for return to their members at the end of the financial where consumers living nearby (usually 3-10 families year, but also increases awareness of ecology and per point) can pick up the delivered goods (Figure environmental protection and fosters philanthropic 2). Distribution agents within the teikei system can attitudes among members. Sale of the products helps come from a variety of backgrounds, such as to build stronger relationships among consumer co- farmers, NGOs, or private delivery agents. They operatives and also within the Japanese consumer distribute only chemical-free organic products. co-operatives network which is coordinated by The Japan Organic Agriculture Association JCCU at the national level. (JOAA), a non-profit voluntary organization, was JCCU (1994) is a central organization for originally formed by a group of consumers and consumer co-operatives. It provides services to farmers and has become the main organization support consumer co-operatives, including: promoting organic agriculture in Japan, introducing 1. A wholesale service, for example by the concept of yuki to Japanese society in the early producing Co-op Brand products for distribution. 1970s. JOAA not only introduced farmers to the 2. Consumer activities at the national level, idea of growing organic produce without chemical such as a recycled paper campaign. additives, but also introduced the idea of a ùhuman 3. Education for co-operative staff for both relationshipû between producers and their consumers. on-the-job and off-the-job training at JCCUûs own JOAA is now the coordinating agent in a network co-operative college. of consumers, farmers and other delivery agents at 4. Co-operation with other co-operatives the local and national level, and the JOAA network outside Japan and import of products for Japanese believes that the teikei system is a fundamental consumer co-operatives. requirement for conserving nature and allowing JCCUûs activities and organization represent farmers to exist with dignity. a cognitive form of social capital, which is especially JOAA has established ten principles of teikei important in developing trust among co-operatives. to define how teikei systems should operate. The Japanese consumer co-operatives are among ten principles were first introduced in November the largest consumer buying groups in the world. 1978 and can be summarised as follows: (Minamada, With more than 17 million members, a 2.6% share 1995) of the Japanese retail market and a 7% share of the 1. To build friendly and creative relationships, Japanese food market, co-operatives are the largest not just meeting as mere trading partners. «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 111

Figure 2 Example of a typical teikei distribution route between producers and consumers (Marayama, 1993). 2. To produce according to pre-arranged same area as it is grown. plans to meet an agreement between the producer(s) Various activities take place which help to and the consumer(s). weave stronger relationships, such as meetings to 3. To accept all the produce delivered from develop techniques and management skills, the producer(s). of communication among members through the 4. To set prices in a spirit of mutual benefit. monthly magazine ùSoil and Healthû, and co- 5. To deepen mutual communication so as operation in activities with other organizations, such to generate mutual respect and trust. as supporting the Ministry of Agriculture, Forests 6. To manage self-distribution, either by the and Fisheries in establishing the Japanese Agricultural producer(s) or by the consumer(s). Standards scheme. These activities allow deeper 7. To be democratic in managing group communication and information sharing among activities. teikei communities, representing accumulation of a 8. To take an interest in studying issues cognitive form of social capital. related to organic agriculture. JOAA currently has about 4,000 individual 9. To keep membership of each group to an and 40 group members all over Japan, with farmers, appropriate number. consumers, co-operative members, journalists, and 10. To continue in making steady progress others included in the membership. 15 even if slow, towards a final goal of organic agriculture and an ecologically sound life. The level of social capital embedded in each agent These principles bring farmers and consumers made different output & performance. together as partner and members of the same group The level of social capital embedded in each or community and help generate a structural form of system is summarized in Table 3. social capital. Principle number 9 ensures that the As was mentioned in the sections above, size of a teikei group is small and therefore closer previous generations in Japan has had large amounts and easier to manage, facilitating a more rapid of cognitive social capital in the form of norms and accumulation of social capital. Besides promoting values, helping Japan become a very group-oriented healthy products, ecological awareness and alternative society. These social capital elements were also relationships, the teikei system also promotes self- embedded in the mainstream market assisted the sufficiency. Food is distributed and consumed in the performance of exchange systems and reduced the 112 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 uncertainty of complex environments. However, not a social institution. In this construct the actors there are no formal organization or structural forms are the buyer and seller which exchange goods and of social capital in this system. Although the services based on the market (rules) under the wholesale market or central market is the basic maximized profit objective (norms). The exchange organizing principle in the exchange system, it is value in this system is based on market price or only a business organization or economics institution, economic value. The decisions of each individual Table 3 Differences between direct marketing in the mainstream market and sanchoku and teikei systems. Marketing System Mainstream Alternative Sanchoku Teikei Social Capital - Structural form: Roles Seller Consumer representative Partners Rules Market system Sanchoku principles Teikei principles Relationships Free market Membership Partnerships committee Han joint buying service Farm visits / joint activities Product catalogue and Product catalogue and newsletters newsletters Member activities Co-op Brand products Networks Market JCCU JOAA Precedents - Voluntary staff from Consumer initiated consumer side Procedures - Consumer co-op management Management differs with each under sanchoku principles agent under teikei principles Social organization - Consumer co-operatives Farmer, NGO, private agent (formal organization) (formal organization) Horizontal linkages Market mechanism Membership Partnership Social capital › cognitive form Norm Maximise profit Improve human welfare To create an organic agriculture based society Values Economic Human and economic Human and ecological Attitudes Buyer and seller Member of a society Partnership in a society Beliefs Information Consumer co-op as consumer Friendly and creative (price and quality) representative relationships Civic Culture - Participate in activities on Participate in activities on relevant topics relevant topics Trust Not sure Between members and their Between farmers and consumers consumer co-op as a consumer as partners or friends representative Agent/Distributor Any agent Consumer co-operatives Farmer, NGO, private agent Output (product) General Safe products Organic products Performance General Equity and mutual help society Partnership of organic agriculture based Community «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 113 actor in the exchange are based on self-interest and products and generating greater environmental the appearance of çperfecté information, which they awareness among farmers. get such as price and product characteristics. Social Each of these is an autonomous organization; capital in cognitive form has remained in Japanese able to develop services for members or to society until the present time. However, the emphasise any activities it prefers which effect the accumulation of social capital is negative and will level of available social capital. The following gradually disappear through time if not continually examples are instructive: used. Some consumer co-operatives such as Osaka Value in the mainstream market is defined as Yodogawa Consumersû Co-operative Society (Yodo) a market price negotiated between seller and buyer and Tohto Consumersû Co-operative Society (Tohto) under the principle of profit maximization. The accumulated social capital throughout the nation by production of agricultural products may not take into using a sub-contractor to import safe, low-chemical consideration potential environmental impacts. It bananas and shrimp products from Thailand and requires an outside actor, often çgovernment,é to other countries. Yodo have arranged for their intervene in this market to regulate the definition of consumers to visit Thai farmers and have also invited market value to include environmental considerations. Thai farmers to visit the co-operative and meet their Recently, the MAFF: Ministry of Agriculture, consumers which make the relationship between Forestry and Fisheries of Japan established labeling Japanese consumers and Thai farmers is strengthened. regulations for organic agricultural products under Even though the price of bananas imported from the the JAS: Japanese Agriculture System of labeling Philippines is more competitive than the price of scheme to control the quality of product. Inspection Thai bananas, Yodo continue to demand Thai and monitoring is an additional cost to society, bananas. though it is shared between the government and Some co-operatives such as Tohto have stakeholder. This additional cost is lower or not created a deep relationship with farmers through the applicable in alternative markets because it was sanchoku system. Tohtoûs staff not only feed eliminated or off set by the social capital in their information from members back to farmers, but also organization to support organic agriculture and other discuss marketing trends and suggest new products safe growing practices. with a business development section for their Formal organizations or structural forms of producers such as the JA Yasato farmersû co- social capital exist in the alternative market system operative. New varieties of product or food as well as cognitive forms such as their concern for processing techniques suggested by existing producers human and ecological value and inclusion of social are always introduced to consumers. An organic factors in their operations. Although the level of products section was established in 1999 under the social capital embedded in the sanchoku system may co-operativeûs ùEcological Planning Schemeû, under be lower than teikei system; the scale of organization which 18 organic farmers supply products which in the sanchoku system makes the chance of meet JAS organic standards. Product prices first collective action among members higher. reflect the farmerûs cost and profit, with about 25% Consumer co-operatives perform the role of added to cover overheads and profits for the co- distributor organization or the structural form of operative. social capital in the sanchoku system, creating the Even though the prices of organic fruit and cognitive form of social capital through its operational vegetables sold by the co-operative are 30-40% characteristics and various activities. They focus higher than prices for low chemical products, these primarily on the chemical safety of agricultural prices are still lower than organic prices in the 114 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 supermarket. Tohto has very clear aims for conserving first crop, and the farmers, who tried their best to the environment and planning harvesting, but cannot develop techniques for growing organic products. produce organic food over the whole year. Consumer The relationship continued to develop from being demand is currently very small but the trend is producers and consumers to becoming members of gradually increasing. As a result of its activities the same group and finally becoming partners in the Tohto has become one of the most active co- same community as each organic crop was grown operatives in organic agriculture. season after season. Although most consumer co-operatives become Prices were mutually agreed without referring ingrained social institutions, they still limit their to any market prices and consumers paid a fixed activities among their members and society in their amount of money each month for farmers to deliver location. The Seikatsu Club Consumersû Cooperative a box of fruit and vegetables to their home once a Union (SC) is an exception to this rule. SC aims to week. The price of some products remained stable offer high quality goods and promote sustainable for as much as eight years. A number of committees lifestyles which respect human values and the were established to run various activities, such as environment and contribute to a just and fair world constructing and operating ùOur Houseû, a place - a significantly different approach to most other where group members could stay during visits, for Japanese consumer co-operatives. SC provides example during the farmersû festival or ùen noû similar services to other consumer co-operatives but events where they learnt about farm life or pooled is also active in politics and is organised as a their labor with farmers. Farmers explain that a workerûs collective, being motivated by the welfare relationship of equality emerged gradually between of the people in its community rather than profit- rural farmers and city consumers, developing each oriented employment. The co-operativeûs success in time a box of organic products was sent to the achieving its aims has been reflected in winning two consumerûs home. Farmers have had the opportunity prestigious international awards: the Right Livelihood to learn about the lives of city-based consumers, Award from Sweden, and the 50 Community Award which they concluded were not dissimilar to their from the United Nations. own. There are various delivery agents such as At present the performance of Myoshi group farmers and consumers, both as individuals and is not only economic dimension for 29 second groups that act as formal organizations or structural generation farmers and 900 consumers, with a forms of social capital in teikei system. They also revenue of about 160 million yen per year, or an provide the cognitive form in their operations, average of 5 million yen per farmer per year. (These deepening the level of social capital available, as earnings are higher than those of a conventional full shown in the following examples: time farmer are.) But Myoshi has also achieved the Farmer groups in Myoshi village have a long three goals of running an organic agriculture society, continuing relationship with consumers in Tokyo. A establishing an alternative community, and allowing small group of housewives from Tokyo to Myoshi farmers to maintain a higher economic standard of village in 1973 began this relationship when they living than that experienced by the majority of asked farmers in the village to supply organic farmers through the accumulation of thirty years products to the group - which at that time was an worth of social capital. innovative idea. Village farmers began to grow The size of the teikei system is currently organic produce and a relationship of trust and limited in scale. However, there are two corporations mutual help gradually developed between the try to expand the scale of operations under teikei consumers, who accepted all the products from the principles, the Daiichi-O-Mamoru-Kai and Pola «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 115 Hiroba. groups such as farmer group in Kakinoki village. Daiichi-O-Mamoru-Kai developed from a Kakinoki village is famous in Japan for its 1960s student activist movement, which was active organic farmersû groups and the local municipality in campaigning against pollution. After graduating, has promoted organic farming for more than twenty its activist leaders formed an NGO with support from years. Organic agriculture in the village started from overseas donors. Realizing that the organizationûs low chemical and safe products and has progressed financial situation was not sustainable; they sought to no-chemical, truly organic production at the other funding options. They established Daiichi-O- present time. Farmers work within both sanchoku Mamoru-Kai in 1975 in Tokyo to raise funds, and teikei systems. Consumer group volunteers visit support organic farmers, and deliver organic products to help farmers at harvest time and also support to consumers through a membership system. Number farmers in conserving a traditional tanado rice of memberships now is over 53,000 consumers, with terrace system through a rental scheme and land 2,500 producers and five corporate members. Although ownership system. Thirty different groups of the organization does not follow all ten principles of consumers pay 36,000 yen per yard per year to the teikei system, the central teikei concept of ùtrustû farmers and in return receive the total production at still remains at the heart of the organization, with harvest-time. Farmers benefit from lower rental fees many joint activities taking place between farmers and assistance from consumers at harvest-time and consumers, production of a newsletter, and The performance of social capital is not only provision of information about farmers. limited in organic agricultural product but also link The founder of Pola Hiroba was formerly an to other community development activities such as active member of staff at Daiichi who, aware of community food processing, a roadside shop and limitations in Daiichiûs operations (principally that Eco-tours. Further schemes are under development, the organization was not always business-oriented such as a ùOne Community Many Productsû project and thus found it difficult to expand their service (developed from a ùOne Community One Productû beyond the Tokyo area), started a new company. scheme), and an ùI Turn or U Turnû project to Polan Hiroba now delivers JAS labelled organic encourage the migration of people from the city back products through a teikei system over a service area, to rural communities. Kakinoki village has become which covers almost all of Japan. Its activities are a successful example of a community, which has divided into 6 distribution areas, with farmers and developed not only to conserve its ancestral heritage, consumers and delivery offices in each distribution but also to show that such communities can prosper area. Information technology and modern management in the modern world. methods are used to support all distribution offices, At present, there are a number of obstacles helping the teikei system to expand to a point where to the continued survival of sanchoku and teikei even a general consumer can be a member of a teikei systems, including: alternative community. 1. An ageing membership and reduced The principal activities of the sanchoku and numbers of voluntary staff. teikei types of organization are usually similar. The 2. Consumerism and globalisation, which two types of organizations do not act as competitors, are often seen as factors causing people to become but as a supplementary and complementary partnership, more individualistic and materialistic. which creates activities acting as a channel for the 3. New distribution technology, which accumulation of social capital in both its structural provides consumers with alternative, often more and cognitive forms. So there are some farmersû convenient, channels to obtain safe or organic groups supply products to both sanchoku and teikei products, such as through supermarkets. 116 «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 Organizations currently employing sanchoku organic movement, but also outside Japan in places and teikei alternative market systems are actively such as Europe and North America, where similar attempting to overcome these obstacles and adapt to ùcommunity supported agricultureû projects have a new environment. Some consumer co-operative been underway for many years now. like Tohto is actively recruiting new members using brochures, weekly catalogues, and samples of safe IMPLICATIONS foods in campaign work. They also recruited professional staff to manage their organization and During in-depth interviews with the incorporate the latest knowledge and understanding representatives of consumer groups, their answers to of human and ecological factors with in their a question about how to start an organic movement systems. in Thailand, were very interesting. Most of their JCCU and JOAA are not only the organizations answers were the NGO or any person who is joining effort to combat the negative effects of interested to promote organic, should support consumerism and globalization by taking actions directly first to consumers not farmer by forming a such as banning GMO products. They also try to group of consumer like in Europe and USA. Thai communicate to the new generation to realize the social & economic relationships are still basically importance of creating alternative communities feudal (patron-client relationship), which makes it where people can live together in prosperity, peace more difficult for the average Thai to take an and harmony, which is the ultimate goal of both initiative such as forming a farmer-consumer systems. cooperative which might find itself in conflict with Organizations of both systems are trying to various çpatronsé. Thus small groups of Thai develop better distribution systems through the use consumer, who have the same empathy and would of information technology and the creation of a new like to support farmers, must take time to grow collection of activities that will deepen relationship slowly, through social capital accumulation. The among members and increase the available social success of a Sanchoku or TEIKEI system is not like capital, guaranteeing their long-term sustainability. a sand-castle but more like a Roman city, so it takes time. The formation of a consumer group takes time CONCLUSIONS as well, and a main problem is not to stop but to carry on with activities to create trust and mutual help The difference between mainstream and among members. alternative markets is the level of social capital accumulation in each system. Even though Japan has ACKNOWLEDGEMENTS a high level of social capital embedded in previous generations, the market mechanisms, which are Otagai sama geared toward maximizing monetary value, eliminate This paper would never have been completed the importance of social capital. In contrast alternative without the assistance of a large number of kind market systems such as sanchoku and teikei provide contributors. The author would like to give particular avenues for the accumulation of social capital as a thanks to Professor Seiji Minamida from Chiba mechanism to create human and ecological value and University, Professor Dr Nakajima Kiito from ultimately a partnership of prosperity, peace and Ibaraki University, Professor Dr Akira Fueki from harmony in the community. Koibuchi University, Dr Sanae Sawanobori from The influence and success of sanchoku and Keisen University, and her host Professor Dr Hediki teikei system are evident not only in Japanûs growing Tanaka from Hiroshima University. Helpful comments «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 26 ©∫—∫∑’Ë 1 117 were provided by Professor Dr Nimal Sanderatre and Government of Japan (MAFF). (1999) Abstract Dr Peter Burt. The Japan Society for the Promotion of statistics on agriculture forestry and fisheries of Science (JSPS) provided funding for a study visit in Japan. Tokyo. to Japan. The author would like to thank everyone Porter, M. E. 1998. 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Ministry of Agriculture, Forestry and Fisheries,