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4th meeting minutes

Last Updated March 5, 2019

Minutes of the 4th Yokohama Central Wholesale Market Exploratory Committee
Agenda itemHow to manage wholesale markets
Date and timeFrom 1:30 pm to 3:30 pm on Friday, July 6, 2007
VenueTraining room on the 3rd floor of Yokohama City Central Wholesale Market
AttendeesMr. Wakasugi, Vice Chair Iwashima, Mimura, Takamizawa, Higuchi, Fukuoka, Hattori, Suzuki, Masuda, Ikeda (10 members in total)
AbsenteeNone
Form of holdingNon-disclosure
Matters to be reportedA summary report was given as a result of the survey of shippers and business operators.
ProceedingsDiscussions were held on the management of the wholesale market.
Explanatory items

(1) Management issues and directions for wholesalers and intermediate wholesalers
[Changes in the environment surrounding the wholesale market]

  • Increase in out-of-market flow and intensifying competition between markets
  • Trading companies and foreign investment in fresh food distribution
  • Transition of Central Wholesale Market to Local Markets through Reorganization of wholesale markets
  • Deregulation and commission elasticity of fees (FY2009)
  • Enforcement of Local Finance Consolidation Law

[Management Issues for Wholesalers]

  • Decrease in handling volume
  • Decrease in profit margin due to an increase in purchases
  • Responding to customer needs such as processing, delivery, and temperature control

[Wholesalers' response direction]

  • Planning and Proposals Strengthening Sales Capability
  • Provision of added value through total distribution services
  • Strengthen collaboration with other market wholesalers

[Management Issues of Intermediate Wholesalers]

  • Decrease in net sales and income
  • About 50% of companies accounted for current account deficit
  • 67% of companies that violate the three financial standards
  • Prolonged accounts receivable
  • Difficulties to secure successors and human resources
  • Responding to customer needs such as processing, delivery, and temperature control

[Direction of Intermediate Wholesalers]

  • Establishing a business management system and deepening expertise
  • Business expansion and diversification
  • Collaboration with the same industry and other industries
  • Expanding scale by setting standard sales scale and appropriate number of vendors, and expansion of scale due to closure or merger
  • Provision of added value through total distribution services

[Initiatives through cooperation between wholesalers and wholesalers]

  • Sharing marketing information and introducing an electronic ordering system
  • Capital and business alliances between wholesalers and brokerages, and management of receivables by business type
  • Consolidated wholesales into subsidiaries and consolidation of debt

(2) Issues and Responses to Market Management
[Stable supply of safe and secure fresh food products]

  • Thorough quality control, strengthen competitiveness, and improve logistics efficiency

[Decrease in transaction volume, deterioration of business conditions of wholesalers and intermediate wholesalers, control of provision for general accounts]

  • Decrease in royalty income
  • Stall in new investments and planned repairs
  • Deterioration and obsolete

[Response]

  • Responding to a variety of user needs
  • Development of facilities for low temperature reduction
  • Reduction of operating costs and consideration of management and operation.
  • Usage fees that enable sustainable management as a market
  • Securing financial resources for facility maintenance
  • Remodeling and rebuilding at the current location, function differentiation of the market, and consideration of market integration
Summary of Main Remarks

(1) Management issues and directions for wholesalers and intermediate wholesalers

  • When it comes to speeding up distribution, the most important thing is the retail part of fresh products. How is the retail site changing? At the same time, it is necessary to clearly distinguish between fruits and vegetables and fisheries, and to grasp information on the quantity and quality of the market, such as household consumption and business-use consumption, by clearly dividing fruits and vegetables.
  • Like all other businesses, the wholesale market must also begin with an analysis of the end consumer. When it comes to the point of view of increasing sales for the sake of their own interests, the conclusion is that the number of players will be reduced.

(2) Management Issues and Responses of the Founder

  • It is necessary to analyze and propose the enhancement of value-added functions with firm data.
  • The reason why station buildings and other facilities are very prosperous now is that the management and operation companies analyze sales data and customer data, and is revitalized by replacing tenants more and more. Yokohama City should also be an administrator who can analyze and propose such data.
  • Is it possible for the market to manage its business only by the market? Wholesale and wholesalers are difficult to manage each, and if the establisher does not have enough financial resources, it is necessary to raise funds from somewhere even for facility maintenance.
  • The major trigger for this issue was a decrease in market transaction volume, which is related to financial resources issues as the position of the founder of the market. If this trend continues, it will be dangerous to withstand even though it is a necessary facility, but it will be dangerous.
  • With the enactment of the Local Finance Consolidation Law, the law will be applied to market businesses that have not been covered before. If the standards are not met, a fairly severe response will be required, such as the formulation of a soundness plan will be required.
  • Who is benefiting from the transfer from the general account? The government and the government provides assistance not to vendors, but ultimately to consumers who are beneficiaries.
  • A central wholesale market is indispensable for citizens, even though there are various moves toward fiscal consolidation, central wholesale market is essential for citizens.
  • In order to maintain the smooth operation of this market, of course, even if we further review income and expenditure, we believe that the transfer from the general account of the city will be necessary within a certain range in the future.

(3) Responses to Food Safety and Security

  • Considering the food problems that are occurring in recent years, the focus should be on traceability as well.
  • I want it to be a market where citizens can think that food that goes through the central wholesale market is safe.
  • The significance of market distribution is the significance of market distribution.
  • In the case of out-of-market flow, it seems that the wholesale market lacks awareness of fairness and public nature.
  • The Central Wholesale Market also has an inspection system, and the source of the products is clear.
  • As for fruits and vegetables, the positive list system for pesticides was revised last year, making it less likely to cause problems.

(4) Other functions required in the market

  • Transferring to local wholesale markets should also be considered as one of the roles of the central wholesale market.
  • The reason for the transfer is that the production area is limited to a small number of shipping destinations. As a result, there is a move to a market where cargo is not available.
  • Market distribution is supporting the reproduction of Japanese fruits and vegetables.
  • Nearly 80% of producers want to stabilize sales prices and expand their sales channels in cooperation with producers as "what you want to work on the Yokohama market," the survey said. Producers are worried about the market's price-shaping power, and they are wondering where the price is determined. If a mass retailer doesn't make a profit on their own, I feel that the current distribution is a form of lowering prices and taking profit margins.

For inquiries to this page

Economic Affairs Bureau Central Wholesale Market Operation Coordination Section

Phone: 045-459-3323

Phone: 045-459-3323

Fax: 045-459-3307

Email address: ke-uneichosei@city.yokohama.jp

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Page ID: 233-962-334

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