4th Minutes

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

• Increase in out-of-market flow and intensifying competition between markets
• Entry of trading companies and foreign capital into the distribution of fresh food
• Transition of Central Wholesale Market to Local Markets through Wholesale Market Reorganization
• Deregulation and fee elasticity (FY2009)
• Enforcement of the Local Finance Consolidation Law, etc.

[Management issues of wholesalers]

• Decrease in handling volume
• Decrease in profit margin due to increase in purchase and collection
• Response to customer needs such as processing, delivery, temperature control, etc.

[Direction of wholesalers]

• Strengthening planning and proposal marketing capabilities
• Providing added value through total distribution services
• Strengthen cooperation with wholesalers in other markets, etc.

[Management issues of middle wholesalers]

• Decrease in net sales and profits
• About 50% of companies account for the current account deficit.
• 67% of companies that violate the three financial standards
• Prolongation of accounts receivable payment sites
• Difficulty in securing successors and human resources
• Response to customer needs such as processing, delivery, temperature control, etc.

[Direction of wholesalers]

• Development of a business management system and deepening of expertise
• Business expansion and diversification
• Collaboration with the same and different industries
• Setting standard sales scale and appropriate number of vendors, expanding scale through closures and mergers, etc.
• Providing added value through total distribution services

[Initiatives through cooperation between wholesalers and middle wholesalers]

• Sharing marketing information and introducing an electronic ordering system
• Capital and business alliance of wholesalers and wholesalers, and management of receivables by business type of wholesalers
• Subsidiary of wholesalers through wholesalers and conversion of debt to stock

（２） Issues and Responses to Market Management by Establishers
[Stable supply of safe and secure fresh food products, etc.]

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

[Decrease in transaction volume, deterioration in the management situation of wholesalers and middle wholesalers, and suppression of provision of general account]

• Decrease in royalties
• Stagnation of new investments and planned repairs
• Aging and obsolete facilities

[Response]

• Response to diverse user needs
• Development of facilities for low temperature
• Reduction of operating costs and examination of management and operation forms
• Set usage fees that enable sustainable management as a market
• Securing financial resources for facility development
• Refurbishment and rebuilding at the current location, differentiation of market functions, and examination of market integration.

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

• The most important thing in terms of speeding up distribution is the retail portion of fresh products. How is the retail scene changing? At the same time, it is necessary to clearly distinguish between fruits and vegetables and fisheries, and to grasp the quantity and quality of the market, such as household consumption and business consumption, as well as trends in location such as increase in offices and condominiums.
• Like all other businesses, the wholesale market must also start with an analysis of the final consumer. When it comes to raising sales for the benefit of the players (market players) themselves, 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 solid data to enhance value-added functions.
• The reason why station buildings are thriving now is that the management and operation companies analyze sales data and customer attraction data, and are trying to revitalize them by replacing tenants more and more. Yokohama City should also be a manager who can analyze and propose such data.
• Is it possible for the market to establish management solely on the market? When wholesalers and wholesalers have strict management, and the founders have no financial resources, it is necessary to raise funds from somewhere even if they say facility maintenance.
• The major reason for this issue was the decrease in market transaction volume, which has been related to financial resources as the position of the founder of the market. If this trend continues, it will be a necessary facility, but it will be dangerous to hold it.
• With the enactment of the “Local Financial Consolidation Law,” the law will be applied to market businesses that have not been covered before. If the standards are not met, a very severe response is required, such as the need to formulate a soundness plan.
• Who is benefiting from the transfer from the general account? The government and the government provide assistance to consumers who are beneficiaries, not to contractors.
• Even though there are various movements toward the consolidation of local governments, the central wholesale market is indispensable for citizens.
• In order to maintain the smooth operation of this market, we believe that the transfer from the general account of the city will be necessary within a certain range in the future, even if we will further review income and expenditure.

（３） Response to food safety and security

• Considering the food problems that have arisen these days, traceability should also be emphasized in market distribution.
• 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 selection and provision of foodstuffs necessary for people's lives.
• In the case of out-of-market flow, it seems that the wholesale market lacks a sense of fairness and publicity.
• The Central Wholesale Market has an inspection system, and the origin of the goods is clear.
• For fruits and vegetables, the positive list system for agrochemicals was revised last year, making it less likely to cause problems.

（４） Functions required in other markets

• Transfer 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 possibility that the market will not reach the market.
• Market distribution supports the reproduction of fruits and vegetables in Japan.
• According to the questionnaire, "What we want you to work on the Yokohama market," nearly 80% of producers want to stabilize selling prices and expand sales channels in cooperation with producers. Producers are worried about the market's price-making power, and they are wondering where prices are determined. If a mass retailer doesn't make a profit at their own level, I feel that the current distribution is the way that lowers the price as much as possible and takes profit margins.