6th Minutes

（１） Reorganization of issues for proposals
[Response to Short, Medium, and Long-Term Issues]

• In response to food safety and security and enhancement of market functions, we will continue to work with market-related businesses as a short-term priority issue in collaboration with market-related businesses as a short-term priority issue. In the medium and long term, it is necessary to develop closed-type facilities and build a logistics system that supports traceability, etc.
• In the “Response to aging facilities”, we will promote planned repairs according to the deterioration of facilities in the short and medium term, and waterproof repairs to extend the life of the facility. In the long term, large-scale redevelopment involves rebuilding of facilities that have reached the end of their useful lives.
• In the “improvement of management of founders”, we will gradually reduce management costs by expanding outsourcing and securing revenues by optimizing usage fees, etc., and examining maintenance methods for future redevelopment, etc. It is necessary to start from

[Estimation of planned repairs, such as renewal of major equipment]

• In the Southern Market, many of the major facilities such as the Fruit and Vegetable Building and Fisheries Building, which were built in 1948, will be renewed in FY2019, 12 years later, in FY2027, the first refrigerator building in FY2021, and the Fisheries Wholesale Building is scheduled to be renewed in FY2027.
• Repairs to maintain the current market function is expected to cost approximately 17.3 billion yen over the next 10 years. Repair costs are expected to increase significantly due to the aging of facilities after 2018.

[Achievement status of planned handling quantity and Ministry of Agriculture, Forestry and Fisheries standard handling quantity]

• Compared to the business plan at the time of the opening of the Southern Market (FY1973), the total amount of both the home and the southern part did not reach the planned volume in FY50 or 55, and the actual results in FY2018 compared to the plan in FY55 was 80.4% for fruits and vegetables, 50.3% of fisheries.
• Of the reorganization standards set forth in the Ministry of Agriculture, Forestry and Fisheries' “Basic Policy on the Development of the Eighth Wholesale Market Development Basic Policy”, both fruits and vegetables and fisheries have achieved the standard handling volume as a central wholesale market, but the demand volume in the opened area is for fruits and vegetables. Both fisheries have not been achieved with the total volume of the home and southern markets.

[Basic Approach to the Need for Market Redevelopment]

• The facilities are aging in both the home and southern markets, and needs to be rebuilt in the next 10 to 15 years.
• When rebuilding, there is no need to maintain the home and southern markets in its current form in terms of volume handled.
• As a establisher, it is necessary to reinforce market finances through integration and rationalization.
• Market participants also need to strengthen their management base through rationalization.
• In order to maintain market operations in the future, it is necessary to proceed with positive consideration for the integration of the home and southern markets.

[Comparison of Market Redevelopment Methods]

• “1. Redevelopment of home and southern markets at the current location” “2. Functional differentiation of home and southern markets” “3. Functional differentiation of home and southern markets into fruits and vegetables and fisheries” “4. Integration into home” and “6. Integrating home and southern markets and relocating new relocation”
• Net income and expenditure is expected to be approximately ¥42 billion to approximately ¥130.0 billion.

[Collaboration with Citizens and Private Contractors]

• Based on the fact that retail activities for general consumers are prohibited in the wholesale market, we would like to ask for ideas on "what activities are possible to revitalize the market?"
• We have already implemented “market festivals” and “out-of-market sales activities” in cooperation with retailers. However, in the future, we will also consider “out-of-market” and “out-of-market sales activities of wholesale and middle wholesalers” in cooperation with businesses outside the market.

[Estimation of the Required Scale of Market Facilities]

• The main reason for the change in distribution volume in the wholesale market is largely due to the size of the shipping and demand stages. These large-scale wholesale markets can earn the volume from small and medium-sized markets, but there is also a shift to out-of-market flow, so it is relatively large.
• According to the calculation standards of the Ministry of Agriculture, Forestry and Fisheries, the current facility scale sufficiency rate is 113% for home building, 161% for the southern market, 99% for meat market, 94% for land, 236% for the meat market, and 146% for meat market.
• When the home and the southern market are integrated, the required scale is 118,000 m2 for the total floor area of the building and 18,899,000 m2 for land.

（２） Construction of Proposals
[Construction of Proposals (Draft)]

• First of all,
• Outline of Proposals
• Current Status and Issues of Yokohama Central Wholesale Market
• Proposals
• Materials at the end of the book

（１） Reorganization of issues for proposals

• I was surprised to see that only planned repairs to maintain the current market function would cost me so much.
• Even in large markets such as the Yokohama market, its handling volume does not meet the demand standard in the area established by the Ministry of Agriculture, Forestry and Fisheries, and it is expected that the population of Yokohama will start to decline in the future, so it is not possible to expect a significant increase in the volume of the market, and a comparison table of methods for re-improvement of the market. In the future, I felt that it was inevitable to integrate the home and southern markets.
• Considering "Why did this study meeting start?", "The establisher can't have the money anymore, so I have to do something," "What should I do with the management of market operators?" There are three assumptions: "How do the government have, and it is better to start discussions after understanding these again.
• Rather than creating an ideal home, we must say what we can do in a limited time, money and space.
• If you look at the future wholesale market in mind, you can see five points: 1. food-related work is being carried out, 2. very large space, 3. I think the most effective role of such a facility is a food crisis management center rather than a market. If a stockpiling or a food management center in the event of a stockpiling or disaster, it would not be necessary to calculate the entire amount as market expenses.
• There are two issues that we are facing, "the current problem of operating in the red" and "the problem that physical rebuilding will happen ten years from now."
• Regarding the central market for citizens, I would like to know how much budget can be allocated to the central market for citizens.
• There is concern that relocation or consolidation, for example, if the location is far away from the current location, it will lead to enhancement of the functions of the central wholesale market, and at that time the central part of the city will become a commercial area of other markets.
• "I can't find the necessity to maintain the home and southern markets in the current form" described in the "Basic approach to the necessity of market redevelopment" "Sound market finance by integrating and rationalization as an establisher, the proposal will not be finalized unless all the committee members are convinced of the necessity of doing so." It is necessary to organize it properly.
• I think it is inevitable that the integration of the home and southern markets based on the materials that have come out so far, future prospects, and what we feel that we are operating in the market.
• Whether the market structure is really sound and can meet the needs of consumers, businesses, and producers will be a major issue in terms of software.
• We should reorganize the criteria again. If you try to look at everything in terms of financial figures, it's about efficiency, so it's not just that.
• Regarding the necessity of maintaining home and the southern markets, it is clear that there is no need for individual maintenance in terms of numbers.
• Equivalent to our own business plan now, the decision of the plan is "what is philosophically" and "what changes in risk management in 10 or 20 years, and what kind of impact it should be taken into account.

（２） Construction of Proposals

• The “necessity of market redevelopment and its method” is being discussed because it is necessary, so it is better to describe it as the previous item. Depending on the conclusion, items that are not necessary, such as order may come out, so it is necessary to sort them out.
• Depending on the view of what the reform schedule will be ten years from now, the way of reform will change between now and the next five to ten years. It is necessary for market participants to share their views on the debate over where the market should be in the last ten years.
• It is better to make the future vision and future vision a little more concrete.
• Many of the citizens do not know the existence of the market, so we need to do a little more properly collaborate. Otherwise, I feel that "Collaboration with citizens cannot be achieved forever even after 5 years and 10 years." It would be better to have something that can be seen in that area.
• If you move to a place where transportation is inconvenient, you will not be able to collaborate with citizens. I want you to think about "what kind of place can collaborate with citizens best?"
• Basically, I think 70-80% is economic rationality when making a big plan. When we talked about "which method to use" in the market redevelopment method, judging from economic rationality, we should leave "integration of the southern market" and "new relocation", and then add risk management criteria such as risk management.
• In order to make it an easy-to-understand proposal, it will be one or two methods. However, if the recipient says, "There are various other problems, such as institutional and economic things," it may be a story that "I want you to put out another one."
• When it comes to integration, it is necessary to keep in mind the historical background of the home and the number of vendors.
• Basically, we know that it will be integrated, but it is better to understand that it will lead to "discontinuing one or two existing markets."