Development of the Mail-Order Farm-Fresh Produce Business

With the growth of parcel delivery services both in the private sector and via the postal system, the mail-order farm-fresh produce business has developed, since the early 1980's, as one of the new distribution channels for vegetables, fruits and seafoods that are mostly seasonal and often very expensive, when purchased in urban markets. The purpose of this paper is to clarify the development process of the mail-order farm-fresh produce business through a cooperative relationship between post offices and the sellers of cherries in Yamagata Prefecture, Japan. The results of the analysis are summarized as follows:<br> The parcel postal delivery of cherries was first started by two sellers in 1985, and had increased to thirty sellers by 1992. So far, none of the sellers has discontinued the business. The parcel postal delivery of cherries is made possible by systematic cooperation between sellers and post offices. Thus, it is possible to say that sellers and post offices have an intimate relationship. This relationship has become a primary factor in continuing the parcel postal delivery of cherries. The number of parcel post deliveries of cherries increased from about. 5, 000 in 1985 to about 140, 000 in 1990. However, it has been showing decreasing tendency since 1991. The main reason is that orders from private enterprises declined because of the bursting of the bubble economy.<br> Almost all of the thirty sellers have their offices in cherry-producing areas in the Murayama district, although a few are in non-cherry-producing areas in the Shonai district. In other words, it is possible for a business in the parcel postal delivery of cherries to be set up even in non-cherry-producing areas. Proprietor forms of sellers can be classified into four main groups: agricultual cooperative associations, farmers' groups, farmers, and brokers. Agricultual cooperative associations, farmers' groups, and farmers have their offices in cherry-producing areas, whereas brokers are found both in cherry-producing areas and in non-cherry-producing areas. Brokers in non-cherry-producing areas in the Shonai district combine melons and persimmons with cherries.<br> Generally speaking, agricultural cooperative associations and farmers' groups started the parcel postal delivery of cherries in the early years; farmers and brokers began the business in later years, after having carefully noted the success of the former groups. The parcel postal delivery of cherries came to be known as a new style of selling cherries in this prefecture.<br> Many agricultural cooperative associations and farmers' groups started the tie-up business at the request of local post offices whose postmasters had good knowledge of the cherry growing business. Farmers and brokers then followed on establishing close relations with their local post offices in later years. Ten sellers out of seventeen who increased their numbers of parcel post cherry deliveries tied up with local post offices; the remaining seven sellers were connected with large post offices in the study area. The postmasters of local post offices have played an important role in the development of the parcel postal delivery service. They now recognize the parcel postal delivery of cherries as a partnership business with sellers.