THE DEVELOPMENT AND FORMATION OF THE BROILER INDUSTRY PRODUCTION AREA IN IWATE PREFECTURE

The purpose of this paper is to explore the primary factors in the formation of the production area of the broiler industry in Iwate Prefecture, and to consider the basic conditions for the relationship with vertical integrator. This will be carried out by investigating the management techniques of breeders of broilers in the southeast and northern regions of Iwate Prefecture, the chief production districts.<br> The broiler industry was started in Ohfunato City in the early 1960's and spread to the southern area of Iwate Prefecture in the late 1960's. It was developed with the capital of several formula feed agents. They played the role as “local integrators”, working on a commission arrangement with the farmers for producing broilers. The broiler industry extended its business to the northern region of Iwate Prefecture during the late 1960's and early 1.970's. At that time development was carried out by a few branch companies with correlations to business and formula feed makers capital, a meat distributor, two farmers' unions, agricultural cooperative associations etc. With the Government policy of reducing rice production affective in 1970, farmers in the northern area who largely worked away from home sought to secure their futures through sound farm management. With increasing broiler consumption in Japan, many farmers tured to broiler raising because its management seemed to be relatively easy. By this means it was hoped that the stability of the farm household economy would be maintained. The broiler industry in Iwate Prefecture rapidly replaced the one of the metropoiltan regions which had been most seriously affected by economic depression in the middle of 1970's. Especially in the northern area of Iwate Prefecture, the broiler industry developed greatly owing to the increase of big broiler houses, severe competition of broiler production and marketing among the local integrators, and farmers' strong desire to manage broiler raising. As a result, the broiler industry in Iwate Prefecture has gained a position in broiler production, equaling that of Kagoshima and Miyazaki Prefecture since 1978.<br> The breeders in Ninohe City, the main production district of the northern area produce the most broilers per farm household in Iwate Prefecture. However many of them raise a farm crop as well. In the southern region's main production districts of Ohfunato City and Sumita-Cho, the percentage of farmers who raise broilers for a living is high as the percentage of non-farmers who switch to breeding broilers.<br> The difflerences between the two regions are mainly the conditions of the structure of farm management and the size of land owned. The common point is that both regions have not yet developed agricultural and livestock industries which produce high profit.<br> The broiler industry in Iwate Prefecture is now facing grave problems with related to domestic marketing competition with South Kyushu and rapidly growing broiler exporting countries.