The Formation and Development of Sales Networks for Artificial Fertilizer in the Meiji Era

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  • 明治期人造肥料特約販売網の成立と展開 : 茨城県・千葉県地域の事例
  • メイジキ ジンゾウ ヒリョウ トクヤク ハンバイモウ ノ セイリツ ト テンカイ イバラキケン チバケン チイキ ノ ジレイ

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The aim of this article is to clarify the formation of sales networks for artificial fertilizer by researching the role of fertilizer merchants. In this article, we deal with one particular fertilizer merchant, Hiroe Kahei, who lived in the west part of Ibaraki prefecture. The main conclusions are as follows : (1) Tokyo Artificial Fertilizer Company, the first manufacturer of superphosphate fertilizer, faced difficulties in finding outlets for its products at the time of its foundation, 1887. To promote sales, the company made special contracts with influential fertilizer merchants, and gave them monopoly rights on the products over wide areas. These agents had retailers under them, and sold the products wholesale. Tokyo Artificial Fertilizer Company constructed its sales network in this way. (2) After the Sino-Japanese War there was a sharp rise in the demand for superphosphate fertilizer. Osaka Ryuso, an Osaka based fertilizer manufacturer, extended its business to produce superphosphate fertilizer, and found its way into the Kanto market as well as the Kansai market. Consequently, both manufacturers launched aggressive sales campaigns in the late 1890s. In this sales war, problems appeared in the sales network of Tokyo Artificial Fertilizer Company. Merchants who wanted to deal in the products were prevented from doing so because of the wide areas covered by the monopolies. As a measure to deal with this problem, Tokyo Artificial Fertilizer Company established a marketing cooperative, Ibaraki Nissei & Co, in 1900 and allowed major retailers and newcomers to participate in the cooperative. As a result, major retailers were able to make special contracts directly with Tokyo Artificial Fertilizer Company. (3) Tokyo Artificial Fertilizer Company was forced to reduce the wholesaler's margin during the sales war. This rationalization of distribution made Hiroe Kahei change his role from wholesaler to manufacturer. He compounded several kinds of fertilizer and sold them directly to farmers. The costs of distributing artificial fertilizer were cut down by the elimination of wholesalers. This reduction made it possible to expand the artificial fertilizer market.

Journal

  • The Journal of Agrarian History

    The Journal of Agrarian History 44 (1), 33-47, 2001

    The Agrarian History Society (Renamed as The Political Economy and Economic History Society)

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