Functions of Agro-Processing Sector in Food Value Chain: Case of Osumi <i>Territorio</i>

<p>This paper defines the food value chain as the distribution process that creates the value of agricultural and fisheries products, and forms a conceptual model of rural development with it. As leading actors in the food value chain, this research focuses on companies and organizations that purchase primary products directly from farmers/producers within the Territorio, process them and distribute the foodstuffs to domestic and foreign markets. They are the actors located in the agro-processing sector, having direct exchange relationships with producers. Although it is difficult to apply the Territorio strategy as seen in Italy directly to Japan, it is conceivable that local small and medium enterprises in the agro-processing sector play a central role in helping farmers to become autonomous and accomplish sustainable Territorio. The establishment of reciprocal exchange relationships between farmers and these secondary enterprises to secure economic benefits would ensure a stable distribution of valuable food products to consumers within and outside the area. These reciprocal relationships could be strengthened by reaffirming the value of territorial agricultural and fisheries resources against the backdrop of a stable continuation of the food value chain, leading to more valuable place branding and shared territorial identity.</p>