JA opened direct sales outlet ('farmers' markets') and make

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Marketing Business Based on StrategyJA
Kanra-Tomioka

• Chikara Sato
• JA Zenchu
• E-mailsato-chikara_at_zenchu-ja.or.jp

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Outline of JA Kanra-Tomioka
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Outline of JA Kanra-Tomioka
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Project for Development of New Agriculture
-Background

• The area of JA had depended on sericulture and
  arum root farming traditionally. But, because of
  the decline in the production of those two items,
  it was necessary for the JA to look for new crops
  which can be produced throughout the year and to
  develop new marketing channels.

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-Strategy

• The JA carried out a study to know what kind of
  crops had been produced in the area, and
  established a new strategy of marketing business
  which consists of small production of many kinds
  of crops and direct sales to consumers and
  supermarkets.

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-Strategy

• JA promoted a priority vegetable promotion
  project. JA selected 8 crops, eggplant, okra,
  tara-no-me, leek, soft-leek, green chive,
  shiitake-mushroom and broccoli, as priority
  vegetables in the light of low cost of producing
  them and easy handling of keeping them fresh
  during transportation and promoted increase of
  those production.

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-Strategy

• JA appointed 24 full-time farmers as farm
  advisory staff and strengthened farm guidance
  activity to help part-time farmers produce crops
  that can sell.
• JA tried to establish multiple marketing channels
  according to the skills of farmers

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Five Types of Marketing Channels

• Shokusaikan (farmers markets local
  consumption of locally produced products)
• for amateur level farmers
• JA opened direct sales outlet (farmers
  markets) and makes those farmers sell their
  products priced by themselves with their names
  and photographs of their faces labeled.
• Farmers have to bring back their products when
  unsold.
• As a training center for newly entered farmers

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Five Types of Marketing Channels

• 2. In-Shop (JAs retail counter in supermarkets )
• for semiprofessional level farmers
• JA opened retail counter in supermarkets or in
  consumer coop shops in the metropolitan area for
  delivering agri. products to consumers everyday.
• Supermarkets buyout all the agri. products
• Farmers disclose production information along
  with producers names and photographs of their
  faces

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Five Types of Marketing Channels

• 3.Comprehensive Cross Trade for A Set of Various
  Items
• for professional level farmers
• Bulk of Agri. products are bought by supermarkets
  or consumer coop shops on agreement.
• Products are decided in cooperation with the
  Product Development Department of supermarkets.
• This type of transaction amounts to 70 of all
  products in JA Kanra-Tomioka.

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Five Types of Marketing Channels

• 4.G-Route Market Sales by Subscription
• for professional level farmers
• G stands for good route through Gunma
  prefecture.
• Sales of the highest graded products of JA by
  subscription on fixed amount and fixed price
  negotiated with mass marketers.

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Five Types of Marketing Channels

• 5.Direct Sales of Products as Gifts
• for professional level farmers
• Sales of the respective best product of JA as
  gifts.
• Most value added and profitable products of JA.

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The Packing Center of JA Kanra-Tomioka

• To reduce working hours of farmers
• To produce a variety of goods of agricultural
  products
• To provide customized goods only for the certain
  supermarket
• To decrease the total costs in environment
  friendly way

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