SPRINGER BRIEFS IN ECONOMICS Liming Zhao Survivable Restructuring of Vegetable Distribution and Wholesale Markets in Western China 123 SpringerBriefs in Economics More information about this series at http://www.springer.com/series/8876 Liming Zhao Survivable Restructuring of Vegetable Distribution and Wholesale Markets in Western China 123 Liming Zhao ShanxiAgricultural University Taigu China This book is funded by Philosophy and Social Science Foundation Project (Project No. ZXSK2-1410) and Talent Introduction Doctoral Scientific Research Startup Project (Project No.2013YJ28) of ShanxiAgricultural University. ISSN 2191-5504 ISSN 2191-5512 (electronic) SpringerBriefs inEconomics ISBN978-3-662-47252-1 ISBN978-3-662-47253-8 (eBook) DOI 10.1007/978-3-662-47253-8 LibraryofCongressControlNumber:2015939988 SpringerHeidelbergNewYorkDordrechtLondon ©TheAuthor(s)2015 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission orinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authorsortheeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinor foranyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper Springer-VerlagGmbHBerlinHeidelbergispartofSpringerScience+BusinessMedia (www.springer.com) Foreword This book discusses the distribution systems offruits and vegetables in a medium- sizedcityinWesternChinacalledHohhot.Theauthor,LimingZhao,studiedfora longtimeatHokkaidoUniversity’sGraduateSchoolofAgriculturewhereIworked. Uponobtaininghisdoctorateinagriculture,hereturnedtohishomecountrywhere he now works as an up-and-coming agricultural economist at China’s Shanxi Agricultural University. Whatmakesthisworkstandoutfromothersisthat,firstandforemost,itisbased on a considered and respectful survey of the local area. The survey stretches over several months and includes multiple visits to the area itself. The scope of the survey is large and does not just focus on wholesales, but also includes farmers, farming groups, shipping unions, small retailers, among others. The data obtained from this survey have been interpreted with sensitivity and from multiple per- spectives. Dr. Zhao has reached interesting and importantconclusions inhis book. This attitude to work is extremely important in the field of research we belong— agricultural economics and market studies. Abstract and general discussion is of course important in agricultural economics and markets, but equally important is detailed research ‘on the ground.’ Agriculture is inherently dependent on natural conditions,anditsmarketisdeterminedbytheuniqueattributesofthelocalarea— the character of sellers and buyers and local customers—and these need to be scrutinized on a discrete and individual basis. General theory can then be led by these considerations to become stronger and more convincing. This book’s other selling point is that it does not just consider commercial activity of the wholesale market, but also analyzes trends in fruit and vegetable production,shipmentandretailerstructures,etc.Itfollowsthedistributionoffruits and vegetables from production to retail. The system of the wholesale market and features of commercial activity are obviously never isolated, and are impacted by the producers and retailers. This is why consideration of the whole process is extremely meaningful, yet something has been missing in previous research. The other feature of this research is that it does not look at the main coastal metropolis areas of Beijing and Shanghai, but instead considers a medium-sized city in Western China called Hohhot. Compared with the dramatic economic v vi Foreword development of the more well-known cities, the development of Hohhot has been gradual. It is clear that the distribution systems of fruits and vegetables have changed alongside economic development, without a need for raising the example of Japan. It is assumed that there will be corresponding differences in distribution structuresbetweencoastalmetropolisesandwesternurbanareas.Butistherereally a difference and are these differences becoming less apparent? These are unavoidablediscussionsforthenorthwesturbanareas.Thereisnodoubtthatthese far-reaching debates will have an influence on the distribution strategies and development in a greater area than the one initially considered. This book isnotonly pertinent for research into fruit and vegetable distribution and markets in China, but is essential reading for researchers working in this field all across the globe. I sincerely hope that this work and the ideas within will be widely read and make a significant contribution to our field. Riichiro Iizawa Professor Emeritus Hokkaido University Acknowledgments This book is a modification and supplement of my doctoral dissertation, whose contents mainly come from the following published papers. 1. ZHAO,Liming“VegetableProcurementActivitiesofRetailers intheInlandof China: A Case Study of Hohhot City” AGRICULTURAL MARKETING JOURNAL OF JAPAN, Vol. 20, No. 2, 2011, pp. 1–10. 2. ZHAO, Liming. SAKAZUME, Hiroshi “Shipping Practices for Vegetable- Growers in Hohhot, China” AGRICULTURAL MARKETING JOURNAL OF JAPAN, Vol. 20, No. 4, 2012, pp. 12–23. 3. ZHAO, Liming “The Influence of Vegetable Wholesaler’s Scale Expansion to the Commodity Procurement Action” AGRICULTURAL MARKETING JOURNAL OF JAPAN, Vol. 21, No. 4, 2013, pp. 28–37. 4. ZHAO, Liming “Property Changes of Large-scale Agricultural Wholesale Markets in a Chinese Urban Area: The Case of Agricultural Wholesale Market ‘A’”AGRICULTURALMARKETINGJOURNALOFJAPAN,Vol.22,No.2, 2013, pp. 22–30. 5. ZHAO,Liming“Structural ChangesofVegetables CirculationinLocalCity of China—ACaseStudyofHohhotcity”ReprintedfromMemoirsoftheResearch Faculty of Agriculture Hokkaido University, Vol. 33, No. 1, 2013, pp. 45–78. I joined the School of Agriculture of Hokkaido University in April 2006. After six and a half years of study, I graduated in September 2012, obtaining a doctor’s degree in Agriculture. After that, I had studied and worked there for one year as a postdoctor.Duringthesemorethansevenyears,Igotalotofhelpandsupportfrom many people. First, I thank Profs Iizawa Riichiro and Sakazume Hiroshi, and other members oftheLaboratoryofFoodandAgriculturalMarketing.Theyhaveprovidedmewith alotofguidanceandhelp.ProfessorIizawaRiichirowastheteacherwhoadmitted metoHokkaidoUniversityforgraduatestudy.Hewentthroughalltheprocedures for me to leave China for Japan and even undertook to Sapporo Immigration Bureau toactasmypersonalityguarantorandfinancialsupporter duringmystudy inJapan. During mystudyfor master’sanddoctor’sdegrees,hetaughtmehowto vii viii Acknowledgments begin and conduct academic research. More importantly, he taught me the importance to help others and to get on well with others. He is definitely an unforgettablebenefactorinmylife.ProfessorSakazumeHiroshiwasmysupervisor during my study for the doctorate degree. He taught me how to design question- naires, to carry out specific research, and to write a thesis. He has been very strict withdoctoralcandidatesindissertationincludingme.Itishiscarefulguidancethat made me a scholar very confident of my research. “Making bold hypothesis and careful exploration” was his motto. Besides, I am also very grateful to Drs. Hashimoto Naoshi and Konno Masashi, as well as all the members of the Laboratory of Food and Agricultural Marketing, Hokkaido University. Thanks to all the members of the Japanese Society of Agricultural Marketing. All the teachers and colleagues gave me a lot of suggestions every time I made plenary reports. Professor Takeya Hiroyuki from Nagoya University, in particular, offered mevaluable guidance on my plenary report and doctoral dissertation. Here I would like to express my sincere gratitude to him. Without field investigation, no good thesis can be written. During the period from undergraduate thesis writing to the publication of this book, I was fortunate enough to have obtained help from a lot of people. Mr. Zhao, manager of the DongwayaoAgriculturalProductsWholesaleMarketinHohhot,providedmewith greatconvenienceinmyfieldwork.Iamalsohonoredfortheopportunitiestohave meals at his home. Many thanks. Mr. Gen Suo and Mr. Zhang Runsheng are teachers like my parent. During my undergraduate study in Inner Mongolia Agricultural University, they not only taught me learning methods but also helped me in my personal life. It can be said that I have been influenced by and benefited from Mr. Gen Suo and Mr. Zhang Runsheng in nearly every aspect. I feel really indebted to them for their parental care and support. Last but not least, thanks to editors Chai Ning and Wang Lei from Springer Press. They have provided valuable suggestions on the contents of this book. Thanks! May 2015 Liming Zhao Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 The Real Problem: Unstable Sales Channels . . . . . . . . . . . . . . . 1 1.2 Book Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Particularity and Research Significance of the Western Region . . . 5 2.1 Geographical Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 Particularity and Research Significance. . . . . . . . . . . . . . . . . . . 5 2.3 Survey Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.4 Overall Architecture of Vegetable Circulation . . . . . . . . . . . . . . 9 3 Reorganization of Sales Channel for Vegetable Farmers . . . . . . . . 13 3.1 Vegetable Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3.2 Reorganization of Sales Channel . . . . . . . . . . . . . . . . . . . . . . . 14 3.2.1 Empirical Data of Village A. . . . . . . . . . . . . . . . . . . . . 14 3.2.2 Empirical Data of Village B . . . . . . . . . . . . . . . . . . . . . 19 3.3 Wholesale Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.4 Short Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4 Reorganization of the Vegetable Wholesale Market . . . . . . . . . . . . 25 4.1 Rentability of the Wholesale Market. . . . . . . . . . . . . . . . . . . . . 25 4.2 Vegetable Sellers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4.3 Reorganization of the Transaction Site . . . . . . . . . . . . . . . . . . . 29 4.4 Affect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4.5 Short Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 5 Reorganization of the Vegetable Wholesale Circulation . . . . . . . . . 35 5.1 Main Body of the Wholesale Circulation . . . . . . . . . . . . . . . . . 35 5.2 Scale of Operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 ix