A Study on Fruits and Vegetables Wholesale Market at Farm-Gate Level in Tiawan
Date Issued
2015
Date
2015
Author(s)
Chen, Cheng-Kang
Abstract
While aiming at the characteristics of agricultural products and in order to improve its marketing order, Taiwan promulgated, in 1981, the “Agricultural Products Market Transaction Act” to clearly reveal the positioning of the Taiwan agricultural wholesale market in the society, and its development functions. Prepared and implemented in 1982, the “Farmers’ Group Joint-Marketing Training Rewards And Supervision Measures” established a joint marketing venture to safeguard the interests of producers. Although Taiwan agricultural wholesale market should not mainly aim for profits, while wearing its public utility identity, still 63.5% of the operators use private companies operating patterns, while 34.6% use farmers organizations to do business. As far as investment ratio is concerned, public institutions account for 46.5% while farmers organizations reach 50.8% and one very particular example is Article 12 of the “Agricultural Products Market Transaction Act” that stipulates that farmers and shippers of agricultural products are business entities to operate agricultural wholesale market. Although they belong to this market, but the Act expressly limits government subsidy, land acquisition, tax reduction and other benefits. The Jiuru market in Pingtung is effectively the only wholesale market in Taiwan that is affected by such restrictions on place of origin. Faced with a variety of external limitations and vulnerability, Jiuru market relies, instead, on how to use to its best, the advantages of its location, even with international standards and this is a major test. In this study, qualitative research is the principal axis. First we reviewed all the information related to the wholesale market sector, the regulations as well as secondary data and reorganized, particularly, the operating status of the agricultural wholesale market. Secondly, taking Jiuru market in Pingtung as example, we discussed on the most restrictive conditions of transformation approach of the market. Due to legal restrictions, Jiuru market cannot get any government subsidy, though agricultural wholesale market is a non-profit public service, but long-term loss of money is not conducive to neighboring farmers means of subsistence. Due to the limited size of the Taiwan market, one can only expand sales in the short-term to fast-food chains in northern Taiwan. Not only prices of catering ingredients are smooth but seasonal incremental costs can also be absorbed, thus reducing its exclusive effects on the market. In the long run, we should actively work towards a transition to an international agricultural marketing company and establish its own brand, so as to concentrate on the production and export of specific agricultural products, not only promoting produce from Pingtung area, but also achieving a sustainable development in the agricultural wholesale market.
Subjects
Agricultural Products Market Transaction Act
Wholesale market
Joint marketing
Brands
Type
thesis
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