An Analysis of the Reservation Transaction System in Wholesale Market

The auction system of Taiwan fruit and vegetable wholesale market was established in 1974 in Taipei. Taipei Agricultural Products Marketing Co., (TAPMC) is the one has accomplished this auction system for more than 40 years. The implementation of this auction system plays a significant role to fruit and vegetable price setting, market concentration, protection of producer and seller’s right, and preservation of shipping and selling order, which can be proved over years. wholesale turnover and price variation in TAPMC. Due to modern distribution channel occurred, TAPMC has upgraded its auction facility, such as computerized auction equipment, palm pricing machine, wholesaler identification, etc., those make the auction system more efficient and fair. To face up the impact of modern logistic, warehousing, and internet marketing, the existing auction system is no longer be applicable. E-commerce, CVS (convenient store), and hypermarkets become important factors on all products new price setting. The traditional wholesalers and retailers are aware and have planned to reform themselves in order to meet new market needs. This surveys the practicing from Japanese reservation transaction system for Taiwan market. After years of implementation, the Taiwan fruit and vegetable reservation transaction system presents valid records and statistic data to show the feasibility of this new trading system. Taiwan fruit and vegetable wholesale market is operating by following existing trading mode, producers pay only rental to local farmers’ market, and it is unrelated to pricing if producers and consumers deal directly. However, for distribution directly to overseas are what the government concern as agricultural economy study. In recent years, the government vigorously promote the application of internet marketing tools (i.e. Fruit and Vegetable Reservation Trading APP), this helps the integration among producers, marketers and consumers in Taiwan fruit and vegetable trading market. Thus, this study takes recommendations toward to assisting producers and wholesalers, and adapting the trading system to a fair and benign competition environment.