SAITO, Katsuhiro

AN, Yufa

Along with the rural economic reform in China, the marketing system of vegetables has been reorganized. The production of vegetables in rural area away from large cities has been improved, and the number of rural wholesale markets is continuously increasing. In addition, the foundation of rural wholesale markets has contributed to the change of the traditional marketing system. In this paper, we focus on Luzhong-area, Shandong-province to observe the various effects of this institutional change in the marketing system. Firstly, we examine the relationship of the central vegetable wholesale market and the other wholesale markets in this area as well as the characteristics of these markets. In China where the shipment-in-group is not organized, not only Shouguang vegetable wholesale market but also small wholesale markets such as Yujia market have played important roles for the improvement of the vegetable production and the increase of the farmers' income. Secondly, the mechanism and the characteristics of the central wholesale markets are analyzed, and the agent system for arrangement is apparently recognized important for the efficient transaction. Thirdly, the role which the vegetable marketing system has so far played is examined; the findings are the cost reduction effect of the marketing, the increase of vegetable production in the area, and the enlargement of the shipping area and competition induced by the agent system of transaction arrangement.