Assessing the Competitive Advantage of Public Policy Support for Supply Chain Resilience Case of Local Governance in Chiba

Japanese farmers and fishermen produce and sell their products, receiving 9.4 trillion Japanese yen. At the same time Japan imports raw products of 1.2 trillion JPY and processed food of 5.3 trillion JPY. Then the products move to eat out sectors, processing sectors and consumers in fresh condition through market. Through the process, the value of agricultural products increased and consumers pay 73.5 trillion JPY. It means the value is added at five times. So, the farmers have right to sell at higher price and receive more. Then, the concept of the 6th industry was invented in around 1980. The definition of 6th is the combination of production process (1st industry ) with 2nd and/or 3rd industry. There are 60 thousands businesses relating to 6th industry in Japan. Within the business, food processing and direct shop share much. Direct shops are operated by a farmer, farmer’s group, farmer’s company, municipality, cooperative, producers’ group and others. And direct shops sell vegetables, fruits, processed food et al. The 6th industry is supported and enhanced by central and local government. In Chiba prefecture, the movement of eating local food is strongly enhanced. Local food can be purchased at large-sized store, however, local direct shop is more suitabe. Direct shop K is located at urban fringe in Chiba prefecture. The location of urban fringe has advantage and disadvantage. Starting from 2004, this direct shop becomes very popular in the region, selling 1 billion JPY (roughly 9 million USD) per year. However, it needs to conquer two crises. One is the effect of the fallen radioactive materials from Fukushima nuclear power plant accident. The farming area of Kashiwa city suffered from radioactive materials. Although the volume fallen is not so much, and the products were mostly safe, however, consumers believed every product is dangerous to health and left from this shop. The manager introduced measuring instrument and showed the real status of the food, then consumers gradually came back. Another crisis was the residual agricultural chemicals. One member farmer from 120 member farmers used pesticide, which was listed as refrain from. The manager closed the shop and surveyed all member farmers’ growing conditions. Checking the safety conditions, the shop opened again, it takes some months to recover the reliance upon the shop. Although the manager’s contribution is large for the resilience of this direct shop, Japanese agricultural policy supported indirectly and directly.