Farmer’s profitability and Distribution channel(Part2)

Do you have any idea how much cost is necessary for the store to display vegetables after the trade in market and how much money farmers receive eventually?Of course,it depends on items and situation,though, store price is about as twice as market price.Farmaers receive 20%-40% of store price, approximately.

market price vs store price

market price vs store price with further break down

According to the financial statement of Tokyo vegetable market in Y2016,which is the biggest market in Japan, their gross profit percentage is 12.27%.We could guess their margin would be 7% of store price roughly.You will see further break down for store price.

Previous contents : Farmer’s profitability and Distribution channel(Part1)

Original Index

Reference
Ministry of Agriculture、Forestry and Fisheries
http://www.maff.go.jp/j/kanbo/nougyo_kyousou_ryoku/index.html
Metropolitan Central Wholesale Market
http://www.shijou.metro.tokyo.jp/gyosei/shijoudata/keiei/2016/

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