1) Reasons of Tangerine Farmers for Shipping Products through Collectors in Producer Market
The producer market collectors considered the reasons for product shipment through them instead of ‘agricultural cooperatives or citrus marketing & shipping associations’ to be ‘a good pricing’ at the tangerine farmers’ judgment and ‘an accessibility to lump sum amount of money at once’.
<Table Ⅲ-85> Reasons of Shipment through PMCs
Content of Response
Future Contract
Deposit
Provision of Harvesting Labor
Good Pricing
Acquaintanceship and Accumulated Credit
Record
Provision of Lump Sum Amount of Money
Others No Answer
Primary
Choice Ratio 4.0 18.0 52.0 8.0 12.0 6.0 0.0
Secondary
Choice Ratio 2.0 22.0 20.0 12.0 28.0 4.0 12.0
2) Experience of Applying Artificial Coloring for Tangerine Sales
On the survey question asking whether they have ever applied ‘artificial coloring’ on tangerine fruit for the purpose of sales, 68.0% of the PMCs responded with ‘yes’ answer.
In regional details, the north of Mount Halla area showed a higher number (80.8%) relating the artificial coloring experience than in the south of Mount Halla area (54.2%).
<Table Ⅲ-86> Experience of Applying Artificial Coloring for Tangerine Sales
Classification No. of Cases Yes No
Total (50) 68.0 32.0 Statistical Value Significance Level By Region
▩ ▩
North of Mount Halla (26) 80.8 19.2 South of Mount Halla (24) 54.2 45.8
X2=4.059 P=0.044
2-1) Reasons of Artificial Coloring for Tangerine Sales
Among distributors in the producer market, 54% of them revealed that they had applied the ‘artificial coloring’ to tangerine fruit before selling them in the market mainly for higher prices while 14% expressed ‘as requested by transaction partners’.
In terms of the survey by education, the age groups of 40s (55.6%) and 50s (66.7%) were considerably higher in the choice of reasoning for ‘high prices’ whereas the 30s (42.9%) mostly selected ‘as requested by transaction partners’. The 60s (60.0%) were high in ‘had never done artificial coloring to fruits’.
<Table Ⅲ-87> Reasons of Artificial Coloring for Tangerine Sales
Classification No. of Cases
For High Prices
As Requested By Transaction Partners
Never Done Artificial Coloring
Total (50) 54.0 14.0 32.0
Statistical Value Significance Level By Age
▩ ▩
Up to 30s (7) 42.9 42.9 14.3
40s (9) 55.6 33.3 11.1
50s (18) 66.7 5.6 27.8
60s (15) 40.0 60.0
70s and
above (1) 100.0
X2=17.368 P=0.026
3) Method to Secure Volume for Sales
The survey revealed that the collectors in producer market (PMC) utilized a ‘method of immediate direct purchase from tangerine orchards upon harvest’ (61.1%) to secure 2003 product volume for sales.
In 2003, the secured tangerine volume per PMC was estimated at 49,743 boxes in 15 Kg package or 746 tons.
<Table Ⅲ-88> Method to Secure Tangerine Product for Sale (2003 Products)
Classification Future Purchase Contract by Field Unit
Immediate & Direct Purchase from Orchard Upon Harvest
Storage Unit Purchase
After Harvest Others Total
No. of Cases 15 32 18 2 35
Volume(BOX) 272,335 1,063,666 311,666 93,333 1,741,000
Ratio 15.6% 61.1% 17.9% 5.4% 100.0%
For the 2004 products, PMCs’ purchases were made through the methods of
‘immediate and direct purchase from orchard upon harvest’ (51.7%) and ‘purchase by storage unit after harvest’ (35.2%).
In 2004, the secured tangerine volume per PMC was estimated at 52,154 boxes in 15 Kg package or 782 tons.
<Table Ⅲ-89> Method to Secure Tangerine Product for Sale (2004 Products)
Classification Future Purchase Contract by Field Unit
Immediate & Direct Purchase from Orchard Upon Harvest
Storage Unit Purchase After Harvest Total
No. of Cases 16 35 20 36
Volume(BOX) 267,499 1,051,502 714,999 2,034,000
Ratio 13.2% 51.7% 35.2% 100.0%
4) Performance by Shipping Destination
The collectors in producer market (PMC) shipped their 2003 products mainly to the ‘by-law wholesale markets’. Their shipments to the ‘by-‘by-law wholesale markets’ took the highest portion of 45.0% followed by the ‘wholesale markets in kind’ at 31.3% level and
‘agricultural cooperatives’ joint markets’ at 20.0%. The 2004 shipment per PMC was estimated to be 52,452 boxes in 15 Kg package or 787 tons.
<Table Ⅲ-90> Performance by Shipping Destination (For 2003 Products)
Classification ACs’ Joint Markets
By-law Wholesale Markets
In-kind Wholesale Markets
Mass
Consumers Total
No. of Cases 14 18 19 1 31
Volume(BOX) 325,000 731,333 509,667 60,000 1,626,333
Ratio 20.0% 45.0% 31.3% 3.7% 100.0%
For the 2004 products, the producer market collectors (PMC) made the largest volume of shipments to ‘by-law wholesale markets and in-kind wholesale markets’ according to the survey results. The shipment to ‘by-law wholesale markets’ took the biggest portion of 42.4% followed by 27.7% of ‘shipment to the in-kind wholesale markets’ and 24.8% of
‘shipment to the agricultural cooperatives’ joint markets’. The estimated shipment per PMC was 52,364 boxes in 15 Kg package or 786 tons.
The combined shipment ratio to the institutionalized market (wholesale market and agricultural cooperatives’ joint markets) was more than 65% of the total shipments.
<Table Ⅲ-91> Performance by Shipping Destination (for 2004 Products)
Classification ACs’ Joint Markets
By-law Wholesale Markets
In-kind Wholesale Markets
Mass
Consumers Total
No. of Cases 15 18 20 2 33
Volume(BOX) 428,666 733,336 479,331 86,666 1,727,999
Ratio 24.8% 42.4% 27.7% 5.0% 100%
5) Problems Arising from Sales Methods
On the problems arising from the sales methods, the producer market collectors (PMCs) suggested that ‘uncontrollable supply in the market as the main cause of price decline (2 PMCs)’ and ‘delayed payment collection (1 PMC)’ were problematic in the joint markets of the agricultural cooperatives.
For the problems in the by-law wholesale markets, the PMCs also suggested
‘uncontrollable supply in the market as the main cause of price decline (2 PMCs)’ with an additional point of ‘price reduction unless artificial coloring is applied (1 PMC)’.
‘Difficulties of payment collection’ (3 PMCs) was suggested as a problem in the in-kind wholesale markets.
6) Reasons for Favoring In-Kind Wholesale Markets
The collectors in producer market pointed out ‘exchange of information and interaction through acquaintanceship’ and ‘simple procedure for product shipment’ as reasons for favoring the use of ‘in-kind wholesale markets’ instead of by-law wholesale markets. The in-kind wholesale markets refer to the markets mainly operate as a wholesaler under the
approval of the mayor in accordance with the Wholesale and Retail Businesses Promotion Act, and currently 38 markets are available.
<Table Ⅲ-92> Reasons for Favoring In-Kind Wholesale Markets
Content of Reply
Guaranteed Undisclosure of
Transaction Volume
Simple Procedure for
Product Shipment
Access to use Future
Contract Deposit
Immediate Payment Settlement
Information Exchange, Interaction
Others (Combined
Reasons) No Answer
Primary
Choice Ratio 2.0 14.0 8.0 8.0 28.0 28.0 12.0
Secondary
Choice Ratio 8.0 22.0 6.0 6.0 14.0 4.0 40.0
F. Comparative Analysis in Producer Market Collectors’ Sector between