Service to Efficiently Support Direct Farmers’ Markets, which Directly Connect Producers with Consumers

1.1 Background of direct farmers’ markets

Direct sales of agricultural products occur in different forms and on varying scales. Producers, that is, farmers, may sell what they have harvested right in front of their homes or fields. Some farmers sell certain products such as raw eggs or flowers in vending machines. Farmers may also bring their crops to direct farmers’ markets run by the JA (Japan Agricultural Co-operative) Group or other agricultural organizations.

Direct farmers’ markets are gaining in popularity for a number of reasons. Roadside stations, which usually include a farmers’ market, are increasing in number as they become popular resting places for people traveling by car. People are also becoming more and more interested in food, particularly in the locavore movement focusing on local production for local consumption. Not only local consumers but also visitors from cities flock to direct farmers’ markets, where they can buy locally harvested fresh agricultural products at reasonable prices and get to know who the producers are.

1.2 Features of direct farmers’ markets

Since local production for local consumption is now a favored concept, a majority of products sold at direct farmers’ markets are locally harvested fresh crops. The name and photo of the producer is included on the packaging of each item so that shoppers can see who produced the item.

In contrast to retailing at supermarkets, producers bring their crops directly to farmers’ markets. The markets receive a commission for each item sold, and the remaining revenue goes to the farmers. Consigned sales and deduction of commissions by the market are major features of these markets (Fig. 1).

Fig. 1. Agricultural solutions that support a series of tasks at a direct farmers’ market.

2.1 Features of the system

The direct farmers’ market system known as Sanchoku is designed to solve problems encountered by staff members of direct farmers’ markets and also by producers. For example, market staff may require a lot of time and labor to manage the deduction of commissions, and producers may have difficulty knowing exactly what vegetables are in demand at a particular time. In addition to improving the efficiency of business management, the system provides a variety of functions that support the operation of direct markets such as quick sales reporting and sales analysis.

Sales data are sent to a datacenter via the Internet using a system such as FLET’S HIKARI NEXT optical access and centrally managed there. The series of tasks carried out at a direct market are linked to point of sales (POS)^*1 cash registers and the Sanchoku system, making it possible to analyze collected sales data from different perspectives and provide quick sales reports to producers (Fig. 2). A major feature of this system is that it is provided in the form of an application service provider (ASP)^{*2, 3} service. This is beneficial to all three parties concerned: direct farmers’ market managers, producers, and consumers [1]. The main features of the system are described below:

Fig. 2. Framework of the direct farmers’ market system, Sanchoku.

2.2 Functions provided by the system

(1) Deduction of commissions

This function calculates the commissions and labeling fee for each producer and generates transfer data that are compliant with the format specified by the Japan Bankers Association. This function reduces the workload of transferring the accounts payable to producers.

(2) Sales management

The direct market management can use data on the sales of each type of product, the sales at each market, and hourly, daily, and monthly sales to improve the operation of their markets. Direct markets and producers’ organizations can work together to analyze the optimal time to carry out sowing and cropping, as well as the harvest yield from the volume of products delivered by individual producers. This enables them to provide advice and guidance on effective farm management to producers.

(3) Quick sales reporting

Producers can obtain information on the sales of their products via the Internet on their mobile phones, smartphones, or computers. This enables them to refill products at direct markets in a timely manner. The markets can increase their sales by avoiding lost sales opportunities as a result of their shelves being empty.

(4) Label printing

The label printers can print labels to be attached to products.

(5) Delivery of quick sales reports by email (optional)

This service delivers information about the total sales of the market to producers by email up to five times a day. The delivery time can be set by the market manager.