Relationship between 'Sixth Industry' enterprises and farm households: A case study of Iijima-machi

The main objective of this study is to clarify the relationship between 'sixth industry' enterprises and local farm households focusing on the supply and demand of labor forces and farm products. Iijima-machi in Nagano prefecture was selected for the case study because several different types of sixth enterprises have emerged through the support of the local government. In this study sixth enterprises have been classified into five categories and analyzed in terms of their relationship with farm households; with particular attention to the procurement of labor and products. The study also attempted to find the major factors that determine the relationship between farm households and different sixth enterprises. This study has revealed that sixth enterprises were more selective in their relationship with local farm households. In procurement and sales, they only accepted products from qualified farm households, which differ from the attitude of agricultural cooperatives. Manufacturing enterprises were less dependent on part-time labor from farm housewives. It was found that farm households were also selective to some extent, but for different reasons. As farm households which earn their living by the income, they sold their products both to sixth enterprises and the market. Aging farm households, choose to sell their products to sixth enterprises, because they cannot produce the quality required to sell in the market. The relationship between farm households and sixth enterprises was influenced by the ages of family members. In particular the age of core farmers in the family affected the type of farming, products, markets and the place of work for family members. The sixth industrialization seems to be contributing to the revitalization of local economies by widening the choices of farm households in terms of product marketing and use of family labor.