June 14, 2017 — By the time Tokyo’s new auction site is up and running, it may be time to question if it is needed at all.
Even as the Tokyo government wrangles with the issue of moving the Tsukiji wholesale market to a new – and possibly polluted – location, innovative companies are forming more direct purchasing and marketing channels that bypass Tokyo’s central market.
Despite a strong tradition of Japanese consumers buying fish from markets in person, Japanese seafood sellers are taking advantage of the internet to match buyer and seller, use air links and refrigerated parcel delivery services, and, by cutting out the layers of middlemen, return a larger share of the consumer price to fishermen.
A seafood trading website called SCSS debuted in 2009 as a collaboration between Osaka-based Syunzai Ltd., a seafood dealer that also operates food sales websites, and Tokyo-based Mitsuiwa Corp., an IT development company. Delivery is arranged using the airline ANA and nationwide refrigerated and frozen parcel delivery is provided by Yamato Transport Co., Ltd.
The service connects buyers directly to about 1,500 fishing cooperatives and local brokers at ports, who are the sellers. The approximately 100 registered purchasers are retailers, foodservice distributors and brokers. SCSS operates as a trading platform, rather than actually taking ownership of the product.
The company makes its money from membership fees – it costs about JPY 100,000 (USD 898, EUR 804) to join, plus JPY 10,500 (USD 94, EUR 84) monthly, and from a two percent commission from sellers and an 11.5 percent from buyers. The most popular use of the site is in finding a home for non-target small-quantity bycatch for which the seller may have no sales channel.
Fishermen take digital photos or movies of the actual fish as they are landed and post them to the site. Buyers can view and bid on these in real-time. There are designated pickup locations for the parcel service at ports around Japan. The product arrives fresher than that which goes through the auction channel. As the sales are recorded electronically, traceability is ensured. The site processes payments, so buyers make a single payment to the site operator, even when they deal with multiple sellers.
Another service in a similar vein is Chihou Sousei Network Co. (CSN), headed by Ryohei Nomoto. The company air-freights freshly caught fish from across Japan to its processing facility on the grounds of Tokyo’s Haneda Airport, and distributes the produce either within Tokyo or again by air. About 40 percent of the product is sent overseas.