Wholesaling business of the NACF (National Agricultural Cooperative Federation) is not active because it does not secure sufficient retailers and food service as its customers. When buying agricultural products from wholesalers, supermarkets run by regional agricultural cooperatives emphasize quality level, homogeneity of quality, and low price in order. Medium and small supermarkets emphasize low price, homogeneity of quality, and quality level in order. Large scale retailers emphasize the capability to supply a large quantity and quality level.
For the success of wholesaling business of the NACF, it is urgently required to raise managerial efficiency up to the level of private firms, overcoming limitations of cooperatives. It is also needed to have better coordination schemes between the NACF and regional cooperatives. In order to succeed in wholesaling business, the NACF also have to prepare logistics infrastructure, such as distribution centers, organization specialized in marketing functions, and retail support system, to develop high-valued products, to build strong wholesale brands, and to adopt SCM (Supply Chain Management) techniques.