Role of Risk-Related Latent Factors in the Adoption of New Production Technology—The Case of Japanese Greenhouse Vegetable Farmers

Abstract

Most food safety and consumer trust measures focus on information management in preparation for accidents and system structures focused on inspection records for hygiene management. Recognizing the provision of safe produce coupled to preventative rather than reactive measures as being more important, this research uses covariance structure analysis to explore decision making associated with the adoption of new technology by farmers. Survey items range from standard farm characteristics (such as scale of operation and volume of sales) to social psychological constructs (such as attitudes about various farm operational risks). Data drawn from greenhouse vegetable farmers (185 mail survey responses) are used to estimate our causal models. Overall, large farms tended to be more progressive in the adoption of new technology, even when they perceived high operational risks. In the future, assuming Japan will participate in the Trans-Pacific Partnership (TPP), regulations associated with vegetable imports will be eased and Japan’s greenhouse vegetable farmers will face fierce international competition. Food safety regulations will also likely be subjected to TPP guidelines. Under these circumstances, production technology for heightened food safety will be indispensable in order for Japan’s greenhouse vegetable farmers to continue to thrive. Government support to encourage the adoption of new technology will also be necessary. The results of this analysis contribute fundamental knowledge to the formulation of measures designed to encourage adoption.