The U.S. headquarters office of ZEN-NOH, Japan’s largest agricultural products distribution group, located in downtown San Francisco, was filled with the bustle of year’s end. And the same was true of Department Manager Sato Takeshi, who was in charge of fresh food imports.
“Manager Sato, have you seen this? It’s a fax from Harris Farm in Brentwood.”
The paper his subordinate held out had a proposal written in neat script, along with an attached technical report stamped with the seal of UC Davis.
“What’s this?”
“It’s a proposal from a farm that wants to supply cherries independently, and the contents are quite interesting.”
Manager Sato adjusted his reading glasses and skimmed down the page.
“Harris Farm... But what is all this? Hydro-cooling and MAP packaging technology? An individual farm in California installed expensive equipment like this?”
There were certainly details here that set it apart from the cherry farms they had dealt with before, and Manager Sato narrowed his eyes as he examined the documents closely. He was a veteran who had been through every hardship imaginable distributing California cherries in the Japanese market, but he also suffered through the same ordeal almost like an annual event.
Every May, close to half of the imported cherries would soften before they even arrived, and he would be showered with returns from department store food halls as a matter of routine.
In that sense, the documents that had arrived this time were more than enough to draw his interest.
“Manager, please take a look at this sample box that arrived with it.”
Inside the long box his subordinate carefully opened was a bottle of cherry wine labeled “Ceracia.”
“It’s wine?”
“There’s a note here.”
[Cherries produced by Harris Farm are supplied to Redwood Winery at an annual volume of 100 tons and are reborn as Ceracia.]
“Hmm... Redwood Winery? Is it famous?”
When Sato, who did not know much about the liquor industry, asked, his subordinate answered immediately.
“It’s quite famous in the wine industry. A few months ago, it swept several well-known industry awards.”
The subordinate pointed to the phrase “Redwood Selected” written at the bottom of the fax paper.
“Ah, you were in liquor before coming to fresh foods, weren’t you?”
“That’s right.”
“Well, in that case, I suppose the farm has some credibility? Though whether they can preserve the freshness of the cherries is still unknown...”
He basically assumed that half of any claim made by an individual farm wanting to export was a lie. He believed that approaching things with such a critical mindset reduced mistakes.
“Still, it’s certainly an attractive prospect, isn’t it?”
“If they really can prevent even some of the chronic rapid deterioration of cherries, it’s more than worth doing business with them. First, I’ll have to see it for myself. If these figures are true, then next spring, we may end up holding the red diamond that changes the entire distribution landscape for California cherries.”
One day later, Harris Farm in Brentwood.
“This is the equipment I told you about, Manager Sato.”
Where Frederick pointed, a Mobile Hydro-cooler trailer bearing the clear logo of Cascade Cooling stood in imposing fashion. The metal equipment, the size of a twenty-foot container, gleamed coldly under the winter sunlight.
In front of it stood a middle-aged Japanese man in a dark navy coat, adjusting his glasses with an extremely serious expression. He was Sato Takeshi, the department manager in charge of fresh food imports under ZEN-NOH, Japan’s largest agricultural distribution group.
Beside Frederick stood Chloe in a neat semi-formal outfit. The glasses she did not usually wear, the white blouse, and the knee-length skirt made her look not like the owner of a farm, but like an executive at some company. And a few steps behind her stood me.
“Oh... So this is the hydro-cooler listed in the documents. Usually, heavy equipment like this is found at a cooperative’s shared sorting facility...?”
Manager Sato asked in English laced with a distinct Japanese accent, and Chloe, who had been standing beside Frederick, stepped forward and answered. Though she had stayed up all night preparing for the meeting until the day before, her eyes shone more brightly than ever, without a hint of fatigue.
“That is precisely why we withdrew from the cooperative, Manager Sato. California’s cherry cooperatives are still stuck in the old era and refuse innovation. They do not feel the need for equipment like this. After all, once they harvest cherries every May and June, a certain amount of money comes in.”
“You mean they lack a sense of crisis, so they are not proactive about change?”
“Exactly. The cherries of Harris Farm boast the highest quality in California. Here is the transaction statement we concluded with Gelson’s this May.”
The unit price of the cherries on the transaction statement she held out made Manager Sato Takeshi’s eyes widen.
“Three dollars per pound? You received almost double the price.”
“That’s right. And the reason is our farm’s signature variety, Royal Tioga.”
At that, Chloe even handed him a Royal Tioga pamphlet made by Zaiger Genetics, the developer of the variety, and continued speaking.
“Royal Tioga is darker and more uniform in color than conventional Bing cherries, and compared to Bing cherries at 16 to 18 Brix, it has a much higher sugar content at 19 to 21 Brix. That is why we were able to receive this price.”
“Mm... So the variety itself is different.”
He looked over the pamphlet and nodded.
“As of 2008, Royal Tioga accounts for 30% of our farm’s production, and in 2009, that is scheduled to increase to 50%. Of course, that does not mean the quality of our Bing cherries is inferior. If you look at this transaction statement we concluded with Costco last year, you can see that they traded at prices at least 20% higher than cherries from other farms.”
As Manager Sato continued receiving documents from Chloe, he wore a deeply intrigued expression. He had held meetings with countless farms and companies until now, but it was rare to see a place push so boldly while putting objective indicators at the forefront like this.
“For now, I suppose I must acknowledge the objective fact that Harris Farm’s cherries are superior to those of other California farms. If these transaction statements are true, that is.”
“Of course. You should verify them. If you contact Gelson’s and Costco, you will be able to confirm the transaction details from that time.”
Then Chloe pointed to the control panel attached to the side of the trailer and continued her explanation.
“This shower-type hydro-cooler lowers the core temperature of the cherries to 2°C within one hour after harvest. Cold water at 0°C penetrates the entire box and forcibly stops the cellular respiration of the cherries.
Problems such as pitting, or stem browning, occur because the fruit is not cooled immediately at the harvest site. We have prepared for that.”
“You are saying that this machine is what allows you to maintain the high quality of the cherries all the way to the destination?”
“That’s right.”
“But if the temperature rises again during transport, wouldn’t it be useless? As you know, temperature control in an airplane’s cargo hold is not perfect.”
As if she had been waiting for that, Chloe took a transparent sample of special film from her bag.
“That is why we have introduced MAP, Modified Atmosphere Packaging. This special film lowers the oxygen concentration inside the plastic and maintains the carbon dioxide level at around 10%. Until the moment the box is opened at Narita Airport, the cherries will not even know they have been picked from the tree.”
Chloe’s explanation was seamless. It was thanks to the fact that she had stayed up all night in front of me the previous day, practicing her briefing.
The reason we had deliberately brought in the equipment during winter was to conclude a forward volume contract before the cherries were shipped, in order to resolve our shortage of funds. But if the deal fell through because she had not practiced enough, how painful would that be? Naturally, Chloe had no choice but to practice desperately.
Manager Sato silently touched the film, then looked out at the field lined with bare cherry trees.
“The technology... is excellent. However, Miss Chloe, the Japanese market does not move simply on technology. Trust is extremely important to us. We need assurance that a single independent farm called Harris Farm can take responsibility for and supply this large-scale air-shipped volume to the very end. If next May’s harvest is poor, how will you, without the backing of a cooperative, fulfill the contracted volume?”
Frederick, who had been standing quietly, stiffened slightly. It was a practical problem. The greatest weakness of an individual farm was, after all, stability. At that moment, I, who had been silently watching from behind, slowly walked forward.
“Manager Sato, I think I can answer on their behalf regarding that trust.”
Sato’s gaze fixed on me.
“And you are...?”
“I’m Brian from Redwood Winery. Redwood Winery will guarantee Harris Farm’s forward contract. If losses occur due to nonperformance of the contract, Redwood will take responsibility.”
“...Does Redwood Winery have a reason to go that far?”
“Redwood and Harris Farm are strategic business partners. The greater the farm’s profits become, the greater our profits become as well. That is the nature of our relationship.”
Only then did Manager Sato part his lips slightly in realization and admiration.
“Ah, I see. In fact, when you sent Ceracia wine, you said Redwood would provide a guarantee, but now that the party concerned has come in person and answered, we will try trusting you as well.”
He took a notebook from his pocket and began writing something down.
“We would like to forward purchase 40% of the Royal Tioga volume to be shipped next May, and 30% of the premium volume of ordinary Bing cherries. As for the price, we will add a 20% premium over the market price for air-shipped volume. However, you must attach a hydro-cooling data report from the day of harvest to every shipment.”
At that moment, Chloe pushed up her glasses with an utterly firm expression and said,
“You’ll have to give us 30%.”
“Thirty percent is a bit...”
“I assure you, Royal Tioga preserved in freshness through hydro-cooling could be sent to New York right now and still receive a 40% premium without difficulty. So even if the air-shipping price is already higher than the existing wholesale price, we need an additional 30% for the deal to happen.”
For a moment, the dumbfounded Manager Sato looked at Chloe, Frederick, and then even at me, seeking help with his eyes. His gaze seemed to ask what we would do if the contract fell apart like this.
But Frederick and I both shrugged, making it clear that Chloe was the one in charge. The bewildered Manager Sato asked,
“This price is beyond our expectations. Do you think a deal can be made like that?”
“If the deal cannot be made, then I suppose it cannot be helped. It is unavoidable if we are to protect the value of our farm’s cherries.”
After saying that, Chloe checked the small, pretty wristwatch on her wrist and continued.
“If the negotiations with ITOCHU Corporation in about three hours also fall through, then I suppose our cherries will be going to Korea instead of Japan.”
In that instant, Manager Sato’s pupils wavered. ZEN-NOH, as an agricultural cooperative, was fundamentally an organization that protected its own country’s farmers, but ITOCHU Corporation was a private conglomerate, and it was obvious they would never want to miss an opportunity like this.
The moment ITOCHU came from her mouth, even if it was a bluff, he had no choice but to offer the 30% premium.
In the end, Manager Sato held out his hand.
“Let’s do business.”
“You’ve made a wise decision. I’m sure customers who taste our cherries at department stores will cause an uproar trying to buy more.”
“We shall see in May just how capable that hydro-cooling technology is. Ah, and since this is a deal with an individual farm, you must have a brand as well, correct?”
“We will create one by March and send it to you.”
“Good. I look forward to it.”
Manager Sato drew up the contract right beside the trailer, then left the farm.
After watching the car he was in disappear into the distance from the farm, we looked at one another with faces full of emotion.
“Kyaaaah!”
Chloe, who threw herself into my arms, had become such a little charmer that it was hard to believe she had ever been so professional.
“Did you see? How was I? I was totally sexy, right?”
“Yeah, you were seriously the best.”
Because of Frederick’s face right in front of me, which was neither smiling nor crying, I tried my best to keep my expression calm.
“Wasn’t my outfit totally sexy too?”
“...Let’s go inside. Let’s go inside. You worked really hard...”