Evaluating the stable rice supply function of the JA system

Focusing on the relationship between Zen-Noh and wholesalers

Abstract

This study clarifies how agricultural cooperatives and wholesalers contribute to Japan’s stable rice supply. Rice prices in Japan have been soaring, drawing increased attention to rice sales by agricultural cooperatives. Three key findings emerged from interviews with Zen-Noh’s central office, its Niigata and Miyagi prefectural branches, and wholesalers. First, advanced contracts between Zen-Noh and wholesalers help to secure supply and sales channels. Second, Zen-Noh’s provisional payment system considers consumer prices while also considering the price necessary for farmers to continue production. Third, multiyear contracts help to ensure long-term supply stability in collaboration with wholesalers. Through these mechanisms, agricultural cooperatives fulfill their role in stabilizing rice supply. However, these findings indicate a trade-off between keeping the collection rate and stabilizing the price level.