Generally, the agriculture in Japan is structurally composed of the private agricultural farmers and almost one hundred percent of it are occupied by them. And these agricultural farmers are doing and developing their activities getting supported by the bodies with advisory leading roles with function in marketing various agricultural products, also to supply miscellaneous materials for production, to run credit and mutual aid insurance and also to manufacture processed goods and push on the use of them in order to improve their daily lives better. The advisory organization, the Nokyo, is itself a body seeking no profits, but nonetheless this must be a business organization possible to last and prosper steadily by itself. The marketing activities of the agricultural products are the most anticipated by the members of the Cooperatives. However, the cooperative economic business including the marketing of agricultural products and the purchasing input materials for farmers are frequently unprofitable and practically the profits earned by the credit and insurance business usually make up for the loss of them. However, these most profitable credit business is facing decreased profits because of the shrinkage of the profits induced by the recent monetary liberalization and also the influences caused by the collapse the bubble- economic, thus resulting in the worsened business condition of the Nokyo. As a result of this, promotion and gains of mutual aid insurance were spurred, yet they are facing the limits now, thus resulting in that the establishing and building up of the concrete economic basis should be severely demanded. At present, reorganization is being promoted earnestly in the Japan Agricultural Cooperatives. The plan of absorbing and merging the Unit Agri. Coop., which totals to 3,400 in number at present, into 1,000 units collected more extensively, are being promoted in order to reform and change into such organizations possible to maintain the business system with self responsibility. Otherwise, the plan of integration is being performed with efforts by unifying the present three-grades system such as the Unit Agri. Coop., Prefectural Federations and the National Agri. Coop. Federations, into these reformed two staged organization. However, this rationalization measure has such demerits and dangers as follows: first, the local characteristics of the Agri. Coop. activies may be lost due to the integration and then also the democratic operation, which would be possible by the members' direct participation may threaten to be receded. Also, it could be pointed out that the reorganization which would be performed by dividing respective businesses might result in losing the advantages in competition because these competitive advantages come from extensive overall characteristics peculiar to Japan's agriculture, in other words, each farmer is running his business by doing diversified business operations. At present, keen competition is being spreaded and expanded because starting with the liberalization of the rice, other industries are entering and advancing in the farm villages. Therefore, it should be necessary to organize and establish the cooperative activities matching the various demands of the members and also based on each local feature rather than the standardized national-scale reorganization.
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