This paper aims to clarify the functional transformation of credit operations in the development of small-scale rural agriculture cooperatives, as well as their relationship with other operations within the cooperative. The direction of the development of the multi-purpose agriculture cooperative and its credit undertakings are also discussed. The study concludes that credit operations bear a close relationship with other undertakings at each stage of the development of small-scale rural agriculture cooperatives and that they play an important role in improving agricultural production as well as the living conditions of member farmers, for whom the existence of the agriculture cooperative is indispensable. Finally, it is proposed that such agriculture cooperatives return to their original purposes and goals, not as credit-dependent cooperatives but as sales-generating cooperatives.

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First, this paper clarifies about the dual structural analysis between farmers’ intermediate organizations and agricultural economic business of Sagae -Nishimurayama Agricultural Co- operative in Yamagata Prefecture through combination of method of 7P marketing strategy and network system. Second, this paper clarifies that the outcome of agricultural economic business of Sagae -Nishimurayama Agricultural Co- operative has been able to create by new participating activities of farmers’ intermediate organizations like farmers’ group’s direct marketing for tourist as agricultural sightseeing. Third, this paper clarifies that the innovative direction of agricultural economic business of the agricultural co- operatives should change from the quantity’s concentration oriented system to consumer oriented system through activate network system with decentralized farmers’ intermediate organizations by the case studies of Sagae -Nishimurayama Agricultural Co- operative.

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