This study investigates the establishment of Forest Producers’Cooperatives (FPCs), their engagement in forest management, the state of dissolution nationwide, and the challenges faced. The establishment of FPCs was triggered by (1) the consolidations of municipalities in the Showa era (1953-1961), (2) the modernization programs of common forests (1966-), and (3) the use of profit-sharing contracts. In Kochi Prefecture, some FPCs were established under specific profit-sharing contracts. In forest management terms, the number of FPCs performing thinning has declined significantly since the 1990s. Although approximately 10% of FPCs have earned forestry income, 60% have suffered losses. Consequently, dozens of cooperatives are being dissolved every year owing to management difficulties. After dissolution, forest management is typically transferred to authorized community organizations. FPCs have played a role in registering common forests in the name of an organization, but for FPCs that lack an adequate source of income, the financial demands of corporate operations and various corporate taxes have become a strain. Moreover, FPC membership rules on joining and withdrawal could transform a common entity into a group with different characteristics.
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