Category Archives: Research

Reorganization of Japanese agricultural cooperatives’ branch network: responding to changing local needs and strengthening interactions with members

March 1st, 2019 Norinchukin Research Institute Co., Ltd. TAKAYAMA Koki, Senior Economist ■Abstract Financial institutions, which have relatively been inactive in reorganizing their branch network after 2010, are seen increasing mergers and closures of their branches again in recent years in Japan. This is mainly because the use of financial institutions’ branches is declining due to the spread of online banking services and the shrinking customer base along with predicted depopulation. Financial institutions are also facing the need to step up streamlining of branches to cope with revenue decrease, as well as increasing the size and operational efficiency of branches to respond to customer demand for higher levels of service … Continue reading

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Prerequisites for market expansion of organic farm products in Japan:Case study of agricultural cooperatives and producers’ groups

July 1st, 2019 Norinchukin Research Institute Co., Ltd. HORIUCHI Yoshihiko, Research Counselor ■Abstract In recent years, while the area under organic cultivation and the market for organic farm products have been posting double-digit growth worldwide, the growth in Japan has been slow and the organic market in the nation remains a niche, still small compared with those of Western countries. This is attributable to various factors, including the difficulty of maintaining stable production of organic products in Japan due to weather conditions. Production costs are high as organic agriculture requires a great deal of labor to weed and distribution expenses are also high since production areas are scattered and are … Continue reading

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Accounting problems on the classification of liability and equity from the perspective of cooperatives

June 1st, 2019 Norinchukin Research Institute Co., Ltd. AKEDA Tsukuru, Visiting Researcher ■Abstract In June 2018, with regard to the classification of financial instruments under IAS 32, IASB has made a new proposal and invited the public to give comments on the classification of liability and equity based on the two new criteria, “timing feature” and “amount feature” of the delivery of the entity’s economic resources. This newly proposed criteria offer nothing but a working explanation on the controversial fixed-for-fixed condition for derivative financial instruments that are to be settled with their own shares, and on an equity instrument that is not classified as equity. Cooperatives and other similar entities … Continue reading

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Arguments over associate membership system in the Agricultural Cooperatives Act of Japan and their problems

December 1st, 2017 Norinchukin Research Institute Co., Ltd. AKEDA Tsukuru, Visiting Fellow ■Abstract From a viewpoint of the legal system, we have already brought about an end to arguments over a question of whether an agricultural cooperative is an organization of farmers for cooperation or not, since the system has provided the regular members of farmers with a right of control over management of their cooperative. Although an increase in the number of associate members may make contribution to profits of regular members who are farmers, there are not such actual conditions as the increase brings about disadvantages to them. Even supposing that the regular members suffer disadvantages from the … Continue reading

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Japan’s Agricultural Cooperatives Challenging Regional Revitalization: Aiming at Reconstruction of “Solidarity”

                                                                                                                                      August 1st, 2018 Norinchukin Research Institute Co., Ltd. YUKITOMO Wataru, Senior Fellow ■Abstract “Self-reform” of agricultural cooperatives or JAs has three goals aiming at “increase in farmer’s income”, “expansion of agricultural production”, and “revitalization of regional societies”. Out of these goals, the revitalization … Continue reading

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