【News】 Abe eager to conduct sweeping overhaul of agricultural co-operative group (June 25, 2014)

 

The government revised its 10-year plan to revitalize the agricultural industry and regions on Tuesday, June 24, newly including abolishment of the agricultural hierarchy headed by the Central Union of Agricultural Co-operatives (JA-Zenchu).

Prime Minister Shinzo Abe speaks Tuesday, June 24, at the government’s headquarters for agricultural revitalization, as agriculture minister Yoshimasa Hayashi looks on.

Prime Minister Shinzo Abe speaks Tuesday, June 24, at the government’s headquarters for agricultural revitalization, as agriculture minister Yoshimasa Hayashi looks on.

Prime Minister Shinzo Abe said the same day the current top-down structure of JA-Zenchu having legal authority to supervise management of primary agricultural co-operatives will be scrapped. The issue is likely to become a major focus of debate to be held in autumn through the year-end, as the ruling Liberal Democratic Party lawmakers who are close to the agricultural industry strongly oppose to the government’s plan.

The 10-year plan, which was compiled last year, was revised in line with the government’s new growth strategy and the action plan on regulatory reform. Based on this plan, the Ministry of Agriculture, Forestry and Fisheries will compile its draft budget for the next fiscal year and start discussions to issue the revised basic plan on agriculture and rural villages in March.

In addition to the target of doubling farmers’ income in the coming 10 years, the government included in the revitalization plan measures to reform the JA group, agricultural production corporations and the agricultural committees.

Regarding the JA group, the plan says JA-Zenchu’s legalized all-encompassing leadership should be shifted to “an autonomous new system,” and the focus is whether the new system will also be authorized by law. The government and the ruling party will discuss details, taking into consideration the JA group’s self-reform plan, and are expected to submit related bills to the ordinary Diet session next year.

In the government’s headquarters for the revitalization of agricultural industry and regions, Abe who heads the headquarters stressed his willingness to realize agricultural reform, saying that it will not end up merely as a reorganization of the group. Asked whether JA-Zenchu’s legal authority will be lost under the new system, agriculture minister Yoshimasa Hayashi told reporters the same day that the plan does not mention that point, adding that the issue is left for future discussions.

JA-Zenchu head pledges to set up a third-party panel to discuss reform

Akira Banzai, head of the Central Union of Agricultural Co-operatives (JA-Zenchu), said the organization will come up with a self-reform plan based on a thorough debate and materialize it as soon as possible.

In a statement issued on Tuesday, June 24, Banzai stressed the JA group will conduct self-reform with the aim of increasing farmers’ income and revitalizing local communities. The JA group will review its structure and services in order to meet the needs of its members, who are calling on JAs to strengthen agricultural business-related services directly linking to agricultural income while offering comprehensive package of services.

JA-Zenchu also set up a section in charge of compiling a self-reform plan the same day. To begin discussions, the group will establish a panel made up of farmers and JA leaders, as well as a third-party committee having business leaders, journalists and researchers as members.

(June 25, 2014)

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