Yoshiaki Masuda, professor at the University of Shiga Prefecture, and Yoshikazu Taniguchi, professor at Tokyo University of Agriculture, expressed their opinions regarding the proposals made on November 7 by an agricultural working group of the Council for Regulatory Reform.
Yoshikazu Taniguchi
[By Yoshikazu Taniguchi, professor at Tokyo University of Agriculture]
Council’s true goal denial of JA
The true goal of the discussion on agricultural reform by the Council for Regulatory Reform is, as I interpret it, denial of agricultural cooperatives (JAs). What slips in and out of the proposal is the ideology of market fundamentalism that calls for undermining and segmentalizing the agricultural coops to help private companies to buy their businesses.
For example, the suggestion on purchasing business of the National Federation of Agricultural Cooperative Associations (ZEN-NOH) is illogical. By combining small orders of individual farmers, ZEN-NOH can have strong power to bargain for lower prices. This way, its volume of business and commission income increase but there is nothing wrong with this. However, the panel says that ZEN-NOH should shrink its purchasing team to a new small but highly capable organization that offers only information and knowhow to member farmers and stop directly handling purchasing contracts. The council understands little about the business environment surrounding the agricultural coops.
As for agricultural production materials, the Liberal Democratic Party’s project team on the agriculture, forestry and fisheries industry has been discussing ways to restructure material suppliers, while the discussion regarding the role of ZEN-NOH was part of the entire talk. But the panel insists that ZEN-NOH should make the organization shift within a year, promoting transfer and sales of its functions to material manufacturers. It’s irrational to pin the responsibility only on ZEN-NOH without completing discussions on the reform of entire structure of the industry.
The council also made comments regarding a restriction on the use of the JA’s financial service by non-farmer members, but what it’s actually asking for is to stop accepting non-farmer members.
We must reveal the true goals of the panel and say what we have to say.
Yoshiaki Masuda
[By Yoshiaki Masuda, professor at the University of Shiga Prefecture]
Government’s advisory panel making radical proposal, overstepping authority
The suggestions made by the Council for Regulatory Reform are all about governance and management that should be judged by corporations on their initiatives. While a joint-stock company is owned by its shareholders, cooperative associations are owned by their members who have stakes and management rights in the organizations. But the panel is now acting as if it owns the cooperatives.
Wasn’t the primary purpose of the advisory panel to reform “rules and regulations” which are designed to promote restructuring of the economic society? When was the council given such a strong authority to act like a marvelous management consultant?
According to the proposal, the National Federation of Agricultural Cooperative Associations (ZEN-NOH) should buy all agricultural products from farmers to sell in the market. But considering that fruits and vegetables spoil quickly, it hardly makes business sense if ZEN-NOH has to take all the responsibilities to sell out these fresh products. The plan is unfeasible and never benefits farmers.
It also says that the number of agricultural cooperatives (JAs) providing financial business should be reduced by half in three years. In my opinion, this is the most important part of the proposal for the panel. Separating financial business from JA’s entire framework may result in a lack of financial support for JA’s function as an agricultural management advisor. Then farmers may become unable to receive enough advices on their agricultural management.
The council is making radical proposal under the influence of the Abe administration, trying to show their presence. It’s overstepping its authority and such reckless attempt should be thoroughly criticized.