Integration of Japan Agricultural Co-operatives (Nokyo) in Miyagi Prefecture

Abstract

The Japan Agricultural (JA) co-operatives, or ”Nokyo”, was established as a major agricultural organization to democratize Japanese farmers after World War II. Historically, it has played a major role in Japanese agricultural community. However, the organization is now facing a new competitive environment where international pressure highly influences most JA activities (e.g., credit. insurance. and rice distribution). Furthermore, international pressure, in particular due to recent rice liberalization in the Japanese market, forces JA into restructuring its entire organization. This study empirically examines whether (he JA's restructuring plan procedures cost-reducing benefits, focusing upon the future plan of JA-Miyagi Prefecture. The restructuring plan of JA-Miyagi includes the integration of its small offices into 11 regional management units. Such a major policy issue in Japanese agriculture is discussed in this research.