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Report No.220901
Vol.22
No. 9
May 2005


NEWS

- Domestic -

JA Zenchu Decided Guidelines for Reform of JAs

JA Zenchu (the Central Union of Agricultural Cooperatives), at its regular annual general meeting on March 4, decided on the basic policies to be applied by prefecture level JA Unions when they give guidance to primary level JA cooperatives. In their concerted guidance activities, JA Zenchu and prefectural JA Unions will share goals of reform and concrete measures to achieve them in respect of three tasks: (i) the upbringing of "core farmers" in paddy field farming, (ii) the reform of economic business of marketing and supplying, and (iii) the improving the management of JA organizations. They aim at making steadfast implementation of reform in an all-out effort of the JA Group.

The basic policies of guidance were to be decided by JA Zenchu at its general meeting according to provisions of the Law for Agricultural Cooperatives (as amended in June, 2004) which is due to take effect in April, 2005. The basic guidance policies set out directions and concrete measures of guidance on the organization, business and management of primary level JAs as well as of their federations. JA Unions are required to engage in guidance activities along the line of basic policies, which they will in concerted JA Zenchu and JA Unions approach. 

JA Zenchu decided to set out three pillar basic policies based on the resolutions adopted by 23rd national convention of JA cooperatives held in October, 2003. The three pillar basic policies were set out with a view to fixing focused priorities for reform of JA organizations, which became necessary in the light of changes in the circumstances both inside and outside the JAGroup. The goals of reform and concrete measures to achieve them had been decided within the JA Group, and the basic policies of guidance decided at this time reflect them in an explicit manner.

In regard to the upbringing of "core farmers", the basic guidance policies set out to identify who the "core farmers" are and will be, to promote concentration of farmland in the hands of "core farmers", to promote the organization of community farming, and to render assistance to agricultural corporations. A system will be introduced to promote the upbringing of "core farmers" at each levels of the country, the prefecture and the municipality, based on JAs' working ties with related governmental and other bodies to be made stronger.

In regard to the reform of JAs' economic business of marketing and supplying, the main issues are to achieve income and expenditure balance of the business and to enhance member satisfaction with the JAs' business. A business improvement plan will be formulated at prefecture level to reduce deficit in this business, and the economic business reform headquarters established at both the national and prefecture levels will render assistance to individual JAs running in red in this business. The basic guidance policy also incorporates reduction in the supply prices of farm input items and the strengthening of agricultural marketing/farm guidance activities.

With respect to improving the management of JAs, the basic guidance policies provide for restructuring of branches and stronger guidance on JAs of poor business performance, and for promotion of amalgamation of primary level JAs. Based on a separate guideline decided in July, 2004, branches of primary JAs will be merged or abolished if their performance fall below the pre-set criteria. Guidance will be given to primary JAs running in red to improve their performance and amalgamation will be promoted with a focus on un-amalgamated small size primary JAs.

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