Struggle over Agricultural Reform

As the government of Japan proceeds to ratification of new framework for free trade, or Trans-Pacific Partnership, reform in agriculture for reinforcing productive system in Japan looms up. Under the leadership of Prime Minister, Shinzo Abe, Liberal Democratic Party focuses on reforming JA Group, a huge network of farmers’ cooperatives. While JA has traditionally been one of the most powerful supporters for LDP in every election, the reform may change their moderate relationship.

TPP promotes high-level liberation of trade in Asia-Pacific region, which may bring Japan competitive agricultural products from New Zealand or Australia. Farmers or ranchers in Japan have been negative in accepting the trade pact with deep concern on their business. To maintain their support, Abe administration and LDP are going to launch new policy package for competitive Japanese agriculture next month.

One major policy is reforming National Federation of Agricultural Cooperative Associations, or Zen-no, one of the major organizations in JA Group. Zen-no purchases necessary materials, wholesales them to each farmer and mediate between farmers and buyers for selling agricultural products. The distribution system coordinated by Zen-no is so complicated that cost for the products has been too high to be competitive in new free trade framework.

LDP discusses lowering price of the materials necessary for production, such as machines or fertilizer. To make that possible, Zen-no has to integrate brands of fertilizer and reorganize factories. Agricultural cooperatives need to reduce commission for mediation of agricultural products to simplify the distribution system. Deregulation would generate distribution system, seen namely in fresh milk products, which is highly monopolized by agricultural cooperatives.

The leader of the issue is Chairman of Agriculture Section in LDP Policy Research Council, Shinjiro Koizumi. Koizumi has been having meetings with farmers and ranchers to persuade them on the necessity for reform to achieve sustainable agriculture. With support from the reformers in agriculture community, including the leaders in Ministry of Agriculture, Forestry and Fisheries or Central Union of Agricultural Cooperatives, or JA Zenchu, Koizumi promotes reform of JA Group.

Protest from farmers is consistent, anyway. As pressure organization of agricultural cooperatives in six districts in Tohoku region rejected supporting LDP candidates in election of House of Councillors this summer, LDP lost five seats out of those six. Cooperatives with a great number of rice farmers in Niigata did not render great power to the candidate of leading parties in the gubernatorial election, causing victory of the opposite candidate upholding anti-nuclear power generation policy. The protest of farmers may affect Abe’s decision for dissolution of House of Representatives, partly expected in early next year.