Japan Agricultural Cooperatives (農業協同組合, Nōgyō Kyōdō Kumiai), also known as Nōkyō (農協) or JA Group, refers to the national group of 694 regional co-ops in Japan that supply members with input for production, undertake packaging, transportation, and marketing of agricultural products, and provide financial services.
With nearly unlimited funds made up of member deposits, JA Group's endeavors aim to promote development in the regions where they are active.
JA's business model was hinged upon its monopoly or quasi-monopoly in both ends of the supply chain (agricultural inputs such as fertilizer, pesticides, machinery, and end-products such as rice, wheat, and barley) and its political clout over Japan's Diet members to influence the set food prices.
As a political party that has kept its majority in the Lower House for almost entirely since its formation in 1955, LDP has long protected JA by keeping MAFF and other government agencies in check.
The fact that Japan's farming population is in decline poses the greatest threat to JA's continued dominance in the agricultural market and the group's very existence.
Prime Minister Shinzō Abe's regulatory reform committee made an official proposal in November 2014 to undertake several reforms including removing power from JA Zenchu to audit and supervise local JA co-ops and convert Zen-Noh into a joint stock corporation.
[4] In July 2015, Akira Banzai, former president of Zenchu, was replaced by pro-reform Choe Okuno after an election that was widely believed to favor Toru Nakaya, a conservative who had support from many high-ranked JA officials.
[5] In October 2015, Japan concluded its TPP negotiations with 11 other member countries and made an important move towards reducing trade barriers to foreign agricultural products.