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JA Cooperatives in Ehime Prefecture

  (1)How Things Presently Stand in terms of Promotion of JA Consolidation
   Multi-purpose JAs numbered 62 as of Apri1 1,1995,which later became 12 as of April 1,2009.
   The prefecture’s wide-area Amalgamation project of JAs(10-JA project) had calmed down
   following the last amalgamation completed in 1999.During the decade after that,the functional
   system of the wide-area amalgamated JAs had been strengthened.

  (2)Business Management Situation of the General JA Cooperatives
   The collapse of the bubble economy and prolonged deflation,combined with such currents as
   globalizing of the financial market,internationalization of agriculture,and the overrunning of the
   market fundamentalism,caused competition between JA and other forms of businesses to intensify
   as well as the exhaustion of the rural and the local economy.Added to these circumstances was the
   prolonged downward tendency in the amount of business and net profits for JA,caused by the decline
   in number of regular members who have been formerly making up the core membership.

   (i)Total profit for fisca1 2011 in the major businesses excluding marketing dropped by ¥405 million
    to 98.8% of the figure for fiscal 2010. While efforts were made to reduce business management
    costs and personnel costs in particular,these were not able to cover the fall,and the overall business
    profit fell to ¥1,226 million,or89.0% of the fiscal 2010 profit.

   (ii)Although extraordinary profit increased by ¥375 million,extraordinary losses,including impairment
    loss,increased by ¥670 million,so overall pre-tax profit for the period dropped ¥352 million to
    ¥1,967 million,or 84.8% of the figure for the previous year,indicating that the situation facing
    agriculture is still quite severe.

   Further efflciency of management,strengthening of financial bases,and review of the profit structure
   of the businesses are indispensable in the future.The JA Group members need to unite their efforts
   for establishment of a sound management system such as expansion of business and organizational
   bases,in order to put the resolutions adopted at the 35th Ehime Prefectural Congress into steady
   practice.

  (3)Trends in JA Membership
   The membership of JA Group Ehime at the end of fiscal 2011 was 191,000, representing a recovery
   in membership strength to the level of fisca1 1998.However,while the number of regular members
   continued its annual decline,associate membership increased, and at the end of fiscal 2011, associate
   members outnumbered regular members for the first time (regular members―95,682(49.997%);
   associate members―95,693(50.003%)).

  (4)Business Trends
   A growing number of JAs in the prefecture are promoting nursing care and welfare business,funeral
   service(10 JAs(including subsidiaries)),and direct sales business in addition to their core businesses
   (credit,mutual insurance,supply,marketing and guidance) to meet the needs in farm management
   and better living of JA members and local residents.

 Ehime Prefectural Union of Agricultural Cooperatives
  2-3, Minamihoribatacho, Matsuyama-City, Ehime 790-8555, Japan
   Tel:+81 - 89 - 948 - 5606    Fax:+81 - 89 - 946 - 0650
Copyright(c) 2013 Ehime Prefectural Union of Agricultural Cooperatives All rigths reserved.