Theories, History and Practices- Japanese Cooperatives

1. UP SOLAIR Report to the
International Conference on Cooperatives 2012

2. 1868 - Japan under the
Meiji period began to
industrialize and
introduce major
innovations and
technologies from the
west
Emperor Meiji
succeeded the
Tokugawa Shogunate at
age 14.

3. 1879 ushered the first
cooperative in
Japan which was
modelled after the
practical
experiences of the
1844 Rochdale
Society of Equitable
Pioneers in
Toadlane, England.

4.  The initial organizers of cooperatives
were intellectuals and upper class
people.
 In 1894, around 15 consumers coops
were established among industrial
areas, residential areas, universities,
shops, eateries and other workplaces.

5.  The government encouraged
agricultural coops and granting them
subsidies.
 The cooperative movement became
part of a larger social movement of
citizens and workers.

6.  Consumer coops were disbanded by
the government due to perceived left
leaning influences.
 Under the National Mobilization Act,
the Japanese people were mobilized
to feed the war machine or enter the
army.

7.  After World War II, Japan was
demilitarized and democratized
using the western model as a
way of post-war reformation.
 General Douglas MacArthur* encouraged
the organization of coops and trade
unions, believing that this will help prevent
another war with Japan.
*Supreme Commander for the Allied Powers in Japan (SCAP) in 1945-1948,
http://en.wikipedia.org/wiki/Douglas_MacArthur

8. ◦ Land reform and cooperativization- From1947-
1949, 38% of Japan's cultivated land was
purchased from the landlords and resold to the
tiller-farmers. By 1950, 89% of all agricultural land
was owner-operated and only 11% was tenant-
operated.
◦ Trade Unionism- MacArthur encouraged trade
unionism and by 1947, 48% of the non-agricultural
workforce was unionized.

9.  Cooperatives and worker’s movements
began to grow again in the country because
of massive inflation, food shortage and high
prices.
 Consumer coops became
distribution systems during
the post war relief efforts.

10. •A Christian socialist, Kagawa studied at
Kobe School of Divinity and did mission work
at age 21 in the slums of Kobe.
•In 1914, he studied at the Princeton
University and Princeton School of Divinity.
Toyohiko Kagawa,
McArthur’s
Coop Advisor

11.  Kagawa was a former executive at Farmland-
then the largest agricultural coop in the U.S. He
advocated for an agricultural cooperative system
that replicated the success in the U.S.
 He took coop leaders of Japan to the
U.S. to learn lessons from the Berkeley
and Palo Alto Coops. These young men
rose to the top of the Japanese
consumer movement.

12.  In 1947, about 3 million people became coop
members nationwide. In 1948, the law for
consumers' cooperative union was enacted
and in 1951, Japan Consumers' Cooperative
Union was established.
 Cooperatives are a mainstay in the daily lives
of the Japanese. They are present in
agriculture, fisheries and forestry. Every
rural village has a coop store and access to
coop financing.

13. TYPES:
 Consumers' Co-op
 Agriculture Co-op
 Fisheries' Co-op
 Forest Owners' Co-op
 Insurance Co-op
 Workers' Co-op
 Co-op Bank
 Industrial Co-op

14.  Cooperatives are a
major presence in
Japan’s retailing
business and
distribution.
 Consumer
cooperatives are the
third largest overall
retailer in Japan.

15.  As of March 2007, these cooperatives had a total
turnover of $22 Billion.
 Retail coops employ over 26,000 people with
about 17 million members (2007).
 There are close to 24 million members of
consumer coops in Japan.
 About 30% of Japanese families are members of
consumer cooperatives.

16. Asada Katsumi
President, JCCU

17.  One of the largest
cooperatives in Japan
is Co-op Kobe.
 It operates approximately
170 retail locations and
home delivery services for
some 1.65 Million
members.
 About 30% of Co-op Kobe
members are elderly
people over the age of 65
*Since 1978, Co-op Kobe promoted "My
Bag" campaign to encourage shoppers to
bring their own bags. In 1995 it started
charging 4 U.S. cents for each plastic bag.
Furthermore, replacing the current charge
collecting method that asks customers who
receive plastic bags to voluntarily put the
charge in a box at the shop.

18.  Consumer coops are financed and operated by its
members.
 Coop members’ opinions and requests are
considered in product development, store
operations and other activities.

19.  In order to maintain consumer and member's
confidence in Coop products, 85% of the regional
Coops have codes of conduct for their compliance
management.
 Some have third party evaluation reports on Coop's
basic values on democratic management, fairness,
food and commodity safety, social activities on
environment, welfare and peace, and education of
members and staff.
 JCCU has a compliance counter to deal with problems
on compliance and questions arising from daily
operations. In 2007, the counter was consulted with 20
cases.

20. There are approximately six hundred and nineteen
JCCU member coops, including regional coops,
shokuiki (institutional) co-ops, school coops,
university coops, medical coops and insurance
(mutual aid) coops.

21. Retailing faces
serious
competition and
coops are
strengthening
their efforts in the
home delivery
service where
competition is low
to offset the lower
returns from the
store business.

22.  concerned about
food additives
 processed meat
with no color fixing
agent, binder, and
preservation agent
 price-cuts on color
TV nation-wide

23. JAPANESE CONSUMERS‘
COOPERATIVE UNION
CO-OP PLAZA 3-29-8,
SHIBUYA, SHIBUYA-KU,
TOKYO, 150-8913

24.  A Brief Chronicle of the Modern Japanese Consumer Cooperative Movement by
Toshifumi Yamashita, June 2012, viewed- Sept. 15, 2012
 Co-op, http://jccu.coop/eng/aboutus/index.php
 Douglas McArthur, Wikipedia
 Food Coops: Japan’s Cooperative Movement
http://martinjapan.blogspot.com/2010/02/food-co-op-japans-cooperative-
movement.html (Accessed September 16, 2012)
 http://en.wikipedia.org/wiki/Toyohiko_Kagawa (accessed September 14, 2012
 Japan: Land of Cooperatives, David Thompson, March-April 2008
http://www.cooperativegrocer.coop/articles/2008-04-22/japan-land-cooperatives
Accessed September 14, 2012
Report prepared by:
Prof. Jorge V. Sibal
Assisted by Ms. Rosa Mercado
University of the Philippines
Diliman, Quezon City