Study of laws of farmers' cooperative of China and the possibility of farmers' cooperative development in China: Case study of the farmers' cooperatives in Jilin and Zhejiang province
2009
Shirai, M., Japan International Research Center for Agricultural Sciences, Tsukuba, Ibaraki
This paper presents an examination of farmers' cooperatives' present conditions, the direction of their future development, and their legislative deliberation background, with evaluation of the law on farmers' cooperatives approved in 2006. Originally, cooperatives had no legal basis. However, after the law was enacted in 2006, farmers' cooperatives became formally structured in terms of management and organization. Although that is expected to continue for cooperatives, an important criticism is that cooperatives cannot properly process financial affairs. Moreover, cooperatives remain in their original state in terms of organization of small farmers and decreased agricultural production costs through purchasing agricultural supplies. Further developments such as those of standardization of agricultural production and effective financial functions were identified based on local investigation results of farmers' cooperatives in Jilin and Zhejiang provinces. Cooperatives can develop further: Cooperatives indicate alternative directions of agricultural integration policy, perhaps forming a basis for rural autonomy. Moreover, they offer development possibilities in grain production, cooperative unions at individual cooperatives, and agricultural financial services, which should be studied further.
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