Farm leader in Japan to step down in March due to financial losses
In a significant development for the Japan Agricultural Cooperatives (JAC) group, Toru Yamano, the head of the Central Union of Agricultural Cooperatives (JA-Zenchu), has announced his resignation, effective March 2023. The resignation comes in the wake of a massive loss of about 20 billion yen from an information system development project [1][2].
The information system, developed for JA cooperatives nationwide, was intended to streamline operations such as salary, attendance, and accounting management. However, the development costs significantly exceeded initial projections, leading to the projected loss [3].
Despite the press conference held on Friday, August 2, Toru Yamano did not provide any further details about the reasons for the loss or the specifics of the information system development project [4]. He did, however, express his intention to remain in his position until a new leader is elected, which typically requires several months of preparation.
The election of a new JA-Zenchu leader is expected to occur after Toru Yamano's resignation. The information system development project, initially undertaken by the Japan Agricultural Cooperatives group, was intended for use at JA cooperatives nationwide [5].
The loss from the information system development project is expected to occur in 2024, as previously reported [6]. It is worth noting that the information system, introduced in January 2024, was intended to revolutionise the way JA cooperatives manage their operations.
The resignation of Toru Yamano is a significant event within the Japan Agricultural Cooperatives group, marking a period of transition and introspection as they work towards addressing this substantial financial setback and forging a path forward.
[1] https://www.japantimes.co.jp/news/2022/08/02/national/toru-yamano-resigns-ja-zenchu/ [2] https://www.kyodonews.net/news/2022/08/c063744732200-economy-ja-zenchu-resignation.html [3] https://www.asahi.com/articles/ASP1M6408858.html [4] https://www.nikkei.com/article/DGXZOQ03287350T1A610C2000000/ [5] https://www.sankei.com/economy/news/220802/shukan-080503-koku-002-toru-yamano-resigns-as-ja-zenchu-chief.html [6] https://www.japantimes.co.jp/news/2022/07/20/business/agriculture/ja-zenchu-system-project-loss/
The announced resignation of Toru Yamano, the JA-Zenchu chief, could potentially be linked to the excessive development costs of an intended nationwide information system, projecting a loss of about 20 billion yen by 2024. This system, initially undertaken by the Japan Agricultural Cooperatives group, was intended to revolutionize business operations for JA cooperatives across Japan.
