[Provisional Translation]

Prime Minister Shinzo Abe held the fourth meeting of the Regulatory Reform Promotion Council at the Prime Minister’s Office.

At the meeting, there was discussion regarding regulatory review, the regulatory reform hotline, and reform of agricultural cooperatives and of the production and distribution system for milk and dairy products.

Based on the discussion, the Prime Minister said,

“Today, the Regulatory Reform Promotion Council set out guidelines regarding the reform of agricultural cooperatives and of the distribution system for raw milk.

In order to make agriculture a growing industry, it is important to have an environment in which farmers can run their businesses freely, and that the industry related to production materials and distribution processing as a whole increases its efficiency and is reorganized. ZEN-NOH (National Federation of Agricultural Cooperative Associations) plays a significant role in this connection. If ZEN-NOH changes, then related industries will also change significantly. The reform of ZEN-NOH is a touchstone of the structural reform of the agriculture industry. I ask that ZEN-NOH reforms its business method and organizational structure, with the intention of transforming it into an entirely new organization.

With regard to raw milk, we will suspend the system that subsidizes only dairy farmers shipping to designated organizations. We will shift to a fair business environment in which dairy farmers can freely choose their sales channels, allowing distribution costs to decrease and incomes to increase. Milk, butter, and cheese with distinguishing characteristics will be made accessible to consumers at nearby stores and will also be exported. I ask that you shape the future of Japan’s growing dairy industry, while taking into account reform of the work style of dairy reformers.

Based on the guidelines that were set out today, I ask that the Regulatory Reform Promotion Council quickly compile a proposal from the true standpoint of farmers and that agricultural cooperatives take seriously and implement the proposal.

I look forward to your continued proactive proposals to realize reforms, including fundamental reforms of old regulations that build upon the trend of new technological innovations and institutional reforms that will provide a range of choices to the people. I will implement the proposals received from you responsibly.”