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Chapter 306: Monopolistic Agricultural Cooperative


A few people sat down and chatted idly.

Chen Yiyang learned that the president of Meihe grew up in the United States, and later returned to Japan to take over the family business after his father's accident.

Toyota Osamu accompanied the chat briefly, and once Chen Yiyang and Meihe got acquainted, he left, leaving the space for Chen Yiyang and Meihe to discuss business.

"Osamu is someone who's lived abroad for a long time, yet he's completely like a traditional Japanese person."

Toyota Osamu had just left when Meihe started candidly complaining about him.

"You mean he talks in circles?" Chen Yiyang immediately caught on to what the president of Meihe was implying.

"Hahaha, yes, a real typical Japanese person." The president of Meihe, in her thirties, had maintained herself very well since she was wealthy from a young age.

Initially, Chen Yiyang thought there might be something special between Meihe and Toyota Osamu, so he didn't dare to look at her too closely.

But hearing her speak like that about Toyota Osamu, he took a good look at Meihe.

She did look quite good, not inferior to Ye Yue, but with a bit more maturity.

"Let's not beat around the bush, I'll get straight to why I wanted to meet you." Meihe didn't care about Chen Yiyang's gaze.

In the United States, she had long gotten used to people looking at her like that.

But after returning to Japan, she faced men who were either subordinates or elders, so no one looked at her that way.

But Meihe had entrusted Toyota Osamu to introduce Chen Yiyang to her today clearly not for fun, but to talk business.

"Go ahead." Chen Yiyang signaled for Meihe to speak her mind.

He also preferred such straightforward conversations, less hassle.

"My company deals in high-end aquatic products, primarily Japanese eel, Japanese fugu, and Japanese watermelon."

"Hmm." Chen Yiyang nodded, indicating for Meihe to continue.

"I heard from Toyota Osamu that you have significant power and connections in Huaxia, is that right?"

"Yes, that's right." Chen Yiyang thought Meihe intended to sell these high-end Japanese products domestically, so he added, "But I've never been involved in the aquatic business before, and there's now heavy scrutiny on Japanese aquatic imports, you know, because of that incident."

"Before I returned to Japan, I hadn't been involved in it either." Meihe shrugged and revealed an industry secret to Chen Yiyang.

"It was only after I returned to Japan and took over the family business that I found out the fugu and eel we sold were actually from Huaxia."

"Wait, didn't you just say your company deals in Japanese fugu and eel?"

"Exactly." Meihe said, "We import from Huaxia, package it in Japan for sale, so how is it not considered Japanese?

After she finished speaking, Meihe held up five fingers to Chen Yiyang.

"Our company has been selling Huaxia eel for at least five years, importing them from Huaxia and selling them as Japanese eels."

Chen Yiyang didn't expect there to be such industry secrets.

All the talk about how superior Japanese agricultural products are.

Turns out they are imported from Huaxia in the end?

"But isn't there a Japan Agricultural Association? Don't they regulate this?" Chen Yiyang asked a question.

The Japan Agricultural Association is not just an association but a monopoly.

Or more bluntly, a monopolistic force.

It is supported by countless hereditary legislators in agriculture, forestry, and fishing, and controlled by numerous local landlords and powerful figures.

From top to bottom, it has monopolized all agriculture, forestry, and fishing in Japan.

The reason for its existence is simple because Japan has yet to solve the issue of imperial influence over rural areas.

Apart from a few large cities, central government policies have little impact on remote rural areas.

Looking at the constituencies of Japan's hereditary legislators, you will find they are all in remote rural areas.

These hereditary legislators and local families form the agricultural association, monopolizing agricultural production.

Anyone who doesn't obey doesn't get seeds, fertilizers, or loans.

Because the Japan Agricultural Association holds real power.

It controls the pricing, market access, and financial insurance of agricultural products.

Additionally, all agricultural supplies, machinery, processing, storage, and other tangible assets within the association are managed by it.

Virtually any link in the agricultural supply chain you can think of, the association has a hand in, making it the biggest monopoly in Japanese agriculture.

The association's status and influence can be illustrated by a simple example.

Even the United States can't force the Japan Agricultural Association to open up the market.

In the U.S.-Japan free trade agreements, several rounds of U.S. pressure to have Japan lower agricultural taxes have not succeeded due to resistance from the Japan Agricultural Association.

This shows how dominant the association is.

Now Meihe is saying many products claimed to be domestically produced in Japan actually come from Huaxia.

Can the Japan Agricultural Association tolerate this?

"Haha, because the association tacitly allows it." Meihe took a sip from her wine glass.

"You wouldn't think the association was created to protect farmers' interests, would you? Even the powerful unions in the United States can't match incidents like members of the association damaging your land with herbicides because you didn't buy the high-priced farming tools they designated.

Under the association's efforts, the number of farmers in Japan has dropped from over ten million to less than a million, with the food self-sufficiency rate falling to less than half.

Do you know what the Japan Agricultural Association's nickname is?"

"What's the nickname?"

"The Kingdom of Horizontal Appropriation."

Chen Yiyang had only known that the agricultural association in Japan was powerful, not to this extent.

Moreover, the Japan Agricultural Association has now become a complete protective umbrella for big corporations, existing to help large enterprises like the High Mountain Aquatic Products under the Meihe family profit.

How can large corporations make money?

Naturally by reducing costs and increasing prices.

But since domestic agricultural costs in Japan can't be lowered, because of limited land and population and the association's influence, cultivation costs remain high.

In this scenario, importing agricultural products from abroad and disguising them as domestic products to sell at high prices naturally becomes normal.

As for why they disguise them as domestic products, it's because Japanese local products have long been a symbol of premium pricing due to the association's propaganda.

Many foreign tourists who come to Japan specifically request food made from local Japanese products.

So, with the association's tacit approval, many large aquatic companies began importing aquatic products from Huaxia, packaging them domestically, and selling them as local Japanese aquatic products.

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