As part of an effort to reinvigorate Japan's struggling agriculture sector, the government of Prime Minister Shinzo Abe is waging a war against what is largely seen as a hotbed of vested interests that has long dominated the industry.

Based on proposals compiled by the ruling Liberal Democratic Party and a government body on regulatory reforms, Abe on Tuesday approved a watered-down plan to shake up the National Federation of Agricultural Cooperative Associations, better known as Zen-Noh, a juggernaut that boasts ¥6 trillion in annual operating revenues.

While the original reform proposal by the Council for Regulatory Reform set a one-year deadline for Zen-Noh's withdrawal from its procurement and sales operations, Tuesday's version did not specify such a time frame, merely urging the group to make "voluntary" efforts toward the goal.