Japan’s four major domestic dairy companies have cut back on drinking milk and cream production to make more butter in a bid to tackle a national shortage ahead of the Christmas and New Year holiday period.
Megmilk Snow Brand Co., Meiji Co., Morinaga Milk Industry Co. and Yotsuba Milk Products Co. have responded to a plan issued by Japan’s ministry of agriculture, forestry and fisheries the country’s dairy sector to increase household butter production by 30% in the first half of December.
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The initiative was prompted by emergency butter imports of 7,000 tonnes in March and a further 3,000 tonnes in September.
“Stocks for butter … will mark a 22.9% year-on-year decline to total 17,900 tonnes – equivalent to three months’ market demand – by the end of fiscal 2014 [May 2015],” predicted the Japan Dairy Association.
“Fresh milk production for fiscal 2014 is predicted to drop 1.5% from the previous year to 7.354 million tonnes, as demand for domestically-produced milk is expected to stay flat, which means there would be a supply shortage.”
The shortfalls are attributable to falling numbers of Japanese dairy farmers as they age, as well as a surge in the price of animal feed. Last summer’s abnormally hot weather also affected raw milk production.
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By GlobalDataAlthough lowering tariffs for imported butter would take pressure from the food processing industry, observers are not expecting the Japanese government to take such a step, which would weaken its position in trade negotiations, such as for the Trans-Pacific Partnership (TPP).
