But as part of the agricultural sector, dairy farmers are facing the same demographic challenges as other farming businesses in Japan. Amid a greying society and the struggle to find a successor to take over the business, herd sizes are further limited by the lack of grazing land. Additionally, milk production is strictly regulated by quotas set by prefectural associations and the Ministry of Agriculture, Fisheries and Forestry. The resulting limits on dairy supplies impact the Japanese dairy market and highlight the significance of trade agreements for agricultural products.
Despite government measures impacting consumer prices, the dairy market has been gaining attention as the importance of dairy is promoted by manufacturers and the Japanese government. The standard range of milk products is complemented by healthy innovations that are targeting greying consumers. As such, dairy represented the main segment of “foods for specified health uses” (FOSHU) in the health food market. Products containing probiotic bacteria, fortified nutrients, and fermented ingredients are considered a formula to a healthy diet.
But new challenges are arising in Japan. The plant-based food market has been gaining traction amid growing awareness of healthy lifestyles, environmental issues, and meatless food trends. Soy milk and other soy-based products were consumed in the past even before the formation of a defined plant-based food market. Additionally, the assortment of lactose-free products is only developing in Japan. With product choices limited for affected consumers and advancing food technology bringing forth new dairy-free alternatives at lower price points, the dairy market is confronted with the challenge of balancing consumption trends, domestic farmers’ interests, and changing ties in the surrounding environment.
The price of milk to the consumer
The Japanese dairy industry is heavily protected by governmental measures to secure the positions of domestic farmers. While bilateral trade agreements for processed dairy imports signified the gradual internationalization of a closed market, high tariffs, strict tariff-rate quotas, and food safety regulations are safeguarding Japanese suppliers’ market share. Domestic market prices for milk and, accordingly, dairy products are kept high and stable through voluntary, but formal production quotas to prevent falling prices caused by an oversupply.Despite government measures impacting consumer prices, the dairy market has been gaining attention as the importance of dairy is promoted by manufacturers and the Japanese government. The standard range of milk products is complemented by healthy innovations that are targeting greying consumers. As such, dairy represented the main segment of “foods for specified health uses” (FOSHU) in the health food market. Products containing probiotic bacteria, fortified nutrients, and fermented ingredients are considered a formula to a healthy diet.
Integrating dairy into washoku
Even though dairy was neglected in the traditional diet for a long time, the Japanese government has been emphasizing the importance of milk and its derivative products in food education. The evolution of a new form of washoku resulted in a variety of fusion dishes. While still not common in a traditional setting, food service businesses have contributed to the popularity of cheese and cream through toppings, fillings, and flavorings added to dishes like curry, ramen, and pastries. Milk has become a daily companion during breakfast, with the consumption promoted even further at school during lunch.But new challenges are arising in Japan. The plant-based food market has been gaining traction amid growing awareness of healthy lifestyles, environmental issues, and meatless food trends. Soy milk and other soy-based products were consumed in the past even before the formation of a defined plant-based food market. Additionally, the assortment of lactose-free products is only developing in Japan. With product choices limited for affected consumers and advancing food technology bringing forth new dairy-free alternatives at lower price points, the dairy market is confronted with the challenge of balancing consumption trends, domestic farmers’ interests, and changing ties in the surrounding environment.
