The price journey 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, tariff-rate quotas and food safety regulations are safeguarding Japanese suppliers’ market share. Domestic market prices for milk are kept high and stable through voluntary, but formal production quotas to prevent falling prices caused by an oversupply. However, recently, the production and consequently retail price of milk has been on the rise, affected by the weakening yen and Japan’s reliance on imported feed to keep the livestock business running. Coupled with the population decline and shrinking number of farming households, imports will become a necessity to cover the rising demand for ingredients like cheese and provide dairy products at affordable prices in Japan.Cheese boom in Japanese food
The Japanese government has been promoting milk and its derivative products in food education, encouraging the evolution of a new form of traditional diet (washoku) with various 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. Japanese cheese manufacturing rides the trend with an assortment of natural and processed cheeses catering to domestic consumer preferences. Artisan cheeses integrating Japanese ingredients like sake are internationally acclaimed, whereas domestic events drive innovation among competitors.Amid the popularity of dairy products in Japan, manufacturers are facing the challenges of future-proofing the industry. Sustainability and food security are concerns addressed by their expansion into the plant-based food market. Soy-based cheese and cream substitutes are emerging segments, but the popularity of dairy-based products remains high.
