Japan’s Dairy Sector Faces Crisis as Farmer Numbers Drop Below 10,000

Mounting Pressures on Dairy Farmers

The decline in farmer numbers has accelerated since 2022, driven by the weakening yen and soaring crude oil prices, which have significantly increased production costs. In a recent survey conducted by the council, 58.9% of the 236 respondents reported operating at a deficit, while nearly half admitted they had considered leaving the industry altogether.

Financial struggles were widely reported, with 83.1% of dairy farmers describing their economic situation as “bad.” Among the key challenges cited were the weak yen (91.8%), high oil prices (68.4%), and the impact of the war in Ukraine (67.9%), which have collectively driven up the costs of feed, equipment, and utilities. Compounding these difficulties, many farmers noted declining revenues from milk and livestock sales.

Consumer Support vs. Lack of Awareness

While public sentiment toward domestic dairy remains strong, awareness of the industry’s challenges is low. A November survey of milk consumers found that 98% expressed a desire to continue drinking domestically produced fresh milk. However, two-thirds were unaware of the declining number of dairy farmers.

An Uncertain Future

Japan’s dairy sector is at a critical juncture. With production costs rising and farmer numbers dwindling, the industry faces the dual challenge of sustaining domestic milk production and raising public awareness about its struggles. Without significant intervention, this downward trend could pose serious risks to Japan’s food security and rural economies.

For now, the Japan Dairy Council and industry stakeholders are working to address these challenges, but the path forward remains uncertain as global economic pressures continue to weigh heavily on the sector.