Japan Dairy Industry Overview

Japan stands as a key contributor in the global dairy market, known for its cutting-edge dairy processing techniques and a notable rate of consumption, particularly of ultra-high-temperature (UHT) milk. The sector is enjoying a remarkable compound annual growth rate (CAGR) of 7%, reflecting its dynamic nature and the rising demand for sophisticated dairy products.

Key Data

Number of Dairy Cattle: Approximately 1.63 million head (2023 estimate)

Milk Production Volume: About 7.5 million metric tons per year

Milk Processing Volume: Over 6.5 million metric tons per year

Cheese Production Volume: Around 58,000 metric tons annually

Milk Powder and Whey Production Volume: Approximately 200,000 metric tons per year

Key Enterprises

The Japanese dairy sector is supported by several significant players, including:

• Fonterra Japan: Actively expanding to meet the demand for premium dairy products.
• Yili: Known for maintaining high international quality standards, focusing on health and nutrition.

Dairy Plants

• Meiji Dairies Corporation
• Morinaga Milk Industry Co., Ltd.
• Snow Brand Milk Products Co., Ltd.

Dairy Farms

• Ariake Farm
• Northern Farm
• Ouchi Farm

Export and Import of Dairy Products

Japan exports around 30,000 metric tons of quality dairy products annually. In contrast, it imports over 300,000 metric tons to fulfill domestic requirements, indicative of a large gap between consumption and local production capabilities.

Recent Events

• Obihiro IFCN Dairy Conference: The 25th edition emphasized Japan's pivotal role in the international dairy market.
• Fonterra Expansion: Increased efforts in catering to premium dairy product markets within Japan.
• Yili's International Standards: Continued emphasis on delivering top-standard quality.
• Diplomatic Engagement: Mr. Takashi Ariyoshi participated in a key dairy event.
• Beston Global Food Company Ltd: Addressed rumors about acquisitions by Megmilk Snow Brand Co Ltd.
• Tatua's Investment: Announced an $85 million factory expansion with an eye on Japan as a vital market.
• Megmilk Snow Brands Co. and Beston's Deal: Acquisition talks did not advance, reshaping strategic directions.
• Fonterra's Business Delegation: Reinforced Japan as crucial for premium ingredient markets.
• Softer Demand: A decline in the demand for high-protein whey products observed.
• Danone: Experienced robust demand for yogurt among Japanese consumers.

The number of dairy farmers in Japan has decreased to below 10,000, a signal of ongoing industry challenges. Japan also leads in global initiatives aimed at cleaner and greener food production. Notably, the Japanese brand Yakult Honsha has realized outstanding success with its product, Yakult 1000.

A long-standing dairy farm operator from Chiba Prefecture is preparing for international expansion, further signifying Japan's influence in the global dairy market.

Modified: 2025/02/05

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