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Japan Dairy Industry Overview

Japan is a major force in the global dairy landscape, renowned for its innovative dairy processing technologies and the widespread consumption of ultra-high-temperature (UHT) milk. The industry reflects a compound annual growth rate (CAGR) of 7%, demonstrating strong demand for premium dairy offerings.

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 prominent organizations such as:

• Fonterra Japan: Catering to the demand for premium dairy products.
• Yili: Known for high international quality standards, particularly in 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 high-quality dairy products annually. Conversely, it imports over 300,000 metric tons to fulfill domestic demand, highlighting a notable gap between consumption needs and local production capabilities.

Recent Events in Japan's Dairy Industry

• Obihiro IFCN Dairy Conference: The 25th edition emphasized Japan's pivotal role in the global dairy sector.
• Fonterra Expansion: Initiatives to strengthen presence in Japan's premium dairy markets.
• Yili's International Standards: Continued focus on delivering top-quality products.
• Diplomatic Engagement: Mr. Takashi Ariyoshi's participation in a significant dairy event.
• Beston Global Food Company Ltd: Addressed acquisition rumors by Megmilk Snow Brand Co Ltd.
• Tatua's Investment: Announced a factory expansion with Japan as a strategic focus.
• Megmilk Snow Brands Co. and Beston's Deal: Acquisition talks stalled, impacting strategic decisions.
• Fonterra's Business Delegation: Reinforced Japan's importance in premium ingredient markets.
• Softer Demand: Decline in demand for high-protein whey products observed.
• Danone: Achieved robust yogurt demand among Japanese consumers.

The number of dairy farmers in Japan has reduced to under 10,000 due to ongoing challenges in the sector. Japan participates in global initiatives for sustainable food production. Noteworthy is Yakult Honsha's success with products like Yakult 1000. A longstanding Chiba Prefecture dairy farm is exploring international markets, reinforcing Japan's global dairy influence. Additionally, Component B of the NPDD and JICA are actively collaborating. Meiji Co. is launching functional yogurt targeting skin health, and Morinaga Milk Industry Co.'s partnership with Indonesian PT ABC Kogen Dairy is expanding its presence into Singapore. Japan has also integrated Nestlé's Nescafé RTD cold coffee products into its market, confirming the established ready-to-drink coffee segment. Moreover, the Nikkei 225 experienced a sharp 8.8% drop, its steepest since October 2023, amidst broader economic contexts like the U.S. imposing a 24% tariff on Japan.

Modified: 2025/04/14