Files
Abstract
We explore and investigate Japanese dairy markets. We first provide an overview of
consumer demand and how it evolved after World War II. Using historical data and
econometric estimates of Japanese dairy demand, we identify economic, cultural, and
demographic forces that have been shaping consumption patterns. Then we summarize
the characteristics of Japanese milk production and dairy processing and policies
affecting them. We next describe the import regime and trade flows in dairy products.
The analysis of the regulatory system of the dairy sector shows how its incentive
structure affects the long-term prospects of various segments of the industry. The paper
concludes with policy recommendations of how to reform the Japanese dairy sector.