Dairy food consumption, supply, and policy in Japan

We 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 then describe the import regime and trade flows in dairy products. The paper concludes with policy recommendations of how to reform the Japanese dairy sector.