Why is Imported Butter Rarely Sold in Japan?
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Why is Imported Butter Rarely Sold in Japan?

October 9, 2023

In Japan, imported butter from abroad is rarely sold. It is very difficult to find foreign butter in the average supermarket or grocery store. The government's protection policy is largely behind this phenomenon.

Japanese agricultural products are protected through high tariffs. As for butter, when melted, it becomes milk as reduced milk, so an excess of butter on the market lowers the price of milk. This is a major factor in import restrictions. Japanese agricultural groups have a strong influence on policy, and in order to protect their own interests, they strongly urge restrictions on imports and the protection of domestic production. This is the reason why tariffs on butter are set high in Japan.

If too much imports ease the domestic supply and demand for milk and dairy products, it will affect milk price negotiations between dairy organizations and dairy manufacturers. If the dairy organizations' bargaining position deteriorates, the Ministry of Agriculture, Forestry and Fisheries (MAFF) will be held responsible for the cause. If the reputation of the LDP's agriculture and forestry clique is lowered, it will affect their career prospects within the ministry. In addition, if the dairy industry demands that additional measures be taken to restore supply and demand, the relationship with the fiscal authorities will also go awry. Given these considerations, imports would be restrained.

-- バターが買えない不都合な真実 p203

The author also noted that he had worked for the Ministry of Agriculture, Forestry, and Fisheries, where he learned from his superiors that

When I first joined the Ministry of Agriculture, Forestry and Fisheries (MAFF), I was taught by a senior official. A little under is the best. A surplus is the worst. The same is true of the agricultural cooperatives that are happy when rice production declines. A surplus of agricultural products and lower prices may please consumers, but it affects producers. This is not good for the Ministry of Agriculture, Forestry, and Fisheries, which gives priority to producers.

-- バターが買えない不都合な真実 p205

As we often say, the people are best left alive.

Such protectionist policies have reduced the competitiveness of the domestic market, slowed technological innovation, and limited consumer choice.

For example, if more butter were imported, consumers would have a greater variety of products to choose from and prices could be made more reasonable through competition. On the other hand, domestic dairy producers will seek more efficient production and improved quality as they compete with foreign products.

References

The Inconvenient Truth About Not Being Able to Buy Butter Kazuhito Yamashita 2016

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