New Zealand was reported to have captured the majority of the emergency imports this year: taking more than 70% of butter and 60% of nonfat dry milk (NDM) contracts.
The two rounds of emergency imports required a total of 10,000 tonnes of butter and NDM each.
The emergency imports have been necessary partly due to lower domestic milk production.
Japan's milk production is forecast to decline by 2.6% this year. Small to medium dairy operators are said to be exiting the market due to increasing on-farm costs, ageing, a lack of succession, and low profitability relative to the size of investment.
In the main dairying region of Hokkaido, dairy operators are said to be exiting at an average rate of 3% p.a. in recent years. Other regions are said to be facing exit rates of up to 5%.
Next year, production is expected to remain flat. Good availability of locally sourced feed and government support at the local and central level will help.
Butter and NDM imports are expected to reach 8,000 and 42,000 tonnes respectively in 2015. This is comprised of existing commitments and an additional 3,000 and 10,000 tonnes of butter and NDM in early 2015.
