Japan: Dairy and Products Annual
Higher yields have improved Japanese milk production in 2016, but weather-related impacts could constrain potential growth in the fourth quarter and beyond. Soaring Japanese beef cattle feeder prices are limiting replacement heifer production through greater use of wagyu genetics in dairy management plans. 2016 Japanese imports and consumption outpace record 2015 levels, with sharply expanding, price-competitive imports from European Union suppliers eroding U.S. market share. Increased Japanese butter production and extraordinary butter import volumes should restore balance and preclude perceived butter shortages during the remainder of 2016.
