Global Voices Online looks at the butter shortage

8 Responses to “Global Voices Online looks at the butter shortage”

1. Nitpicker on April 28th, 2008 10:29 pm

   Does anyone have any input about the effect of Japanese import quotas on dairy products on the local (Japanese) butter shortage?

2. Paul on April 28th, 2008 11:36 pm

   Shouldn’t the stronger yen be helping cheapen the price of butter imports?

3. Ken Worsley on April 29th, 2008 12:31 am

   That would take quite the study, and I don’t know of anyone who’s done it, but butter imports have about a 30% tariff at their value plus about 1,200 yen per kilogram (WTO Trade and Tariff Data). About 40% of Japan’s dairy products are imported, but this is because so much cheese is brought in. The figure for butter cannot be anywhere near that high.

   I’m guessing that the current shortfall is a combination of several factors (the 2006 calf cull, EU resources being diverted to Russia et al, the diversion of mechanized milk resources to cheese rather than butter, decreased production in fluid milk, the aversion to creating a surplus of powdered skim milk (a by-product of butter), increased feed prices, etc…

   This USDA report was pretty on. I suppose shortages should have come as no surprise.

   Your question is a good one. It fits in nicely with the Ministry of Agriculture’s request that limits on exports not be allowed. It’s hard to export butter to Japan at the tariff prices unless the domestic market is fully choked.

4. Nitpicker on April 29th, 2008 9:52 am

   Referring to comments at the “Where has all the butter gone?” link, it appears that Singaporeans have access to butter, albeit at a higher price than last year. This is what you would expect of shortages in a free market: rationing by price. However, Japanese consumers don’t have access to butter at any price….. Is Japan so desperately short of foreign exchange that it can’t afford to buy butter? (Sarcasm) No, something else is at work preventing consumers from having the choice of purchasing butter. It’s my understanding that all dairy products are subject to import quotas as well as high tariffs, and I suspect the import quota system is exacerbating the dearth of butter on Japanese supermarket shelves.

5. q shoe guy on April 30th, 2008 10:29 am

   Noticed that there is some butter available here in Kyushu , you just have to know where to look(out in the boonies seems a good bet). There seems to be salted butter more frequently but they never stock un-salted butter now at the supermarkets. You need unsalted butter for baking so I gather most is being diverted to the bakers/patisserie shops which have long standing contracts with the dairies…..Such is life, and it also shows how that by forcing the “farmers” to pay for bad bureaucratic decisions will only hurt the consumer in the cities in the long run. Most farmers are self sufficient in food for their families the same can’t be said for the city dwellers.

6. Durf on April 30th, 2008 12:33 pm

   I like how the farmer barely mentions the massive destruction of milk and slaughter of dairy cows in 2006 (gotta keep those prices high, can’t have a glut!) toward the end of his post. If his was a truly sustainable business you’d think he and his industry companions would be able to turn a profit without killing their cows every time the price looks like it might dip a bit, and then blaming everything on antidairy health books.

7. Ken Worsley on May 2nd, 2008 6:23 pm

   Paul,

   Shouldn’t the stronger yen be helping cheapen the price of butter imports?

   In a word, no. The tariffs are above 800% - import prices would still be too high.

   The government is apparently considering an emergency importation of butter below the regular tariff levels. Let’s see what comes of this…

8. Terrada on May 3rd, 2008 8:11 pm

   The only place I’ve seen butter recently is the convenience store near me, at 210 yen for 100 grams. It’s an absurd price to begin with. The olive oil importers should be happy.

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