Rising production costs and falling income have caused the number of dairy farms in Japan to fall below 10,000. Dairy farmers are calling for an increase in milk market prices.

Dairy farm operating costs have risen sharply, and dairy farmers have called for increased milk market prices. (Photo via MERXWIRE)

TOKYO, JAPAN (MERXWIRE) – According to the latest statistics, as production costs rise and income declines, the number of dairy farms in Japan has fallen below 10,000 for the first time and has dropped to 9,960, a 25% decrease from 2019. This change highlights the operating difficulties the dairy industry faces, with dairy farmers calling for an increase in milk market prices and increased consumer demand for milk to improve the operating environment.

The Japan Dairy Council statistics show that the number of dairy farms nationwide has dropped significantly, from 13,384 in 2019 to 9,960 in 2024. The main reasons for this decrease include rising production costs and declining market revenue. Dairy farmers pointed out that due to the depreciation of the yen, rising oil prices, and the war in Ukraine, operating costs have increased significantly, causing 60% of dairy farmers to suffer losses, and 80% of the industry believes that the current operating environment is highly unfavorable.

The survey showed that nearly half of dairy farmers face high feed costs, as feed prices have increased by 36% in the past five years. According to data from the Ministry of Agriculture, Forestry and Fisheries, the dairy cow feed price index rose from 68,693 yen per ton in 2020 to 93,714 yen per ton in 2024, becoming the primary source of pressure on dairy farmers’ operating costs.

Rising production costs and falling incomes have led to the closure of Japanese dairy farms. (Chart via MERXWIRE)

Experts point out that nearly half of dairy farms’ management costs come from feed costs, and the sharp increase in feed costs has had a serious impact on the dairy industry. If this trend continues, milk and dairy products in Japan will become more difficult to obtain, and there may even be a supply shortage.

Against this background, dairy farmers are calling on consumers to support domestically produced milk. To prevent further shrinkage of dairy farms, they are calling for an increase in milk prices to make up for the increase in costs. Although 65% of consumers are unaware of the reduction of dairy farms, more than 90% of consumers expressed the hope to continue to enjoy fresh domestic milk and are willing to support dairy farmers.

Japanese ice cream emphasizes being made with a large amount of milk and is one of the favorite delicacies of many tourists. (Video via MERXWIRE)

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