Permalink : http://hdl.handle.net/2115/63536

The purpose of this paper is to report the findings of an economic analysis of the present state of the food system for milk and dairy products in Japan in connection with Hokkaido, the largest raw milk producing area. The main results obtained are as follows: (1) Through input and output analysis, it was shown that the food system for milk and dairy products greatly contributes to the rural economy of Hokkaido. (2) While the structures of the drinking milk and cheese industries are bipolar, the butter and skimmed milk industries are oligopolies. (3) The food poisoning occurrence caused by Snow Brand Milk Products Co., Ltd. happened under pressure from severe competition among the three big milk products companies. (4) Concerning the demand structures of drinking milk and cheese, the price elasticity of both and the income elasticity of drinking milk were low. The growth of cheese demand was remarkable, but has stagnated recently. (5) Drinking milk prices show two directions of very high price and low price. (6) It was made clear that the food system for milk and dairy products in Hokkaido is having a stabilizing effect on the system nationwide. (7) Product differentiation for raw milk is one of the ways to further develop the food system for milk and dairy products in Japan.