Permalink : http://hdl.handle.net/2115/73021

Over the past several years, the average price of milk paid to producers shipping to designated milk producer groups has increased. In conjunction with this rise, most dairy farmers in Hokkaido are realizing increases in farm income. However an oversupply would lead to a drop in milk prices and a continued drop in price would require adjustments to supply and demand. Designated milk producer groups have filed this adjustment role in the past; however, changes in this system are scheduled to begin in April 2018. This paper, first, considers how the new systems and the mechanisms upon which they are based will contribute to the development of producers and second, whether outsiders that are the new beneficiaries of subsidies will actually be able to meet the requirements. In conjunction with changes to these systems, the Livestock Industry Stable Management Law becomes the law on which designated milk producer groups and subsidies are grounded. This law clearly states the new objective of "stability of suplly and demand for livestock products." However the Japanese government and Prime Minister are involving the Ministry of Agriculture in moving forward with liberalizing raw milk and dairy imports, and the "stabilization of benefits" will certainly be done under the asumption of imports by foreign producers. This will make it dificult for producers to grow and/or stabilize their busineses. In addition, after these systems are changed, outsiders will also be able to receive subsidies.These subsidies comprise those to producers and payments for adjustments to those collecting milk; however, in the case of the latter, it will be dificult for outsiders to receive these payments because milk collection is done throughout areas that corespond to prefectures and the costs of collection are pooled.The organizations that will be able to adjust their suply and demand and receive these subsidies in a stable fashion after changes are made to these systems are none other than the designated milk producer groups.