Political agreement on a free-trade agreement between the European Union and Japan may take until 2019 to translate into easier market access, but the Irish dairy industry is already preparing to cash in on the deal.

Japan imports 85% of the 300,000t of cheese it consumes every year, mostly from Australia and New Zealand.

The country also buys in 12,000t of butter and 16,000t of skimmed milk powder, with New Zealand its main supplier.

Tariffs

Decreasing tariffs in the coming years could allow European exporters to capture a growing share of the Japanese dairy market, which the market research firm Euromonitor estimates is growing at a rate of 5% per year.

“It will take a concerted long-term effort to take advantage of the deal,” Irish Dairy Industries Association director Conor Mulvihill told the Irish Farmers Journal, calling on Government agencies and milk processors to work together in exploring options in Japan.

Cheese

During a recent visit to Tokyo by the Irish Farmers Journal, basic processed cheese retailed at comfortable prices of €15/kg to €18/kg, while speciality cheeses imported from Europe ranged from €40/kg to €60/kg.

Meanwhile, Japanese consumers displayed a craving for butter pastries and butter packs sold for twice the Irish price.

In the north of the country, dairy farmer Kenichi Kato said he was paid 80c/l for his milk and was negotiating direct sales contracts with buyers such as cafe owners looking for an increasing supply of quality milk.