Raw Milk Marketing in a New System of Deficiency Payment Present Conditions and Future Problems

Abstract

The objective of this paper is to clarify the present situation of raw milk marketing by Hokuren, a raw milk marketing institution in Hokkaido. While the dairy products market is deregulated, the price of skim milk powder has not decreased, even though skim milk powder is overproduced. As Hokuren is a major sellor of milk used in manufactured dairy products, it is important to increase the demand of skim milk powder. Hokuren actively sells classified raw milk, with increasing shipments to Honshu. Zenno buys skim milk powder from manufacturers, and sells it to the user. Hokuren makes up for the loss of buying and selling.