The paper "Increasing Australian Dairy Export to Japan" is a great example of a marketing case study. Dairy farming plays a major role in the Australian economy. Though its milk production is small, it has over the years risen to be the third-largest global dairy exporter. As domestic production increases, the Australian dairy product exports also increases. About 50% of Australian dairy products are exported with about 19% of the export going to Japan. The opportunities that may enable Australia to increase its export of dairy products to Japan can be determined by first identifying the challenges facing the dairy industry in the country and analysing the market characteristics in Japan.
As the Japanese economy progress, the role played by Australia in the global food supply is likely to shift, making the dairy industry to meet the growing demand for its products ahead of other competitors. Through analysis of the Japanese dairy industry, determining the present challenges in the Australian dairy industry and isolating the consumer characteristics in the target market, it would be easy to determine the opportunity of increasing exports of dairy product to the Japanese market. Analysis of the Japanese Dairy Industry Every business experiences its own challenges that prevent its successful operation.
Any international business aims at being successful in any country they invest in order to globalise the name of their product or service. Import regulations Japan has four basic laws that govern both imported and domestically manufactured foods. These laws include the Agricultural Standards Law, Food Sanitation Law, Health Promotion Law and Food Safety Basic Law (Hayashi et al. , 2009). The Japanese Ministry of Health, Labour and Welfare enforce all regulations specified in the governing laws, especially the chemical residue standards.
The imported products are tested at the port to determine whether they contain an excess of the maximum allowable concentration of any of the listed chemicals. In case of these chemical contaminants are detected, the product is rejected and the importer subjected to monitoring. In addition, all food products undergo a wide range of biological tests to ensure that they are free from pathogens, aflatoxins and other harmful contaminants. Apart from biological and chemical tests, the products must give a satisfactory negative result with the coliform test.
Moreover, all imported products are to be accompanied by a health certificate, import notification, examination results, a certification from the manufacturer showing the ingredients, process of manufacturing and additives. Apart from the above restrictions, Japan also has strict regulations relating to genetically-modified food products and those produced through unapproved recombinant DNA technique. Such restrictions include BST hormone that hinders the trade between Australian and Japanese Dairy products. Government policy The Japanese government issues maximum production quotas that prevent the excessive supply of milk beyond the domestic demand.
A special board of directors has the mandate of designating the maximum quantities of manufactured and drinking milk in the country (Blayney et al. , 2006). Japan annually produces about 8.3 million metric tonnes of milk of which 60% is processed as consumable fluid milk while 40% if further processed to other dairy products (USDEC, 2009). The quotas are aimed at ensuring that both produced and imported dairy products do not exceed the domestic demand so as to avoid a similar batter crisis to the one experienced in the year 2007.
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