A comparison of the structure and practice of dairy farming in New Zealand and Japan

Japan's production cost for milk is the highest in the world. In contrast, New Zealand's production cost for milk is the lowest in the world. The purpose of this report is to examine the difference in the structure of dairy farming between New Zealand and Hokkaido, Japan. Hokkaido dairy farms account for over 40% of milk production in Japan. New Zealand dairy farming has several things in common with Hokkaido dairy farming. First, New Zealand is a relatively new country and Hokkaido is a new area (Hokkaido has a history of 130 years of development). Second, both have significant areas of grassland. Third, both produce milk of which most parts are supplied to milk processing factories. Finally, both have made remarkable progress in the development of dairy farming. In 1975/76 New Zealand produced 5,403 million litres of milk, and in 1995/96 9,325 million litres of milk. Hokkaido produced 1,447 million kgs of milk in 1975 and in 1996 3,530 million kgs. However, there are many differences in dairy farming between New Zealand and Hokkaido. Differences occur for each of the following: first, the ownership of land, buildings and machinery; second, the use of farmland and the management of cows; third, the treatment of manure; and fourth, the use of labour and the process of farm succession