A crucial finding is the growing emphasis on protein in the Japanese diet. Hada notes that less than a decade ago, the focus was primarily on minerals and vitamins, but now, the conversation has entirely shifted to protein. This is a significant trend for agribusiness and dairy economics, as it reflects a deeper consumer understanding of nutrition. With Japan home to over 90,000 centenarians, this shift in dietary focus is a clear indicator of a market willing to invest in health and wellness.

The article highlights Fonterra’s business-to-business (B2B) model in Japan, where it has a limited brand presence but a strong position as an ingredients supplier. This model, which makes Japan one of the markets least affected by Fonterra’s recent brand sell-off, is a testament to the country’s demanding quality standards. The success of a B2B model in Japan suggests it can be a “very similar model” for success elsewhere, particularly as other markets grapple with similar demographic shifts.

Fonterra’s strategy extends beyond sales to include a long-term collaboration with local farmers. For a decade, Fonterra has partnered with the New Zealand embassy and a local farming company to help farmers in Japan’s main dairy region, Hokkaido, improve their pasture management. This collaborative effort, while seemingly counterintuitive for an import source, reinforces Fonterra’s core “grass-fed” message and benefits the wider industry by promoting sustainable practices.