Profits fall for dairy product makers
TOKYO —
Japan’s three major dairy products makers suffered double-digit operating profit falls in fiscal 2007, which ended in March, as worldwide surges in raw material prices took a heavy toll, according to their earnings data.
Of the three, industry leader Meiji Dairies Corp incurred the largest operating profit fall, of 31.1%, as it faced an increase of 5.9 billion yen in costs stemming from higher raw material prices. Such additional costs came to 6.5 billion yen for Morinaga Milk Industry Co and 4.24 billion yen for Snow Brand Milk Products Co.
Although the three companies raised product prices in response, they were unable to fully offset the higher raw material costs.
The companies forecast increased costs in the current year to next March. But they aim to log profit and sales growth through additional price hikes and rationalization.
JCN
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larguero
hey must be the only fod producers in the world to have declining profits last year. Food producers are much more better now than 3 years ago...
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Triumvere
When will this absurd butter shortage end? You'd think they'd just make more and jack up the price; I haven't seen a single person buy any of the 3000 odd tubs of margarine they have gathering dust at the grocery store.
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presto345
I hadn't noticed butter was in short supply until someone pointed it out to me. I usually keep a kilo or so in the fridge, but use it only very sparingly. I do not need it or margarine (which is a no-no) to spread on my bread or pancakes. That said, is butter being hoarded by 'clever' middle-men? Or is it being diverted to overseas markets? The latter I doubt, as the price of this dairy product is already quite high here. In many applications olive oil could be substituted for butter. A healthier alternative too. (Now watch the price of olive oil go up!) Since my arrival in Japan I have been shocked by the price of dairy products here, but I now realize that dairy farming, or any other kind of farming just cannot be conducted the same way as in e.g. the EU or the US of A.
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