Brother, can you spare some...butter?

Japan is going through a weird butter shortage. I kid you not. For a country that has the second largest economy in the world, with one of the largest per capita GDPs, and is on the leading edge of most technological innovations, it's hard to imagine that it would have a hard time making something as simple as butter.

But it's true. The supermarket in our local area will get butter a few times a week and if you're not there within an hour or two after its restocked, you're evidently out of luck. This is reminiscent of Soviety-era bread lines or the 70's gasoline shortages in the U.S. In response, I've been turned into a butter mule, smuggling in butter at the request of my wife. Luckily, it's not an illicit trade...yet...and I've been spared having to ingest small balloons of butter to evade authorities.

The problem is that demand for milk is falling, which has forced milk producers to cut back their "supply" of cows and milk products, or redirect them into higher margin business like cheese. For you economics buffs out there, you're probably thinking that retailers should just import butter. And would you believe that the domestic butter market is highly protected? There's roughly a 30% tarrif that's levied on all butter imports, along with a 1,000 yen ($10) per kilogram tax placed on all butter imports. Basically, that leads to an 800% increase in the price of imported butter. That's why you NEVER see imported butter in Japan. Now we rarely get to see any butter at all.

If you're interested in a little butter-arbitrage scheme, maybe we can work something out. We can probably make a tiny fortune selling butter to the poor expats in our area! :)

Links:
Japan Today article
Asahi Shinbun