4. Government measures

Transcription

1 4. Govrnmnt masurs Subsidy and production cost In Japan, undr th " Tmporary ct for ompn for Producrs of Milk for Manufacturing Us (df icincy paymnt), for th purpos of scuring rproduction of raw milk in th "raw milk for procssing us rg ion" whr mor than half of milk producd ar usd for procssing, such farmrs producing milk for procssi ng us ar subsidisd. "Raw milk for procssing us rgion" rfrs to th ara whr mor than half of milk producd is tradd with procssing plants (currntly only Hokkaido). Raw milk for procssing us rfrs to milk usd to produc 1 buttr, 2 skimmd milk powdr, 3 swtnd condnsd whol milk, 4 swtnd cond nsd skimmd milk, 5 whol milk powdr, 6 swtnd milk powdr, 7 unswtnd condnsd whol milk a nd 8 skimmd milk powdr for animal fd From 1966, whn Dficincy Paymnt ct was implmntd, till 2000, producrs wr subsidisd by th govrnmnt for t h diffrnc btwn th stimatd production cost pr 1kg of raw milk in th raw milk for procssing us rgion and actual markt pric of raw milk for procssing us st by th govrnmnt (standard markt pric). Producrs wr nsurd by th govrnmnt total of standard markt pric and subsidy (=guarantd valu) as milkpric rc ivabl. From 2000 to th prsnt In May 2000, Dficincy Paymnt ct was rviwd and r-nforcd in 2001, guarantd valu st by th gov rnmnt and standard markt pric wr rmovd, thrfor subsidy as a dficincy paymnt was abolishd. Nw formula for subsidy calculation is to tak avrag production cost and production yild for th last thr y ars, work out th rat of variability and multiply this rat to th subsidy from th prvious. Standard markt pric was abolishd, so th raw milk pric for procssing us is dtrmind by th ngotiations btwn dsignatd milk producr groups and dairy procssors. Th fo r subsidy in 2011 was yn/kg, and in yn / kg. Maximum amount claimabl of raw milk for procssing us, which was rgulatd at th tim of subsidy was introducd, has not bn changd bfor and aftr th rviw. Undr th nw act, thr is a possibility that raw milk pric for procssing us, which is dcidd in fr trad btwn dsignatd milk producrs groups and dairy procssors, could fac a big dclin du to th unxpctd chang in supply and dmand balanc. In ordr to tak masurs to mitigat such drastic situation, th nw fund was stablishd with its financial rsourcs from producrs own contribution (0.40 yn pr 1kg of raw milk for procssing us) and support from th govrnmnt (0.20 yn pr 1kg of raw milk for procssing us), and in th cas of th raw milk pric for procssing us (xclusiv of th govrnmnt subsidy) falls lowr than th standard pric for compn (=avrag of th last thr s avrag markt prics), 80% of th diffrnc is to b supplmntd by th fund. For th rfrnc, th standard pric for compn in 2011 was 69.12/kg. tabl 8 Fig2, 3, 4 20

2 Tabl 8: Rgards to ompn for Producrs of Milk for Manufacturing Us lacifications pril- Jun July (aftrwards) JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY JPY Guarantd Valu Standard Markt Tax xcludd standard pric for compn vrag Markt a.uttr as ingrdints P r i c s S t a b l I n d x Tax xcludd (JPY) b.smp 12,841 12,841 13,090 13,090 13,090 13,090 Tax xcludd (JPY) 12,467 12,467 12,467 12,467 12,467 c.swtnd condnsd whol milk 8,055 8,055 8,211 8,211 8,211 8,211 Tax xcludd (JPY) 7,820 7,820 7,820 7,820 7,820 d.swtnd condnsd skimmd milk 7,193 7,193 7,333 7,333 7,333 7,333 Tax xcludd (JPY) 6,983 6,983 6,983 6,983 6,983.(Whol Milk Powdr) (18,112) (18,112) (18,464) (18,464) (18,464) (18,464) Tax xcludd (JPY) f.(uttr for hom us) (1,081) (1,081) (1,051) (1,040) Tax xcludd (JPY) production limit (1,000 tonns) 2,300 2,300 2,400 2,400 2,400 2, Subsidy (JPY) Subsidy Total (ctual) Unit pric for ompn Not: () = unit From 2001, with nw systm introducd, Guarantd Valu, Standard Markt and Stabl Indx s wr abolishd. Not: 1 and 2 ar avrag markt pric and Unit for ompn rlvant to Masurs for stabl managmnt of producrs of milk for procssing us. Fig 2: Summary of th "ompn for Producrs of Milk for Manufacturing Us" Systm Summary of th systm Framwork of th systm Purpos Subsidy Unit pric Unit pric in yn For th purpos of nsuring r rpdocution of raw milk in "Raw milk for procssing us rgion(hokkaido), subsidy is givn to th producrs of raw milk for procssing us. It is calculatd by st ruls basd on th fluctuation of production cost. Subsidy for 2011 was calculatd by multiplying th subsidy of 2010 to th incras dcras rats of production cost. Incras dcras rats Unit pric in of production cost = 11.95yn Trad pric of raw milk for procssing Framwork Trad pric of raw milk for procssing us is dcidd btwn producrs' organis and dairy procssors. vrag of thr s' production costs is usd to calculat incrasdcras rat of production cost, howvr, th s for ach itm of xpns ar adjustd to th most rcnt figurs (asically btwn Novmbr 2010 and January 2011) producrs' nt incom paymnt from dairy procssors Volum in 2007 latst cost in 2007 cost in Volum in 2006 prvious 's Volum in 2008 latst cost in cost in Volum in 2007 prvious ya r's Volum in 2009 latst cost in 2009 cost in 2008 Volum in 2008 prvious ya r's 3 3 th subsidy Transition of subsidy s and production limit. subsidy subsidy from th govrnmnt Th amount subjctd to th subsidy ( production limit) is dcidd vry Unit:yn/kg,1,000 t production limit Th amount is st dpnding on th supply dmand situation of raw milk. In 2011, it was st at 1.85 million tonns, th sam as th prvious. production 2,270 2,200 2,100 2,100 2,050 2,030 1,980 1,950 1,950 1,850 1,850 limit 21

3 Fig 3:Summary of " Tmporary ct for ompn for Producrs of Milk for Manufacturin g Us (1)Producr Subsidy for ompn pric on raw milk for anufacturing us orporation givs ompn to dsignatd producrs' organis in ordr to covr th subsidy paymnt thy giv to producrs. Subsidy is dcidd vry by th Ministr of gricultur, Forstry and Fishris, considring th conomic situation such as raw milk production costs and for th purpos of nsuring rproduction of milk. (Mchanism of ompn for Producrs of Milk for Manufacturing Us Systm) ntral Govrnmnt ompn = Subsidy Unit x authroisd amount Maximum limit is st by th Ministr of gricultur, Forstry and Fisris gricultur and Livstock Industris orporation application Prfcturs (or ntral Govrnmnt) application mount authori Dsignatd raw milk producrs' organis (Inclusiv of subsidy) Producrs (Dairy farmrs) ompn Gross Margin of importd Rport on amount of raw milk manufacturd Dairy procssors (Mthod of producr subsidy) Producrs' nt incom Slling pric Producr subsidy Slling pric of raw milk for procssing us is dcidd btwn producrs' organis and dairy procssors. Subsidy unit ptic in JPY / kg D E (2)Th import of dsignatd dairy products 1.orporation imports and slls dsignatd dairy products (buttr, Skimmd Milk Powdr, tc.), which amount is st and notifid by th Ministr of gricultur, Forstry and Fishris according to th intrnational agrmnt. 2.orporation xcuts imports and sals of dsignatd dairy products of various countris in cas that prics of such products ris or ar possibl to ris. 3.Undr th ustoms Law, it is rgulatd that th importrs of dsignatd dairy products must sll th rlvant dsignatd dairy products to th orporation, and orporation must sll back such products to th importrs. 22

4 Fig. 4 : Masurs to stabilis managmnt of dairy farming and th rlativ industris (2012) ompn for Producrs of Milk for Manufacturing Us Systm For th purpos of nsuring r-rpdocution of raw milk in "Raw milk for procssing us rgion(hokkaido), subsidy is givn to th producrs of raw milk for procssing us. Trad pric of raw milk for procssing Producrs' nt incom th subsidy Trad pric of raw milk for procssing us is dcidd b d ' paymnt from dairy procssors subsidy from th govrnmnt=11.95jpy/kg (Unit pric in 2011) Th amount subjctd to th subsidy ( production limit) is dcidd vry.(2011:1,850,000tons) Masurs for stabl managmnt of producrs of milk for procssing us For th purpos of mitigating th influnc in th cas of th suddn dclin of milk pric for procssing us and raw milk pric for chs, thr is a compn schm from th rsrv fund cratd by th contributions from both farmrs and th govrnmnt. Govrnmnt / gricultur and producrs Livstock Industris orporation ontribution id(producrs:govrnmnt=1:3) National vrag Markt a a+1 a+2 Diffr nc Producrs' Dposit a+3 Standard for ompn Diffrnc x 80% Plannd production of raw milk Following th stablishmnt of th Dficincy Paymnt ct in 1966 which was st to nsur th supply of raw milk, th govrnmnt has also dcidd to lay down th maximum amount for th raw milk production in ordr to prvnt th unstabl markt pric causd by th surplus production. With ths acts and rgulations, institutional masurs hav bn takn to nsur th consistnt supply. In 1979, producrs thmslvs also hav startd voluntary plannd production basd on th markt dmands in ordr to protct thir businss from th supply - dmand imbalanc and dprciation. This arrangmnt is not lgally binding, and som producrs, who ar calld outsidrs, prfr not to abid by. (Th producrs who abid by this agrmnt ar calld insidrs). Howvr, such outsidrs ar only 3% of total producr numbrs, and for such voluntary masurs th lvl of participation is xtrmly high. Evry, Japan Dairy ouncil sts out th annual targt figur of possibl production and dispatch in th country by xamining stimatd dmands for th. This targt quota is dividd using approvd formula, and JD passs allocation to th dsignatd groups in 9 rgions. Each group thn givs thir allocatd quota to individual organis such as unions within thir rgion, and finally ach organi passs quota to individual farmrs. tabl 9 23

5 Tabl 9: mount of milk sold on consignmnt and stock Unit:1,000t mount of milk sold on consignmnt Stock amount uttr SMP , , , , , , , , , , , , , , , , , , , , , , , , Rsourcs: Sals prformanc by usag 24