Japan proposes subsidy program to increase beef & dairy production
Japan could increase cow numbers as part of a new subsidy program to offset the impact of tariff agreements.
USDA’s Foreign Ag Department reports Japanese officials have approved $223 million to help double wagyu beef and dairy production by 2035. A final budget is expected to be approved later this month.
The funding would provide incentives to increase the number of breeding cows, support public farms and ag extension centers, and increase the production of wagyu embryos. Officials also want to incentivize dairy producers to increase production in some regions as well as transition into beef production.
As of January 1, more than 90 percent of U.S. food and ag products can now imported into Japan duty-free or with preferential tariff access as part of the U.S./Japan trade deal. New Zealand, Australia and Canada have similar agreements which is expected to cause pressure on Japan’s domestic production.