This paper analyses whether it is profitable as well as what challenges and opportunities may arise by exporting a lactose free UHT milk from Finland to Japan. This will be conducted on a basis of political, economic, geo- and demographical, cultural and business habits and circumstances.
In a time of globalization and more intense competition than ever, trading relations between parties have become a common basis to provide goods and services. Especially the agricultural trading sector has increased steadily. For instance, in the EU the export of animal products has grown for about 131 % between 2002 and 2016. When combing this with another global trend, the increasing awareness of a healthy diet, new market opportunities can be detected. Exemplary cases of the trend include the increasing number of vegetarians, vegans or the usage of supplementary food such as lactose free milk.
Table of Contents
1 Political aspects
2 Economic aspects
3 Geo- and demographical aspects
4 Cultural aspects
5 Business aspects
6 Recommendations
7 Conclusion
8 List of references
Objectives and Topics
The main objective of this term paper is to evaluate the feasibility and potential profitability of exporting lactose-free UHT milk from Finland to the Japanese market. The analysis assesses whether the current market conditions, including trade agreements and demographic shifts, create a viable business opportunity despite existing challenges.
- Analysis of the political and trade relations between the EU and Japan.
- Evaluation of Japan's economic status and its role as a food importer.
- Assessment of demographic trends, such as aging and urbanization, and their impact on consumption.
- Examination of Japanese cultural attitudes toward diet, health, and western products.
- Identification of business operational challenges, including regulatory and cultural barriers.
Excerpt from the Book
1 Political aspects
Generally, Japan is a member of many international agreements such as the UN, WTO or OECD (CEMAT, 2013: pp. 6-7). As it is globally connected, certain standards and policies need to be guaranteed in order to facilitate international trade. Especially, the relationship between the EU and Japan has been strengthened lately, for instance by the Free Trade Agreement which shall be introduced by 2019. This implies the abolishment of customs, the intensification of trade, harmonization and closer communication (BMEL, 2017; EEAS, 2017; Langhammer, 2017: p. 236; European Commission, 2017). Currently, the agricultural sector in Japan is still subsidized and protected and EU customs to Japan amount about 1 Millard Euro per year (ARD, 2017).
Summary of Chapters
Political aspects: This chapter outlines Japan's international trade memberships and highlights the strengthening of economic ties with the EU, specifically mentioning the impact of the upcoming Free Trade Agreement.
Economic aspects: This section examines Japan's position as a major global economy and its significant role as a food importer, noting the potential for EU dairy producers.
Geo- and demographical aspects: This chapter discusses Japan’s high population density, natural hazard risks, and the profound impact of an aging population on future consumption patterns.
Cultural aspects: This part analyzes the health-conscious nature of Japanese consumers and the rising interest in western dietary products, while noting the high prevalence of lactose intolerance.
Business aspects: This chapter highlights the complexities of the Japanese business environment, emphasizing the importance of social structures, paternalism, and potential regulatory or language barriers.
Recommendations: This section weighs the opportunities and risks, suggesting that while the market has potential, success depends on intensive marketing and strong local cooperation.
Conclusion: The author summarizes that despite significant hurdles, exporting to Japan may be profitable in the long run if approached with a deep understanding of the local market.
List of references: Provides a comprehensive bibliography of sources used for the analysis, ranging from academic journals to government and industry reports.
Keywords
Export, Lactose-free milk, UHT milk, Finland, Japan, Trade agreement, Economic analysis, Demographics, Food imports, Business culture, Health-conscious, Globalization, Dairy industry, Market entry, Consumer behavior
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores the economic and cultural viability of exporting lactose-free UHT milk from Finland to Japan within the context of current international trade developments.
What are the central themes of the work?
Key themes include international trade relations, the Japanese dairy market, changing consumer dietary habits, and the complexities of foreign market entry into Japan.
What is the primary research goal?
The primary goal is to determine if exporting this specific dairy product is profitable and to identify the main opportunities and challenges for a Finnish company entering the Japanese market.
Which scientific methodology is applied?
The paper utilizes a descriptive analysis based on secondary research, including current economic data, trade policy reports, and demographic studies, to evaluate market attractiveness.
What is covered in the main body?
The main body breaks down the analysis into political, economic, geographical, demographic, cultural, and business aspects to provide a holistic view of the Japanese landscape.
Which keywords characterize this work?
Key terms include Export, Japan, Lactose-free milk, Trade agreement, Consumer behavior, and Business culture.
How does the aging population in Japan affect the potential success of this product?
The aging population, combined with a decline in rural vitality, suggests a shift in consumption patterns; however, it also presents a challenge, as older generations may be more resistant to adopting new, western-style dairy products.
Why is the high rate of lactose intolerance in Japan significant?
With 97.5% of the Japanese population identified as lactose-intolerant, there is a clear demand for functional, health-oriented alternatives, which is the main selling point for the product.
What role does the EU-Japan Free Trade Agreement play in this analysis?
The agreement is viewed as a major catalyst that would facilitate trade, reduce customs costs, and create a more favorable environment for foreign agricultural imports.
- Citar trabajo
- Anonym (Autor), 2018, Exporting lactose free UHT milk from Finland to Japan. Challenges and opportunities, Múnich, GRIN Verlag, https://www.grin.com/document/934293
