Comments on: Update on the Japan butter shortage http://www.26econ.com/update-on-the-japan-butter-shortage/ Online economics Sat, 05 Jul 2008 15:55:51 +0000 http://wordpress.org/?v=2.3.2 By: John http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6758 John Tue, 29 Apr 2008 01:45:38 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6758 It is a puzzle. High tariffs imply high local costs and an inability to export surplus skim milk powder (which comes in fixed proportions to butter). But the more basic question is why are these fixed proportions not evident in the market (lots of milk; no butter)? That just defies (my) economic sense (currently). Is it too heretical/paranoid to suggest that a government with aggresively weightist policies (as in your earlier post about metabolic indices) might have its fingers in this particular mess? It is a puzzle. High tariffs imply high local costs and an inability to export surplus skim milk powder (which comes in fixed proportions to butter). But the more basic question is why are these fixed proportions not evident in the market (lots of milk; no butter)? That just defies (my) economic sense (currently).

Is it too heretical/paranoid to suggest that a government with aggresively weightist policies (as in your earlier post about metabolic indices) might have its fingers in this particular mess?

]]> By: Chief Debt Officer http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6704 Chief Debt Officer Mon, 28 Apr 2008 04:10:49 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6704 Aaron, Japanese consumers don't prefer milk as they believe milk would cause obesity, while they really love cakes, pies, muffins, or whatever that needs tons of butters. CDO Aaron,

Japanese consumers don’t prefer milk as they believe milk would cause obesity, while they really love cakes, pies, muffins, or whatever that needs tons of butters.

CDO

]]> By: Chewxy http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6699 Chewxy Sun, 27 Apr 2008 23:00:45 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6699 Guess short run and long run means differently in Japanese economics :) Guess short run and long run means differently in Japanese economics :)

]]> By: aaron http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6680 aaron Sun, 27 Apr 2008 17:57:04 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6680 CDO: Thanks, that is interesting. I wonder why they chose to dispose of calves rather than older stock? Anyway I still don't quite understand why there is plenty of milk in the stores but no butter though. CDO: Thanks, that is interesting. I wonder why they chose to dispose of calves rather than older stock? Anyway I still don’t quite understand why there is plenty of milk in the stores but no butter though.

]]> By: Chief Debt Officer ( http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6672 Chief Debt Officer ( Sun, 27 Apr 2008 16:18:11 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6672 It looks like the shortage of milk started last summer. http://www.cuoca.com/library/items/butter/asahi_news.gif According to the article, the farmer disposed calves back in 2006 as there was big over supplying of milk, and those calves are supposed be the main supplier of milk today. In addition of this, the heat wave last summer caused less production of milk, the article said. It looks like the shortage of milk started last summer.

http://www.cuoca.com/library/items/butter/asahi_news.gif

According to the article, the farmer disposed calves back in 2006 as there was big over supplying of milk, and those calves are supposed be the main supplier of milk today.

In addition of this, the heat wave last summer caused less production of milk, the article said.

]]> By: Naadir Jeewa http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6665 Naadir Jeewa Sun, 27 Apr 2008 14:11:12 +0000 http://www.26econ.com/update-on-the-japan-butter-shortage/#comment-6665 Ah ha. Fair enough, that explains things a tad. I still think the point about domestic prices stand, which I guess is what Rodrik is saying too. Ah ha. Fair enough, that explains things a tad.

I still think the point about domestic prices stand, which I guess is what Rodrik is saying too.

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