Dynamics of the Dairy Industry

During my long career at Dentsu Inc., I learned many things, especially from our clients. Among them, two individuals remain unforgettable.

One is Hiroshi Maeda, whom I worked with on the "Consult Milk" campaign. He still advises me on diverse topics today, and he is always calm, rigorous, and of the highest caliber. When I mentioned, "I want to design a network-based movement where the organization runs itself," he responded with something like, "As you may know, Yamada-san, if we consider this from the perspective of sociologist Mark Granovetter's'Strength of Weak Ties'..."

Mr. Maeda has now published "History of Japan's Dairy Industry: Lessons from History and Regions." This monumental work, packed with the knowledge and experience cultivated over his long career in the dairy industry, covers many facets. Today, I'd like to introduce two of them.

The first is its role as a "collection of fascinating tidbits you'll want to share." I've created several quizzes using this book as the source material. The answers are at the end, so give them a try.

And another aspect is its role as a "story that lets you experience the dynamics of business." For any industry or company to survive, it must continually overcome various imbalances that arise daily—social environments, competitive situations, relationships with consumers, and so on.

This holds true even for milk and dairy products, which are often taken for granted. Using a familiar foodstuff as its theme, the book traces how those involved overcame crises throughout history. It conveys this dynamic through rich anecdotes.

The book is divided into two parts. While the first half covers the history of the industry as a whole, the second half, with its case studies of six regional dairy companies, offers a particularly vivid experience of business dynamics.

For example, YUDA Milk (formerly Yuda Milk Cooperative, Iwate Prefecture) is a company located in a mountain village in a heavy snowfall area, surrounded by the 1,000-meter-class Ou Mountains.Despite this challenging location, it has consistently leveraged adversity as a springboard for numerous challenges. These include pioneering "low-temperature pasteurization" to deliver quality competitive with major corporations in the fiercely competitive urban market of Morioka City, and developing a premium yogurt with a unique "chewy yet refreshing" texture to overcome a management crisis stemming from over-reliance on the milk business. As a result, it reportedly now achieves a high-profit structure with a sales profit margin of around 10%.

"Dynamic" does not simply refer to the rapid changes in the environment. Merely turning a blind eye or passively observing will lead to nothing. Rather, "dynamic" is the "shift in relationships" – the continuous, proactive engagement with that ever-changing environment. Through the case studies of each company, you can truly experience the essence of innovation: the accumulation of such "practices."

At the same time, the author's characteristic "rigor" is evident in the calm, matter-of-fact tone with which he depicts these numerous "successes" – never unreservedly praising them, but rather stating simply, "This too is merely one page in the dynamic history."

This book is recommended not only for those involved in dairy farming and the dairy industry, or milk enthusiasts, but for anyone striving to create new value.

Now, here's the "answer" to the earlier quiz.

How was that?

Oh, right. "Premium Yuda Yogurt" is famous, so many of you have probably tried it. If you haven't experienced that sensation—where an incredibly rich umami flavor spreads the moment it touches your tongue, yet magically vanishes without a trace—you really should give it a try. It seems available at "Iwate Galaxy Plaza," which is also close to the former "Tsukiji Hotel" site, as well as through online shopping sites.
　
Enjoy!

For more details on "Indwelling Creators," a project by Takao Yamada, click the logo.