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. Even now, he advises me on diverse topics. He is always calm, rigorous, and of the highest caliber. When I said, "I want to design a network-based movement where the organization drives 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 '..."

That same Mr. Maeda has now published "A 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 a vast array of subjects. Today, I'd like to introduce just two of them.

The first aspect is its role as a "collection of fascinating tidbits you'll want to share." I've created several quizzes using this book as a source. 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 an industry or company to survive, it must continuously overcome various imbalances that arise daily—social environment, competitive conditions, 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 a wealth of 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 Ou Mountains, peaks reaching over 1,000 meters.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 "moist 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 "practical action."

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" – not with unreserved praise, but as merely another page in the dynamic history of the times.

This book is recommended not only for those in the dairy industry and 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 spreads the moment it touches your tongue, yet magically vanishes without a trace—please give it a try. It seems available at "Iwate Galaxy Plaza," close to the former "Tsukiji Hotel" site, and also through online retailers.
　
Enjoy!

For more details about "Indwelling Creators," the project Sōo Yamada is working on, click the logo.