FAS/Tokyo projects that Japan’s fluid milk production will decline in 2025, primarily due to a decrease in the milking cow population anticipated from 2024. However, production of butter and non-fat dry milk is expected to remain steady, supported by a surplus of milk resulting from weak demand for drinking milk. Butter demand, particularly in the confectionery sector, is bolstered by tourism, leading FAS/Tokyo to predict an increase in butter imports for both 2024 and 2025. While cheese consumption remains stable, it is not robust enough to drive significant production growth.