Japan Faces Butter Meltdown Japanese fans of cake, buttered toast and Hollandaise sauce may need to start hoarding soon. The island nation is facing another likely shortage of butter this fiscal year, according to a report by the Japan Dairy Association. It's the second year of butter shortages that last year left supermarket shelves dry , amid tight import controls and falling domestic production of raw milk. Shortages are usually most acute near the Christmas season when consumers buy cakes. The JDA estimates a 7,100 ton shortage of butter in the year that started in April. The organization estimates domestic demand will rise 0.9% on year to 74,700 tons. Also fueling the shortages is a long-term fall in raw milk production in Japan. Producers prioritize making drinking milk first, often leaving little left to turn into butter. Raw milk production has fallen 14% from its peak in the year that started in April 1996 through fiscal 2013, according to data from the agriculture ministry.

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