Japan’s leading dairy producers Meiji Dairies and Morinaga Milk Industry have announced plans to increase the price of drinking milk for the first time since 1977.

The price rise, expected to be more than three per cent, will come into force in spring 2008. The country’s third largest dairy, Nippon Milk, is also considering the move.
The three hold a 40% share of the domestic milk drinking market. The rises come in response to rising grain prices and higher packaging and distribution costs.