Meiji Dairies Corp. and Meiji Seika Kaisha agreed on management integration scheduled for next April. The food industry is typically an industry that strongly depends on the domestic consumption. However, it is the time when even leading food companies need to pursue scale of economies to compete in the global market besides getting stronger bargaining power against retailers. Sales in developing countries are expected to grow more important because the Japanese domestic market is dwindling rapidly. No people wish to degrade their standard of living once they improved it. Developing countries are promising markets for food producers in industrialized countries. In addition, there are lots of factors to consider in the food business, such as soaring costs of raw materials and growing concern over food safety. Japan has no way but to reply on imported foods because of the low food self-sufficiency, meaning that it has to import foods even from the countries that provide only low level of quality assurance. Because it is hardly possible to eliminate the risk of using unacceptable raw materials for food production, every company involved in food production is asked to strengthen monitoring of imported foods and keep making efforts to upgrade quality assurance in concert with local employees of plants abroad.

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