Surplus Skim Milk Powder Stockpile Predicted at 83,300 Tons, Up 20% Year-on-Year – Startup Develops Next-Generation Functional Fat by Upcycling Surplus Material from Butter Production into Butter Alternative.

In June 2026, Re Design Inc. (Headquarters: Chuo-ku, Osaka; CEO: Naoki Nakajima) will commence sales of "Re:Butter," a next-generation functional fat created by upcycling the surplus skim milk powder, which is a growing issue in Japan, starting from July 2026. This product is a B2B (business-to-business) offering targeted at confectionery, bakery, and industrial fat manufacturers facing severe butter price hikes and shortages. Based on verification by public institutions, it presents the industry with a "new option" that maintains physical properties (ease of handling and functionality) equivalent to natural butter while reducing procurement costs by 20-30% compared to conventional butter. For product details, materials, and sample requests, please inquire through our official website (https://redesign.co.jp/). [Social Background: The Skim Milk Powder Stockpile Problem and Structural Burden on the Industry] Producing 1kg of butter requires approximately 23kg of raw milk. A structural challenge arises from the large accumulation of "skim milk powder" remaining after the milk fat is extracted. According to the 2026 fiscal year supply and demand outlook by the Japan Dairy Association (J-Milk) and the Ministry of Agriculture, Forestry and Fisheries, even with various demand-and-supply easing measures, the year-end inventory of skim milk powder is projected to reach 83,300 tons (a 19.8% increase year-on-year). J-Milk itself has issued a strong warning, stating, "If the current trend continues, inventory levels will further increase in the next fiscal year and beyond." The severity of this problem is evident in the structure that imposes a perpetual financial burden on the entire dairy farming and milk industry. J-Milk established the "Special Project for Dairy Industry Supply-Demand Fluctuation Measures" starting in fiscal year 2025, mandating a contribution of 15 sen per 1kg of raw milk from all domestic dairy farmers and milk manufacturers. The aim is to create a fund of 15.5 billion yen over seven years until fiscal year 2031. An enormous cost of approximately 2.2 billion yen annually continues to be spent on "surplus disposal" such as diversion to feed, exports, and replacement with imported goods. "Re:Butter" transforms this surplus skim milk powder not merely as a "disposal cost" but as a "raw material for high-value-added products." Through its unique formulation (patent pending), it achieves an upcycling rate of 74%. The model constructed is a demand-side structural solution where increased consumption of "Re:Butter" alleviates the domestic inventory problem. Selecting this product directly contributes to the maintenance and support of Japan's dairy supply chain. [Product Features: A New Material Beyond a Butter "Substitute"] "Re:Butter" has been developed with the highest priority on practicality for bakery, confectionery, and industrial use. Its "physical properties equivalent to natural butter," verified by public institutions, allow for its introduction without significant changes to existing manufacturing equipment or recipes. Furthermore, it possesses excellent nutritional characteristics that meet modern clean label (safety and security) and health-conscious needs. High Sustainability: 74% Upcycling Rate Professional Operability: Equivalent physical properties compared to butter (can be replaced in existing recipes) Healthy Formulation: - Calories: Approx. 18% lower than butter (610 kcal/100g) - Fat: Approx. 26% less than butter (60.0g/100g) - Protein: Approx. 6 times that of butter (3.8g/100g) - Salt Equivalent: Approx. 66% less than butter (0.64g/100g) - Can be labeled as Trans Fat Free High Safety: No additives (Clean label compliant) Storage Method: Refrigerated (Long-term frozen storage also possible) *Butter comparison values are based on the Standard Tables of Food Composition in Japan (2020 Edition, 8th Revision). [Sales and Introduction] Sales Start Date: Sequential supply to begin from July 2026 Target Sales: Confectionery and bakery companies nationwide, hotel and restaurant chains, etc. Sample Request: Companies interested can contact us via the special page on the official website of Re Design Inc. (https://redesign.co.jp/contact.html). [Future Development: Promotion of the "Circular Design" Concept] Starting with the sales of "Re:Butter," Re Design Inc. will expand collaborative partnerships with the confectionery and bakery industries. Centered on creating new demand for surplus skim milk powder, the company will promote the "Circular Design" concept, aiming to redesign Japan's entire dairy supply chain. In the future, Re Design Inc. plans to extend its proprietary application technologies to other surplus milk ingredients and by-products beyond skim milk powder, establishing a sustainable business model that transforms food "waste (unutilized resources)" into "another possibility (value-added products)." [Company Overview] Re Design Inc. Representative: Naoki Nakajima, Representative Director Head Office Location: TWIN21 MID TOWER 35F, 2-1-61 Shiromi, Chuo-ku, Osaka 540-6135, Japan Business Activities: Development and manufacturing of next-generation functional fats, etc. URL: https://redesign.co.jp/ Contact: contact@redesign.co.jp