Latest news with #ShinjiroKoizumi
Japan Times
9 hours ago
- Business
- Japan Times
Varied sales channels may have triggered rice price surge
The diversification of rice sales channels may have contributed to the surge in prices of the staple since last summer, according to a survey released by the agriculture ministry Wednesday. The amount of 2024 rice shipped from producers to major buyers dealing with farmers fell by 340,000 metric tons from the previous year, while shipments through other channels, such as direct sales, increased by 490,000 tons, according to estimates as of the end of June. The ministry believes that the increase in rice distributed through new channels with higher transaction prices is one of the factors behind the rice price surge. Demand for 2024 rice intended primarily for direct human consumption is estimated to reach 7.11 million tons, up by 370,000 tons from an estimate as of May, the ministry also said. The results of the survey were presented at a meeting to discuss agricultural policies. "We will reflect what was discussed in the results of the assessment" of soaring rice prices and other issues, agriculture minister Shinjiro Koizumi said. The main distribution channels for rice have traditionally been through major buyers, such as the National Federation of Agricultural Cooperative Associations, or Zen-Noh. According to the survey, producers' direct rice sales and transactions with other traders totaled 2.95 million tons, compared with 2.91 million tons through traditional channels. Milling yields of brown rice harvested in 2024 fell by 0.8% from the average for rice harvested between 2020 and 2022, according to the survey. The decrease may be attributed to factors such as high temperatures, resulting in an additional 60,000 tons of brown rice being required to maintain the same amount of polished rice.
2 days ago
- Business
Japan Average Rice Price Down for 9th Straight Week
News from Japan Economy Jul 28, 2025 20:48 (JST) Tokyo, July 28 (Jiji Press)--The average price of rice sold at some 1,000 supermarkets across Japan in the week through July 20 dropped by 4 yen from the previous week to 3,585 yen per 5 kilograms, the agriculture ministry said Monday. The average was down for the ninth straight week, though at a slower pace, because of the release of government-stockpiled rice under no-bid contracts. In the latest reporting week, 13,108 tons of such stockpiled rice was sold, bringing the cumulative sales volume to 69,777 tons. In contrast, the average price of "brand rice," which has a single origin or variety, rose by 3 yen to 4,264 yen. "We'll closely monitor overall rice prices," agriculture minister Shinjiro Koizumi told reporters. [Copyright The Jiji Press, Ltd.] Jiji Press
Yomiuri Shimbun
5 days ago
- Business
- Yomiuri Shimbun
Increased Imports of U.S. Rice Likely to Have Limited Impact in Japan; Aircraft Agreement, LNG Project May Cause Issues
The outline of the Japan-U.S. trade and investment agreement announced Wednesday by the administration of U.S. President Donald Trump included key U.S. demands such as increased imports of U.S. rice and other agricultural products and the purchase of about 100 commercial aircraft. Questions have been raised about the feasibility of some elements of the deal, such as a proposed joint project on Alaskan liquefied natural gas. Imports of U.S. rice were a major focus during the bilateral negotiations. Japan annually imports 770,000 tons of rice tariff-free under a 'minimum access' framework. Tokyo and Washington have agreed the proportion of these imports allocated to U.S. rice will be expanded by 75%. 'The total rice import quota won't increase,' Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi told reporters Thursday. 'During the negotiations, we achieved our goal of keeping the quota at its current level.' Koizumi insisted the impact of the deal on domestic rice farmers would be imported 346,000 tons of U.S.-grown rice under the minimum access framework in fiscal 2024, accounting for 45% of the quota. Boosting the U.S. share by 75% would lift the volume of tariff-free U.S. rice imports to about 600,000 tons, or almost 80% of the total. If realized, imports of rice from Thailand, Australia, China and other nations would be reduced and the framework would be heavily tilted in favor of the United States. As things stand, 670,000 tons of the rice imported under the framework is used as animal feed or for processing. If the proportion of rice set aside for these two uses stays unchanged even after imports of U.S. tariff-free rice are increased, the impact on consumers is likely to be small. Japan will also purchase $8 billion (about ¥1.2 trillion) in U.S. agricultural products including corn, soybeans and fertilizer. Japan's imports from the United States in 2024 included about ¥459.3 billion worth of corn and about ¥187.6 billion worth of soybeans. It may be challenging to increase the imports from the current level. The imported corn is expected to be used for feed as well as fuels such as bioethanol, and some in the government view achieving the increase as not difficult. 'Increasing these imports won't present any problem,' a senior Agriculture, Forestry and Fisheries Ministry official told The Yomiuri Shimbun. 100 aircraft The Trump administration also leaned on the Japanese government to purchase about 100 commercial aircraft manufactured by Boeing Co. Major Japanese airlines will be paying close attention. Airline companies have been increasing orders for aircraft as they boost international and domestic routes due to the growth in inbound tourism and other factors. In the past two years or so, three of Japan's major airlines have announced plans to purchase a total of about 100 aircraft. A large aircraft has a price tag of tens of billions of yen. Airlines must carefully consider aircraft purchases while taking into account the fact that some have a service life of about 20 years. If airlines are forced to order more aircraft than they need in the years ahead to uphold the Japan-U.S. agreement, there are concerns that profits could deteriorate. In some cases, an aircraft accident or fault can result in an airline grounding and being unable to use any of that model of aircraft while they are inspected. To mitigate this risk, airlines also possess planes made by Europe's Airbus SE and other manufacturers. However, this balance could be upset if orders become heavily skewed toward Boeing. Some observers have also pointed out that Boeing's production capacity might not be able to keep up with a surge in orders arising from the agreement. Alaska LNG project The Alaska LNG project will involve building a massive new pipeline stretching about 1,300 kilometers from the state's north down to its Pacific coast in the south. Once completed, this pipeline project is forecast to export 20 million tons of LNG per year, equivalent to 30% of Japan's annual demand. If the pipeline becomes a reality, LNG could be shipped from Alaska to Japan in about eight days, about half the time it takes LNG from the Middle East to reach Japan. This project also offers the advantage of diversifying Japan's LNG suppliers. 'The route doesn't pass through any areas with geopolitical risks,' said Yukio Kani, chair of JERA Co., Japan's largest power generation company. 'It's a fantastic concept.' The biggest challenge facing this project is the cost. The pipeline will need to navigate three mountain ranges and 800 rivers and streams, and development is projected to cost about $44 billion (about ¥6.4 trillion). One official at a major power generation company was apprehensive about the pipeline project. 'The project will need to gain the understanding of locals concerned about its impact on the environment. The risks are too high,' the official said.
AllAfrica
6 days ago
- Business
- AllAfrica
Japan's rice price controls expose US trade deal hypocrisy
While Japan was negotiating agricultural market access with the United States, Agriculture Minister Shinjiro Koizumi was busy implementing policy to abandon competitive bidding and set rice prices by government decree. This contradiction between Japan's negotiating position and its domestic policy demonstrates a dangerous erosion of crisis standards that threatens both bilateral trade relations and the principles of market capitalism and democracy. On July 22, US President Donald Trump announced a 'massive' trade agreement with Japan that committed Tokyo to open its market for agricultural products, including rice. Yet even as these negotiations were under way, Koizumi had already abandoned competitive market mechanisms. Specifically, he implemented discretionary contracts to sell government stockpiled rice at predetermined prices of around 2,000 yen (US$13.60) per 5-kilogram bag. In the short term, the Japanese government has achieved remarkable results. Stockpiled rice priced at approximately 2,000 yen per five kilograms first hit the market on May 31, 2025, with full-scale sales commencing on June 1. This was accomplished at an exceptional pace, taking only 5-6 days from the discretionary contract announcement on May 26, 2025, to actual retail availability. However, from a longer-term perspective, Koizumi's policy represents a significant setback. Koizumi justified the intervention by saying that because Japan's rice situation was in crisis, it was imperative for Japan to conduct immediate government intervention. Indeed, rice prices have surged over 98% year-on-year, but this rise represents normal market fluctuation and hardly constitutes the type of genuine emergency that would justify direct government price controls in a liberal capitalist economy. The most troubling aspect of the policy is the precedent it sets for future real crisis management. Faced with public pressure demanding government action on soaring rice prices and the challenge of governing as a minority party, the Liberal Democratic Party-led (LDP) government ignored market mechanisms and directly intervened in price-setting, signaling that political expedience trumps economic rationality. If rapid price increases justify emergency government intervention, virtually any market volatility could theoretically trigger state price controls. Bureaucrats who follow precedent-based approaches can be expected to utilize and apply this precedent going forward. Real crises would involve supply chain collapse from natural disasters, military conflicts and others. Japan's rice prices remained within typical market volatility and were never at a crisis level. What Koizumi did was a redefinition of the concept of 'crisis.' The concept of 'crisis' lacks any objective standards or criteria, allowing politicians to define it freely and arbitrarily according to their subjective and political judgments. This approach not only fails to solve the underlying issues but also creates expectations that the government will intervene whenever market outcomes prove unpopular. This policy shift exposes a contradiction in Japan's approach to trade liberalization. On the one hand, Japan promises market access to the United States to maintain a liberal capitalist economic system. On the other hand, Japan violates market mechanisms at home. This contradiction reflects Japan's unique political circumstances. Although agriculture accounts for roughly 1% of Japan's gross domestic product (GDP), agricultural regions have strong political influence. This is because of the unique electoral system advantage where rural votes carry more weight than urban votes due to vote value disparities, and the Japan Agricultural Cooperatives Group's disproportionate political power despite representing a shrinking economic sector. This dynamic results in distorted policies that put more emphasis on electoral calculations than economic efficiency. Koizumi's decision could also undermine Japan's leadership role in international relations, particularly in advocating for the maintenance of a free trade regime centered on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and similar agreements. Can Japan legitimately criticize the United States for its growing protectionist tendencies or China for its state-directed economic policies when Japan itself is implementing its own form of centralized price setting? Koizumi's political immaturity sacrificed long-term benefits for short-term gains. Indeed, television reports showed the masses rejoicing unreservedly, saying, 'We're happy that rice prices have dropped.' The international community should view Japan's rice price policy not as an isolated agricultural issue, but as a concerning challenge to market principles within the community of developed democracies. Since World War II, Japan has experienced rapid growth and achieved remarkable economic development under a democratic capitalist system. The government has traditionally adjusted rice prices through indirect incentive mechanisms, such as policies that reduce rice production. However, we now live in an age where a cabinet minister publicly announces that the government will be able to purchase rice at around 2,000 yen per five kilograms even before it reaches the market. President Trump, who has issued a succession of executive orders and implemented policies while bypassing congressional procedures, and Minister Koizumi, who released government rice stockpiles through discretionary contracts and set prices without prior Diet approval or legislative oversight, are cut from the same cloth in their disregard for democratic processes. The stakes for Japan extend far beyond agricultural policy. In an era of rising economic nationalism and skepticism about the benefits of liberal international trade, Japan's retreat from market principles when politically convenient sends precisely the wrong signal about the durability of the global economic order. Yoneyuki Sugita holds a PhD in US diplomatic history and has previously served as executive director of strategic relationships at Temple University Japan, a senior trade policy advisor at the UK Embassy in Tokyo and professor at Osaka University.
Reuters
23-07-2025
- Politics
- Reuters
Who could replace Japan's Ishiba as leader of the ruling party?
TOKYO, July 23 (Reuters) - Japan's Prime Minister Shigeru Ishiba plans to announce his resignation by the end of next month, media said on Wednesday, following a bruising defeat in an upper house election. That step would trigger a leadership race in his Liberal Democratic Party (LDP), whose winner would face a vote for prime minister in the lower house of parliament. But the party and junior coalition partner Komeito lack a majority in the chamber, which could complicate the selection. Here are the LDP lawmakers who might throw their hats in the ring: SANAE TAKAICHI, 64: A Yomiuri newspaper poll following Sunday's election showed Takaichi as the top pick for prime minister in an LDP-led government, with 26% of votes, followed by farm minister Shinjiro Koizumi, at 22%. Representing the party's right wing, she lost to Ishiba in the September leadership race in a run-off vote. Takaichi previously served as Japan's economic security minister, internal affairs minister and the LDP's policy council chief. She is known for her conservative views, such as revising the pacifist constitution, and is a regular visitor to the Yasukuni war shrine, viewed by some Asian neighbours as a symbol of past militarism. She also opposes allowing women to retain their maiden names, saying it would undermine tradition. Takaichi courted controversy in 2016 when she suggested the government could revoke broadcasting licences of media companies deemed to be politically biased. SHINJIRO KOIZUMI, 44: The son of a former prime minister and heir to a political dynasty with a hand in governing Japan for more than a century, he would become its youngest prime minister in eight decades if he succeeded Ishiba. Koizumi also ran in the last party leadership race, presenting himself as a reformer able to restore public trust in a party mired in scandal. Unlike Takaichi, who left government after her defeat in that contest, the Columbia University-educated Koizumi stayed close to Ishiba as his agriculture minister, overseeing the release of rice stockpiles in a bid to curb soaring prices of the staple. TOSHIMITSU MOTEGI, 69: A former foreign minister, Motegi has a reputation as a tough negotiator and handled talks with U.S. Trade Representative Robert Lighthizer when President Donald Trump was last in office. He has also served as trade minister, economy minister and the party's secretary general. He studied at the Harvard Kennedy School and worked at the Yomiuri newspaper and consulting firm McKinsey before entering politics in 1993. Other potential candidates include Chief Cabinet Secretary Yoshimasa Hayashi, 64, and Finance Minister Katsunobu Kato, 69.
