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Straits Times
24-05-2025
- Business
- Straits Times
Supermarkets offering foreign-grown rice as Japan faces record prices
Mr Arata Hirano, owner of the restaurant Shokudou Arata, pours California-grown Calrose rice into a rice cooker to cook rice at his restaurant in Tokyo. PHOTO: REUTERS TOKYO - Japan's supermarket operators have been strengthening sales of cheaper, foreign-grown rice, offering another choice to consumers hit by rising prices and concerns about shortages of the country's staple food. Aeon will start selling California-sourced rice on June 6 at its stores, mainly in urban areas, at 2,894 yen ( S$26) for 4kg. Converted to the more common Japanese sales unit of 5kg, it is 3,618 yen, some 15 per cent cheaper than the average price calculated by the farm ministry of Japanese-grown rice at supermarkets nationwide in early May. The company already launched a blend of US and domestically-grown rice in April. Rival food retailers Ito-Yokado and Seiyu have also sold rice from California and Taiwan, respectively, and seen solid demand. Aeon said the decision to sell California's Calrose rice reflects consumer interest, saying they can no longer purchase rice as before due to higher prices. 'The price (of the new product) is affordable. By offering customers the freedom of choice, we hope that overall rice consumption will increase,' Aeon Executive Vice-President Mitsuko Tsuchiya said at a recent press conference. Japan imports rice either through the government, which is obliged to purchase a certain amount from other countries under World Trade Organisation arrangements, or private companies, which pay a tariff to the government. Aeon plans to acquire the rice via private import and sell some 14,000 tons over a three-month period. Less sticky and with a more neutral taste than Japanese rice, the medium Calrose variety grown in California is suited for use in risottos, pilaf, stews and soup, Aeon said. US Ambassador to Japan George Glass called the sale of the US-grown rice by Aeon 'historic' for American farmers, given Japan is a 'country that takes its rice very seriously, and it's probably the most discerning consumer when it comes to food quality'. 'Aeon has certainly gone big in its commitment to American rice and American farmers, and at a time when food prices are a concern for all Japanese, this launch couldn't come at a better time for consumers,' Mr Glass said. KYODO NEWS Join ST's Telegram channel and get the latest breaking news delivered to you.
Japan Today
26-04-2025
- Business
- Japan Today
More Japanese embracing foreign rice, even before it became a tariff topic
Arata Hirano prepares a tray of cooked California-grown Calrose rice and side dishes to serve to customers at his restaurant Shokudou Arata in Tokyo, on April 14. By Kaori Kaneko and Chang-Ran Kim When a severe rice shortage sent prices skyrocketing in Japan last year, Tokyo restaurant owner Arata Hirano did what had once seemed unthinkable: he switched to an American variety. The price of the Californian Calrose rice he buys has doubled since his first purchase last summer, but even so it's far cheaper than home-grown grains. "Unless domestic prices fall below Calrose prices, I don't plan to switch back," said Hirano, whose restaurant offers meal sets of fish, rice, soup and sides. Arata Hirano pours California-grown Calrose rice into a rice cooker at his restaurant in Tokyo. Image: REUTERS/Kim Kyung-Hoon His willingness to embrace foreign rice may presage a seismic change in mindset for Japanese businesses and consumers - one that could allow Tokyo leeway to relax some restrictions if rice becomes a thorny topic in tariff talks with U.S. President Donald Trump, who has called out Japan's high levies on its staple grain. Wholesale prices for domestic rice have surged about 70% over the past year to hit their highest levels since current records began in 2006. Crops were hit by extreme heat while a tourism boom has added to demand. Worries abound that not much will change this year. With inflation also raising the cost of living, businesses are now betting that a nation of people known for their discerning palates and pride in their staple grain is open to change. Supermarket giant Aeon last week began selling an 80-20 American-Japanese blend that's about 10% cheaper than domestic rice after a test sales-run proved a hit. Fast-food chain Matsuya and restaurant operator Colowide began serving pure American rice this year. At supermarket chain Seiyu, Taiwanese rice has been flying off the shelves since last year. It's a sharp contrast to 1993, when the Thai rice the Japanese government imported during an acute shortage was largely shunned, leaving supermarkets with piles of unsold bags. Rare shortages aside, for most of the past six decades, nearly all of Japan's so-called staple rice - which is consumed at meals as opposed to rice used for feed or ingredients in other products - has been home-grown. There hasn't been much need for imports while high tariffs, put in place to ensure Japanese self-sufficiency for its most basic food, have protected local farmers from competition. Japan limits tariff-free "minimum access" imports of staple rice to 100,000 metric tons a year, or around 1% of total consumption. The U.S. accounted for roughly 60% of that amount last fiscal year, trailed by Australia, Thailand and Taiwan. Anything above that is subject to a levy of 341 yen per kilogram. When Trump announced sweeping tariffs on much of the world this month, he lambasted Japan for what he said was a 700% tariff on rice, a reference to that levy. Japanese policymakers called his remarks on the sensitive topic "regrettable". They also dispute the 700% figure, saying it's based on outdated international rice prices. It's unclear, however, just how much - if at all - rice will be discussed in bilateral tariff negotiations that began this week. Some analysts think Trump's Republican administration might not be focused on rice as exports to Japan come from California, a Democratic-leaning state. Nor is it clear how much Japan might be willing to yield in opening up its rice market. In one sign that there might be room for some change, a panel advising the finance ministry on Tuesday proposed expanding imports of staple rice, saying that lifting the 100,000-ton tariff-free cap could help stabilize supply. That said, Prime Minister Shigeru Ishiba's Liberal Democratic Party is unlikely to risk angering farmers, traditionally a strong support base, ahead of upper house elections in July. "It's not possible to make big concessions on rice just before the elections," said Junichi Sugawara, senior fellow at Tokyo-based Owls Consulting Group. MORE IMPORTS TO COME What is clear is that supply remains an issue. In the financial year that ended in March, tariff-free imports of staple rice hit Japan's 100,000-ton cap for the first time in seven years. The amount of tariffed imports, while still tiny, also jumped, quadrupling in the first 11 months of fiscal 2024 to just under 1,500 tons. And this year, rice importer Kanematsu is shipping in its first large-scale purchase of American staple rice, 10,000 tons worth. "We're receiving many enquiries from the restaurant industry, convenience stores, supermarkets and rice wholesalers," a Kanematsu spokesperson said. In the week to April 6, Japanese supermarket rice prices hit an average of 4,214 yen ($29.65) per 5 kg, marking their 14th straight week of increase and more than double the same period a year earlier. That's despite a rare release of rice from the government's emergency stockpiles that started last month and is set to continue every month through July. As for the quality and taste of imported rice, Miki Nihei, a customer at Hirano's restaurant, Shokudou Arata, said she had no complaints and was surprised to learn it wasn't Japanese. "I had no idea," she said. "I have no qualms about eating imported rice. Prices have gone up, so I'm always looking for cheaper options." © Thomson Reuters 2025
South China Morning Post
17-04-2025
- Business
- South China Morning Post
Japan's shift to US rice as prices soar 70% may allow some leeway in Trump tariff talks
When a severe rice shortage sent prices skyrocketing in Japan last year, Tokyo restaurant owner Arata Hirano did what had once seemed unthinkable: he switched to an American variety. Advertisement The price of the Californian Calrose rice he buys has doubled since his first purchase last summer, but even so it is far cheaper than home-grown grains. 'Unless domestic prices fall below Calrose prices, I don't plan to switch back,' Hirano said. His restaurant offers meal sets of fish, rice, soup and sides. This willingness to embrace foreign rice may presage a seismic change in mindset for Japanese businesses and consumers – one that could allow Tokyo leeway to relax some restrictions if rice becomes a thorny topic in tariff talks with US President Donald Trump , who has called out Japan's high levies on its staple grain. Wholesale prices for domestic rice have surged about 70 per cent over the past year to hit their highest levels since current records began in 2006. Crops were affected by extreme heat while a tourism boom has added to demand. Worries abound that not much will change this year. Customers eat cooked California-grown Calrose rice and side dishes at Shokudou Arata, a restaurant in Tokyo, Japan, on Sunday. Photo: Reuters With inflation also raising the cost of living, businesses are now betting that a nation of people known for their discerning palates and pride in their staple grain is open to change.
Reuters
16-04-2025
- Business
- Reuters
More Japanese embracing foreign rice, even before it became a tariff topic
Item 1 of 3 Arata Hirano, owner of the restaurant Shokudou Arata, pours California-grown Calrose rice into a rice cooker to cook rice at his restaurant in Tokyo, Japan, April 14, 2025. REUTERS/Kim Kyung-Hoon [1/3] Arata Hirano, owner of the restaurant Shokudou Arata, pours California-grown Calrose rice into a rice cooker to cook rice at his restaurant in Tokyo, Japan, April 14, 2025. REUTERS/Kim Kyung-Hoon Purchase Licensing Rights, opens new tab Summary Companies Shortage has seen wholesale domestic prices hit record highs Restaurants and supermarkets keen to expand use of imported rice Trump has called out Japan's high rice tariffs TOKYO, April 17 (Reuters) - When a severe rice shortage sent prices skyrocketing in Japan last year, Tokyo restaurant owner Arata Hirano did what had once seemed unthinkable: he switched to an American variety. The price of the Californian Calrose rice he buys has doubled since his first purchase last summer, but even so it's far cheaper than home-grown grains. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. "Unless domestic prices fall below Calrose prices, I don't plan to switch back," said Hirano, whose restaurant offers meal sets of fish, rice, soup and sides. His willingness to embrace foreign rice may presage a seismic change in mindset for Japanese businesses and consumers - one that could allow Tokyo leeway to relax some restrictions if rice becomes a thorny topic in tariff talks with U.S. President Donald Trump, who has called out Japan's high levies on its staple grain. Wholesale prices for domestic rice have surged about 70% over the past year to hit their highest levels since current records began in 2006. Crops were hit by extreme heat while a tourism boom has added to demand. Worries abound that not much will change this year. With inflation also raising the cost of living, businesses are now betting that a nation of people known for their discerning palates and pride in their staple grain is open to change. Supermarket giant Aeon (8267.T), opens new tab last week began selling an 80-20 American-Japanese blend that's about 10% cheaper than domestic rice after a test sales-run proved a hit. Fast-food chain Matsuya (9887.T), opens new tab and restaurant operator Colowide (7616.T), opens new tab began serving pure American rice this year. At supermarket chain Seiyu, Taiwanese rice has been flying off the shelves since last year. It's a sharp contrast to 1993, when the Thai rice the Japanese government imported during an acute shortage was largely shunned, leaving supermarkets with piles of unsold bags. Rare shortages aside, for most of the past six decades, nearly all of Japan's so-called staple rice - which is consumed at meals as opposed to rice used for feed or ingredients in other products - has been home-grown. There hasn't been much need for imports while high tariffs, put in place to ensure Japanese self-sufficiency for its most basic food, have protected local farmers from competition. Japan limits tariff-free "minimum access" imports of staple rice to 100,000 metric tons a year, or around 1% of total consumption. The U.S. accounted for roughly 60% of that amount last fiscal year, trailed by Australia, Thailand and Taiwan. Anything above that is subject to a levy of 341 yen per kilogramme. When Trump announced sweeping tariffs on much of the world this month, he lambasted Japan for what he said was a 700% tariff on rice, a reference to that levy. Japanese policymakers called his remarks on the sensitive topic "regrettable". They also dispute the 700% figure, saying it's based on outdated international rice prices. It's unclear, however, just how much - if at all - rice will be discussed in bilateral tariff negotiations that began this week. Some analysts think Trump's Republican administration might not be focused on rice as exports to Japan come from California, a Democratic-leaning state. Nor is it clear how much Japan might be willing to yield in opening up its rice market. In one sign that there might be room for some change, a panel advising the finance ministry on Tuesday proposed expanding imports of staple rice, saying that lifting the 100,000-ton tariff-free cap could help stabilise supply. That said, Prime Minister Shigeru Ishiba's Liberal Democratic Party is unlikely to risk angering farmers, traditionally a strong support base, ahead of upper house elections in July. "It's not possible to make big concessions on rice just before the elections," said Junichi Sugawara, senior fellow at Tokyo-based Owls Consulting Group. MORE IMPORTS TO COME What is clear is that supply remains an issue. In the financial year that ended in March, tariff-free imports of staple rice hit Japan's 100,000-ton cap for the first time in seven years. The amount of tariffed imports, while still tiny, also jumped, quadrupling in the first 11 months of fiscal 2024 to just under 1,500 tons. And this year, rice importer Kanematsu (8020.T), opens new tab is shipping in its first large-scale purchase of American staple rice, 10,000 tons worth. "We're receiving many enquiries from the restaurant industry, convenience stores, supermarkets and rice wholesalers," a Kanematsu spokesperson said. In the week to April 6, Japanese supermarket rice prices hit an average of 4,214 yen ($29.65) per 5 kg, marking their 14th straight week of increase and more than double the same period a year earlier. That's despite a rare release of rice from the government's emergency stockpiles that started last month and is set to continue every month through July. As for the quality and taste of imported rice, Miki Nihei, a customer at Hirano's restaurant, Shokudou Arata, said she had no complaints and was surprised to learn it wasn't Japanese. "I had no idea," she said. "I have no qualms about eating imported rice. Prices have gone up, so I'm always looking for cheaper options." ($1 = 142.1300 yen) Reporting by Kaori Kaneko and Chang-Ran Kim; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics: Japan
