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The Mainichi
2 days ago
- Business
- The Mainichi
Japan ministry surveys find no rice distribution bottleneck as cause for high prices
TOKYO -- A series of six surveys conducted by the Ministry of Agriculture, Forestry and Fisheries to examine the causes of the surge in rice prices have found no evidence of a "bottleneck in distribution" that the government had previously cited as a primary factor. With branded rice prices remaining high, the ministry is investigating the possibility that demand for the staple exceeded expectations, disrupting the supply-demand balance. The six surveys included an investigation of rice shipments, sales and inventory volumes of approximately 70,000 businesses across Japan registered with the government; interviews with retailers, food service businesses, ready-to-eat meal providers and food processors about distribution conditions; and a survey on milling yield rates. On the morning of July 30, the ministry reported the findings to its food subcommittee including experts. The inventory survey, which targeted all businesses, was the first of its kind since the current rice distribution system began in 2004. It found that as of the end of June this year, inventory levels at Japan Agricultural Cooperatives (JA) and other collectors, retailers, and ready-to-eat and other food service businesses were all "about the same as the previous year." Wholesalers had 100,000 metric tons more inventory than 2024, partly due to the addition of government reserve rice, which was released into the Japanese market in large quantities through discretionary contracts. The discounted government rice began appearing in stores at the end of May, and its release may have contributed to the reduction of excess inventory. However, branded rice remains expensive, with store prices still in the 4,000-yen range (about $27) for 5 kilograms. Initially, the ministry believed there was a distribution bottleneck caused by wholesalers holding onto inventory, but the causal relationship between this and price surges appears weak. The Japanese government decided in January to release reserve rice through open competitive bidding to resolve what it saw as a distribution bottleneck. However, officials are now investigating the possibility that the surge in prices may not be due to distribution getting "stuck," as former farm minister Taku Eto suggested, but rather due to rice demand growing significantly beyond government expectations coupled with high temperatures affecting brown rice quality, resulting in reduced supply after milling. The agriculture ministry has deemed it necessary to revise the supply-demand outlook for rice. It has accordingly postponed the release of the demand forecast for staple rice for the coming year, which it normally puts out in late July. As a reference figure, the demand for the year ending this June was reported to be 7.11 million metric tons. As of the end of June, private sector inventory levels (including reserve rice) stood at 1.57 million tons, indicating rice stock is hovering at a significantly lower level than the 1.8-million- to 2-million-ton industry standard under which no shortages are perceived.
Indian Express
3 days ago
- Lifestyle
- Indian Express
Matcha-ing the demand: Why supplies of the popular Japanese green tea can't keep up
Matcha was once unknown outside Japan, where the powdered green tea was traditionally prepared by whisking it with hot water, as part of meticulously done tea ceremonies. However, over the last few years, and especially in recent months on social media, it has snowballed into a full-blown lifestyle trend at a global scale. As matcha makes its way into cafes and restaurants, brewed into lattes and baked into cakes and cookies, the demand for the core ingredient has surged. What has driven the hype to the point that the Japanese tea industry and farmers are now struggling to keep up? And why can't more matcha be produced quickly? We explain. Matcha's popularity has been driven by multiple phenomena, including wellness influencers who swear by its health benefits, and the rising interest in Japanese culture thanks to anime shows and manga comics. It's also been compared to other recent trendy items, such as Labubu dolls and Dubai chocolate, which suddenly blew up for no particular reason, involved somewhat costly products, and are seen as part of a social media-driven wave. However, matcha also has detractors who are put off by its earthy taste, often criticised as 'grassy'. Still, data from Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) shows that exports of Japanese green tea (including matcha) grew by 40 per cent in terms of quantity between 2020 and 2024. It also led to a 55 per cent rise in value, from 16.2 billion yen ($109 million) in 2020 to 36.4 billion yen ($245 million) in 2024. Specifically, matcha production also grew threefold between 2010 and 2023 amid increasing demand. Around half of the matcha produced in Japan is exported, according to The Japan Times. Matcha is derived from Camellia Sinensis, a plant native to East Asia, Southeast Asia and parts of the Indian subcontinent, used to produce a variety of caffeine teas. However, matcha is distinct in how it is cultivated, harvested and processed. The tea leaves are grown partly in shade, resulting in increased production of chlorophyll. It lends a green pigment to leaves and is the reason why matcha has a brighter, greener appearance. The leaves are then plucked, steamed and dried, called tencha at this stage. When tencha is ground into powder, it becomes matcha. The grinding process was earlier done by hand at home, but now involves specialised mills. What explains the shortage? Japan has been unable to keep up with the demands of the global matcha market, expected to grow to about $5 billion by 2028. The industry has reported delays in meeting orders, leaving warehouses and vendors with empty shelves. Leading matcha sellers like Ippodo and Marukyu Koyamaen have also flagged shortages. In July, Ippodo stated, 'To get our matchas to as many customers as possible, we've temporarily limited both the varieties and quantities available.' Similarly, Marukyu Koyamaen's website states that due to the 'unexpected high volume of orders', matcha products will be available in limited quantities. Essentially, matcha was never meant for mass production. It is the result of a seasonal, slow-moving and labour-intensive process that cannot keep up with the speed of global consumption. A part of the current crisis is due to the decline in farming households in Japan. A recent MAFF report flagged the decline in cultivation area. Between 2008 and 2023, the cultivation area reduced from 48,000 hectares to 36,000, and the number of farming households decreased from 46,000 to just 20,000. The report attributes this decline to the 'lack of successors to producers', which can be linked to Japan's declining fertility rates in recent decades, and also notes 'labour shortage' during peak seasons. Low domestic demand for green tea has also resulted in farmers diversifying their crops in the past. Add to this the sweltering summers that Japan has been experiencing for the past two years, with last year marking the hottest summer on record. The heat destroyed crops, resulting in lower tencha yields this April-May harvest season. However, an increase in production would not solve the crisis immediately. Ippodo, which has been in the green tea business since 1717, explained that tea plants take over five years to mature before they can be harvested. Moreover, tencha leaves are also hand-picked, after which they require a resting period for quality preservation — a process that's both time-consuming and labour-intensive. Even the grinding of tencha into matcha is a gradual process. According to The Japan Times, a machine can only grind about 40 grams of matcha per hour. What happens now? The Japanese government has stepped in to help its local tea growers meet the demand and encouraged other farmers to switch over to tea production. The government also intends to lease agricultural machinery to save labour and reduce costs, as per the MAFF report. Suppliers, meanwhile, are looking to procure matcha from other countries like China and South Korea, which also grow the plant, but do not meet Japan's quality standards. Sonal Gupta is a senior sub-editor on the news desk. She writes feature stories and explainers on a wide range of topics from art and culture to international affairs. She also curates the Morning Expresso, a daily briefing of top stories of the day, which won gold in the 'best newsletter' category at the WAN-IFRA South Asian Digital Media Awards 2023. She also edits our newly-launched pop culture section, Fresh Take. ... Read More
Yomiuri Shimbun
7 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.
The Star
05-07-2025
- Business
- The Star
King of fruits: China welcomes Cambodian durian exports
A worker ties up durians at a plantation in Kampong Cham province. - Photo: Supplied PHNOM PENH: Cambodia can now officially export fresh durians to the Chinese market. On Friday (July 4) evening, the Ministry of Agriculture, Forestry and Fisheries announced that final permission had been granted by the General Administration of Customs of China (GACC), in accordance with a protocol signed by both parties on April 17. 'The decision was made after the GACC evaluated and approved the registration applications of 112 durian plantations and 30 packing facilities, which met the Good Agricultural Practices (GAP) standards, phytosanitary requirements and Chinese food safety standards,' explained a ministry statement. The ministry advised growers and other stakeholders to ensure the quality and sustainability of export fruit, and called on all farm owners and packing facility operators to comply with the protocol's conditions — free from harmful contaminants, pesticide residues or banned chemicals. It encouraged other farm and packing facility owners who wish to export durian to submit registration applications to the ministry's General Directorate of Agriculture. According to the Ministry of Commerce, durian is the ninth Cambodian agricultural product which is licensed for export to China. It follows rice, broken rice, dried cassava chips, corn, bananas, mangoes, longans, and peppers. 'This is a fruitful achievement born from the strong cooperation between Cambodia and China,' added the agriculture ministry. - The Phnom Penh Post/ANN
San Francisco Chronicle
30-06-2025
- Business
- San Francisco Chronicle
China lifts a nearly 2-year ban on seafood from Japan over Fukushima wastewater
BEIJING (AP) — China has reopened its market to seafood from Japan after a nearly two-year ban over the discharge of slightly radioactive wastewater from the tsunami-destroyed Fukushima nuclear power plant. A notice from the customs agency said the ban had been lifted Sunday and that imports from much of Japan would be resumed. The ban, imposed in August 2023, was a major blow to Japan's scallop and sea cucumber exporters. China was the biggest overseas market for Japanese seafood. The decision to lift the ban coincides with efforts by China and Japan to improve ties as both face economic uncertainty because of the American tariffs imposed by President Donald Trump. 'This is a major turning point for Japan, which sees seafood as an important source of exports,' said Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi. The nuclear plant at Fukushima was heavily damaged by a deadly tsunami that followed a huge offshore earthquake in 2011. Water still must be pumped in to cool the radioactive fuel. The water is then stored in what was an ever-growing complex of tanks on the property. After years of debate, the utility won Japanese government permission to discharge the water gradually into the sea after treating it to remove most of the radioactive elements and diluting it with seawater. Japanese officials said the wastewater would be safer than international standards and have negligible environmental impact. China disagreed and imposed a ban, saying the discharge would endanger the fishing industry and coastal communities on its east coast. China still opposes the wastewater discharge, but based on scientific evidence and analysis, it is allowing imports on a conditional basis from parts of Japan that meet China's standards, Foreign Ministry spokesperson Mao Ning said. A ban remains in place for seafood from 10 of Japan's 47 prefectures, including Fukushima and nearby ones. Japanese seafood exporters will have to reapply for registration in China and all imports will have to include a health certificate, a certificate of compliance for radioactive substance testing and a certificate of origin, the Chinese customs agency said. He said it was unclear how quickly scallop and sea cucumber exporters would return to China, because they had sought out other markets since the ban. But he predicted sales of sea cucumbers, a prized delicacy in China, would recover to a certain degree.
