Japan’s agricultural sector faces new challenges

A closer look at Niigata, Japan’s main rice producing region, reveals more problems facing the rice industry.

Foreign demand increases pressure on rice shortages

Abnormal weather patterns have negatively affected crop yields. Last year’s extreme heat led to a decline in rice quality, resulting in reduced supply and higher prices. The problem is compounded by increasing demand from foreign visitors.

Mētele announcer Hana Komatsuzaki reports: “Most of the seats here are occupied, and many of the customers are from abroad.”

A French tourist noted: “Rice balls are cheaper here than in France.”

Meanwhile, an American visitor said: “I found this place by searching for ‘best rice balls in the area’. I could eat this every day!”

There are more than 40 different types of rice balls available, but it is noticeable that almost half of the customers are foreigners.

Mētele announcer Hana Komatsuzaki added: “Delicious! The rice is so fluffy that it barely holds together.”

Eiji Kimoto, Managing Director of Togoshiya Shibuya Dogenzaka Store, commented: “The cost of rice and seaweed, our two main ingredients, has increased by about 1.2 times compared to last year. If the purchasing costs continue to rise, we may be forced to make difficult decisions.”

Kimoto also said the store has already implemented two price increases, in December last year and April this year. Another increase may be inevitable this fall.

Rice shortages persist despite government guarantees

Despite the ongoing shortages, the Ministry of Agriculture, Forestry and Fisheries continues to maintain that “although inventory levels have declined, the balance between supply and demand remains intact.” But is there enough inventory to meet demand?

In Niigata, a region known as Japan’s largest rice producer, the situation is being closely monitored.

Koyoshi Ueno of JA Echigo Joetsu’s Sales Department said: “Take a look at the warehouse. As you can see, the rice stored here remains as inventory.”

The warehouse is full of rice from the 2023 harvest, which is still in storage. Although rumors of low inventory levels have been circulating, JA Echigo Joetsu assures that the rice needed for a stable supply has been secured.

Kenji Iwasaki, director of JA Echigo Joetsu, confirmed: “The amount we are storing is typical for this time of year.”

He added: “Contrary to rumours, we have not seen a significant drop in inventory levels this year. The information from the ministry is accurate and I encourage a calm and measured response.”

Concerns over new rice harvest and labor shortages

As the new rice harvest approaches, farmers are optimistic about this year’s yield.

Rice farmer Takeo Takimoto, 74, commented: “This year’s harvest looks promising, with good water supply and favorable weather conditions. I expect a yield 1.2 times higher than last year.”

However, Takimoto was also concerned about rising costs.

“Fertilizer and fuel prices have gone up, but rice prices haven’t changed much. The government needs to balance farm gate prices with what consumers can afford,” Takimoto said.

JA Echigo Joetsu reports that advances to farmers for new rice increased by about 22% compared to last year, indicating a possible increase in rice prices.

Despite the positive outlook, Takimoto is concerned about the future of the sector.

“I want to tell young people that farming is hard but rewarding, but I can’t say that if I can’t pay them a decent wage. The government needs to address these fundamental issues,” Takimoto concluded.

Source: ANNE