TOKYOMay 7 (News On Japan) – The price of seaweed, commonly used in rice balls, has risen, impacting the availability of onigiri in convenience stores.
The “Equation of Price” examines how different prices are determined in society, featuring commentator Takanao Murano of Radio Nikkei, who has written extensively about prices for The Nikkei.
Murano introduced today’s topic as “Rice Ball Concern: Poor Harvest Drives Seaweed Prices to Record Highs.” Seaweed is essential not only for sushi, but also for rice balls, which are popular both at home and in convenience stores.
How much have prices increased? Seaweed is measured in sheets of 21 cm by 19 cm. The trade takes place from November to May, also known as the ‘nori season’. The seaweed is auctioned by the fishing cooperatives or sold in bulk to processors. The average price for the current year, 2023, is approximately 21.10 yen per sheet, over 20% higher than the previous year, and is currently at an all-time high. Historically, prices hovered around 11 yen per sheet, but in 2022 they rose sharply and almost doubled in two years
As the producer price rises, it inevitably affects consumer prices. Starting in June, major manufacturers announced price increases, with Shirako increasing prices by 12% to 18%, Omoriya by 12% to 22% and Hagoromo Foods by 13.5% to 20%. The poor harvest is mainly due to two factors.
Firstly, there is the rising sea temperature. Unlike fish, seaweed cannot swim away, making it vulnerable to changes in sea conditions. Nori thrives in cold water, but in 2023 sea temperatures did not drop sufficiently, delaying the rollout of aquaculture nets by several weeks.
The second factor is red tide. In the Ariake Sea, which produces about 40% of Japan’s seaweed, red tides have increased. Red tide, caused by massive algae blooms, absorbs nutrients, depriving the seaweed of essential nutrition, leading to poor growth.
Japan’s annual seaweed consumption is between 7.5 billion and 8 billion sheets. It is currently expected that approximately 4.9 billion sheets will be harvested in 2023, compared to more than 8 billion in the past. For two consecutive years, production has not reached 5 billion sheets, which covers only about 60% of domestic consumption.
Murano visited a major seaweed producer, Shirako, which began operations near Tokyo Bay. President Harada explained that the rising cost of raw seaweed has led to a price increase. He said: “The supply situation will be challenging. Last year prices also rose, so we are announcing an average increase of around 11%.”
The price increase impacted sales, with sales falling to around 90% of last year’s levels. Harada noted, โSales prices rose 30%, but sales fell 10%.โ
Source: BIZ
