News On Japan

Tomato Price Surge Sends Shockwaves Through Food Industry

TOKYO - Following last year's "Egg Shock," there is now concern over the recent price increases of tomato products such as ketchup and whole tomatoes, with the term "Tomato Shock" being used by some in the restaurant industry to describe the new reality.

At a traditional Western-style restaurant in Tokyo, a popular dish made with plenty of ketchup is being prepared. The dish is omurice (omelet rice), with the ketchup's sweet and sour taste being a key flavor.

Customer: "The acidity of the ketchup is just right, and it's delicious."

"It's like the old Western-style restaurants, where simple is best."

Other dishes, such as Napolitan (spaghetti with ketchup) and hamburg steak with demi-glace sauce, also use ketchup. The restaurant uses about 10 kilograms of ketchup per day. However...

Kasahara Masahiro, Manager of Restaurant Shiratsuyu: "The purchasing price has been gradually increasing, and it's becoming quite difficult. If ketchup prices keep rising we're headed for a 'Tomato Shock.'"

In a supermarket in Tokyo, the impact on retail prices is already evident.

Gomi Mamoru, President of Super Izumi: "Products related to tomatoes are expensive. Most of them have gone up. This has never happened before."

This supermarket has raised the retail price of tomato ketchup by about 30 yen compared to last year, and the price of canned tomatoes by about 40 yen.

Several manufacturers have also announced price increases. Kagome has raised the price of household tomato ketchup by up to 16.4% and tomato juice by up to 13.6% from the February delivery. Kikkoman Foods will raise the price of Del Monte brand tomato ketchup and other products by about 7-15% from the April delivery, and sauces containing tomato as an ingredient will also see a price increase of about 5%.

The price increase of tomato products, which are indispensable to our diets, is significant. According to Teikoku Databank, about 160 items of "processed tomato products" have seen price increases this month alone.

Why are price increases happening at this time?

Fujii Shun, Director of Information Coordination Department, Teikoku Databank: "Most of the tomatoes used for processing, over 90%, are imported. The quality of the imported tomatoes was poor, and there was a low yield."

We heard from people on the street. We met a couple who both love ketchup.

Husband: "I love ketchup so much that I can eat it on its own. I usually pour it thick on my omurice."

They use up two bottles a month, but...

Husband: "It's putting pressure on the household budget. It's frustrating..."

At the supermarket...

Customer: "I buy the advertised products when they're on sale."

"I heard that the prices are going up, so I thought I'd buy a little extra than usual."

How far will the price increase of tomato products spread?

Source: NNN

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