Rice Ball Turmoil: Poor Harvest Drives Seaweed Prices to Record Highs

May 07, 2024 | News On Japan

TOKYO - The price of seaweed, commonly used in rice balls, has been rising, impacting the availability of onigiri in convenience stores.

The "Equation of Prices" examines how various prices in society are determined, featuring commentator Takanao Murano from Radio Nikkei, who has written extensively on prices for The Nikkei.

Murano introduced today's topic as "Turmoil for Rice Balls: Poor Harvest Drives Seaweed Prices to Record Highs." Seaweed is essential not only for sushi but also for rice balls, popular both at home and in convenience stores.

How much have prices increased? Seaweed is measured in sheets, 21 cm by 19 cm. Trading takes place from November to May, referred to as the "nori season." The seaweed is auctioned or sold in bulk by the fishing cooperatives to processors. The average price for the current year, 2023, is around 21.10 yen per sheet, over 20% higher than the previous year, and is currently at a record high. Historically, prices hovered around 11 yen per sheet, but in 2022, they rose sharply, nearly doubling over two years

As the producer price increases, it inevitably affects consumer prices. From June, major manufacturers have announced price hikes, with Shirako raising prices by 12% to 18%, Omoriya by 12% to 22%, and Hagoromo Foods by 13.5% to 20%. The poor harvest is primarily due to two factors.

First is the rising sea temperature. Unlike fish, seaweed cannot swim away, making it vulnerable to changes in sea conditions. Nori thrives in cold waters, but in 2023, sea temperatures did not drop sufficiently, delaying the deployment 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 tide occurrences have increased. Red tide, caused by massive algal blooms, absorbs nutrients, depriving the seaweed of essential nourishment, leading to poor growth.

Japan's annual seaweed consumption is between 7.5 billion and 8 billion sheets. Currently, around 4.9 billion sheets are expected to be harvested in 2023, down from over 8 billion in the past. For two consecutive years, production has not met 5 billion sheets, covering 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 forced a price increase. He stated, "The supply situation will be challenging. Last year, prices rose as well, so we are announcing an average increase of about 11%."

The price increase affected sales, with revenues declining to about 90% of the previous year's level. Harada remarked, "Sales prices rose 30%, but revenue fell 10%."

Source: テレ東BIZ

Typhoons No. 28 and 29 Bring High Waves to Japan's Pacific Coast

Two typhoons moving across the Pacific southeast of Japan are expected to remain well away from the Japanese mainland, but powerful swells could bring rough seas to a wide stretch of the country's Pacific coastline throughout the three-day holiday weekend, according to forecasts updated at 3 a.m. on October 10.

Cyberattacks Spread Across Japan

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's First 360-Degree Projection Mapping Opens in Osaka

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

Tokyo University Professor Wins Nobel Prize in Chemistry

Tokyo University of Science professor emeritus Kenzo Soai has been awarded this year's Nobel Prize in Chemistry together with French chemist Henri B. Kagan for discoveries that transformed scientists' understanding of how chemical reactions can favor one of two mirror-image forms of a molecule.

US Military Halts All Okinawa Operations for 48 Hours

The US military suspended activities by all forces stationed in Okinawa for 48 hours from noon on October 7, an unusual measure following the arrest of a US Marine in connection with a robbery and murder case that has renewed scrutiny of crimes involving American service members.

MEDIA CHANNELS

MORE Business NEWS

Nikkei Tumbles As AI Rally Reverses

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan's August Current Account Surplus Exceeds 4 Trillion Yen, Up 12%

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Japan's Household Spending Falls 3.1% in August, Ninth Straight Monthly Decline

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Nikkei Stalls Near 67,000 as Oil and Yen Risks Offset Financial Gains

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Cyberattacks on Japanese Companies Expose Structural Weaknesses

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan Beer Giants Raided Over Suspected Price-Fixing Cartel

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

Nikkei Falls as Profit-Taking Hits AI and Chip Shares

Tokyo stocks fell on October 7, with the Nikkei 225 closing at 70,036, down 648 points, as investors took profits in semiconductor and artificial intelligence-related shares after the index’s rapid climb above 70,000 earlier in the week.

How Japan Is Learning to Live With Years of Rising Prices

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.

< 2 3 4 5 >