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

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