NAGOYA - As conflict in the Middle East drags on, shortages of naphtha — a key raw material used in a wide range of petroleum-based products — are beginning to affect even Japan's traditional cheap snacks, with manufacturers facing steep rises in packaging and material costs while trying to keep products affordable for children.
At a factory operated by Kyo-shin Seika in Nishi Ward, Nagoya, workers continue producing long-selling sweets such as "Sakuranbo Mochi" and "Fruits no Mori," small square-shaped chewy candies that have been popular with children for more than half a century.
"The sweet smell is noticeable even through a mask once you enter the factory," said announcer Michiya Matsumoto during a visit to the production site.
The process begins with mochi and starch syrup being kneaded together in large kettles for more than two hours to create "mochi ame," a chewy candy mixture. One batch produces around 130,000 individual pieces.
After being removed from the kettle, the candy mixture is stretched into thin sheets before being cut into the familiar bite-sized shapes.
"The yellow dough here is banana flavor," said company president Takahiro Abe while pointing to the production line.
While the rising cost of ingredients has already placed pressure on the company, the most serious burden has emerged during the packaging stage.
"This is where we turn it into the final product," Abe said. "Because of the Middle East situation, the cost of films and packaging materials has surged, creating a very difficult situation."
Although the company has managed to secure enough plastic film and printing ink to continue production, shortages of naphtha have pushed up the price of most packaging materials by more than 30%.
The impact is now being felt in the dagashi industry, known for selling inexpensive snacks that children can buy with pocket money.
"It's painful," Abe said. "We want to keep prices low enough that children can still buy various snacks for 30 or 40 yen."
However, if the situation continues for much longer, the company may have little choice but to raise prices.
The government has attempted to ease concerns over supply shortages.
Prime Minister Sanae Takaichi said on April 30th: "We had explained that supplies of chemical products derived from naphtha would last for more than six months, but we now expect supplies to continue beyond the end of the year."
The government says enough naphtha has been secured to meet domestic demand through at least the end of this year.
Even so, manufacturers say the damage has already been done.
"Prices have already gone up, and the situation remains difficult," Abe said.
Asked what support he hoped for going forward, Abe replied: "We hope for stable supplies and measures that can help keep prices under control."
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Source: CBC
