Japan Rice Exports: Updated Dec. 13, 2023.

 

Japan rice exports up 600% over 8 years amid growing int'l 'onigiri' love

Article Source: https://www.blogger.com/blog/post/edit/2653803302921314930/4794646939365510190

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TOKYO -- Japanese rice is in high demand overseas, with exports up six-fold over an eight-year span, and the popularity of "onigiri" rice ball restaurants is one reason.

According to Japan's Ministry of Agriculture, Forestry and Fisheries, commercial rice exports rose to 16,462 metric tons in the period between January and June of this year, seeing a 29% year-on-year increase. In addition to attractive prices brought about by the weak yen, an overseas Japanese cuisine boom including a proliferation of onigiri specialty shops appears to be a major factor.

Ideas:

Japanese rice, traditionally has been one of the most protected product/commodity related to international trade. 
Its good that Japanese rice is in demand, globally, as rice consumption in Japan has been declining due the influence of western style food as maybe if global demand was not there, Japanese rice farmers might have to take/get a lower price for their rice as domestic demand keeps decreasing.

Japanese cuisine might be increasing but so is South Korean cuisine, which is being reported in the South Korean media.

The price of Japanese rice as not always had an attractive price as it was considered a luxury an exotic product on the global market.

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Quadrupled exports to some countries

By country, exports to the United States doubled while shipments to Canada quadrupled. Japan exported the most rice to Hong Kong at 5,057 tons, followed by 3,009 tons sent to the U.S., 2,477 tons to Singapore, 1,411 tons to Taiwan and 665 tons to Canada. Factors included a drought that resulted in a lean U.S. rice harvest and shrinking price differences between domestic rice and that imported from Japan.

Ideas:

Any time the weather plays havoc with aquiculture harvests, there might be a surge in prices as supply has been decreased.

So Japan has been in a good position to increase supply in the US  due to the weather situation.

But for the Asia countries, the demand for Japanese rice might just be that consumers, and restaurants, prefer Japanese rice for domestic rice.

The shrinking price difference also helps as restaurants and wholesalers can get an better price and maybe pass that on to their customers.

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Annual rice exports stood at 4,516 tons in 2014 but surged to 28,928 tons in 2022, representing growth of around 600% over eight years. In terms of value, 2022's exports were 7.38 billion yen (approx. $49 million), a 24% annual increase. The agriculture ministry analyzed that the increase in recent years is due to new demand overseas from the opening of Japanese supermarkets, restaurant chains serving Japanese cuisine, onigiri shops and more.

Ideas:

Rice again, traditionally might not have been a key export product, but in recent years, as seen above rice has become an important export product and a key variant related to Japanese food culture.

Food can be a strong cultural variant that improves the image of the country, and in this case Japanese rice seems to fit the need for that.

The increase in Japanese supermarkets and restaurants,  in major metropolitan areas, no doubt helps the image of Japanese food being a cultural asset.

Its interesting, that two countries. China and South Korea, didn't show up on the list of countries for Japanese rice exports. The reason of course is both countries also produce a lot of rice, and also rice in both countries might be tied into nationalism as maybe bringing in rice from another country, especially Japan, might not be seen favorably.

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Rapid growth of 'onigiri' specialty shops in Hong Kong

The most noteworthy of these factors is the expanding number of onigiri shops overseas. The Hong Kong chain Hanamusubi has grown to over 130 locations over the decade or so since opening its first store in January 2011. Such shops are also springing up elsewhere, such as Europe and North America.

The Onigiri Society is devoted to promoting Japanese food culture through rice balls within and beyond Japan's borders. The organization's representative director Yusuke Nakamura said, "Japanese rice is becoming a brand in places such as Hong Kong and Taiwan, and proving popular among the wealthy and at expensive Japanese restaurants."

Ideas:

Onigiri, itself, is not a luxury product or expensive product, as you can buy them at any convenience store in Japan and they have onigiri type products in South Korean convenience stores too.

But onigri is not seen that much in Japanese restaurants or even sushi or sashimi restaurants. So maybe its been turned into a luxury product served at major hotels or upscale Japanese restaurants in major metropolitan areas.

But like all thing, they might be marketed as being exotic, meaning they can bring a higher price at some Japanese restaurants or hotels overseas.

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On the other hand, Nakamura pointed out the cost of shipping Japanese rice as a hurdle for opening stores in other countries. "It will become essential for Japanese rice to compete with locally grown varieties not only in terms of quality, but price," he predicted.

Domestic demand for Japanese-grown rice has been plunging by 100,000 tons per year due to the country's declining population and other factors. In order to preserve farms' scale of production, there's a need to seek new outlets of demand both domestically and internationally.

Ideas:

The key factor is, yes, shipping can be a major challenges for anyone wanting to bring in Japanese rice as shipping costs today are much more expensive than they were before the pandemic.

And yes, Japanese rice producers have to compete against local rice producers in any country, especially Asian countries and even the US.

Also, no doubt rice consumption in Japan has been decreasing as the population keeps decreasing and at the same time, maybe the younger generations prefer western type food compared to rice, such a bread compared to rice.

Japanese rice farmers have to continue to innovate and find new markets and innovate with new types of rice to stay competitive or even to survive.

But like most countries globally the younger generations don't want to go into farming so most of the rice farmers today, in Japan, are most likely older farmers and not the younger generations.

Have a nice day and be safe!