Food industry grapples with rise in rice prices

LOS ANGELES TIMES
Onigiri are the ultimate comfort food and perfect for summer picnics.
TOKYO >> In response to the rising price of rice, retailers, restaurant chains and food-product manufacturers are planning to raise the price of onigiri (rice balls), box lunches and processed rice products, as well as charging for extra portions of rice.
Seven-Eleven Japan Co. is gradually hiking the prices of some box lunches and onigiri. Onigiri prices will rise by up to 28 yen (about 18 cents) and box lunches up to 60 yen.
As shoppers shied away from stores due to higher prices, Seven-Eleven had made efforts in September to recover patrons by lowering the prices of some products, including fried rice. But the company reassessed its strategy less than six months later, after rice prices were expected to continue rising.
In November, major supermarket Seiyu Co. made the rare move of selling rice produced overseas, in Taiwan. The product is popular — it is cheaper than equivalent domestic rice and tastes almost identical, according to the market.
No more freebies
Unlike retailers, higher rice prices did not immediately affect food manufacturers and restaurant chains, which usually have long-term contracts for rice purchases. Nevertheless, with little sign that prices will drop, some companies have decided to raise the prices of their products.
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Nichirei Foods Inc.’s fried rice and other frozen foods will cost 10% to 30% more beginning this month.
Nissin Food Products Co. will raise the prices of its “Nissin Curry Meshi” line and other instant cup rice products by about 11% beginning April.
In September, Skylark Holdings Co. boosted the price of its rice by 30 to 55 yen at Gusto, Jonathan’s and other restaurants under its wing. Denny’s, a subsidiary of Seven & i Holdings Co., raised the price of rice on its menu in December and ended its free extra servings during breakfast and lunch hours.
Wholesale prices jumped
The rice shortage is attributed to the low quality of the 2023 rice crop, which incited hoarding of preexisting supplies and caused prices to soar. High prices continued even as rice produced in 2024 became available.
According to the Agriculture, Forestry and Fisheries Ministry, the average wholesale price per 60 kilograms of all varieties of rice produced in 2024 was 24,665 yen in December, 60% higher than the same month the previous year.
Some in the restaurant industry think there could be a switch to cheaper rice produced overseas.