There’s a popular saying that goes like “problem for one; presents opportunities for another” and this appears to be true with Japan this year.
Located in East Asia, Japan is the ninth largest producer of rice in the world. Approximately 85 per cent of the 2.3 million farms in Japan plant rice every year and the food commodity forms the staple part of the Japanese diet.
However, since most of the rice produced is domestically consumed, Japan does not feature among the top 10 rice exporters of the world.
That might change this year as the Asian nation’s rice exports is growing at a pace more than 40 per cent as compared to the last year’s figure. Bad harvest in the United States of America and sharply rising prices of rice are fueling up demand for Japanese rice this time around.
Decline In Harvest In The U.S.
Major rice producing areas in the U.S. witnessed severe droughts which resulted in decline in supply of rice in 2022. The decline in production was significantly large in California, the top grower of Japonica rice in the country.
According to the U.S. Department of Agriculture (USDA), production of short and medium grain rice in the U.S. dropped by 30 per cent in 2022 as compared to 2021 to stand at 1.46 million tonnes.
The decline in harvest have also fueled retail prices of the staple in the domestic markets of the U.S.
Japan Cashing On The Opportunity
Since, U.S. rice products are priced reasonably higher than Japanese rice in the stores of the United States, Japan has started cashing on the opportunity and boost its rice exports to the U.S.
The U.S. already remains the top destination for Japanese rice, and according to the Ministry of Agriculture, Fisheries and Forestry, Japan’s rice exports to the U.S. more than doubled both in terms of value and volume.
A look at the data reveal that Japan exported 1.96-billion-yen worth of rice in the January-March period, 37 per cent more than what the Asian nation exported a year ago.
The Japan Rice and Rice Industry Export Promotion Association plans to capitalize on the opportunity and boost U.S. bound shipments by identifying and tapping into potential channels such as restaurants and e-commerce sites.
The Bottom Line
Owing to droughts in the U.S. that have led to a drop in the harvest, Japan’s rice exports are witnessing a significant rise. According to the data, Japan has exported 1.96-billion-yen worth of rice in the January-March period, 37 per cent more than what the Asian nation exported a year ago and the future prospects still looks profitable. An official of a major rice wholesaler in Japan said “we are seeing a rise in new deals to ship products to North America and Europe” and talk with the authorities reveal that efforts are on to boost U.S. bound shipments.
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