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Japan’s long-standing efforts to protect domestic farmers from outside competition, including limiting imports of foreign rice
Here’s the why in case anyone is wondering. It’s not a global issue.
Was gonna say… Every local store near me has literal pallets of rice available.
Maybe they should have had a plan B for situations like this. It’s great to take care of your own, but this is a perfect example as to why you can’t put all your eggs into one basket.
Self-inflicted crisis
Not quite, because the reason they don’t want to buy from overseas is because they’ve had three decades trapped in a deflation crisis. So every time they buy anything from overseas it shows the weak buying power of the Japanese yen (which is a product of the deflationary “lost years”).
…so there’s a unique economic context for why they’re acting this way.
Deflation makes currency stronger, not weaker. That’s part of the issue with it when it comes to a domestic economy, because it means this start becoming drastically cheaper over time, but it’s only a problem if people keep waiting for prices to drop. It also devalues stocks, so large corporations don’t like it either, and if you have a lot of money, it’s not as competitive anymore locally with the average person’s money either. Landlords also lose out because real estate value stalls (btw this is part of the reason for why Japan’s mega cities exist - deflation has made it so nearly everyone can afford to live in the main city rather than needing to spread out to cheaper areas because inflation causes rent prices to increase via real estate value also increasing).
Buying overseas helps prevent deflation, but Japan has a protectionism type economy in general. Currency reserves from other countries buying exports heavily is what keeps things stable.
In the rice case, it’s purely to protect the local rice economy because deflation has made the yen strong, and allowing cheaper rice from a country with a weaker currency would make local rice unable to ever have the hopes of competing for any profit whatsoever, probably not even at break-even.
There’s a lot of out of date info in there making your conclusions a bit innacurate. The yen is super weak right now, compared to USD and EUR especially.
Rice grown in California should not be cheaper than rice grown in Japan, just purely based on a currency analysis. Almost all other domestic foods in Japan are much cheaper in real terms than in California.
A huge currency reserve of Japan is the dollar, which is why there’s now some economic instability, as the dollar has lost a lot of value due to Trump’s market manipulation.
It doesn’t mean the yen is weak, it means the commodities markets will be in flux, as that’s what things tend to fall back onto when things like these happen.
It’s also why cheap rice specifically has a shortage, and why Japan has found itself in a catch 22 for the importation of rice. What they could do is go from importation restriction to tariffed but allowed if they want to increase the rice supply and stabilize the price of domestic rice. But that would require some flexible legal framework that’s hard to write because you can’t keep rice imports opened now while deflation is still strong without killing most domestic production. Best solution is to allow import from somewhere where rice isn’t as cheap but still competitive, plus a very small temporary tariff that could over time be dissolved slowly, in my opinion at least.
There’s a whole lot of cascading effects happening right now because of the unstable US economic policy and much of the world having their currency either pegged to the US dollar or having it as a primary currency reserve. Some major economies like the EU are benefitting, but the closer the economic ties are to US the worse the effects are.
The yen was weak last year as well. It’s not Trump’s doing.
Protectionism. Louisiana makes plenty of rice.
Rice grown in former plantation states tends to be very high in arsenic, a holdover from the cotton-growing days.
For US-grown rice, my understanding is that California-grown is much safer to consume.
Yeah, but that’s all for local gumbo production, oh and Zataran’s.
/s
Clarification: They are queuing for cheap rice.
I can go to any supermarket in my city and buy rice. I just have to be willing to pay four times what I’m used to for it. It is getting harder to find supermarkets still selling 10kg bags because those things are approaching ¥10,000.
Japan has had a more severe shortage of potato chips than this.
for cheap rice
But isn’t this just the definition of a shortage? The thing becomes scarce and so what IS available becomes incredibly expensive? I don’t see the differentiation you are trying to make. Wild price inflation happens when there is in fact not enough of the thing to go around.
Oh so it’s only poor people who are struggling. Not to worry then. Back to it lads.
That’s 22lbs for $69. Yikes
Isn’t it not just cheap rice, but cheap Japanese rice? People in Asia are very particular about rice. They should be, rice from Japan, China, Cambodia, Taiwan, etc. all have a different taste. Nationalism plays in to it, but they are different. I think rice might be the ultimate Terroir crop.
Not just Asia, Italians and Spaniards are also quite particular about rice.
Look, I’m not particular about rice, but if I see long rice on the risotto, what I’ll do isn’t even covered in the Geneva conventions.
…that’s exactly what I mean. All the broken bits and pieces get shipped to Germany to make Milchreis because it really doesn’t matter what the grains look like if you’re soaking them to smithereens anyway. Into pudding, that is. Which you should totally try on a cold day: Dump into sweetened milk (vanilla if you want), quick boil, 30-40 minutes of soaking at falling/low heat, add cinnamon, maybe some coarse raw sugar for texture variation, eat as-is or with apple sauce.
Only got Jasmin or such at home and still crave the stuff? Well, prepare it. Nothing’s stopping you.
10000 yen is 60 EUR.
Or 69 freedom buckaroos for 22 pounds of rice
Equivalent to ~48 toonies (96 CAD) for those of us up in cobra chicken land
cobra chicken
I’ve never heard them called that before, but it’s so perfect. I call them little dinosaurs, because if you piss one off, it becomes very clear that they are descended from terrifying ancient beasts.
Cobra chicken is a new one to me! Very fitting. 🤣
That’s insane to think about. I usually buy a 20 lb bag of Thai Jasmine rice for a little over $20 her in the US. I think I would seriously break down and cry if I had to pay almost $70.
1kg bags in Germany cost 2.50 Euro for Jasmin, 3 for Basmati. One Euro for cheap parboiled. All discounter store brand. Risotto 2 Euro, that stuff is grown in Italy.
…10kg prices are practically identical, or better put if you shop at a place than sells 10kg bags suddenly the 1kg bags are expensive.
Did I mention they have massive tariffs on foreign rice specifically so it doesn’t outcompete more expensive Japanese rice?
I get Calrose Rice from Costco $14.00/25 lbs.
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Nice.
rice
Baby
under pressure
No one cares about American terms anymore.
Seems like you need more freedom.
That is wild! In Denmark I buy rice for 15 kr (~2€) / kg. Granted, it’s probably nowhere near the quality of Japanese rice. But still, what a price difference.
Setting aside the rice shortage, the Japanese government has laws in place to keep rice prices high for… I have no idea why. A big part of the shortage is that blowing up in their faces.
I’m guessing it’s to protect the rice farmers, since if the price decreases enough, they’ll have to either produce other crops or do something else entirely. They’re already having enough problems with people moving to cities, so I doubt they want to create even more incentive.
Farms in Japan are likely disappearing as they are elsewhere. Attempting to protect domestic supply isn’t a bad idea. Doing it in a way that is not detrimental to the population would probably be helpful.
There has been revolutions for things like this
Omg look at their basket on wheels
AKA shopping trolleys
Hey, it’s that thing that contributed to the French revolution!
Rice shortage?
let them eat rice cakes
Staple carb. It’s supposed to be the bare minimum in cheap and regularly consumed food. After that society’s just a few missed meals away from people rioting.
Capitalism everywhere is failing
You can’t call it free market capitalism when you’re literally restricting who can and can not import rice and then getting upset at yourself for the self-inflicted starvation. This isn’t capitalism, it’s the very definition of Protectionism, and yes: closed-matket protectionists are failing everywhere, from Brexiteers to MAGA morons, to closed-market rice farmers.
This isn’t to say that unfettered Capitalism is the answer, or that all protectionist policies are bad. Any policy taken to the extreme is guilty of the real sin: not learning from the strengths and weaknesses of the systems they rail against and using them to build a more robust and functional middle ground.
Capitalism ≠ Free Market
Capitalism, by definition, is the pursuit and hoarding of wealth at all costs. This is ideologically opposed to the concept of a free market, because it will inevitably lead to captured markets and trusts.
While I agree that this particular scenario is unrelated to Capitalism as it is a matter of national protectionism, I’m simply taking umbrage with using “free market” and “capitalism” in a sentence together. Capitalism will always ultimately kill a free market.
I’m still flabbergasted by everyone still trying to hold onto a economic system designed by elites. Yall would be the 1760s worker arguing for just a few tweeks to a system not ment for the vast majority of people. Or you’re just part of the in group that benefits you more than others. Capitalism has reached its logical conclusion just like every form that came before. The sooner we accept and realize it the better.
I’m sorry he put the words “free market” into your mouth when there was none of that in your post. FWIW, Japan would be worse off if cheap rice flooded the market and eradicated domestic rice production.
Free market just means little fish can’t compete. And eventually one company will own everything. Then they’ll come back with, trade deals and regulations. But then they don’t realize that’s compromise for a system not ment for them ! I don’t have all the answers on what a new non capitalist system would look like, but it doesn’t automatically mean socialism/communism.
