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Japan to keep imported wheat price unchanged despite inflation

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Subsidising food on a “temporary” basis never ends well and all too often never ends. It ends up distorting the market with consequent unintended results. Nota good long term solution.

The solution to high prices is high prices!

-5 ( +9 / -14 )

Sensible short-term solution. Since they set prices twice a year they can easily adjust the price depending on the current conditions. This is a good example of a govt using its tools to fulfill its mission to help the people lead a stable life.

-1 ( +8 / -9 )

That's interesting. The Conbini across the street has jacked up the price of bread by over 10% already.

Is that price rise related to some other reason?

5 ( +7 / -2 )

""Japan, which depends on overseas producers for about 80 percent of its domestic wheat consumption""

Start growing your own wheat and you will have almost nothing to worry about, I am beginning to see some farmers increasing the size of wheat fields but more needs to be grown and I think in the coming years we will start seeing that as prices continue to rise.

4 ( +9 / -5 )

Japan needs to raise it's interest rate to stop the freefall of the yen, otherwise the price of everything imported will continue to skyrocket. One has to wonder why Japan is currently determined to devalue its own currency. Incompetence, or a cunning plan?

7 ( +11 / -4 )

Complete and utter baloney. The world price of wheat has dropped significantly, around 30% since the beginning of May. It has nothing to do with any action the Japanese government has taken or will take.

7 ( +11 / -4 )

“Subsidising food on a “temporary” basis never ends well and all too often never ends.”

This makes no sense.

2 ( +6 / -4 )

@Mark It is like saying Norway should start growing its own pineapples.

Not all wheat is the same. Quality matters. The climate in Japan is absolutely not suited for growing high quality, high protein wheat used in pan breads.

-1 ( +4 / -5 )

So, if Japan can keep imported wheat prices down, why can't or don't they keep all imported food and drink prices down? Prices for imported everything is taxed so freakin high that most people cannot afford them. I know, I know... It's to protect local farmers and businesses.

3 ( +5 / -2 )

I assume these purchases were made through futures contracts. Too bad, as global wheat prices have been falling since spring, and I guess the government bought much of its wheat at peak prices.

Someone along the value chain will pay for this. I expect that in the end, it will be the Japanese taxpayer. LOL.

One has to wonder why Japan is currently determined to devalue its own currency.

It's more of a case of other countries central banks raising the value of their currencies, because they had to hike their int. rates to tame their inflation, which is much higher than Japan's.

-3 ( +2 / -5 )

 The world price of wheat has dropped significantly, around 30% since the beginning of May.

It only dropped 8% and that is because the deal between Ukraine and Russia to resume wheat exports no one expects that to last given that the wheat produce in Europe is being hit because of the drought.

-5 ( +2 / -7 )

Japan needs to raise it's interest rate to stop the freefall of the yen, otherwise the price of everything imported will continue to skyrocket

inflation in Japan is 2.0 and in the USA it is 10% and UK its 15.5%

-5 ( +2 / -7 )

If Japan was one of the friendly nations, they could get cheap wheat from Russia.

-8 ( +4 / -12 )

@JeffLee It is Japan don't assume common logic. Wheat is purchased by tenders issued by MAFF and then MAFF adds a "mark up," otherwise know as a tax.

1 ( +2 / -1 )

Mark,where will they grow it in Fukushima

-6 ( +0 / -6 )

I buy 25 kg bags of wheat flour. In the spring I bought a bag of Hokkaido wheat. Sometimes, I buy Canadian but the Hokkaido is better for my needs. It is all about price and quality.

0 ( +1 / -1 )

Wallace,I bought some coconut flour for 2.25 a pound ,wheat flour cost about 50 cent a pound

-2 ( +0 / -2 )

englisc aspyrgendToday  06:46 am JST

Subsidising food on a “temporary” basis never ends well and all too often never ends. 

Totally agree. Any kind of intervention by the state in the market by subsidizing the prices never ends well.

As the government doesn't have its own money someone needs to pay for that "temporary" subsidy and guess what it will come from TAX hikes.

3 ( +4 / -1 )

Great!

…. so…. Putin is going to pick up the tab for this, right?

….

-2 ( +1 / -3 )

ok .

1 ( +1 / -0 )

We can always switch back to eating rice i guess. That is what a market is for. You have a choice to choose another food.

3 ( +3 / -0 )

@Yrral,

Where are you buying such cheap flour?

The local Indian store I go to in Tokyo charges me ¥700 for 2kg of wheat flour!

0 ( +0 / -0 )

Kinda weird how "sustaining grain prices" and "230 disposable cups" can be in a single headline. the goal, guys, is ZERO! How hard is it to bring your mug to 7-11?!

2 ( +2 / -0 )

Looking at the wheat WW prices, less taxed sounds to me more correct than subsidized.

1 ( +1 / -0 )

How about, instead of subsidising rice field owners not to grow rice and subsidise them to grow wheat.

0 ( +2 / -2 )

The global prices of wheat and corn fell as more grain ships leave Ukraine ports to bring supplies onto world markets.

https://www.irishexaminer.com/business/economy/arid-40935953.html

2 ( +3 / -1 )

The government controlling supply and prices, who said the Japan is not a socialist country?

0 ( +1 / -1 )

Tokyo-gaijin

How about, instead of subsidising rice field owners not to grow rice and subsidise them to grow wheat

How about not subsidising anything, stop protecting small inefficient, uneconomic farmers for vote buying reasons and allow the market to do its job.

Small uneconomic units will be combined in to large economic farms where mechanisation, economies of scale and labour efficiency will lead to an enormous jump in productivity, reduction in prices to the consumer and a country/society wide benefit.

2 ( +3 / -1 )

Okay downvoters, get ready.

Cereals grow best in areas that have a temperature range between 3C and 27C and are dry, in that there is not a lot of rain; cool dry climates. Outside of Hokkaido, there is virtually nowhere in Japan that can produce high quality bread wheats with high protein, high extraction rates, high gluten strength, high test weight, good hardness, low alpha amylase, low fungal infections, low ash, and other desirable milling and baking characteristics.

There is a long list of specs that both bakers and millers need to produce quality flour for bread.

The climate in Japan is not suitable no matter how much you may wish it was and how much money you throw at farmers.

5 ( +5 / -0 )

80% of the wheat used here is imported.

2 ( +2 / -0 )

Buy wheat from Ukraine. We are said to have a good harvest this year, despite the war the regions where i could be grown made their best to plant as much as possible and the wheather’s been really fine overall, no higher than 33C mostrly around 27-30. Lots of sun. So the wheat gonna be plenty and of great quality. Our bread is always very tasty.

0 ( +1 / -1 )

Japan buys over 95% of their total wheat requirements from only three markets. Japanese wheat imports are dominated by the US (2.8 million tonnes, 50% of total Japanese imports), Canada (1.7 million tonnes, 31% total) and Australia (890 thousand tonnes, 16% total).

1 ( +1 / -0 )

@Yuuju

Ukraine wheat, besides often having phytosanitary concerns, averages around 12% protein which is on the low end to be desirable for quality pan bread. Ukrainian wheat, all Black Sea wheats, are a discount product not desirable for Japan where consumers expect a premium product. Low income countries buy Black Sea wheat.

0 ( +0 / -0 )

painkiller

I did some reading and then posted an update and correction.

1 ( +1 / -0 )

Proxy,

well, it may be low protein but we, Ukrainian, been eating it all our lives and been able to defend against huge russian army :) and our bread is tasty. Not sure how is bread in Japan but our bread is tasty and Im sure lots of Japanese would love to buy a cheaper bread which is still very tasty, not premium though.

1 ( +1 / -0 )

Taki Mata,

no. What about it?

0 ( +0 / -0 )

Proxy,

well if its not about bread we have plenty of other products which are in many placed organic(sold by local farmers straight to people on the market), fruits, cherries, berries, cottage cheese which im sure is very rare in Japan if existent, BUTTER, our region has a great quality milk-butter-cheese producer whose butter tastes like a cow if you know what i mean, in a good sense, you feel the creams of a village cow, and we have rabbits, turkey, tomatoes, potatoes, carrots, onions from local grandmas, and we have condensed boiled sweet milk, and we have cows and pigs and goats, and tons of SALO)))) and other very interesting products which you surely should be envious of;)

1 ( +1 / -0 )

Complete and utter baloney. The world price of wheat has dropped significantly, around 30% since the beginning of May. It has nothing to do with any action the Japanese government has taken or will take.

Good point.

-1 ( +1 / -2 )

Taki Mata,

oh rye! Thats my fav kind of bread. We have a 100%rye bread here that i always buy. Its moist and dense inside with a hard roasty outside... its a pity i cant attach a photo. Even my cat who is super spoilt eats this bread! If i could id send you one to taste, its great. Watching jdramas i got an impression Japanese only like white fluffy bread but dark crusty rye bread is much better in my opinion.

0 ( +1 / -1 )

Taki Mata,

https://images.app.goo.gl/xxV1F3QYpss8UM4s7

-1 ( +0 / -1 )

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