Japan Faces Rice Shortages as South Korea Struggles with Surplus

Japan is currently experiencing a significant rice shortage, resulting in increased prices and a need for heightened imports. In stark contrast, South Korea is dealing with an extensive rice surplus that has led to dramatically reduced prices, with some areas effectively giving rice away. This dichotomy in rice supply dynamics raises concerns about the broader economic implications for both nations.

South Korea’s Oversupply Challenge

In Haenam, a farming town located approximately 330 kilometers south of Seoul, farmer Park Geun Sik reflects on the evolution of rice cultivation in South Korea. He recalls a time when rice was so scarce that designated no-rice days prohibited its sale. Advances in agricultural technology and high-yield rice varieties transformed the landscape, enabling South Korea to pursue self-sufficiency in rice production. As a member of the National Agricultural Cooperative Federation Nonghyup, Park benefits from a system that facilitates the purchase, drying, storage, and distribution of rice directly from farmers.

Park states, “There is never a year when we can’t sell the harvested rice. Most co-op members find it more convenient that way.” The South Korean government plays a crucial role in ensuring food security by importing rice and purchasing from local farmers. Official data indicates that from 2021 to 2024, the government acquired approximately 1.2 million tonnes of rice, valued at about USD 1.9 billion, which is stored as a buffer against potential crises.

Local authorities, such as Kim Ung Il from the Haenam County Office, confirm that the government holds about 700,000 to 800,000 tonnes of rice, representing roughly 17 to 18 percent of annual consumption, for use in emergencies. Older reserves are typically sold to processed food manufacturers, while recent harvests are distributed to low-income families at prices as low as USD 2 for a 10kg pack.

Despite these measures, farmers like Gu Gwang Seok, executive director of the Korean Peasants League in Gwangju, express frustration over stagnant prices. He notes, “Every year, we import about 13 percent of our domestic rice production. In terms of volume, that’s around 408,000 tonnes.” Farmers are now calling for the government to guarantee rice prices and reduce imports, emphasizing the challenges they face due to fluctuating market conditions.

Japan’s Rice Crisis

On the other side of the sea, Japan’s rice market is under severe strain. In April, Japan imported rice from South Korea for the first time since 1999, responding to a pressing shortage. Traditionally, rural Japanese families obtain rice through negotiations with local dealers or directly from farmers. However, supermarket shelves in Japan are increasingly barren, and prices have skyrocketed, doubling compared to the previous year. By July, the average price for a 5kg pack reached approximately USD 27, leading the government to release emergency reserves.

Despite these efforts, Japan’s stockpiles are dwindling, with only about 100,000 tonnes remaining. Japan is permitted to import 770,000 tonnes of rice annually under World Trade Organization rules, but any additional imports incur hefty tariffs of about USD 2.30 per kilogram. The private sector has begun increasing imports, with figures for May rising to approximately 10,600 tonnes, primarily from the United States, up from just 115 tonnes a year earlier.

Japanese farmer Kazuyoshi Fujimoto, who manages a 15-hectare rice farm in Kakogawa city, has been transitioning away from rice cultivation due to rising costs. He notes, “To tend to paddy fields, you need to invest in machinery. If it malfunctions, it costs 5 million to 6 million yen (approximately USD 33,700 to USD 40,400) to replace it.” Fujimoto plans to shift entirely from rice to fig cultivation.

In response to past overproduction concerns, Japan’s government has incentivized farmers to reduce rice acreage since the 1970s, aiming to maintain high prices. However, current production targets, influenced by the Japan Agricultural Cooperatives (JA), have not kept pace with demand. Fujimoto received an offer to sell his rice for at least 11,500 yen (about USD 77.50) for a 30kg bag this year, nearly double the price from the previous year.

As Japan’s rice production has plummeted from a peak of 14.45 million tonnes in 1967 to less than 7 million tonnes last year, farmers are perplexed by the sudden scarcity. Contributing factors include poor harvests due to heatwaves and the complexities of the supply chain. Analysts emphasize the need to halt further reductions in rice acreage and consolidate small-scale farms, primarily owned by aging farmers, into larger operations to improve efficiency.

Exploring Alternatives

In South Korea, farmers are beginning to adapt to these shifts in the rice market. In Haenam, growers are receiving government incentives to transition from rice cultivation to alternative crops, such as beans. Kim Jun Hyeong, a local farmer, shares that the process of growing beans is more advantageous, as it eliminates the need for pre-transplanting seedlings, a labor-intensive step in rice farming. He now dedicates half of his farmland to beans, resulting in nearly double his income.

In urban areas like Seoul, rice flour is gaining popularity as a substitute for wheat flour. Rike Bakery, a newly opened establishment, has chosen rice flour as its primary ingredient, capitalizing on its perceived health benefits. Owner Jeon Hee Ju remarks, “I think rice has a better image than wheat. So when customers hear it’s made from rice, they feel it’s healthier and more comforting to eat.”

As Japan and South Korea navigate their contrasting rice market challenges, these developments highlight the delicate balance of supply and demand in the global agricultural landscape. The future of rice production in both countries will likely hinge on government policies, consumer preferences, and the ability of farmers to adapt to changing conditions.