Japan's Wheat Resale Price Surges Above ¥70,000 Amid Global Supply Concerns
Japan's Ministry of Agriculture, Forestry and Fisheries announced on October 9th that the average government resale price of imported wheat to flour milling companies for the period from October 2026 to March 2027 will rise by 12% to ¥70,020 per metric ton. This marks the first time in seven pricing periods since April-September 2023 that the price has crossed into the ¥70,000 range.
The resale price increase is attributed to a combination of factors including rising international prices, a weakening yen, and surging ocean freight rates and fuel costs driven by Middle East tensions. Additionally, deteriorating crop conditions due to drought in the US and the intensifying conflict between Russia and Ukraine have reignited supply concerns.
The resale price hit a record high of ¥76,750 following Russia's 2022 invasion of Ukraine but has since hovered around the ¥60,000 range. A MAFF official explained that 'wheat costs account for only a small portion of the retail price of wheat products, so the impact on consumers will be limited.'
However, food manufacturers face continued increases in raw material costs, which could lead to upward pricing pressure across a wide range of food products including bread and noodles.