Could Japan's rice crisis be easing?

Summary

Marketplace Morning Report: Could Japan's Rice Crisis Be Easing?
Release Date: June 26, 2025

In this episode of Marketplace Morning Report, hosted by David Brancaccio and reported by the BBC World Service, a range of global economic and business stories are unpacked to provide listeners with a comprehensive overview of the latest developments. Here's a detailed summary of the key discussions, insights, and conclusions from the episode.

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1. Easing of Japan's Rice Crisis

Reporter: Katie Silver
Timestamp: 01:04 - 02:56

Japan, a nation with a high per capita rice consumption, has been grappling with elevated rice prices. Recently, there’s encouraging news for Japanese consumers as the price of a 5-kilogram bag of rice has fallen to its lowest level in two months. Katie Silver reports that the national supermarket has observed signs that the rice shortage is beginning to ease.

Katie Silver [01:37]: "The price of the five kilo bag has dipped below 4,000 yen to 3,900 yen. That's about 27 USD. It's the first time we've seen it below the 4,000 yen mark since early March."

Despite this improvement, rice prices remain significantly higher—approximately double—compared to two years prior. The surge in prices was influenced by several factors:

• Targeted Pricing: Prime Minister Shigeru Shiba aimed to reduce rice prices to around 3,000 yen, holding the current 4,000 yen level accountable.

  Katie Silver [01:37]: "He is reported to have said that he wants to see prices around the 3,000 yen mark and that 4,000 quote unquote can't be right."

• Market Influences: Poor harvests in 2023, increased rice demand from tourists due to a weakened yen making Japan a more affordable destination, and the depreciation of the yen that made imported rice more expensive all contributed to the price hike.

Katie Silver notes that the most significant price increases occurred in May, marking the largest rise in over half a century.

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2. China's Summer Davos and U.S. Tariff Uncertainty

Reporters: Suranjana Tiwari & Aditi Raskina
Timestamp: 02:56 - 04:24

Business leaders in China are convening for the annual economic forum, Summer Davos, amidst growing concerns over the impending expiration of a 90-day pause on reciprocal tariffs imposed by the United States. These tariffs on goods from most countries are set to resume on July 9, adding a layer of uncertainty to global trade dynamics.

Aditi Raskina [03:25]: "He promised when he announced them back in April, 90 deals in 90 days and a complete reshaping of the global economic order. Instead, we've had just one trade deal and a whole lot of uncertainty."

The impact of U.S. tariffs has led businesses to adopt various strategies to mitigate risks. Aditi Raskina from DHL Global Forwarding highlights that many organizations have already established alternative sourcing and manufacturing options, fostering a sense of optimism despite the looming deadline.

Katie Silver [03:52]: "Most organizations have lived through the tariffs the first time around and have already created scenarios where they have alternative sourcing and manufacturing options."

However, the uncertainty persists as businesses await further developments, making the upcoming tariff expiration a focal point of the forum's discussions.

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3. Global Market Updates

Timestamp: 04:24 - 07:25

a. Defense Contractors and European Markets Defense contractors have experienced a surge in their share prices following NATO members' commitment to allocate 5% of their GDP to defense spending by 2035. Additionally, European stock markets have shown resilience, buoyed by indicators that the Israel-Iran ceasefire is holding steady.

b. Nvidia's Market Valuation Tech giant Nvidia has recently ascended to become the most valuable company globally, surpassing industry leaders Apple and Microsoft with a staggering valuation increase of $3.76 trillion.

c. Zimbabwe's Land Compensation Deal Zimbabwe is making strides towards resolving its long-standing land reform controversies. Approximately 300 former white farmers have agreed to accept compensation for land seized during initiatives that began over two decades ago. The compensation package includes 10-year bonds with annual interest payments.

Aaron Ganye [05:35]: "Although the offer could have been better, I decided that it was reasonably fair."

Yet, not all stakeholders are satisfied. Dion Taron leads over a thousand farmers who have rejected the government's offer, citing concerns over the reliability of government bonds and deeming the deal unfavorable.

Dion Taron [05:58]: "It's a terrible deal."

On the other hand, beneficiaries of the land reform, predominantly black farmers, are witnessing success. Aaron Ganye, a 25-year-old tobacco farmer, shares his positive experiences and advocates for compensations based on the value of inherited infrastructure.

Aaron Ganye [06:51]: "Yeah, I'm very happy. I think we have taken farming to another level. Now we are living a good life through farming. We are doing more than what the white guys were doing."

The situation remains delicate, with calls for compromise to ensure Zimbabwe can finally settle its land disputes and foster agricultural growth.

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4. North Korea's New Beach Resort

Reporter: Nick Qureshi
Timestamp: 07:25 - 07:52

In a surprising move, North Korea is set to open a new beach resort in Wonsan Khalma on its east coast. Spearheaded by leader Kim Jong Un, the resort aims to bolster tourism within the isolated nation. The facility boasts a four-kilometer sandy beach and accommodations capable of hosting around 20,000 guests. Scheduled to open to domestic tourists on July 1st, the resort represents North Korea's efforts to diversify its economy and attract visitors despite ongoing international sanctions.

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Conclusion

This episode of Marketplace Morning Report provides listeners with a nuanced understanding of significant economic developments across the globe—from Japan's alleviating rice crisis and China's navigation of U.S. tariff uncertainties to pivotal market movements and land reform progress in Zimbabwe. Additionally, North Korea's venture into tourism underscores shifting economic strategies in unexpected regions. These stories collectively highlight the intricate and interconnected nature of today's global economy.

Transcript

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[Nick Qureshi]

Could Japan's Rice Crisis Be Easing? Live from the UK this is the Marketplace Morning report from the BBC World Service. Hello, I'm Nick Qureshi, in for Liana Byrne. First, some good news for consumers of rice in Japan. The price of a 5 kilogram bag has dipped to its lowest level in two months. The country's national supermarket says the shortage seems to be easing. The BBC's business correspondent Katie Silver says that for a country that eats as much rice as Japan, the high price has been tough for consumers.

[Katie Silver]

It was so contentious, saw one minister having to step down after he mentioned getting free rice from constituents. So to give you an idea, prices of the five kilo bag, they've dipped below 4,000 yen to 3,900 yen. That's about 27 USD. It's the first time we've seen it below the 4,000 yen mark since early March. Much prices still elevated, in fact about double what they were two years ago. Now it's come about in part because of a target set by the Prime Minister, Shigeru Shiba. He is reported to have said that he wants to see prices around the 3,000 yen mark and that 4,000 quote unquote can't be right. He also said that he was going to take personal responsibility for the matter. And to give you an idea, we saw them rising sharply in the back half of last year. There was poor harvests in 2023. There was outsized demand from tourists. The yen was very low, which made Japan a very popular destination, normally a very expensive place to visit. And as a result of that, a lot of people in this region going on holidays in Japan buying up more of the rice. And we saw the price rise acceleration even further for the first half of this year. And it also, because of that low yen, it made it more expensive to buy rice from abroad. Now we have seen the prices significantly increase, more than doubling, for example, in May, the largest increase in over half a century.

[Nick Qureshi]

Katie Silver there. Let's go to China where business leaders are gathered for the country's annual economic forum known as the Summer Davos. Looming large, the expiry of a 90 day pause on reciprocal tariffs from the United States on goods from most of the world. They're due to come in in just under two weeks time on July 9. The BBC's Asia business correspondent Suranjana Tiwari is there and reflects on just how much uncertainty President Trump's tariffs have created.

[Aditi Raskina]

He promised when he announced them back in April, 90 deals in 90 days and a complete reshaping of the global economic order. Instead, we've had just one trade deal and a whole lot of uncertainty. For more on this, I have been speaking to the head of Retro China for DHL Global Forwarding and I asked her how businesses have been dealing with this uncertainty so far.

[Katie Silver]

You see different customers adopting different strategies. Most organizations have lived through the tariffs the first time around and have already created scenarios where they have alternative sourcing and manufacturing options. And everyone's worked out scenarios and solutions. Now people are fairly optimistic.

[Aditi Raskina]

Aditi Raskina from DHL Global Forwarding there. There's been a lot of discussions at this forum but of course the tariff deadline does loom large and businesses are waiting to see what happens going forward.

[Nick Qureshi]

Suranjana Tiwari Right, let's do some numbers. Defence contractors have seen their share prices climb after NATO members pledged to spend 5% on defense by 2035. European shares have edged higher, aided by signs that the Israel Iran ceasefire appeared to be holding. And the chip manufacturer Nvidia has once again become the most valuable company in the world. It's now worth $3.76 trillion more than Apple or Microsoft. Now Zimbabwe has moved forward with compensation payments to white farmers whose land was seized during the controversial land reform program that started more than 20 years ago. The deal has revived hopes of a final settlement. The BBC Shinghe Nyoka reports from the Zimbabwean capital Harare.

[Shingai Nyoka]

Former farmers arrive for a meeting in the capital. They are elderly. Some are using walking sticks and crutches. They are among the 300 people who have agreed to accept the government's recent offer of compensation for white owned farms seized as far back as the year 2000.

[Aaron Ganye]

Although the offer could have been better, I decided that it was reasonably fair.

[Shingai Nyoka]

Mounting medical bills and a sense of pragmatism prompted 71 year old Arthur Baiseley to accept the compromise deal.

[Aaron Ganye]

We now have to accept what's going to happen in the future. I know it's difficult for us. I believe this is the only opportunity. We can't wait another 10 years for another deal.

[Shingai Nyoka]

But not all former farmers are on board. Dion Taron is rummaging through boxes stacked on his veranda since 2008 when he was ejected from his dairy farm. He leads over a thousand farmers who have rejected the government offer of 10 year bonds and yearly interest payments.

[Nick Qureshi]

There's no guarantee that those government bonds will be honoured in any way either. There's no recourse if government doesn't honour that agreement. It's a terrible deal.

[Shingai Nyoka]

But what of the black farmers, the beneficiaries of the land reform program? South of the capital, 25 year old Aaron Ganye is grading his tobacco crop. The first years of farming were a struggle for his family. But from ploughing in every spare cent and profit, they've grown into a successful enterprise.

[Aaron Ganye]

Yeah, I'm very happy. I think we have taken farming to another level. Now we are living a good life through farming. We are doing more than what the white guys were doing.

[Shingai Nyoka]

He believes new farmers should contribute to compensation payments. But based on the value of the infrastructure they inherited. 25 years on, calm has returned to Zimbabwe's rolling farmlands. And while there's some progress, compromise will be needed on all sides in order for the country to overcome this long standing wrangle over its land.

[Nick Qureshi]

Shingai Nyoka in Harare. Finally, North Korea is opening a beach resort that its leader Kim Jong Un hopes will boost tourism in the country. Wonsan Khalma on the east coast boasts a 4 kilometer sandy beach and hotel for around 20,000 guests. The resort will open to domestic tourists the 1st of July. Thanks for listening to the Marketplace morning Report. I'm Nick Qureshi.

[Aditi Raskina]

This old house has been America's most trusted source for all things DIY and home improvement for decades. And now on the radio and on demand. I think you're breaking into this wall.

[Aaron Ganye]

Regardless, I was hoping you wouldn't say that. I need to go and get some whiskey.

[Nick Qureshi]

I think I would get the whiskey for sure.

[Aditi Raskina]

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