Japan auctions emergency rice reserves

Summary

Marketplace Morning Report: Japan Auctions Emergency Rice Reserves
Release Date: March 10, 2025

In this episode of the Marketplace Morning Report, host Liana Byrne delivers a comprehensive analysis of the latest global economic developments, focusing on Japan's emergency measures to stabilize rice prices, escalating tensions in the US-China trade war, significant corporate maneuvers in Japan's retail sector, the socio-economic impacts of Russia's ongoing conflict, and innovative solutions to Australia's housing crisis.

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Japan's Emergency Rice Auctions: Stabilizing Soaring Prices

Japan is taking unprecedented steps to address the alarming surge in rice prices, which have doubled over the past year. The government has initiated the auctioning of its emergency rice reserves, a move typically reserved for natural disasters. Liana Byrne introduces the issue:

Liana Byrne [01:22]: "Japan, where soaring rice prices have prompted its government to take a rare step, auctioning off its emergency reserves."

Gene MacKenzie from the BBC elaborates on the situation:

Gene MacKenzie [01:51]: "Japan stores about a million tons of rice to be used in emergencies. The last two times it's dipped into its stockpile were after natural disasters... Now, 150,000 tonnes are expected to be sold off to wholesalers in the next few days and should be in the shops by next month."

Despite this significant intervention, Mickey Bristow points out underlying structural issues:

Mickey Bristow [02:34]: "Japan is suffering like this because the government seeks to protect Japanese rice growers, ensure food security, and support rural areas. These protections make Japan susceptible to structural problems, despite record harvests in other East Asian countries."

The government's strategy aims to flood the market to curb hoarding and stabilize prices temporarily. However, the long-term solution requires addressing the protective measures that limit rice imports and create market rigidity.

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Escalation in the US-China Trade War: Retaliatory Tariffs Imposed

The US-China trade tensions have intensified as China enforces retaliatory tariffs on over $20 billion worth of US goods, primarily agricultural products. This escalation marks a significant chapter in the ongoing trade war between the world's two largest economies.

Laura Bicker from the BBC reports from Beijing:

Laura Bicker [03:30]: "The Chinese Foreign Ministry has remained defiant and vowed to fight to the bitter end of a trade war or any war with the United States. These retaliatory tariffs will hit Mr. Trump's core base in rural America."

Despite the hardened stance, China maintains a level of restraint to keep negotiation channels open:

Laura Bicker [03:50]: "Beijing is remaining restrained enough to allow some space to negotiate with Washington."

The tariffs are expected to significantly impact American farmers and rural communities, further straining the bilateral relationship and complicating international trade dynamics.

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Corporate Strategies in Japan: Seven Eleven Faces Takeover Bids

In the corporate arena, Japan's iconic convenience store chain, Seven Eleven Japan, has recently rejected takeover attempts by its Canadian rival, Alimentation Couche-Tard. Initial bids amounted to $40 billion, followed by a more substantial offer of $47 billion. However, Seven & I Holdings has shifted its strategy:

Liana Byrne [03:50]: "Seven & I Holdings says it's willing to consider selling off its stores to ease antitrust concerns, paving the way for a potential deal."

The company's announcement of a share buyback was initially seen as a defensive maneuver to repel hostile takeovers. Nonetheless, the latest openness to divestitures indicates a strategic pivot towards possible mergers or acquisitions, balancing corporate control with market competitiveness.

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"Deathonomics": The Economic Impact of Russia's Conflict on Families

The ongoing war in Ukraine has had profound effects on Russian families, extending beyond the immediate grief of losing loved ones. State compensation for fallen soldiers has inadvertently created a new socio-economic phenomenon termed "deathonomics."

Arseny Sokolov from the BBC explores this dynamic:

Arseny Sokolov [04:50]: "Andrino Zarenko was 21 when he was killed fighting for Russia. His mother, Oksana, has fulfilled his dream by opening a cozy little restaurant in his memory, funded by the state's compensation."

Economist Vladislav Asyamtsev explains the financial incentives:

Vladislav Asyamtsev [05:50]: "If someone signs up to the army and is killed, the compensations paid to the family would be a bigger sum than what the individual could earn until the end of an active life."

However, Nadezhda Nyzovkina, a lawyer and human rights defender, highlights the social stigma attached to such newfound wealth:

Nadezhda Nyzovkina [06:33]: "Many people now are scared to flaunt their wealth because showing you got rich on spilled blood means you or your relative didn't sign up out of high moral principles."

With approximately 150,000 Russian soldiers reported dead, the state's payouts have amounted to over 2% of federal expenditure in the past three years, leading families like Oksana's to use the funds for substantial investments, such as purchasing property or starting businesses. This phenomenon underscores the complex interplay between state policies, economic incentives, and social values in wartime contexts.

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Innovative Housing Solutions in Australia: 3D Printed Homes

Amidst Australia's housing affordability crisis, innovative solutions are emerging. Ahmed Mihil from Luton Construction in Melbourne is pioneering the use of 3D printing technology to create affordable homes quickly.

Liana Byrne [07:22]: "Ahmed Mihil... says the property is costing a fraction of a traditional build and will also be ready to move into in just five weeks. When it's complete, it'll be the first multi-story 3D printed building in Australia."

This breakthrough not only reduces construction costs but also significantly shortens the building timeline, offering a scalable solution to the nation's housing shortages. The project exemplifies how technological advancements can address pressing societal challenges, providing sustainable and cost-effective alternatives to conventional construction methods.

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Conclusion

Today's episode of the Marketplace Morning Report delves into critical global economic issues, from Japan's emergency measures to stabilize rice prices and the escalation of the US-China trade war, to the socio-economic ramifications of Russia's conflict and innovative housing solutions in Australia. Each segment offers insightful analysis and expert commentary, providing listeners with a nuanced understanding of the interconnectedness of global markets and socio-political dynamics.

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Notable Quotes:

• Gene MacKenzie [01:51]: "Japan stores about a million tons of rice to be used in emergencies..."
• Mickey Bristow [02:34]: "Japan is suffering like this because the government seeks to protect Japanese rice growers..."
• Laura Bicker [03:30]: "The Chinese Foreign Ministry has remained defiant and vowed to fight to the bitter end..."
• Vladislav Asyamtsev [05:50]: "The compensations paid to the family would be a bigger sum than what the individual could earn until the end of an active life."
• Nadezhda Nyzovkina [06:33]: "Many people now are scared to flaunt their wealth because showing you got rich on spilled blood means you or your relative didn't sign up out of high moral principles."

This structured and detailed summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for listeners and non-listeners alike.

Transcript

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[Liana Byrne]

Of Rice is on the Rise, Put it to auction live in the uk this is the Marketplace Morning Report from the B World Service. I'm Liana Byrne. Good morning. We begin Japan, where soaring rice prices has prompted its government to take a rare step, auctioning off its emergency reserves. You see rice prices have doubled over the past year, driven by poor harvests, panic buying and claims that some companies are stockpiling waiting for the best time to sell. The BBC's Gene MacKenzie reports.

[Gene MacKenzie]

Japan stores about a million tons of rice to be used in emergencies. The last two times it's dipped into its stockpile were after natural disasters, including the earthquake and tsunami in 2011 that damaged the Fukushima nuclear power plant. But so concerned is the government by the spiralling cost of rice that it's once again opening its vaults. By flooding the market, it hopes to stop companies hoarding their stocks. 150,000 tonnes are expected to be sold off to wholesalers in the next few days and should be in the shops by next month.

[Liana Byrne]

Month Jean Mackenzie there. So how much will the auction help? The BBC's Mickey Bristow says it will ease pressures, but that structural problems remain.

[Mickey Bristow]

If you look across East Asia, big rice growing countries and exporters like India and Thailand have recorded record harvests last year. So why is Japan suffering like this? And that's partly because the Japanese government seeks to protect Japanese rice growers, partly because of food security, to ensure they've got enough rice for themselves, and partly to support rural areas and farmers. Whilst they could import a lot of rice because they buy their own, it's very susceptible for structural problems like the ones we've seen.

[Liana Byrne]

Mickey Bristow reporting. Let's talk tariffs now. Because China's retaliatory tariffs on billions of dollars worth of US Goods have officially come into force, it marks another escalation in the trade war between the world's two largest economies. More than $20 billion worth of US products, primarily agricultural goods, will be hit. The BBC's Lore Bick in Beijing, the.

[Laura Bicker]

Chinese Foreign Ministry has remained defiant and vowed to fight to the bitter end of a trade war or any war with the United States. These retaliatory tariffs will hit Mr. Trump's core base in rural America. But so far, Beijing is remaining restrained enough to allow some space to negotiate with Washington.

[Liana Byrne]

Laura Bicker there. Now. Let's do the numbers. Last year, the Japanese owner of Seven Eleven rejected a 40 billion doll takeover bid from its Canadian rival, Alimentation Kuchtar. Just last week, there were reports it turned down an even bigger offer worth $47 billion. And the company announced a share buyback to repel a potential takeover. But now a merger may be back on the cards. Seven and I Holdings says it's willing to consider selling off its stores to ease antitrust concerns, paving the way for a potential deal. Now, Russia's war has impacted lots of families. Losing a loved one brings devastating grief. But for some Russian families, it can also bring life changing wealth. Those who sign up to fight in Ukraine earn big money in salaries and bonuses. And the Kremlin offers even greater financial rewards to families of those killed in battle. Here's the BBC's Arseny Sokolov.

[Arseny Sokolov]

Andrino Zarenko was 21 when he was killed fighting for Russia. In Ukraine, he was a qualified chief, and when he called his mother Oksana from the front, he talked of using those skills. When he got back.

[Nadezhda Nyzovkina]

He used to say, mom, let's open a cafe together. It'll be great.

[Arseny Sokolov]

Now, though she's still grieving bitterly, Aksana's fulfilled his dream. Without him, she's opened a cozy little restaurant in his memory. The business employs several people. Oksana Couldn't have started it without the compensation money from the state. The average payout is about 40 million rubles. That's nearly US$160,000. All over Russia, families of the fallen are using the money to buy property and rise up the social ladder. Economist Vladislav and Asyamtsev calls it deathonomics.

[Vladislav Asyamtsev]

If someone signs up to the army at the age of 35 from not the most wealthy Russian regions, gets the regional payment for the signature of the contract, serves there six to eight months and is killed, and all the compensations are paid for his family, it would be definitely bigger sum of money than he could earn till the end of his active life. At the age of 65.

[Liana Byrne]

You could.

[Nadezhda Nyzovkina]

Buy a whole village on the proceeds from one month.

[Arseny Sokolov]

That's lawyer and human rights defender Nadezhda Nyzovkina. She says the newly acquired compensation money isn't always very visible.

[Nadezhda Nyzovkina]

Many people now are scared to flaunt their wealth because showing you got rich on spilled blood, it means you or your relative didn't sign up out of high moral principles.

[Arseny Sokolov]

According to rough but informed estimates, 150,000 Russian soldiers have died in Ukraine. And if each of their families has actually received what they're due, that would mean the state has spent the equivalent of more than 2% of federal expenditure on such payouts over the past three years. Andrei's mother, Aksana, hasn't received her full payout yet, but her new business, paid for with the Kremlin's compensation, has given her some comfort over the loss of her son.

[Liana Byrne]

That was Arsene Sokolov reporting. And finally, as people struggle to find affordable housing in Australia, one man is 3D printing his own home. Ahmed Mihil from Luton Construction in Melbourne says the property is costing a fraction of a traditional build and will also be ready to move into in just five weeks. When it's complete, it'll be the first multi story 3D printed building in Australia. He doesn't run out of toner. I'm Liana Byrne with the Marketplace Morning Report from the BBC World Service.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to financially inclined wherever you get your podcasts.