The prolonged Russian invasion of Ukraine has led to soaring energy and raw material prices.

It has also brought record high prices to Japan, and the impact on people's lives continues.

Due to the invasion...

Energy prices and raw material prices such as grains have started to rise since 2021 due to the disruption of logistics due to the corona crisis and the recovery of demand due to the resumption of economic activities. rose.

In addition, the depreciation of the yen increased import costs, prompting food manufacturers to raise prices.



The consumer price index (CPI), which measures the price movements of goods and services consumed by households, continues to rise.

The index excluding fresh food in January marked the highest rate of increase in 41 years and 4 months.



Looking specifically at the rate of increase by item, many items were greatly affected by the prolonged invasion of Ukraine.

Wheat prices, of which Russia and Ukraine are major producers, rose, with 'wheat flour' rising 16.9% from the same month last year.



Edible oils also rose by 31.7%, according to the Ministry of Internal Affairs and Communications and the Ministry of Agriculture, Forestry and Fisheries. can be



In addition, Norwegian ``salmon'' is being transported on a flight route that avoids Russia's skies, so transportation costs have risen, and fresh seafood ``salmon'' has risen by 29.4%.

"Salmon" prices rise at sushi restaurants

A company that operates a sushi restaurant has been forced to raise the price of products that use Norwegian salmon.



A company in Chiba Prefecture operates more than 90 sushi restaurants and purchases about 200 tons of Norwegian salmon annually through a company in Kyoto.

However, due to Russia's invasion of Ukraine in February last year, we were forced to change the route of air transportation, and we raised the price of the product due to the increase in transportation costs.



Among the products using Norwegian salmon, `` Aurora Salmon '' was available for 270 yen without tax for 2 pieces per dish.

At the store, it was categorized into 6 types of plates by price, and at that time, the red plate was the 4th from the top.



However, in March last year, the price was raised to 330 yen excluding tax, and the plate changed to a silver plate that is the third highest category, the same as "Ikura Gunkan" and "Bluefin tuna upper red meat".



Furthermore, in September last year, the price was raised to 360 yen excluding tax, and the price has been revised twice, increasing by 90 yen.



A mother who was visiting with her family of four said, "My son likes salmon, so I often order it. When I check out, I feel that the overall price is going up."



Yuji Shimoko, manager of the management strategy department of Choshimaru, which operates a sushi restaurant, said, "I didn't think the impact of the invasion of Ukraine would last this long, and it's been a frustrating year. It's hard to see the future. I think the chaotic situation will continue, but I would like to make an effort to make our customers happy by making purchases that respond flexibly."

“Salmon price soaring” has led to a move to diversify purchases

As transportation costs for Norwegian salmon rise, there are moves to increase purchases from other production areas to ensure a stable supply.



A Kyoto-based company that imports agricultural and fishery products imports approximately 10,000 tons of salmon farmed in Norway annually and sells it wholesale to supermarkets and conveyor belt sushi chains.



Due to Russia's invasion of Ukraine, the route was forced to change, and the flight distance increased by 1.5 times and the transportation cost increased by about 2 times due to detours over Turkey and Central Asia.



As a result, we had no choice but to pass on the cost increase, raising the wholesale price of salmon by nearly 40% compared to before the invasion of Ukraine.



The company is striving for a stable supply and is focusing on purchasing Chilean salmon, which has lower transportation costs than Norwegian salmon, and is planning to increase it by about 3.4 times compared to last year.



Meanwhile, the company continues to do business with Ukrainian fish processors.

According to the company, cargo that is transported by air or by ship around Ukraine is not covered by insurance, so damage will not be compensated, but last year's purchases were more than doubled compared to the previous year. It is increasing, and I would like to continue supporting Ukraine through business in the future.



Naoki Kaneko, president of "Ocean Trading," said, "The volume of Norwegian salmon we wholesale is about 60% of what it was at its peak. Consumers are finding it difficult to get their hands on salmon from Chile. We are increasing our handling of salmon.We believe that the best support we can provide is to continue to do business with Ukrainian companies.When doing trade, geopolitical risks are unavoidable. We have no choice but to analyze the situation and seek risk hedging such as diversification of suppliers."

Increased use of “recycling” due to rising prices of rare metals

Russia's invasion of Ukraine led to higher prices of gold and rare metals.

As companies face the issue of restructuring supply chains (supply networks) to secure a stable supply of resources, the use of recycling to extract metals from jewelry and electronic devices is spreading.



Since the invasion of Ukraine in February last year, there have been increasing concerns about tight supply and demand for gold and other rare metals, which are produced in Russia.



▽ The futures price of gold, which is the third largest in the world, exceeded 8000 yen per gram for the first time in April last year, and it remains high. .



Under these circumstances, Asahi Pretec, a major precious metal recycling company, invested about 6 billion yen in April last year to build the largest recycling plant in Japan in Bando City, Ibaraki Prefecture.



At this factory, jewelry such as rings and necklaces are collected, and gold and palladium are recovered from these.



It is said that the metals are separated by type using special chemicals, etc., and sold after being in a state of high purity, and inquiries from trading companies and manufacturers are increasing.



In addition, there is a growing movement to avoid using Russian resources as a response to human rights risks, and sales to world-famous jewelry manufacturers are increasing.



In the nine months until December last year, this company produced 19 tons of gold, 1.6 times more than the same period last year, and 4.6 tons of palladium, an increase of 5%.



Hiroyuki Nakanishi, president of Asahi Pretec, said, "If the price of precious metals rises, consumers will be affected, so we believe that a stable supply of recycled precious metals will lead to a reduction in market prices." talking