The Ministry of Agriculture, Forestry and Fisheries has announced that the price at which the government sells imported wheat to flour milling companies will be reduced by 0.6% starting next month.
This is the second consecutive period of reduction in selling prices.
More than 80% of the wheat consumed in Japan is imported from countries such as North America and Australia, and in order to ensure a stable supply, the government procures it in bulk and then sells it to flour milling companies.
Prices are reviewed every six months in April and October, and according to the announcement, the selling price of wheat from next month onwards will be 67,810 yen per ton, the average of the five main brands, which is the same as the price for the previous six months. Compared to this, it is reduced by 0.6%.
This is the second consecutive reduction since last October.
The selling price of wheat was 76,750 yen per ton for the six months up to September last year, which is the lowest ever, due to poor harvests in North America, the main production area, and concerns about supply due to Russia's invasion of Ukraine. The best has been updated.
However, since then, the international price of wheat has fallen below the level before the invasion of Ukraine due to factors such as a bumper harvest in the United States, and has now been reduced further.
Regarding the impact of the price revision on foods made from wheat such as bread, the Ministry of Agriculture, Forestry and Fisheries says, ``The reduction will be small and there will not be any major changes in food prices.''