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The Great Japan Potato-Chip Crisis
- memracom 10y agoLife on an island...
- ajross 10y agoLife on an island with a historically strict protectionist food policy. There is no potato shortage, per se (per the article, I'm surely no expert). There's a shortage of potatoes from Hokkaido, and domestic consumers aren't prepared for (or allowed to) buy them from an international market. Japan isn't the only nation to do this, of course. But they're one of the worst.
- jbm 10y agoAgreed; you can also see the recent butter shortages in Japan for an example of the same issue. As for why that happens; the farmers are (were?) a huge political ally for the LDP. (The TPP was going to be a huge change for that, but alas, it won't be happening..)
- jbm 10y agoI was wrong about the TPP being completely dead. http://www.japantimes.co.jp/news/2017/04/16/national/tokyo-signals-u-turn-tpp-moves-activate-trade-pact-sans-u-s/#.WPNtOWfae00 http://www.japantimes.co.jp/news/2017/04/16/national/tokyo-s...
- mistersquid 10y agoI buy imported-from-Japan Kataage [0] potato chips at my local Nijiya market and to my taste these chips are much higher quality than, for example, Kettle brand and Frito-Lay brand potato chips. Not sure if it's due to the potatoes, but the quality is undeniably (to my taste) higher. [0] https://www.google.com/search?client=safari&rls=en&q=japan+Kataage+potato+chip&ie=UTF-8&oe=UTF-8 https://www.google.com/search?client=safari&rls=en&q=japan+K...
- pm90 10y agoI suspect that Frito Lay would possibly be capable of using higher quality ingredients/making better quality chips if the market demanded it. Perhaps you are in the minority of people who cares enough to notice the difference?
- coldtea 10y ago>Life on an island with a historically strict protectionist food policy. There is no potato shortage, per se (per the article, I'm surely no expert). There's a shortage of potatoes from Hokkaido, and domestic consumers aren't prepared for (or allowed to) buy them from an international market. Yeah, if only they gave up their autonomy and local agriculture to have more access to chips from abroad.
- TulliusCicero 10y agoIt's not just chips. Japan's generally protectionist/sheltering attitude towards businesses makes their whole economy structurally inefficient. Japan's nominal GDP per capita is like 40% lower than the US these days.
- fulafel 10y agoThere is more to life than GDP per capita.
- TulliusCicero 10y agoYes, but economic productivity is still pretty important.
- iopq 10y agoWhy is local agriculture more important than local customers?
- Larrikin 10y agoThe idea from what I gather is that the country is capable of supporting itself, and did for centuries, and shouldn't let industries wither and die for short term profit that would kill off industries that allow that ability of self support.
- coldtea 10y agoBecause being self-sufficient and having a good import/exports sheets makes you more resilient in the mid- and long-run that having all the chips that local customers demand. You can always allow for more chips whenever you really want. Reversing a damaged trade deficit or self-sustainability? Not so much, and not anywhere near as fast.
- emodendroket 10y agoI don't see it as totally outlandish to protect domestic industry at the cost of not being able to get produce as cheaply or easily as you could otherwise. It's not as though Japan is suffering from starvation.
- hkmurakami 10y agoThere are government subsidies being given to every farmer, iirc no matter how small or inefficient your operation. Given that the country is heavily in debt, it's pretty fiscally irresponsible to continue with such a handout.
- emodendroket 10y agoI'm not sure how much we can trust your vague, half-remembered understanding of Japanese farming subsidies, but it's not clear to me that the right move for a country that's been in a long slump is to start making moves that will destroy domestic industries.
- hkmurakami 10y agoOverhauling exsiting regulation that promotes small scale family farming to one that promotes larger scale, modernized farming methods with improved outputs would strengthen and bolster the domestic ag economy vs its international counterparts, not weaken them. The current handout to family farmers (many of whom produce paltry crops and own tiny parcels) and their collective lobbying efforts to continue the country's protectionist farming policies is a handout to these rent seekers and stifles the actual long term agricultural output of the country.
- tw04 10y agovs. what? Having no domestic production? And what happens if China decides to start WWIII and they face a prolonged siege with no domestic food production capabilities? Or should they leave the feeding of their entire population up to the whims of the US government? I think the last election should make obvious the folly in that line of reasoning.
- interfixus 10y agoLife on an island whose population has proven itself exceptionally, uniquely, mindblowingly capable of running af civilized society and carving out their own distinct and highly successful niche in the world, or rather on top of it. They will emerge alive from this potato calamity, trust me.
- yladiz 10y agoIt's an interesting experience seeing some shelves in 7-11 here in Tokyo partly empty due to this shortage -- outside of perishable goods like onigiri, it's pretty uncommon to see something like potato chips missing on a shelf. I wonder how long it'll take for the shortage to end, and if they'll be able to mitigate it by importing. One thing it doesn't mention in this article is that companies are pretty strict about quality of their imported goods like potatoes in Japan, probably due to the restrictions by the government, and are known for being hesitant about US potato quality, for example. For those interested in more information about the shortage, here's an analysis from the USDA Foreign Agricultural Service: https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Potatoes%20and%20Potato%20Products%20Annual_Tokyo_Japan_10-4-2016.pdf https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Potat...
- JohnJamesRambo 10y agoAre US potatoes really lower quality than Japanese ones?
- emodendroket 10y agoWithout protectionist regulation Japanese farming isn't competitive.
- dm3730 10y ago> Without protectionist regulation Japanese farming isn't competitive. Without protectionist regulation and subsidies European and American farming isn't competitive either. http://www.npr.org/templates/story/story.php?storyId=6256274 http://www.npr.org/templates/story/story.php?storyId=6256274
- emodendroket 10y agoFair enough. I just meant to say that the point of the regulation isn't necessarily just the quality of the produce.
- seunosewa 10y agoI was thinking, "this is ridiculous; why can't they just import more potatoes?" and then I found this: "She also cited regulatory hurdles, which limit the amount of imported potatoes that can be used in products, as partly responsible for the shortage." No, it is primarily responsible for the shortage.
- justinjlynn 10y agoRegulatory hurdles in the import/export market are like a person trapped in a sphere at sea. Even when you run out of drinking water inside the sphere, you still don't want the sphere to let in saltwater. It's all water but you shouldn't drink it. Your position makes sense where the sphere is floating in clean fresh drinking water. However, like an ocean is much larger than a lake, there is much more toxic crap on the market for import than there is good. Strong standards with proactive, responsive agencies make for the best public protections in imperfect markets. Whether or not this is caused by a failure there is a good question.
- chicxulub 10y agoYou'd think that in a world of dynamic scaling system resources, we'd have figured out how to scale other supply chains. Tariffs and such are a virtual constraint, designed to limit intake. Too bad that governance and enforcement is far too clunky to temporarily relax artificial limits on external foreign products, in a way that permits domestic producers to expand back into the gap that opened up during the shortage. Lots of systems exist that exhibit this sort of behavior, but international trade falls short in modeling temporary conditions to maintain alignment with changing trends and incidents. It's just hard failures and lock-downs all around.
- Pitarou 10y agoWhy do you assume that the primary purpose of the regulatory regime is to maintain high standards?
- justinjlynn 10y agoIf it is not and its primary purpose is economic protectionism, in the face of otherwise fair market competition, then I am against intervention. I did not mean to imply that was the purpose for which all those agencies are used, nor did I intend to present a black/white choice in the perception of said matter. In this case, it does appear to be a case of at least limited protectionism; however, my information and expertise here is limited.
- blitmap 10y agoMaybe we don't want potato chips anymore. http://www.bbc.com/news/world-middle-east-39613313 http://www.bbc.com/news/world-middle-east-39613313
- nmerouze 10y agoAgriculture in Japan is very under-developed. You add the import restrictions and it leads to produce being twice as expensive (if not more) than most western countries. It also means lack of variety. And organic products are rare. Shortages are a thing bound to happen. I was hoping for TPP to be accepted, but now I am just going to leave the country.
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- nemasu 10y agoMost western countries? I find the produce, especially if it's in season, is much cheaper than the produce in Canada, and it's fresher too. Food in the United States is ridiculously inexpensive.
- nmerouze 10y agoI lived in many European countries and all are cheaper. Same for the US. Canada might be an exception but the time I spent there (Vancouver), produce was cheaper than Japan (I live in Osaka).
- arkades 10y agoPrice of fresh produce in the US varies depending on where you are. In many places, using the phrase "ridiculously inexpensive" would get you laughed at and/or castigated. That said, fresh produce in the US sucks. Every European country I've visited has had notably better produce. I had a garden salad in Italy that actually made me pause and go, "Oh, these aren't supposed to be a form of self-flagellation in the name of health. These is actually delicious food." I rarely have that experience with US produce.
- laughingman2 10y agoI guess there are other people who would applaud the japanese to aim for self sufficiency in producing food instead of selling out to corporate interests of few engaging in globalized trade.
- emmelaich 10y agoIt still amazes me that potatoes and tomatoes, originally South America only, have become a food staple in just about every country since.
- erikpukinskis 10y agoChili peppers too.
- mc32 10y agoWell, there is also: Rice --domesticated in China Corn --Mexico Wheat --Middle east These are now pretty universal and are more important than either Tomatoes or Potatoes.
- michaelvoz 10y agoFertile Crescent* not Middle East. The Middle East is not really an agreed upon fixed set of places, theres a not-insigifnicant variance in how one can describe it.
- jpatokal 10y agoTrue but irrelevant, as I've yet to see a definition of either that did not include Mesopotamia/Iraq.
- _nedR 10y agoCassava too, native to South America, a staple food or costaple in much of Africa especially in drought susceptible parts like sub-Sahara. Its also quite important to many parts of Asia. Edit: the impact of the columbian exchange on the world doesnt get enough attention. (Video for columbian exchange cassava crash course world.history) https://www.youtube.com/watch?v=HQPA5oNpfM4 https://www.youtube.com/watch?v=HQPA5oNpfM4
- CaliforniaKarl 10y agoI like this part the best: > Twitter users sent encouraging tweets to Calbee, which apologized for the crunch via its official Twitter account. Props to Japanese for being encouraging, instead of negative! (And yes, I realize n=1, etc. etc.)
- dcow 10y agoThe Japanese potato-chip famine?
- ginko 10y agoSo THAT'S why there were no potato chips at Family Mart yesterday.
- rlkf 10y agoThis reminds me of the Norwegian Butter Crisis of 2011, although that one was caused by a demand-side shock from low-carb diet fads. Our condolances to the Japanese people; our hearts are with you.
- kalleboo 10y agoWhen I saw this in the news I assumed it was a PR stunt. I haven't noticed chips being sold out in my corner of Japan, and anywhere they are it could just as well be because people saw "oh chips are being sold out, I should get some".
- anon263626 10y agoPlenty in America. In fact, take most of ours and save us from some diabetes.
- Safety1stClyde 10y agoI've just been to Don Quixote and while there weren't that many bags of crisps, they hadn't completely run out of them. They also had bags of potatoes for sale. Lots of jagariko and other things which are made from potato powder, which I assume is allowed to be imported.
- tzakrajs 10y agoI picked the wrong time to visit :X between North Korea and the potato shortage, this could be rough. :D
- tzakrajs 10y agoI was just in some FamilyMarts locations and can tell you there is no sign of a potato shortage in Tokyo.
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- faragon 10y agoTL;DR: protectionism/nationalism 101: shortage because of not willing to import potatoes.
- cyphar 10y agoCan someone explain to me why Japan has an agriculture industry to begin with (though I assume the answer is WW2)? They have an incredibly high population density and are an incredibly small country -- why on earth would you want to waste land on farming? And more importantly, why would you be protectionist about that industry when it will be responsible for land shortages? Import economies are not a bad thing. In fact they are the reason the export economies can work at all.
- hokkos 10y agoWhy wouldn't you have an agriculture industry ? This is the most vital industry, moreover on a island, when you are next to China, and that country want to assert dominance on the seas. Imagine how would survive the country if China start a blockade without a minimal agriculture at subsistence level.
- cyphar 10y agoThen trade with countries other than China (there are plenty of other countries in and near Asia -- such as Australia which has a very large agricultural industry due to having so much land)? Don't get me wrong, there are certain parts of agriculture (fishing for example) that make sense for a country like Japan, but considering how much land is required to grow crops sustainably it doesn't make sense (at least to me) to make your agriculture industry an important part of your protectionist rhetoric.
- Arizhel 10y agoThe OP specifically cited a Chinese blockade in his post. How are those other countries going to get your food to you when China is actively blocking them? They'll have to start a shooting war, and in the meantime your people are suddenly starving to death.
- nihonde 10y agoHave you been to Japan? Land shortage isn't a major issue outside Tokyo. In fact, large areas of Japan are primarily farmland. The cities also have amazingly high population densities, and it is common to find vegetable patches and fruit growing right in the cities.
- pgnas 10y agoLooking at the dictionary definition of "crisis" I would not call this a "time of intense difficulty or threat of danger or a time when "important decisions must be made"unless the that decision. There are plenty of real crisis around the world, right? The Japanese should be more concerned about how a certain area ahem Fukushima, is still killing our ocean. That is a crisis.
- tzakrajs 10y agoYesterday, I was in several FamilyMart and 7i locations in Tokyo, there were lots of potato chips.