Japan's Tofu Shops Struggle To Survive Amid Rising Costs

Many tofu shops in Japan are struggling amid higher prices for imported soybeans following Russia's invasion of Ukraine, although demand remains solid for the Japanese staple, Mainichi Japan reported.

Photo Insert: Tofu producers are finding it difficult to turn a profit as imported soybean prices have surged and they are unable to pass on the higher costs to supermarkets that often sell tofu at bargain prices.

A tofu shop run by Takashi Kurosawa in Tokyo's Minato Ward is among the around 42 percent of medium-sized and small stores that remained in the red in the fiscal year ended March, with 47 percent incurring losses in the previous year, according to a recent survey by credit research firm Teikoku Databank Ltd.

"Not only soybeans but plastic trays, (packaging) film. The price of everything has been increasing," the 53-year-old said, adding the costs of electricity and the oil necessary to make fried tofu are also rising.

Tofu, sold in supermarkets and small family-run shops, has gained attention overseas as a healthy food item that is low in fat and high in protein, Kyodo News also reported.

Although the tofu market has declined since hitting a peak of 338 billion yen ($2.5 billion) in fiscal 2016, the rate of decrease has slowed, with the market remaining above the 300 billion yen line, as more people eat at home due to the coronavirus pandemic, the report said.

Some tofu shops reported increased sales thanks to the popularity of new tofu products such as protein bars that are sold as health food products. But tofu producers are finding it difficult to turn a profit as imported soybean prices have surged and they are unable to pass on the higher costs to supermarkets that often sell tofu at bargain prices, the report said.

Affected by the war in Ukraine, a weaker yen and increased imports by China, the prices of soybeans produced overseas are estimated to have surged 30 percent in 2022 compared with a year earlier and 75 percent from 2015, Teikoku Databank said.

Despite the rising costs, the average price of tofu remained at around 60 to 70 yen per 300 grams, almost the same level as in 2015, it said.

As a result, imported soybeans now account for around 12 percent of the sales price of a block of tofu, up sharply from around 6 to 7 percent in the years through 2020, it said. The price of domestically grown soybean has also risen.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic