TOKYO –
The rapid depreciation of the yen is driving up the cost of imported beef and other foods, prompting some restaurants and supermarkets to shift their focus toward domestic products as the price gap narrows.
At a steak restaurant in Tokyo, sizzling cuts of beef served on hot iron plates have long been a lunchtime source of energy for office workers. “I’ll do my best at work this afternoon,” one customer said. Another said, “I think it’s fine to enjoy a little luxury once in a while.”
But Beef Up Tokyo, which mainly uses U.S. beef, has been hit hard by the yen’s sharp decline. “To be honest, the situation is extremely tough,” said Koji Yamashita, the restaurant’s representative. “Prices have risen by about 200 yen to 500 yen per kilogram.”
For the restaurant’s 1,480 yen steak rice box, which uses about 150 grams of rib roast, procurement costs have risen by around 30 yen over the past year. For its 1,500 yen skirt steak, costs are said to have increased by about 60 yen.
The restaurant has tried to respond by shortening business hours and narrowing the types of meat it purchases in order to buy at slightly lower prices, but Yamashita said there is little more it can do.
One option now under consideration is adding value by using wagyu instead of relying on imported beef. With the price gap between imported and domestic beef shrinking, the restaurant is considering using domestic beef even for lunch items.
The yen fell sharply last week, touching the 161.80 yen range against the dollar on Friday, approaching its weakest level in about 39 and a half years.
The rise in imported beef prices has shown no sign of stopping. For beef chuck roll, the wholesale price of U.S. beef was 1,698 yen per kilogram in April last year, but climbed to 2,258 yen in April this year, an increase of more than 30%. Popular cuts such as skirt steak and tongue have also risen by about 20% over the past year.
Consumers are feeling the strain at supermarkets as well. “It is becoming something out of reach,” one shopper said.
At one supermarket, U.S. beef prices are said to have risen by around 50% compared with a year earlier. Imported beef used to occupy more space in the meat section, but there are now days when domestic beef accounts for a larger share.
“Domestic beef is also expensive, but its increase has not been as steep as overseas meat,” said Satoshi Tsuruta, department manager at Super Celcio Wadamachi. “I think offering more domestic meat is ultimately the best option for customers.”
The wave of price increases weighing on household budgets is likely to continue spreading gradually.
Source: TBS
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