Mar 24, 2008 5:29 pm US/Pacific
Climbing Price Of Rice Shows In Stores, On Menus
The price of rice is at a 34-year high and on the rise.
Big suppliers like Thailand and Vietnam are cutting back on exports. Figi and the Philippines are seeing supplies so low, citizens are being asked to ration servings. And in the United States, consumers are seeing higher prices on everything from pet food to sushi rice.
"We have rice brand oil that we use to make our tempura crispy. This week it was at $32 and it rose to $52," said Chef Ryo Sakai of Blowfish Sushi Restaurant in San Francisco's Mission district.
Ryo said he is seeing a steady 5% increase in the price of sushi rice. It adds up for a restaurant that serves 300 pounds of rice a week in Bento box lunches and gourmet sushi.
The run on rice is due to strong demand from developing countries, top suppliers limiting exports, and farmers switching from edible rice crops to bio-fuel varieties. It's the same trend happening in the corn industry.
For businesses like Bernal Beast Pet Shop, it's just another ingredient to add to the list of food costs that continue to rise. Owner Tony Chrisanthis says bags of dog and cat food cost 5-15% more now.
"We have to adjust our prices... partly because of distributors raising the price and manufacturers with their supply and demand costs for each ingredient. Rice is one of them," said Chrisanthis.
Rice also makes a light flour for sticky Asian cakes called "mochi". Benkyodo mochi manufacturer in San Francisco says for now rice flour prices remain the same. Rice is also the main ingredient brewed in Sake.
Chef Sakai believes rising costs for sake production will hit restaurants and bars eventually.
"This could affect our Blowfish cocktail menu. We are highly dependent on it," Sakai said.
