Rice prices have skyrocketed in this G7 nation — and citizens are lining up to buy government stockpiles, ration sales. Local farmer warns ‘everyone who eats’ that disaster could be near

In today’s developed economies, lining up to buy a staple grain may seem like a thing of the past. But in Japan, it’s become a stark reality as a rice shortage sends prices soaring.

A 5 kilogram (11 pound) bag of rice cost 4,280 yen ($40 CAD) in May 2025 — double the price from a year earlier, according to Bloomberg. The cost crisis is so bad that the Japanese government is aiming to regulate pricing to keep the cost under 3,000 yen per bag.

The surge stems from a supply crunch dating back to 2023, when a severe heat wave hit Japan’s rice harvest. The extreme temperatures not only lowered the quality of the crop but also caused a sharp decline in overall production.

In response, the government has begun releasing rice from its stockpiles. Long lines now form hours before stores open to buy stockpiled rice, with The Japan Times reporting some customers start queuing as early as 8 p.m. the night before.

According to Nikkei Asia, shelves in Tokyo have been “frequently empty” as of early July, with supermarkets rationing sales to one bag of rice per family per day.

Nobuhiko Kurosawa, a rice farmer in Yamagata, is worried about what could happen next.

“The Japanese government has already released most of its rice reserves, so if this summer turns out to be as hot as the year before last, it could be disastrous,” he told Nikkei Asia. “If we have no reserves left and the quality of the rice has deteriorated due to the extreme heat, Japan may have to import a considerable amount. The food problem is not [just] a problem for farmers, but a problem for everyone who eats.”

While Japan’s rice crisis is especially severe, it’s also part of a broader trend: Food prices around the world have been steadily climbing. From staples like grains and cooking oil to fresh produce and meat, inflation has put pressure on household budgets everywhere — not just in Japan.

In Canada, food prices have increased at double the rate of inflation, standing at a 10.4% year-over-year increase between 2023 and 2024. Food costs are expected to rise a further 3 to 5% by the end of 2025, according to Canada’s Food Price Report forecasts. This will see a family of four spending about $800 more per year on groceries. With costs rising rapidly, consumers and investors can consider the following measures to help protect their purchasing power as the cost of living rises.

Budgeting tips for consumers

With food prices getting higher, more families will need to stick to strict budgeting at the grocery store. To get the most out of a limited monthly budget, aim to:

Buy in bulk: Take advantage of flyer deals or look to buy pantry staples at bulk stores to save money on staples — rice included. Plan to use your bulk staples regularly, so that they aren’t wasted. Remember that with bulk products, the more you buy the less you spend overall. If you can, buy with a friend and split your bulk purchases to save even more money.

Comparison shop: If you’re low on cash, maximize your budget by spending more time planning your weekly shop. Take the time to notice prices in order to benchmark good deals. Sign up to receive store flyers in your inbox so you can keep tabs on typical prices.

Plan for leftovers: Stretch your food budget farther by focusing on meals that freeze well, so you can ensure that you aren’t tossing out dinnertime leftovers that won’t keep beyond a day or two.

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Real estate investments

When it comes to fighting inflation, growing your money with smart investments is the best way to get ahead. Investing in real estate has long been considered a reliable hedge against inflation, thanks to its intrinsic value and income-generating potential.

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labour and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.

Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset.

In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.” Why? Because no matter what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.

Gold investments

When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.

Its appeal is simple: Unlike fiat currencies, this precious metal can’t be printed at will by central banks. Gold is also considered the ultimate safe haven, as it’s not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.

Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, recently highlighted gold’s role in a resilient portfolio.

“People don't have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”

In just the last 12 months, the price of gold has surged by 33%.

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Farmland

The steady rise in food prices serves as a powerful reminder: No matter what happens in the economy, people still need to eat.

That’s why farmland is considered a natural hedge against inflation. As food prices climb, so does the value of the land that produces it. At the same time, farmland is a tangible, income-generating asset that isn’t directly tied to the ups and downs of financial markets.

Farmland values have been steadily increasing in Canada for more than 30 years, according to Farm Credit Canada. In 2023, values were up 11.5%, and increased a further 9.3% in 2024. Protecting farmland is also more important than ever, as Japan’s current crisis shows. Canadian investors can look to eco-friendly investment opportunities that preserve farmland and protect natural habitats, like investment projects in Ontario’s Greenbelt or organic farms in Alberta.

Sources

1. The Japan Times: Price of rice in Japan falls below ¥4,000 per 5 kilograms (June 24, 2025)

2. University of Calgary: Why is food so expensive in Canada?

3. Agri-Food Analytics Lab: Canada’s Food Price Report 2025

4. Gold Price: Gold price history

5. Farm Credit Canada: FCC Farmland Values Report