If you're planning on taking that special date out to one of Tokyo's finer dining establishments to gorge on foie gras and feast on lobster, you may have to think again. Japanese importers are keeping Western gourmet ingredients off their purchasing menu, as a return to fine dining in Europe and the U.S. pushes prices up by double digits. The higher prices come on top of already slack demand in Japan, where big events like weddings have resumed only relatively recently and wholesalers are still working their way through inventory bought before the pandemic crash. Western lobster -- which differs from the spiny lobster varieties native to Japan -- saw import prices climb 17.3% last year to 2,554 yen per kilogram, or about $22. Brisk retail demand in the U.S. and China has driven up prices in Canada, from which Japan imports the bulk of its lobster. "Chinese demand rebounded quickly from the coronavirus pandemic," said Hiroaki Tamate, head of Osaka-based trading house Nitto Shoji. But Japanese buyers have been more sparing with their purchases in light of the higher-than-expected price tag. Many companies across the country have also had existing stocks to get through. Buyers typically order all the frozen lobster they need for the year between May and June, during the peak of lobster season.
"We felt like we had a surplus during our purchasing in 2020, amid the coronavirus, and emergency declarations were still in place during negotiations in 2021," said President Hiroyuki Ishizuka of Langstar, an importer of gourmet seafood. Only after emergency decrees were lifted last fall did demand in Japan begin to pick up. Lobster consumption at hotels and restaurants rose thanks to a wave of previously postponed weddings, but because many buyers already had enough supply for the year, this did not lead to an immediate resurgence in imports. Total imports last year slid 6.7% to 1,362 tons. The price of foie gras rose 6.9% last year to 3,262 yen per kilogram, or $28, on strong demand in Europe, mainly in France. Supply shortages and demand from consumers stuck at home drove prices higher locally, according to Osaka-based importer Top Trading. "Local electricity costs, container shipping rates, packaging and labor costs are all up," said a representative at a specialized trading company. Meanwhile, the pandemic has weighed heavily on the restaurant industry, leaving distributors with abundant inventories and little need to restock. In Hungary and France, both leading exporters of foie gras, the situation grew complicated last year due to outbreaks of bird flu. According to one importer, shipments from major processors in Hungary almost completely stopped at one point.
Imports jumped fivefold in November to 64 tons as the return of events with formal dining revived demand. But the annual total came to 442 tons, up 20% from 2020 but down 40% from 2019. Truffles are costlier as well. A Japanese wholesaler cited dry summers in Italy and France that have created poor growing conditions. Even with supply diminished, demand in the Middle East, Asia and the U.S. has rebounded from 2020, lifting prices in truffle-producing regions. At Tokyo's Toyosu Market, wholesalers spent 225,000 yen ($1,949) per kilogram for black truffles in late December, up about 20% from a year earlier. Where consumer appetites will go from here is difficult to predict, as the omicron variant keeps spreading rapidly. "There's a big drop in wedding-related demand, but demand from high-end restaurants with a lot of regular customers is still holding firm," a representative at an importer said. Prices in Japan are starting to reflect this uncertainty. One wholesaler recently reverted its truffle prices to 190,000 yen per kilogram, the same level as in a normal year. "It's hard to make sales when you hike prices while demand is contracting," a representative said. "We haven't been able to turn a profit."