Disruptions linked to the Middle East conflict are affecting Japan's food distribution structure, with concerns extending beyond energy costs to supply chain inputs. If instability around the Strait of Hormuz continues, pressure on the supply of consumer goods may increase.
According to Sankei Shimbun, "The unstable crude oil supply situation is spreading into unexpected areas," with bananas cited as an example. Japan depends on imports for bananas, which are shipped unripe and ripened domestically.
The ripening process depends on ethylene gas, which is produced using naphtha derived from crude oil. Disruptions in naphtha supply could delay ripening and affect distribution. Industry sources indicate that the limited availability of naphtha may also delay shipments.
The impact may extend beyond bananas to other imported fruit requiring post-ripening, including kiwifruit and avocados, raising the possibility of wider supply constraints in the fruit market.
Japan maintains oil reserves, but market concerns suggest that supply uncertainty may influence behaviour more than physical stock levels.
If crude oil prices continue to increase, businesses and consumers may move to secure supplies in advance. This could lead to increased volatility in distribution, regardless of actual availability.
Source: The Asia Business Daily
