Tabechoku Survey: 75.6% of Producers Affected by Rising Crude Oil Prices as Material Delays Deepen Pressure on Production Sites
📋 Article Processing Timeline
- 📰 Published: May 15, 2026 at 20:59
- 🔍 Collected: May 15, 2026 at 12:02
- 🤖 AI Analyzed: May 15, 2026 at 13:12 (1h 10m after Collected)
Vivid Garden Inc., operator of Tabechoku, Japan’s largest farm-direct online marketplace, conducted its second survey on current production conditions among 311 registered producers from late April to early May 2026, about two months after the closure of the Strait of Hormuz. The survey found that 75.6% of producers said their production activities had been affected, up approximately 8.9 percentage points from 66.7% in the first survey conducted in March. Producers reporting longer lead times for materials increased 3.8-fold, while reports of delays in procuring shipping materials surged 10.6-fold from March. The findings show that producers are facing a dual burden: rising production costs and the inability to receive necessary goods. Concern over business continuity if the situation drags on reached 83.9%. Vivid Garden conducted the first survey in March immediately after the Strait of Hormuz was closed. Roughly two months later, tensions around the strait remain unresolved, and domestic crude oil prices in Japan continue to stay high. As the situation, sometimes referred to as a “Reiwa-era oil shock,” becomes prolonged, the company added new survey items to understand how conditions in primary industries have changed. In March, the impact was concentrated mainly on fuel costs. By May, however, it had spread across a broader range of cost categories, including packaging materials, agricultural chemicals and production materials, and fertilizer. Price increases for packaging materials such as cardboard and film were reported by 81.4% of respondents, while 47.6% reported longer material delivery times. Producers cited stalled orders and deliveries of rice bags, including order restrictions, bans on large-volume orders, and suspension of new orders. A fisheries producer said engine oil and hydraulic oil were not coming in at all, meaning operations were continuing under the risk that a vessel breakdown could end the business. Fishing gear and fuel costs have also risen sharply. Many producers also described a pricing dilemma. Even before the crude oil price surge, they had struggled to pass rising costs on to product prices. With the current situation, some said price increases are necessary to sustain their livelihoods, yet in practice the added burden is still being absorbed at production sites. This raises concerns about declining production capacity, farmers leaving the industry, and business downsizing. Among measures currently implemented or under consideration, “considering price increases” was the most common response at 50.2%, 1.5 times higher than in March. This was followed by improving profitability at 35.0% and reviewing fertilizer use at 16.7%. Meanwhile, 30.2% said they have not yet reviewed their operating methods, indicating that a significant number of producers have not been able to take concrete action. If the situation becomes prolonged, 67.2% said they would have no choice but to consider raising prices. Others may be forced to reduce production volume or review planting and aquaculture scale. Regarding whether to pass increased costs on to selling prices, 44.1% said they plan to do so, while 13.8% said they have already done so in whole or in part, bringing total intent to pass on costs to 57.9%. However, 35.7% said they have not yet decided or do not know. The most requested support measures for business continuity were direct subsidies for fuel and power costs at 64.6%, compensation for packaging material prices at 62.7%, and compensation for production material prices such as fertilizer and feed at 60.5%. The top priority support was also direct subsidies for fuel and power costs, selected by 27.7%. Views were divided on whether the government should impose broader energy supply restrictions or power-saving requests: 42.1% said such measures are necessary, 32.8% said they are not, and 25.4% said they did not know or were neutral. Because agriculture and fisheries depend heavily on energy for production, many producers expressed concern about how general power-saving requests would align with production needs. Vivid Garden said the survey revealed that the prolonged rise in crude oil prices is having wide-ranging effects across primary industry production sites. The company will continue monitoring the situation and communicating the realities faced by producers. It can provide media with detailed data by product category and region, specific examples including manufacturer and product names of affected materials, and interviews with producers or the company.