This week, we take a look at how famous seafood purveyor Kakujo Gyorui fights to provide fresh, affordable produce amid rising costs and supply shortages in Japan.
The bustling seafood market of Kakujo Gyorui in Kodaira, Tokyo, is an institution for fresh fish lovers. Known for its lively atmosphere and direct-from-market quality, the store attracts a steady stream of customers seeking premium seafood at affordable prices. However, as Japan grapples with supply shortages, inflation, and a weakening yen, the store faces an uphill battle to maintain its reputation.
Kakujo Gyorui operates 23 stores, primarily in the Kanto region, and the Kodaira branch is its busiest. The shop’s market-like ambiance is one of its biggest draws, offering customers a hands-on experience as they select from an impressive range of seafood. One satisfied shopper, brimming with excitement over her haul, shares, “It’s so tempting to just grab more and more.” Another customer marvels at the quality, saying, “Kakujo’s fish is absolutely delicious! The freshness is amazing.”
But behind the scenes, store manager Maron Kawasaki is dealing with a harsh reality. Once overflowing with fish, deliveries from Niigata Prefecture — a key supplier — have dwindled. “When I started 10 years ago, the shipments from Niigata would completely fill a truck,” he recalls. But now, a nationwide decline in fish catches has made procurement a challenge, forcing Kakujo Gyorui to rethink its sourcing strategy.
The struggle extends beyond supply shortages. Inflation and the yen’s historic depreciation have significantly raised costs. Imported silver salmon fillets, once priced at 150 yen (S$1.35) per piece, have risen to 210 yen. “Before, some customers would buy 10 pieces, but now they’ve cut down to five,” Kawasaki observes, “Compared to the past, prices have definitely gone up”. Prices of domestic fish, like sea robin, have doubled, making it difficult to keep products within an affordable range.
For Kakujo Gyorui, December is the make-or-break period, as sales double during the year-end rush. To meet demand, the company’s top-tier buyers travel across Japan in search of winter delicacies. Their journey leads them to Niigata, where the market once supplied ample quantities of fish like rosy seabass. However, as one buyer notes, ” It’s really too expensive to buy.”
In the face of declining domestic supply, Kakujo Gyorui expands its reach, visiting ports in Ishikawa, Tottori, and Hokkaido to uncover hidden seafood treasures. In Sakaiminato, they find an overlooked bounty of red snow crabs, which are mostly processed rather than sold fresh. Seeing an opportunity, Kakujo Gyorui secures a large batch, confident in its ability to sell quantities of these crustaceans.
Another breakthrough comes from Nanao City, Ishikawa, where the company turns to locally sourced cold yellowtail. The region, still recovering from a devastating earthquake, sees this partnership as a way to boost its economy. “For the year-end and New Year’s sales battle, luxury items like this are something customers look forward to every year,” says Kaname Obatake, head of the local set-net fishing fleet. Kakujo Gyorui purchases 150 freshly caught yellowtails, promoting them as a highlight of the season.
Beyond traditional procurement, the company also embraces innovative solutions. One such initiative is the introduction of locally farmed Atlantic salmon at a massive land-based aquaculture facility in Shizuoka. By shifting away from airlifting salmon from Norway, which is now more expensive with the devaluing of the yen, the company aims to stabilise prices and maintain freshness. “From now on, we’re entering the era of fully land-based aquaculture,” states a company director, underscoring the shift towards sustainability and self-sufficiency.
As the year-end sales period begins, Kodaira’s Kakujo Gyorui store buzzes with anticipation. Customers line up early to secure the best deals, and the newly sourced seafood is a hit. The fresh red snow crab, priced at an enticing 450 yen per piece, sells quickly. “This is only 450 yen? That’s cheap!” exclaims a delighted shopper. Hokkaido’s premium salmon roe, despite its higher price tag, also sees strong demand. “It might be a little pricey, but for Hokkaido fish, it’s a good deal,” says one customer. “I’ll eat this with freshly cooked rice. Simple is best.”
The excitement peaks with the arrival of Kuroshima bluefin tuna from Nagasaki, weighing over 200 kilograms. The store’s chef expertly slices the fish, offering generous portions of premium fatty tuna, which customers eagerly snap up. “I just got my bonus at work, so I’ll treat myself a little,” one shopper says with a grin.
Despite economic hardships, Kakujo Gyorui’s commitment to delivering fresh and affordable seafood remains unwavering. “Near the end of the year, it’s the time for families to gather, so they buy sushi and sashimi from us and enjoy it together,” Kawasaki shares. “For us, customer feedback is everything. It’s like our yearly report card.”
As Japan faces economic uncertainties, businesses like Kakujo Gyorui adapt and innovate, ensuring that families can still celebrate the new year with high-quality seafood on their tables.
