From Backpacks to School Lunches and Field Trips... Middle East Oil Price Surge Sparks Crisis for Japanese Schools
Rising Education Costs Due to Naphtha Shortage
Packaging and Airfare Also See Successive Increases
The surge in oil prices and instability in naphtha supply caused by worsening conditions in the Middle East are now affecting the Japanese education sector. The impact is being felt across a range of areas, from elementary school backpacks known as randoseru, to packaging for school lunch supplies, and even to the costs of school trips.
On June 1, Yonhap News, citing the Asahi Shimbun, reported that rising crude oil prices and naphtha supply shortages due to the deteriorating Middle East situation are affecting Japanese schools.
Naphtha is a basic raw material for petrochemical products and is used to manufacture synthetic fibers, plastics, and packaging materials. As a result, the effects are spreading from randoseru—the backpacks used by Japanese elementary school students—to bread packaging for school lunches and even to school trips that use air travel.
Concerns have been raised that randoseru made from synthetic leather may be affected. The products currently on sale were manufactured using raw materials secured before the escalation in the Middle East, but items intended for next year’s incoming students may be subject to naphtha shortages and rising production costs.
In fact, Clare, a manufacturer of synthetic leather used in randoseru, raised its product prices as of April 1, after the prices of polyester and nylon—both derived from naphtha—rose.
School Lunch Packaging and Field Trip Costs Rising in Tandem
The school lunch sector is no exception. Companies supplying bread for school lunches are facing higher prices for bread packaging made from naphtha.
The Miyagi School Lunch Bread Cooperative, which supplies bread to around 500 public elementary and middle schools in Miyagi Prefecture, stated that the price of bread packaging has increased by 30% to 50% compared to before. Buyers have even hinted at the possibility of further price hikes, adding to the burden.
There are also concerns that the supply of packaging pouches or containers used for noodles and desserts could be disrupted. The Japanese government is reportedly closely monitoring the supply of food containers and packaging materials and is discussing countermeasures with related industries.
The rise in oil prices is also affecting school trip expenses. As airlines increase their fuel surcharges, it is expected that the burden will grow not only for overseas school trips but also for domestic trips within Japan. The Asahi Shimbun reported that, as travel costs have become higher than initially expected, some schools have even collected additional fees from parents to cover school trip expenses.
Food Price Hikes Continue... Broader Inflationary Pressure
Food prices are continuing to rise due to higher oil and raw material costs. Previously, on May 29, NHK reported that, as a result of rising international oil prices stemming from instability in the Middle East, prices for more than 1,000 food items in Japan are expected to increase this month alone. According to a survey by private credit research firm Teikoku Databank, out of 195 major food manufacturers, the number of items scheduled for price hikes next month reached 1,078.
The most frequently cited reason for price increases was the rise in raw material costs at 97.7%, followed by logistics costs at 74.1%, and packaging/material costs at 73.7%. In addition, 22.7% of companies identified the Middle East situation as a factor for the price hikes.
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The increase in oil prices originating from the Middle East is spreading to raw materials, packaging, and logistics costs overall, making it likely that the cost burden on Japanese schools will persist for the foreseeable future.
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