Rice Shortage Hits Home

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Wing Yam

Wing Yam, owner of Golden Harvest Chinese Restaurant, says the record price and worldwide shortage of rice has forced him to raise prices at his restaurant.

By Kent Erdahl

A worldwide rice shortage has triggered new buying restrictions in Sioux Falls. On Thursday, Sam's Club announced that it is limiting it's large 20 pound bags of rice to 4 per customer. The company says the restriction won't affect the average consumer.

Chinese restaurants like the Golden Harvest in Sioux Falls say they've been feeling the crunch from the rice shortage for a long time. So far it hasn't taken too much of a toll on the customer but they say their menu prices will soon go up.

"This is the new one, the new menu," says Wing Yam, owner of Golden Harvest. Yam says many entrees at the restaurant will soon go up by more than 50 cents. It's just the third time in nine years he's raised prices and he says he has no choice.

"If we don't do that, you know, we don't make money," Yam says.

The price of rice has risen by nearly 70 percent since the beginning of 2008 due to dwindling stockpiles worldwide. Walmart is reportedly restricting rice at it's Sam's Club stores based on "supply and demand issues." The company released a statement saying, "This temporary cap is intended to ensure there is plenty of rice for all our members."

Retailers like Sam's Club aren't the only ones placing limits on how much rice you can buy, so are wholesalers that sell to restaurants. A Saint Paul company that sells rice to Golden Harvest limits it's 100 pound bags of rice to five bags per business.

Those limits keep Wing Yam from stockpiling rice, making it harder for him to regulate cost.

"I think the customer they understand when they go to the Hy-Vee store, every grocery store, they know the price of everything is up too," Yam says.

The price increase at Golden Harvest isn't only because of rice. Yam says his transportation costs and the price of products like eggs are also near all time highs.

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Friday, Apr 25 at 3:56 PM tina brown wrote ...

the gas is up here sd but if you travel to other state they are lower and some small town gas stations are higher then citys i think its just away to gain more money i don't think there is a problem kinda like the lottery money i thought that was to help out schools too but i don't think that even happens its just all talk they make it sound good.....

Friday, Apr 25 at 6:52 AM J.K wrote ...

gas is up, rice shortage,flour,war spending is also going up, what's up next?

Friday, Apr 25 at 6:25 AM Wildflower wrote ...

Why is there a rice shortage worldwide? This never seems to be explained in the news media.

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