Traditional Tofu Factory Survives Against High Price of Imported Soybeans

SURABAYA, INDONESIA - MARCH 03: A worker makes tofu at a traditional tofu factory on March 03, 2021 in Surabaya, Indonesia. UD. Sumber Kencana, a traditional tofu factory founded by Go Loe Tjiauw since 1953 in Surabaya is surviving against the high price of imported soybeans amid the Coronavirus pandemic. Based on the Chicago Board of Trade (CBOT), in December 2020 the soybeans world price was recorded at USD $ 12.95 per bushels, an increase of 9% from the previous month which was recorded at USD 11.92 per bushels. In February 2021 it increased in the range of USD $ 13.71 per bushels. The current price of soybeans as of March 01, 2021 is USD $ 13.9125 per bushel. Consequently, increasing the tofu price on the local market is inevitable, because the majority of soybean needed in Indonesia are imports from the United States and Brazil. Indonesia is in second place for the country with the largest soybean consumption in the world after China. Most of the soybeans are used for the production of tofu and tempe. The Indonesia Central Bureau of Statistics noted that Indonesia's soybean imports during the first semester of 2020 reached 1.27 million tons or worth USD $ 510.2 million or around Rp.7.24 trillion (exchange rate Rp.14,200). A total of 1.14 million tonnes was imported from the United States. (Photo by Robertus Pudyanto/Getty Images)