We Went To Tofu Factory, Market, And Warteg To See The Real Impact Of Soybean Price Hikes
JAKARTA - Indonesian food is 'rocking'. A number of important commodities experienced price hikes. First soybeans, then meat. Some time ago we made direct observations, looking at the impact of rising soybeans on the food supply chain: from seeds to side dishes on our plates.
Monday, January 25, Minister of Agriculture Syahrul Yasin Limpo outlined three strategies to reduce the price of imported soybeans. The first is to implement the SOS agenda for the next hundred days, from January to March 2021.
"Among other things, streamlining the supply to market tempe tofu craftsmen, stabilizing prices, increasing agricultural production, preparing CPCL, and forming a cross-ministerial / institutional task force," said Yasin Limpo in the Joint Meeting of Commission IV DPR RI.
The second strategy that will be implemented for two hundred days is the preparation of a planting area of 325 thousand hectares. The Ministry of Agriculture will also provide pests, prepare dry season planters, to control pest control. This agenda was called by Yasin Limpo as a temporary agenda.
"Third, the permanent agenda, proposing soybeans to be part of 12 strategic foods, maximizing local soybean supplies, downstreaming soybean products and other forms," he said.
These three steps were put forward by Yasin Limpo after weeks of craftsmen, traders and the community were confused by the rising price of soybeans. Wednesday, January 7, we visited a number of places, ranging from soybean processing factories, markets, to warteg to see the real situation of this problem.
Our watches showed 02.00 WIB, when we arrived at the Pik Kopti complex, Semanan, West Jakarta. Pik Kopti is the largest center for tofu and tempe craftsmen in Southeast Asia. In an area of 12.4 hectares, there are a thousand houses that are used as factories for processing soybeans, either tofu or tempeh.
We got around on motorbikes to get a broad look at the activity in the area. Busyness appears in each factory. We stopped the motorbike at the end of the road, in front of a sizable tofu factory.
"Do you want production coverage, bro?" a man asked us. Jojo Sumarja, his name. He is the owner of the factory. We are dealing with the right people. Jojo is not new. He has been in the profession as a tofu craftsman since 1993. The 48-year-old man said that the profession has been passed down from generation to generation by his extended family in Pekalongan.
“My hope is that the government asks the price for soybeans to be standardized again. Don't get up like now. For me who runs a small tofu business, it's a hassle. I can only cover those who work, buy peanuts. Yes, that's it. Just surviving now is profitable, ”Jojo said, pointing to seven of his workers who were busy inside the factory.
Soybean processingJojo invited us to enter the factory. Extraordinary heat instantly brushed against the body. The scorching atmosphere outside, coupled with the rows of wood-burning stoves and large boiling pots inside the factory, was torturous for us. But not for the workers. They have adapted to these kinds of working conditions.
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In general, the production of tofu and tempe at the Kopti Complex is still carried out in the traditional way. The ingredients, said Jojo, consisted of soybeans, salt, clean water and tofu water. Biang tahu is the remaining water of making tofu that is deposited for one to two days.
In addition, Jojo also uses 98 to 99 percent concentrated vinegar (acetic acid) agglomeration. There are at least four phases of making tofu.
First, the soybeans that have been purchased begin to be washed clean. The soybeans are then soaked in clean water for four to ten hours. This activity is usually carried out at night. The goal is that the soybeans expand and are easier to grind while at the same time producing a smooth, pulp-like texture.
The second phase, after becoming porridge, the soybeans are cooked in a large stove until they boil. During the cooking process, the addition of tofu making ingredients such as vinegar and water is carried out. This process will produce a lump-shaped tofu sediment.
Furthermore, the dough that has been cooked is immediately filtered with a filter cloth tofu and squeezed. The sound you hear is a filtering process. This process will produce tofu pulp.
This filtered tofu is shaped like soybean juice. The juice is then mixed with a sediment solution (starter water), little by little, while stirring slowly.
The last phase, after the coagulation process, the acid water is removed. Tofu dough can be printed. The printing process is carried out using a tofu filter cloth and pressed to make the tofu solid. The white tofu is then cut into the desired size. Tofu is ready to be marketed.
In addition, if you want to make yellow tofu - like Bandung tofu, you just have to boil it again using ground turmeric boiled water. Jeje proudly calls himself a pioneer in introducing yellow tofu production throughout the Kopti Complex.
The impact of the price increase for JojoJojo explained that periodically, he always supplies one ton of soybeans for three days of production. Jojo said that he took the soybeans from a distributor operating across from his factory.
The soybean processing ecosystem in the Kopti Complex has indeed been built steadily. For Jojo, he doesn't have to bother looking for far-off places to get regular supplies of soybeans. Jojo explained that there are a number of soybean brands that are generally sold by distributors: Orchid, Bola, Lotus, Triangle, and Tiga Roda. The last brand is the most expensive.
Regarding the increase in soybean prices, Jojo explained, the Anggrek brand, which is the cheapest and is usually sold for Rp. 6 thousand per kilo, has now reached Rp. 9 thousand. As a result, from one ton of soybeans, Jojo can now only produce three to four quintals of tofu.
That number has shrunk considerably. Before the soybean price hike, Jojo was able to buy more soybean supplies up to four to five quintals of production. Sales also declined considerably. Regarding sales, said Jojo, it had even started since the beginning of the COVID-19 pandemic. The instability of soybean prices exacerbated the situation.
"There is a decline. Usually (selling tofu) runs out four to five quintals. Now only three quintals run out. It's because the price has been increased. Previously, I knew that it usually costs Rp. 500, now it is Rp. 600. Tofu Bandung from IDR 600 to IDR 700. So the traders are also experimenting first in the market for that price. What do you want or not. That's why yesterday was the three-day holiday so that all buyers understand that they know they want to go up, "said Jojo.
Jojo's profits also declined. He, who used to earn more than Rp. 2 million per day, is now only able to receive a profit of Rp. 1.5 million per day. Bitter, said Jojo. According to him, the margin can only cover the cost of employees, daily meals and buying soybeans.
On that occasion, we also followed Jojo to deliver tofu to retailers. The average seller of tofu supplied by Jojo's factory is in the Kopti complex. There are 50 potential sellers. All transactions are made in cash. From Jojo's factory, they will suddenly take it to the nearest traditional markets, such as Rawa Lele Market and Kalideres Market.
From traders to buyersBefore going to Jojo's tofu factory, in the morning of the same day we went to Pasar Modern Duri Kosambi, West Jakarta. Not far from the market entrance, two tofu and tempe traders immediately caught their attention. We also approached to chat.
While serving buyers, Irwan, one of the tofu-and-tempe traders at the Duri Kosambi Modern Market, explained that he routinely supplies one hundred to two hundred different types of tofu from a local factory. However, the amount of supply has decreased considerably due to the increase in soybean prices. In fact, especially for tempeh, Irwan had to process a limited amount of soybeans himself. In fact, in normal times Irwan routinely brings up to 70 kilograms to his stall.
"But today because soybean production is expensive, so the factory is also reduced. So it doesn't arrive like normal, normal, deducted ... The price is still up from yesterday's strike, the increase (tofu or tempeh) is 20 percent. What previously (tofu) was sold for IDR 800, now IDR 1,000. Tempe will increase at least Rp1,000, "said Irwan.
Our findings in the Modern Market we continue to the Duri Kosambi Trasional Market. The tofu-tempe seller here looks different from the one in the Modern Market. In traditional markets, traders only sell merchandise belonging to local tofu-tempe craftsmen. We got this information from a seller named Fandi.
Fandi admitted that he did not know much about the increase in soybean prices principally. What is clear is that Fandi admitted that he did not increase the price. However, Fandi also realized that the size of the tempeh and tofu he received from the factory where he supplied them was smaller.
Soybeans on our platesIn the afternoon before going to Jojo's factory in the Kopti Complex, we rested while having lunch at a warteg: Warteg Bersaudara, which stands around the Tanah Abang area, Central Jakarta.
Ratih, the administrator of Warteg Bersaudara, also felt anxious about the increase in soybean prices. The 35-year-old woman explained that tofu and tempeh have always been favorite menus at Warteg Bersaudara.
“Everyday we stock 12 blocks of tempeh. If you know, we will buy 30 thousand skins. 20 thousand white tofu, 20 thousand yellow tofu. We buy them in the market. We process it into a variety of foods, from dried scrambled, wet scrambled, fried tofu, vegetable tofu, and soy sauce tofu. Either tofu or tempeh both increases (the price) if I'm not mistaken the increase is up to Rp1,000, "Ratih.
Although the increase in tofu and tempeh prices had a big impact on him, Ratih admitted that he had not raised the price. He said, he still got the difference in profit. Ratih did not specify the margin he would get with this price increase. What is clear, in a normal situation, Ratih has set a margin of Rp. 2,000 per menu for processed tofu and tempeh.
A housewife, Rahmi, whom we met while shopping for side dishes processed from tempeh and tofu, said that the increase in soybean prices did not make her family switch to other menus. However, he admitted that he was confused because for three days tofu and tempeh were scarce due to a strike by the soybean craftsmen. The strike was carried out as a form of protest against the government's management of soybean prices.
Ministry of Commerce speakingFrom the authority side, the Food Task Force formed by the National Police Criminal Investigation Unit explained the results of data collection and analysis regarding the availability and demand for national soybeans. "We have coordinated with the Ministry of Trade, the Ministry of Agriculture and a number of other parties to investigate allegations of hoarding and the soaring price play of soybeans since the last few days," Helmy said in a VOI report, Wednesday, January 6.
According to Helmy, the allegation about the hoarding has not been found. The increase in soybean prices was triggered by the global dynamics of the COVID-19 pandemic which had an impact on soybean prices on world markets. "Based on FAO data, in December 2020 there was an increase in the price of soybeans in the global market by 6 percent from the initial price of 435 US dollars to 461 US dollars per ton," said Helmy.
According to Liputan6.com, today, the price of soybeans in Indonesia has reached Rp. 9 thousand to Rp. 9,300. And explore the global dynamics that trigger the increase in soybean prices, this happens because China buys soybeans from the United States (US).
VOI's review on the Bernas channel, Tuesday, January 5, explained that on September 17, China agreed to buy 9.89 million tonnes of US soybeans. The transaction took place between September 2020 and August 2021, according to the US Department of Agriculture.
Of that total, 3.27 million had been ordered in August 2020. Meanwhile, another 2.07 million were carried out in September 2020. Citing Nikkei Asia, China bought about 40 percent of soybeans grown in the US.
Former US President Donald Trump even called the Chinese order the largest soybean order in history. That history was recorded under a Phase I trade deal between the US and China in January 2020.
The details of the Phase I deal are about exports of US food, agriculture and seafood products to China. Meanwhile China is ending coercion or pressure on foreign companies to transfer technology to Chinese companies.
Other deals in Phase I affirm US opposition to currency manipulation and China's commitment to purchase at least US $ 200 billion in US export commodities over the next two years.
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