Monday, January 14, 2008

Shocking Soybean Story

Here's a change from my recent religious posts. This news is important to me because as a near-vegan*, I rely largely on tofu and tempe for my protein requirements. My wife, Desy, went to the supermarket today and sure enough there was no tofu or tempe on the shelves. I didn't realise that Indonesia imports 70% of its soybeans from overseas (mainly the USA).

Have a read of this post from http://indosnesos.blogspot.com dated Jan 13, 2008

Tofu, tempe producers stage rally outside presidential palace

Some 3,000 tofu and tempe (fermented soybean cake) producers staged a rally outside the presidential palace here on Monday, urging the government to stabilize the soybean price which jumped almost 100 percent in the past year.

To get their demand fulfilled, the demonstrators agreed to cease production for three days starting on Monday, tofu producer Kliwono Sutoro said.

The soybean price spiral dealt a major blow to tofu and tempe producers as the selling prices of the products remained, he said.

Then I have a quote from http://www.antara.co.id/en

Indonesia mulls cut in soybean import duties - trade official

Jakarta (ANTARA News) - Indonesia is considering cutting import duties for soybean to offset soaring soybean prices which have hurt the local food industry, a senior government official said on Monday. Soybean imports are subject to a 10 percent duty.

"One option is to lower import duties for soybean but we don't know yet how much it will be," Ardiansyah Parman, director general for domestic trade at the Trade Ministry, was quoted by Reuters as saying.

U.S. soybean futures on the Chicago Board of Trade rose by the 50-cent a bushel trading limit on Friday, notching an all-time high amid spillover buying from corn after the USDA reported a smaller-than-expected corn inventory, traders said.

Old-crop January soybeans ended 42 cents higher at $12.86 a bushel.

But Parman said the policy on import duties would be temporary and in the long-term there should be a policy to improve domestic soybean output.

Indonesia still imports nearly 70 percent of its soybean demand, mainly for the food industry which uses soybean for tofu and soy sauce production. The industry is dominated by small and medium-sized companies.

Indonesia's soybean output is expected to reach 750,000-800,000 tonnes this year, rising from 608,260 tonnes in 2007.

The country imported an estimated 1.4 million tonnes of soybeans in 2007, up from 1.2 million tonnes in 2006, according to data from the Indonesian office of the American Soybean Association.

The association said Indonesia imports between 80-90 percent of its soybeans from the United States, with the rest coming from Argentina.

*
my personal definition of a near-vegan: someone who doesn't eat eggs, cheese or milk directly but who still consumes them indirectly via bread, pastries, biscuits etc.


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