Indonesian Political, Business & Finance News

Kulon Progo tofu artisans adjust sizes to offset rising soybean prices

| Source: ANTARA_ID Translated from Indonesian | Business
Kulon Progo tofu artisans adjust sizes to offset rising soybean prices
Image: ANTARA_ID

Kulon Progo (ANTARA) - Artisans at Tahu Nunggal Roso in Tuksono Village, Kulon Progo Regency, Special Region of Yogyakarta, are adjusting tofu sizes slightly to offset rising soybean prices from Rp10,800 to Rp11,000 per kilogram.

Deputy Chairman of Tahu Nunggal Roso, Mubari, in Kulon Progo on Monday said the fluctuation in soybean prices between Rp10,800 and Rp11,000 per kilogram is placing significant pressure on the artisans.

“To keep the Tahu Nunggal Roso kitchen running and avoid disappointing loyal customers in Yogyakarta and surrounding areas, we’ve implemented survival strategies by adjusting size and thickness. We chose to reduce tofu dimensions by a few millimetres rather than raise prices,” said Mubari.

He said the strategy is more acceptable to lower-income consumers and market traders. Additionally, Tahu Nunggal Roso Tuksono artisans are improving production efficiency by tightening quality control to reduce defects.

“Every soybean must be cooked optimally. We also maximise fuel efficiency during the tofu boiling process,” he added.

Mubari said the direct impact on tofu artisans is a shrinking profit margin. Soybeans account for 60-70% of total production costs. When prices rise, operational costs automatically swell, but artisans cannot immediately raise selling prices drastically.

“As a result, our profits have been severely cut,” he said.

The dilemma for tofu artisans is setting selling prices. Raising prices risks customers—both market traders and direct consumers—switching suppliers or reducing purchases.

“However, keeping prices unchanged means artisans absorb the production costs,” he said.

“Therefore, we’re implementing strict cash flow management. Working capital required to buy the same quantity of soybeans has increased. We must be resourceful to ensure daily cash flow remains secure for paying labour and other costs such as firewood/gas and packaging plastic,” he said.

To address rising soybean prices and falling profits, Mubari said tofu artisans are utilising by-products. They maximise sales of tofu by-products, such as soy pulp for animal feed or processed into tempe gembus, to generate additional income that helps offset main operational costs.

Additionally, tofu artisans maintain customer loyalty through quality despite size adjustments. Tahu Nunggal Roso Tuksono artisans are committed to preserving taste, hygiene, and distinctive texture.

“For us, customer trust is the greatest asset for surviving such tough times,” he said.

Meanwhile, another Tahu Nunggal Roso artisan, Suhadi, hopes for concrete government or related efforts to stabilise local soybean prices.

“Subsidies or shorter distribution channels would greatly assist household-scale artisans like us in Kaliwiru to stay afloat and provide affordable protein sources for the public,” he added.

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