Thursday, 26 July, 2012 | 14:39 WIB
Soybean Prices Driven up by Rising Demand
TEMPO Interactive, Jakarta:Every year, production of soybeans in East Java decreases. This year, production is only 310,000 tons, or 56,000 tons less than last year. “But consumption continues to increase,” said East Java economic assistant, Hadi Prasetyo on Wednesday.
Consumption of soybeans is up to 420,000 tons this year. “The trend is that it will keep increasing,” Hadi said.
The decline in production has been a trend over recent years. “It can be down 25,000 to 50,000 per year,” he said.
The decline is due to fewer farmers planting soybeans. The profit is small and the soybeans are prone to diseases. “There are nine kinds of diseases that attack soybeans, while there are only two for corn,” Hadi said. Last year, 252 hectares of land was used for soybeans, now only 218 hectares is used.
East Java Governor Soekarwo said the hike in soybean prices and the shortage of tempe in the market was because Indonesia continued to import soybeans from America and China.
“This year, America has had a long drought that will threaten harvests,” Sukarwo said. Recent floods in China are also expected to affect production.
This Democrat politician urged the government to resolve the problem, suggesting that farmers should be offered subsidies to cultivate soybeans. FATKHUROHMAN TAUFIQ