Price increases push US soy beyond reach of poor

SURABAYA, Indonesia (AP)


Not any more. The cost of tempeh and tofu has doubled to record highs, driven by the soaring price of soybeans imported from the United States.

“What kind of life is this?” complained the 25-year-old, who like many Indonesians goes by only one name, as he stood outside his plywood shack that was buzzing with flies. “I just eat crackers now.”

The cost of soy is spreading hunger on the country’s main island of Java, where millions of poor and working-class families depend on tofu and tempeh every day. It is also devastating an entire local industry based on soy products. Hundreds of factories have closed, thousands of people have taken to the streets to protest soy prices and at least one soy vendor killed himself after falling into debt.

…Indonesia also felt the ripples from a new demand for alternative fuels. About 20 percent of soy now goes to make biodiesel in the U.S., up from almost nothing three years ago, the FAO said. And the demand for corn to make ethanol has prompted American farmers like Larry Gleason and Tim Henning to switch away from soy.

AP