Indonesia’s soy consumption to rise

The Free Nutritious Meals Program, to be implemented in 2025, will include tofu and tempeh, both of which are soybean-based food products.

The FAS noted that because much of the infrastructure for the program has yet to be built and it is unclear what quantity of the soy-based food will be procured by the program, the impact on consumption in 2025 is expected to be modest.

Soybean demand from tempeh and tofu producers recovered in the fourth quarter of the 2023-24 marketing year as retail prices declined by 3% from the previous quarter, the FAS said.

“Lower soybean retail prices at local markets provided ample soy-food margins for processors despite consumer purchasing power showing weak recovery in late 2023-24,” the FAS said. “Tempeh and tofu as a staple protein sources are considerably more affordable compared to animal-based protein sources such as poultry, meat and fish, rendering demand for tempeh and tofu to be relatively inelastic.”

Because of the higher demand from the soy food industry due to lower soybean prices, the FAS revised its most recent soybean import forecast 2% higher from the previous forecast of 2.55 million tonnes.

Most of Indonesia’s soybean imports (88%) come from the United States, while 10% is supplied by Canada, according to the FAS.