The Impact of Rising Soybean Prices to Tofu Industry Small Scale in Medan

Abstract

Abstract Tofu industry in Medan has small-scale enterprises with limited budget so that when the price increases it will affect business conditions of tofu. This study aims to determine the impact of rising soybean prices to tofu industry small scale in Medan. This research use the case study method (case study). The analytical method used is descriptive method.The increase in soybean prices by 13% (2010-2014) led to price of tofu an increase of 15.97% and has an impact on tofu volume production decreased by 17.44%. The decreased in production volume led to receipts decreased by 4.26%. tofu industry revenue amounted to 40.12% or from Rp.2.015.199 be Rp.1.206.765. The tofu maker anticipate the increase of soybean prices by increasing selling prices to cover production costs and reduce the size of tofu in order to keep the customers.The rated of R/C on total costs decreased by 12.54% from 1.38 in the condition before the increase in soybean prices to 1.21 on the condition after the increase in soybean prices. Tofu enterprises are still possible to be run because the value of R/C is more than one, but the decreased in the value of R/C indicates that the income of tofu maker will decrease.