Another Blow to Staple Foods After Eggs? Tofu Manufacturers Warn of Imminent Factory Shutdown

Press Conference Calls for Urgent Resolution of Imported Soybean Shortage on September 9

Government’s Artificial Controls Push Tofu Factories to a Halt

Annual Minimum Supply of 250,000 Tons Needed

"Factories producing tofu, which is a staple food for everyday people, are on the verge of shutting down because they have run out of soybeans for use as soon as tomorrow," claimed small and medium-sized tofu manufacturers in Korea. They argue that a drastic reduction in the government's quota for imported soybeans this year has caused a severe disruption in the supply of raw materials. The shortfall amounts to 30,000 tons. This issue has recurred annually, prompting SMEs and small business owners in the soybean processing industry to demand fundamental solutions from the government.

Tofu, a staple food for ordinary people. Getty Images

On September 9, food cooperatives from six regions across the country held a "Press Conference Urging Resolution of the Imported Soybean Supply Shortage Crisis" at the Korea Federation of SMEs in Yeouido, Seoul. According to industry sources, the minimum annual requirement for soybeans for domestic processing, including tofu production, is 250,000 tons. However, the government’s planned supply for this year is only 223,899 tons, a shortfall of about 30,000 tons. As a result, stocks of raw materials have started running out at manufacturing sites, raising concerns that tofu and fermented food factories nationwide may have to suspend operations as early as this month. This was the main message of the press conference.

Soybeans are controlled as an import-managed commodity, with supply overseen by the government. In particular, soybeans for processing, mainly used by SMEs, are subject to a monopoly by the Korea Agro-Fisheries & Food Trade Corporation (aT) under the state trading and public auction bid system. Because of this, the industry has been unable to respond flexibly to changing market conditions or to secure needed quantities in a timely manner.

On the 9th, a press conference urging the resolution of import soybean supply shortages is being held at the Korea Federation of Small and Medium Business in Yeouido, Seoul. Korea Federation of Small and Medium Business

About 80% of tofu produced in Korea is made from imported soybeans, primarily by small and medium-sized manufacturers. There are approximately 1,800 of these companies operating nationwide. Industry sources warn that a considerable number of them face shutdowns and potential bankruptcies due to raw material supply disruptions. An industry representative said, "This is not just a simple supply issue; it is a man-made disaster resulting from the government's quota control that ignores voices from the field, constituting clear discriminatory policy that infringes upon the survival rights of SMEs."

The government’s control over imported soybean supply is intended to protect domestic soybeans. However, the industry points out that domestically produced soybeans cost about 3.5 times more than imported soybeans, and the main consumer base and product markets are entirely different. In effect, the markets are separated, making it impossible to use domestic soybeans as a substitute for imported ones. An industry official stated, "The processing characteristics of domestic and imported soybeans are different, making physical mixing impossible. Mixing them during processing leads to reduced product quality and lower production yields." He added, "The government's policy of supporting domestic soybean prices on the assumption that resources are interchangeable reflects a bureaucratic approach detached from actual working conditions."

The industry is advocating for a shift from the monopolistic state trading and auction-based system to a private-sector-led direct import system centered on end-user groups. They are also calling for the minimum annual supply threshold to be set at the actual needed volume of 250,000 tons.

The conference also highlighted discrimination compared to soybeans for oil extraction. Large enterprises are permitted to directly import soybeans for oil production through end-user organizations, enjoy a 0% tariff, and are exempt from import profit charges. In contrast, soybeans for processing are subject to a 5% tariff plus extra import profit charges. The industry argues that the same 0% quota tariff and the abolition of quasi-tax import profit charges should be applied to processing soybeans, as is done for oil extraction soybeans.

Kim Sukwon, Chairman of the Gwangju-Jeonnam Food Cooperative, stated, "The tofu processing industry now faces an unprecedented crisis that may soon force a halt in factory operations. If the government continues to delay taking action, the resulting damage will lead to SME closures and higher consumer prices for ordinary citizens."

This content was produced with the assistance of AI translation services.