The increase in the price of soybean raw materials has had a significant impact on the tempeh industry, both in terms of product size and sales revenue. This also reflects the economic challenges faced by producers and consumers, as well as the importance of tempeh in people's consumption patterns. This research aims to provide a better understanding of the dynamics of the tempeh market and the impact of fluctuating prices of soybean raw materials, as well as to provide useful input for producers and policy makers. Quantitative research method with case study research type, sampling using purposive sampling, involving 105 respondents. Data were analyzed using Structur Equation Modeling (SEM) with SmartPLS 3 analysis software. The study finds that rising soybean raw material prices significantly affect tempeh size, as producers tend to reduce product volume to manage production costs. However, price increases do not significantly affect overall sales revenue, indicating that small-scale producers are able to adapt to market conditions. These findings highlight the importance of balancing product size and pricing to maintain consumer demand and business sustainability
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