March 5, 2014

Taiwan's pork prices reached a 10-year high of TWD82.31 (US$2.72) per kilogramme in anticipation of shortages following the devastation wrought by the outbreak of porcine epidemic diarrhoea (PED) since last October.

According to the National Animal Industry Foundation, pork prices surged markedly, with the per-kilogramme wholesale price of freshly slaughtered pork reaching TWD82.31 (US$2.72), and TWD79.88 (US$2.64) for frozen pork, vastly exceeding the post-Chinese New Year holidays' seasonal averages ranging between TWD60 and TWD65 (US$1.98 and US$2.15) per kilogramme.

Meanwhile, vying to capitalise on anticipated shortages, importers have been observed raising shipping volumes of frozen pork from the US, said the Council of Agriculture (COA). The COA estimates that between 30,000 and 70,000 tonnes of pork imports are expected to arrive toward the middle of this month.

The COA stated current domestic production output is more than capable of covering demand, adding that shortages are not expected until June or July. While it is still too early to act in anticipation of shortages, pork import volumes from the US have been increased to allay the public's concerns, said the COA.

On the other hand, a Kaohsiung-based pork distributor stated that recent price surges are the result of the pre-emptive actions of the industry, with businesses and pig farmers reluctant to relinquish inventory in anticipation of shortages.

According to the distributor, pig farmers have been growing reluctant in producing scheduled deliveries amid weekly price surges. Per-100 kilogramme pork prices surged TWD1,000 (US$33) in the week of February 26, said the distributor, adding that the number of pigs auctioned off in the beginning of March declined to 902 from the 1,030 sold at the end of last month. A pig farmer stands to gain an additional TWD100,000 (US$3,300) per delivery of 50 pigs with a week's delay amid current price surges, said the distributor.

The Agriculture Bureau of Kaohsiung City however stated that of the estimated stock of 300,000 pigs being raised by 870 pig farming operations in the area, about 4,000 piglets have been affected by the epidemic, while stating that the outbreak is nearing containment.

Incidentally, the police at Neipu, Pingtung stated that they have ramped up patrols in an effort to deter theft of piglets, which are currently valued at TWD1,950 (US$64) each.