March 13, 2014

 

 

Taiwan's Council of Agriculture is proposing increasing pork imports by 3,000 tonnes a month and would negotiate with the Ministry of Finance to lower the tariff to 6.25% from 12.5% in a bid to curb rising pork prices, Council of Agriculture Deputy Minister Chen Wen-te said.

 

The council has commissioned the National Animal Industry Foundation (NAIF) to conduct the imports, with the non-governmental organisation planning to store some of the pork to minimise the impact on the local pork market, Chen said.

 

Chen said by next month the council would also conduct a nationwide census of hog farms and fine-tune the policy based on the results. However, the council would not ease its standard for zero tolerance of ractopamine residues in imported pork, he said.

 

The council's statistics show that the pork price soared to TWD83.6 (US$2.76) per kilogramme on March 4, while the average price this month was TWD75 (US$2.47) per kilogramme. The price dropped slightly to TWD81.47 (US$2.69), Chen said.

 

Chen said the average weight of pigs sold in the first 10 days of this month was 122.9 kilogrammes, higher than 121.6 kilogrammes a year ago, as hog farmers had delayed selling their pigs on the market.

 

The council would also coordinate with state-run Taiwan Sugar Corp (Taisugar) to increase pork supply by 3,000 pigs this month, Chen said.

 

A negotiation with local frozen meat companies to sell more pork and less processed meat to the market, increasing pork supply by 400 to 600 pigs per day will also be done by the council, Chen said.

 

Meanwhile, the council is also collaborating with the Fair Trade Commission to investigate whether pork suppliers at 22 meat markets and 29 frozen meat companies had colluded with each other to hoard pork and drive up prices.

 

Fair Trade Commission Chairman Wu Shiow-ming said that by the end of next month the commission would complete the investigation of local frozen meat companies, before the Dragon Boat Festival, when pork consumption increases as people make zongzi (glutinous rice dumplings) for the festival.

 

After the commission completes all its investigations, the council would also investigate whether pork suppliers have infringed the Agricultural Products Market Transaction Act, which requires pork suppliers not to store excessive amounts of pork and drive up prices, Chen said, adding that pork suppliers violating the law are likely to be subject to a maximum fine of TWD300,000 (US$9,900), or the amount the supplier gained from the illegal action.

 

The Directorate-General of Budget, Accounting and Statistics says the consumer price index has risen 5.53% in the past five years, with food prices soaring by 9.35%. Prices of aquatic products increased 28.55% in the past five years, followed by fruit products, which surged 22.78%, it said, adding that the price of meat increased 15.46%.

 

Republic of China Swine Association president Yang Kuan-chang said he was disappointed with the Council of Agriculture's policy.

 

Yang was among dozens of representatives of the pig farming industry who protested against the council's plan.

 

Democratic Progressive Party Legislator Pan Men-an said that the council's measures would further jeopardise the pig-farming industry, as local farmers face the "triple threats" of the epidemic, the increasing cost of feed and imported pork.