April 18, 2008

Taiwan farmers look on improved hog exports to China

Taiwan's hog farmers urged its government Thursday to support and develop the export of hogs to China's market.

Pan Lien-chou, chairman of the ROC Swine Association, said that the new government can negotiate with Chinese authorities on exports of pork products to mainland China.

Furthermore, the group also pushed for the import of corn and soy from the other side of Taiwan Strait.

Pan said the hog price in China averages at TWD8,200 per 100 kilogrammes, some TWD1,800-1,900 higher than the average price of TWD,300-6,400 in Taiwan.

By contrast, the auction prices offered in many Taiwanese counties and cities range from NT$6,300-NT$6,300 per 100 kilograms, better than before.

Yet the price increases are not enough to offset the production cost which has risen to TWD6,500 per 100 kilogrammes as a result of the rising import cost for corn feed.

The group sees bigger opportunities in China as the market demand is expected to rise further.

Pan said that Taiwanese hog farmers will suffer losses for every hog sold in Taiwan. He added that if local hogs can be sold to mainland China, local farmers can secure stable profits to cover their losses seen over the past few years.

Meanwhile, Yang Ho-bei, chairman of the Taiwan Livestock Industry Development Association, said that mainland China is an exporter of corn products, and therefore the Taiwanese government should liberalize corn imports from China to help reduce the production cost of domestic hog farmers.

Also on Thursday, Chen Li-ling, a division chief of the agricultural development department under the Taoyuan County Government, said the county is ready to export high-quality hog or pork products to mainland China.