May 4, 2007

USDA: Taiwan corn imports to drop; wheat and rice imports steady

Reduced hog production due to higher corn prices and lower domestic prices has Taiwan 2006/2007 corn imports seen to drop by 90,000 tonnes or 2 to 3 percent to 4.85 million tonnes from 2005/2006 levels, according to Taiwan Grain and Feed Annual 2007 published by the US Department of Agriculture (USDA).

On the other hand, wheat and rice imports remained stable at 1.05 million tonnes and 144,720 tonnes on a brown basis, respectively.

For years, the US is one of Taiwan's major suppliers of corn, rice and wheat. The country is the third largest market for US corn as it received 99 percent of American corn in 2005/2006 period. Taiwan is also the 8th largest market for US wheat as it received 83 percent of US wheat imports in 2005/2006 levels as well as a leading buyer of US rice, procuring 59 percent of the grain from 2002 to 2005 via TRQ (tariff rate quota). The US has temporarily delayed its rice tender for the 2006 public sector import quota because offered bid prices exceeded ceiling price. US rice exports to Taiwan are projected to remain or exceed 82,000 tonnes per year based on the current market access regime.

The USDA said the US will be one of Taiwan's largest grain suppliers in the coming years.

For the full USDA report, please click here