June 3, 2008

Taiwan government to adopt hands-off approach on high pork prices

Council of Agriculture Chairman Chen Wu-Hsiung said Monday at the legislature that the government is taking a hands-off policy for skyrocketing pork prices.

Commenting that this is the market at work, Chen said that there is no pork supply crisis and farmers have had to raise prices to reflect their costs.

If the government acts to keep prices in check, it would remove the incentive for pig farmers to continue farming and cause a shortage down the line, he said.

Last week, the Council of Agriculture estimated that high feed prices have forced more than 800 farms to close down their businesses, meaning at least half a million hogs were taken off Taiwan's market.