July 14, 2011

Taiwan's Council of Agriculture (COA) rejected Wednesday (Jul 13) a media report that linked the recent rise in domestic hog prices to lower pork imports due to leanness drug restrictions.

According to Li Chun-chin, deputy director-general of the Department of Animal Industry, the price increase is the result of reduced output during summer, when hogs tend to have lower appetite and thus lighter weight.

On Tuesday, hog prices hit a record high of NT$7,580 per 100 kilograms on the auction market. The Chinese-language China Times said the situation is partly caused by strict control measures adopted by the government to bar meat imports containing residues of leanness enhancing drugs, which the paper said has caused pork imports to drop.

Li, however, noted that the price recorded on Tuesday was close to the TWD 7,572 (US$262) per 100 kg last July. He also denied there has been any increase in demand or decrease in imports.

The number of hogs slaughtered domestically has maintained at 20,000-22,000 per day, while imports as a percentage of total demand have stayed at 10%, he said.

When importers decide to decrease the import of US pork over leanness drug concerns, they will increase imports from other countries such as Canada, Denmark and the Netherlands, Li said.

Unlike domestically produced pork that is aimed at retail buyers, imported pork is mainly supplied to meal providers, who prefer the product because of its lower price, he added.