September 5, 2006

 

Taiwan's US beef imports tied to South Korean market access
 

 

Developments in Taiwan would likely depend on those of the South Korean market as both impose similar requirements on US beef, according to a USDA report released on its website Friday (Sep 1). 

 

In mid-August, US beef packers stopped price quotation to Taiwan buyers, pending a decision by South Korea

to allow its beef market access.

 

The report suggested that if the South Korean market continues to be closed to US beef in 2006, Taiwan is likely to increase its purchases. If the South Korean market opens, US beef is expected to surge into that market, and be partly priced out of the Taiwan market.

 

Estimated US beef exports to Taiwan in the fourth quarter if South Korea opens will very likely be limited mainly to fresh and chilled products.

 

The reopening of the Japanese market to US beef, announced in July 2006, did not have a significant impact on Taiwan's beef imports as the two markets have very different import requirements (20 months vs. 30 months) Taiwan imports are, on the other hand, very dependent on the market access of US beef in Korea.

 

Fresh and chilled products and steak cuts may make some gains, which help keep the US market at 20 percent, assuming that market access in key Asian markets remains unchanged.

 

Meanwhile, Taiwanese import of US beef is expected to fall 2 percent from 98,000 tonnes this year to 96,000 tonnes for 2007 due to the weaker economy, higher stocks and lower demand in the island, the report said.

 

Pork imports are estimated at 33,000 tonnes in 2006. As local pork supplies are likely to be limited in 2007, imports are forecast to grow by 9 percent to 36,000 tonnes.

 

Taiwan is a significant pork producer, and thus pork volumes are at lower amounts.

 

Taiwan's imports most of its beef. Domestic beef production, mostly from spent dairy cattle, totaled 6,000 tonnes in 2006 but consumption is estimated at 103,000 tonnes.

 

However, due to mad cow cases and price decreases in recent years for poultry, consumption has increasingly tilted in favour of chicken.

 

Thus beef consumption in 2007 is forecast to decrease slightly to 101,000 tonnes, due to reduced imports and further substitution by chicken meat.

 

Taiwan announced its market reopening for US beef in January this year, after which the first shipments of US beef arriving in mid February were well-received. Frozen shipments arrived in March peaked in April and May, stayed level in June and started going downhill in July.