October 28, 2005

USDA: Taiwan dairy and products annual 2005

The Taiwan dairy industry was established more than four decades ago, during an era when Taiwan emphasized food self-sufficiency and diet diversification. 

To support production, authorities subsidized it and erected high barriers to imports.  Taiwan commitments to liberalize the market and permit imports in all dairy categories will continue to define market trends for the coming several years.

Shrinking herd sizes again reduced local milk production (by 9%) in 2004.  Production is still expected to shrink by an average 4 ~ 6 percent per year over the coming several years, reflecting increased TRQ import volumes, variations in consumer and food processing needs, and the increasingly accepted use of powdered milk in dairy drink formulations.

Dairy product consumption will continue to expand, with consumers becoming more selective, particularly with regard to liquid milk products and growth opportunities in specialty dairy items (such as whey and whey protein concentration (WPC)) that add value/differentiation to processed food products already in the market.

The United States remains a minor player in Taiwan's overall dairy market, with most commodity products arriving from Australia and New Zealand, while higher-end and branded products are sourced globally. 

The United States, however, is the major supplier of whey due to competitive pricing and successful promotion efforts into hotel/restaurant/institutional (HRI) and processed food channels by U.S. exporters and the U.S. Dairy Export Council.

For the full USDA report, click here.