November 1, 2007

Taiwan legislator accuses traders of hogging pork and feed supplies

Traders are hogging feed supplies, resulting in the high feed prices Taiwan's pig farmers are facing now while pork traders are depressing prices offered to farmers and putting them in cold storage waiting to sell at high prices, a Taiwan legislator said. 

Speaking at the Legislative Yuan, People First Party Legislator Chung Shao-Ho, who represents Kaohsiung County in southern Taiwan accused two leading domestic feed suppliers, including the state-run Taiwan Sugar Corp., of stockpiling feed corn for profiteering.

The lawmaker also said supply has greatly exceeded demand in the domestic pork market. A herd of 6 million hogs would have been enough to meet the island's demand. Taiwan currently has 7 million.

This excess supply allows traders to buy pork at low prices, put them in cold storage and wait for prices to rise, Chung said.

This tactic has prevented hog price fluctuations from reflecting rising breeding costs.

Chung demanded that the government probe the allegations of profiteering by local suppliers.

Besides suggesting that the government take measures to help breeders, he also urged the government to help breeders who no longer want to raise hogs to quit the business by offering subsidies so as to control stock numbers.

He also acknowledged that rising international prices for corn and higher transport costs have resulted in serious losses for pig farmers. Farmers are reportedly losing NT$1,200 (US$37) with each hog.