November 06, 2003

 

 

Taiwan Hog Association Asks Government To Lift Ban On Mainland China Corn Imports

 

Taiwan's R.O.C. Federation of Swine Cooperatives has called on the government to allow the import of corn and soymeal from China, after domestic prices in Taiwan increased sharply.

 

"We submitted our proposal in October, but there's been no word from the government yet. If this is approved, we'll import immediately," an official from the swine cooperative said on Thursday.

 

The R.O.C. Federation of Swine Cooperatives represents the majority of Taiwan's hog farmers.

 

The swine cooperative and the chicken producers association have asked to be allowed to import 50,000 metric tons of the Chinese commodities each month. The 50,000 tons could be Chinese corn only or Chinese soymeal only, or both, said the official.

 

Officials from Taiwan's Board of Foreign Trade under the Ministry of Economic Affairs couldn't be immediately reached for comment.

 

In the last month, domestic prices in Taiwan have risen sharply, boosted by strong U.S. corn prices and high freight costs, said traders.

 

Corn prices in Taiwan are now around NT$6.5 a kilogram, up around 20% from NT$5.4/kg in October, said traders.

 

Taiwan is a staunch supporter of U.S. grains, and imports around 5.2 million tons of U.S. corn a year, mostly for feed purposes.

 

Traders said freight costs from the U.S. Gulf have been too high recently and some buyers requested shipments from the Pacific Northwest. This led to a pileup of vessels at the ports along the Pacific Northwest, said traders.

 

"We aren't really talking about delays. But they (Pacific Northwest ports) have to deal with more vessels now, so we may get our cargoes later rather than earlier," said a Taipei-based official from a feed company.

 

Taiwan doesn't traditionally import grains from China due to decades of political hostility.

 

But in late October 2002, Taiwan temporarily lifted its 50-year-old ban on corn imports from China after U.S. corn shipments were disrupted due to a labor lockout at U.S. West Coast ports. The ban was reinstated at the start of 2003. In the period the ban was lifted, Taiwan imported around 70,000 tons of Chinese corn.

 

This isn't the first time livestock producers in Taiwan have asked the government to lift the ban on Chinese corn, which are cheaper and have shorter shipment times. Faced with increasing imports, Taiwan livestock and feed companies have been under pressure to lower production costs.