November 14, 2007

Gradual rise for Taiwan's milk sector

Milk consumption and production in Taiwan is slowly increasing, according to the US Department of Agriculture. Dairy farmers have increased milk production from 323 thousand tonnes in 2006 to 340 thousand tonnes in 2007. Though growth is expected to hold up next year, demand will still continue, according to the USDA.

Due to surge in prices, Taiwanese dairy producers are expected to expand their herd numbers. However, the USDA says it will be difficult because farmers have already been dependent on imports, particularly in all inputs such as seedstock, feed and many others.

Dairy is one of the few agri-earners in Taiwan as a dairy cow only created NT$43,792 (US$1,350) of profit in 2006. Half of the production cost was spent on feed (NT$56,199 out of a total of NT$100,292). Milk production was 6,644 kilograms per cow last year.

The hike of global feed prices also impacted Taiwanese dairy farmers. According to the USDA, purchase prices for raw milk, paid by processing plants to farmers, were increased by NT$3/kg in July 2007 in response to farmers' protest over increased production due to soaring feed prices. The new prices are: NT$18.24/kg for winter season (December to March); NT$25.73/kg for the summer season (June to September); and NT$23.73/kg for the warm season (April, May, October and November).

For more of the USDA report, please click here