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November 17, 2008

                         
Input price hikes decelerate Taiwan's 2007/08 dairy imports, output
                          

 

Taiwan's dairy products imports for 2007-08 slid on high world market prices due to global price hikes on feed and other production inputs, according to the US Department of Agriculture.

 

Taiwan's dairy farmers struggled to combat global price hikes on feed like their counterparts elsewhere in the livestock industry.  To help mitigate the high cost of feed, in mid 2007, the Taiwan agricultural authorities helped raise the purchase prices for raw milk paid by processing plants to farmers, by NT$3/kg.  These prices, 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) remain unchanged in 2008.

 

China made significant progress in exports but the melamine scandal has halted shipments beginning September this year. This also resulted in test requirements for milk powder, creamers and infant formula imports from all sources. The USDA also said the Taiwan trade is expected to be extremely cautious about returning to Chinese sourced products if/when the current ban on imports is lifted, since it will take time to repair consumer confidence in these products.

 

New Zealand, a major supplier of dairy products to Taiwan, was given a waiver for the new melamine-free test report after submitting safety and testing system documentation. Australia and the US are also major exporters of dairy to Taiwan.

            

For more of the USDA report, please click here.

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