November 28, 2006

Taiwan temporarily allows corn imports from China, USDA

Taiwan has temporarily allowed import of corn from the People's Republic of China until February 28, next year to alleviate high prices and ensure corn supply during the Chinese New Year holidays, says the US Department of Agriculture in its November 24 report.  

The announcement was made on Nov 20. The first PRC corn shipment is anticipated late December.  

In mid October, Taiwan swine producers urged the authorities to open the import market for PRC corn due to high prices of domestic corn. Domestic corn prices which were around NT$5/kg (US$ 0.15) in the first eight months of 2006, are currently up to NT$7.7/kg (US$7.7), quotes the USDA report.

Swine producers attribute the hike to logistical problems associated with containerized corn shipments, according to report. The problems relate to shipment and phyto-sanitary document delays. 

However, vessel shipments are back on schedule and will help reduce the shortage of imported corn in the market. 

The current high price of domestic feed corn seems to be more due to the high world price of corn. 

Estimates of total PRC corn import tonnages vary from 2,000 to 10,000 tonnes. Although the anticipated import volume is small, it might interrupt regular corn imports from the US to Taiwan. 

For the full USDA report, please click here