December 20, 2007

Taiwan feed makers doubtful on Chinese corn

Taiwan animal feed producers are sceptical they will be obtain shipments of Chinese corn due to tight domestic supplies, a senior feed group official said on Wednesday (December 19).

Taiwan feed makers are seeking up to 370,000 tonnes of Chinese corn, said the official, who declined to be named.

Chinese exporters said Beijing was unlikely to allow any fresh exports this year as it has reined in overseas sales to curb food-fuelled inflationary pressures.

Last week, Chinese feed mills bought 238,100 tonnes of corn from government reserves, less than half the amount Beijing put up for sale, in an effort to cool food prices.

Food prices, which rose 18.2 percent in November, drove the country's inflation to an 11-year high.

Taiwan had lifted a ban on Chinese corn imports from October 1 until March 31 in a bid to alleviate the impact of high global prices and tight supply on the island's livestock breeders.

Corn is typically cheaper from China than from the United States, Taiwan's usual supplier, and is much less costly to ship.

Taiwan, which has been viewed by China as a rebel province since the end of the Chinese civil war in 1949, bans corn imports from China along with many other food products for national security and quality reasons.

The island of 23 million people imported 5.08 million tonnes of corn in 2006, up 2 percent from the previous year, according to customs data.