February 15, 2011

Taiwan may raise grain output on food security concern

Taiwan is considering increasing domestic grain output and lifting sugar cane production after recent global price surges raised concern over the stability of food supplies, an agriculture official said.

Taiwan produces only 12% of its wheat, corn and soy needs, and has already cut import tariffs on some commodities and tightened monitoring of food prices to counter surging prices.

An official from the Council of Agriculture (COA), the island's farm ministry, said on Saturday (Feb 12) that it planned to find new strains of wheat and soy that grow better in Taiwan, and offer cash subsidies to corn farmers and guaranteed prices.

A task force would also consider the feasibility of allowing state-owned Taiwan Sugar to increase sugar cane planting, the COA said.

Taiwan imports five million tonnes of corn for animal feed per year and two million tonnes of soy. The island has 5,000 hectares of corn-growing land and plans to increase that to 7,000 hectares.

The island produces 95% of its rice needs.