High corn prices may be having a larger impact on Taiwan pig producers than that seen in other markets. High feed costs, coupled with low pork prices, are driving a small contraction in the local industry. The culling of sows, partly conducted by the Taiwan authorities due to pressure from farmers, is further reducing local prices in the short term. The reduced level of production from the smaller animal population may ultimately lead to increased imports, an outcome the hog producers want to avoid.
Taiwan imported a record amount of U.S. beef in 2006 as consumers enthusiastically responded to the reopening of the market to U.S. beef. Total beef imports also set a record partly due to an increase in beef consumption that is expected to continue. In addition importers built beef stocks, anticipating that the Korean market would open to U.S. beef. Taiwan imports of beef are expected to decline slightly in 2007 as those stocks are drawn down. The local pig industry is under stress due to high corn prices and low product prices as producers reduce the age at which they slaughter animals.
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