Grain imports from the US may skid to a halt as early as next week after the ongoing port shutdown in the US West Coast moved in to its seventh day yesterday, leaving commodities bound for Taiwan stalled in dry dock.
Government officials said that they are closely watching the situation in Taiwan to prevent hoarding or any abnormal price fluctuations.
"On average, about one ship sails for Taiwan for every three days ... If the port shutdown continues, it will disrupt the schedule and have very serious consequences next week for grain importers," said Yao Jean-yves Yao (
Two container ships loaded with grain are currently unable to depart from the US West Coast because of the shutdown, said Huang Wen-yu (黃文郁), deputy secretary-general of Taiwan Feed Industry Association (台灣區飼料公會).
These two ships are filled with 560 million tonnes of corn and soy beans and 480 million tonnes of wheat. They are destined for food processors such as Uni-President Enterprises Corp (
The two ships are not expected to arrive in Taiwan on schedule in early October, he added.
"We hope that the dispute between shipping-line bosses and dockworkers will be solved as soon as possible," Yao said.
Council of Agriculture statistics show Taiwan is the fifth-largest buyer of American farm products, importing around US$2 billion worth of agricultural goods each year, including rice, fruit, vegetables, beef, wheat, corn and soybeans.
A total of 29 ports on the US West Coast have been shut down since Sunday.
Except for rice, which is imported by the government, other agriculture products are mainly purchased by the private sector, and "a price hike is inevitable while suppliers in Taiwan are short of supplies from the US," said Wang Ming-lai (
"The council will closely monitor the situation and will consult with businesses on whether it will be necessary to purchase supplies from other countries," he said.
But a Ministry of Economic Affairs official said prices have already begun to fluctuate.
"Some importers have started to hoard these products as they expect the price to climb further," said Bill Cherng (
"If the shutdown lasts, it will increase purchasing costs for importers of grain from the US," said Chen Chao-yang (陳朝陽), secretary-general of Taiwan Confectionery, Biscuit and Floury Food Association.
Traditionally, Taiwan importers will maintain a 30-to-45 day supply of grain stocks, so there is no immediate concern of a shortage, Chen said.
"But I am quite worried that some importers may hoard in an effort to drive up prices," he said.
Every month, eight ships loaded with corn, three ships with soy beans and two with wheat sail from the US to Taiwan, Yao said.
With wheat prices up 40 percent since May, importers have been adjusting their wholesale prices on flour. Wang Lin-i (
Uni-President said it has no plan to adjust its flour prices at this time.
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