Fri, Nov 01, 2002 - Page 11 News List

Future of grain shipment from China in question

STAFF WRITER WITH BLOOMBERG , BEIJING

China's first grain shipment to Taiwan in 53 years may be blocked because of restrictions on direct shipments of goods to the nation, the China National Grain & Oils Information Center said in a report.

Cofco Grains & Oils Import & Export Co (中國糧油集團), China's main grain trader, said yesterday it had agreed to sell corn to Taiwan after Taiwanese authorities lifted a ban on Chinese corn imports at least until year-end.

"Restrictions on direct transport links and the fact that the move was made well into the fourth quarter will make it difficult to complete a shipment," the report said.

But an official at the Food China Network (中華食物網), a venture formed by Cofco and Taipei-based Dachan Greatwall Group (大成長城集團), told the Taipei Times that the report is "totally inaccurate."

"It is possible that Cofco may need more time to receive the Chinese government's export license for the shipment ... but that doesn't mean the corn from China is blocked," said Kuo Hai-peng (郭海鵬), chairman of Food China.

"The shipment will arrive at Taiwan's ports in the middle of November," Kuo said.

On Monday, Taiwan's Board of Foreign Trade allowed the importation of corn from China as an "emergency measure" after US port closures in early October threatened a shortage of the grain. So far, the Taichung-based Federation of Swine Cooperatives (豬聯社) has placed an order with Cofco, buying 12,000 tonnes of corn.

Taiwan was the second-largest importer of US corn in the fiscal year ended Aug. 31, behind Japan, according to US Department of Agriculture figures.

Taiwanese purchases accounted for 10 percent of US corn exports.

However, Taiwan's decision to allow the importation of grain from China has been criticized by members of the domestic livestock industry, who warned the move could open the door to any number of animal diseases from across the Strait.

"With China's inadequate inspection and quarantine system, the possibility of contagious animal diseases finding their way into Taiwan via the imported grains is likely to increase," said Huang Ching-ho (黃錦和), secretary-general of the Taiwan Flour Mills Association (台灣麥粉公會).

In fact, the possibility that direct shipments of grain from China could infect Taiwan's pigs with foot and mouth disease may indeed prompt Taiwan's quarantine officials to turn away the cargo, traders said.

This story has been viewed 2009 times.
TOP top