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    Farmers warned not to over-produce


    CNA , TAIPEI
    Tuesday, Apr 18, 2006, Page 2

    The nation's farmers were urged yesterday not to over-produce fruit and vegetables simply because China had offered to increase duty-free imports of Taiwanese agricultural products.

    Taiwanese growers and vegetable farmers were warned by Chen Chang-chen (陳章真), a researcher with the Chung-Hua Institution for Economic Research -- a private think tank -- about the risks of excessive production in light of Beijing's offer, which so far is only verbal.

    Chen that farmers should think twice before increasing production, given the wide gap in price structures between Taiwan and China, the fierce competition from Southeast Asia and the generally short shelf-life of fruit and vegetables.

    Chen that for future exports of Taiwan-produced fruit to China, such trade should follow the formula adopted when Taiwan exports fruit to Japan -- sticking to high-quality shipments with high price tags.

    He also suggested that fruit growers export their produce directly to supermarkets or franchise stores in big cities in China to shorten delivery periods and avoid exploitation by middlemen.

    At the conclusion of an economic forum between the Chinese Communist Party and the Chinese Nationalist Party (KMT), Chen Yunlin (陳雲林), Beijing's top official in charge of Taiwan affairs, announced that China would dispatch buying teams to Taiwan to purchase surplus fruit and vegetables in times of overproduction. Such imports would be duty-free, he said.

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