Sat, Jan 01, 2000 page11

• New animal production group formed to aid competitiveness

  WTO PREPARATIONS The National Animal Production Industry Foundation will act as a communication channel between the government and meat and fish producers in an effort to compete with increasing imports

  • By Cybil Chou / STAFF REPORTER
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  Taiwan's Council of Agriculture yesterday set up an animal production industry foundation in a bid to help boost local animal industries.

  The foundation was set up to prepare for the increased international competition following Taiwan's accession to the WTO and the liberalization of its meat and animal product markets.

  The National Animal Production Industry Foundation (中央畜產會) will act as a communication channel between fish, livestock, and poultry raisers and the government during these changes. It will operate under the supervision of the Council of Agriculture (農委會).

  "Our animal industry will need to undertake structural adjustments after WTO accession ... in order to meet the competition from imported products," said Chen Bao-ji (陳保基), director of the agriculture council's Animal Industry Department (畜牧處).

  In 1998, animal industry production in Taiwan reached NT$116.8 billion, according to the department.

  According to Chen, the foundation would also function as an information provider to local animal industries to help them increase their competitiveness. It will provide up-to-date information on international animal production markets, he said.

  "Of all the meat products, Taiwan's poultry market, which will be opened to foreign competition for the first time, will be the most affected by our WTO entry," Chen said.

  Taiwan will open 5 percent of its poultry market to foreign suppliers within the first year of accession to the WTO, Chen said. That would be increased to 10 percent by the year 2004.

  The pork industry should be less affected by foreign competition, said an agriculture council official. Except for belly and offal, the pork product market is already open to imports, said the official. The market for belly and offal will be opened by 4 percent and 8 percent respectively, he said.

  Most of the animal products produced in Taiwan supply the domestic market. But Taiwan used to export a large amount of pork products to Japan. That was before the outbreak of foot and mouth disease in early 1997, agriculture council officials said.

  In 1996, the island exported US$1.6 billion worth of pork products to Japan, its largest pork importer.

  Taiwan's beef and lamb market already relies heavily on imports, so would only be slightly affected by WTO entry. At present, 90 percent of beef products and 70 percent of lamb products consumed in Taiwan are imported, officials said.

  Australia, New Zealand and the US are Taiwan's top suppliers of the local beef market. Australia and New Zealand each account for about 35 percent to 40 percent of imports, and the US about 30 percent.

  Meanwhile, Taiwan will also enjoy easier access to foreign animal production markets with lower tariffs. Taiwan's pork products, with their stable market price and quality, could be very competitive, officials said.

  Exports of raw pork to Japan have been banned for over two years. Nevertheless, officials said Taiwan continues to supply processed pork products to Japan, Singapore and Hong Kong.

  A few days ago, Ling Shiang-nung (林享能), chairman of the Council of Agriculture, said Taiwan would continue to allow the import of livestock from the US next year before it enters the WTO.

  As part of its efforts to secure WTO entry, Taiwan agreed to allow a "down payment system," under which it would permit the import of 10,000 tons of chicken, 5,000 tons of pork belly, and 7,500 tons each of pork and beef offal from June 1, 1998.

  Lin said the quotas for the US, as well as similar global quotas for other WTO members, will continue to stand next year.

  The quotas are equal to the amount Taiwan has promised to open its market to other countries in its first year of WTO membership, Lin said.

  For your information

  The anticipated effects of WTO entry

  * 1998 animal industry production: NT$116.8 billion * Poultry market: Effect: Large. Tariff rate quota of 5 percent of annual consumption, rising to 10 percent by 2004 * Beef market: Effect: small. 90 percent of beef consumed in Taiwan already imported * Lamb market: Effect: small. 70 percent of lamb products consumed in Taiwan imported. * Pork market: Effect: small. Except for belly and offal, market already open to imports. Pork may be a competitive exporter to other WTO member countries
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