The Ministry of Economic Affairs is planning to allocate NT$200 million (US$6.7 million) to help local food producers expand their overseas footprint, including in Asia and North America, to help them mitigate the impact of China’s import bans.
The subsidy program, dubbed “Taiwan Food Go to the World,” would provide guidance to food producers on marketing and finance to help them overcome difficulties due to import bans China imposed on Taiwanese food brands on Monday last week, the ministry said yesterday.
China is the third-largest export destination for local processed food companies, accounting for 20 percent of Taiwan’s overall processed food exports, the ministry said.
Photo: Tien Yu-hua, Taipei Times
The ministry is in talks with Redmart, Singapore’s biggest online grocery store, and Japanese online retailier Rakuten to sell Taiwanese food products, it said, adding that it hopes the initiative would give producers a boost as early as October.
The Council of Agriculture on Tuesday last week said the blacklisted companies include producers of tea leaves, dried fruits, honey, cocoa beans and vegetables, as well as the catches from about 700 Taiwanese fishing vessels.
China said the suspension was related to the companies’ compliance with a new customs registration system that it introduced in April last year.
However, several Taiwanese companies whose registrations on the system are up to date were also affected by the ban.
The government is promoting the sale of processed Taiwanese food products and agricultural products to other markets to help producers overcome the China trade challenges, Minister of Economic Affairs Wang Mei-hua (王美花) told reporters.
The government would help manufacturers market their products mainly in 13 countries, including Japan, Malaysia, Singapore, South Korea, the US and Vietnam, she said.
Companies that market their products on foreign Web sites would receive a subsidy of NT$100,000 and those that hold promotion activities can apply for a subsidy of NT$200,000 for up to five events each, she added.
The ministry would organize sales promotion events in countries such as Singapore and Malaysia, and participate in food-related activities and exhibitions, she said.
The program would benefit about 2,000 manufacturers, adding an expected US$60 million to their combined revenue, she said.
The ministry hopes the program can help companies diversify their target markets and bring Taiwanese delicacies to more countries, she said.
Additional reporting by Lisa Wang
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