Part of the NT$30 billion (US$951.84 million) agricultural support fund President William Lai (賴清德) announced on Friday would be used to boost competitiveness of local peanuts as tariffs on peanuts from the US are lifted, the Agriculture and Food Agency said yesterday.
Given that US peanuts would be exempt from tariffs under the Agreement on Reciprocal Trade signed by the two nations on Thursday, concerns were raised over the impact it would have on local peanuts.
The total planting area of peanuts in Taiwan is 17,000 hectares and local peanuts account for 75 percent of the market, the agency said, adding that domestic peanut consumption is about 56,000 tonnes per year.
Photo: Chen Yi-kuan, Taipei Times
Minister of Agriculture Chen Junne-jih (陳駿季) said US peanut exports to Taiwan are mainly shelled peanuts and would not have a major impact on local unshelled peanuts.
US peanuts still need to compete with peanuts from India, Argentina and Brazil, Taiwan’s three major peanut import sources, which make up more than 90 percent of the shelled peanut market, he said.
Taiwanese peanuts are traditionally dried in the sun before they are transported and sold to wholesalers at markets, Chen said.
The government has been planning a systemic transformation of the peanut farming industry, he said, adding that domestically grown peanuts have great market potential that could be developed.
The agency said part of the NT$30 billion agricultural support fund would be dedicated to upgrading domestic peanut farming and its supply chain.
Peanut drying facilities and cold chain management would be established to scale up businesses, reduce costs and ensure food quality, it said, adding that contract farming and a procurement system for freshly harvested peanuts would be introduced to ensure farmers’ income and food safety.
The agency said it would also assist the industry in developing market segmentation between domestically grown peanuts and imported products, including by setting up a traceability certification system, and developing more diverse peanut products that would be hard to replace, such as steamed or roasted unshelled peanuts.
For example, Tainan No. 17 Peanut is a locally cultivated peanut variety that has stable quality and is suitable for steaming, it said.
Discussions with local farmers and industry players in critical peanut producing regions would be held after the Lunar New Year holiday, it added.
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