Minister of Agriculture Chen Junne-jih (陳駿季) yesterday pledged support for domestic peanut farmers amid concerns over the impact of a policy to eliminate tariffs on select US imports.
The policy, part of the Taiwan-US Agreement on Reciprocal Trade (ART), has yet to take effect, but has raised fears of increased competition.
Speaking ahead of a legislative meeting, Chen said the government would promote Taiwanese peanuts by highlighting their distinct qualities and bolstering marketing efforts.
Photo: Huang Shu-li, Taipei Times
Local peanuts account for about 75 percent of the domestic market, he said, adding that tariff-free imports would not mean abandoning local producers.
At the meeting of the legislature’s Economics Committee, Chinese Nationalist Party (KMT) Legislator Chang Chia-chun (張嘉郡) said that domestic peanuts cost about three times more than US imports and raised concerns about “origin washing.”
Chen said processed products would be required to clearly indicate their country of origin.
He added that the government is purchasing fresh peanut pods and setting up drying centers to help reduce costs.
Deputy Minister of Agriculture Hu Jong-i (胡忠一) said that about 20 to 30 percent of domestic production could be affected.
Imported US peanuts cost significantly less than local products, but Taiwan relies on imports for only 30 percent of consumption, Hu said.
Price is not the only factor that affects agricultural sales, the Ministry of Agriculture said, citing quality and consumer preferences.
Meanwhile, the Democratic Progressive Party (DPP) caucus yesterday said that the ART could affect some industries, despite its broader benefits to Taiwan.
DPP caucus chief executive Chuang Jui-hsiung (莊瑞雄) said additional support for peanut farmers would be needed, adding that the Cabinet has set up a NT$30 billion (US$951 million) agricultural stabilization fund.
Ministry data showed that the Yunlin County is the primary cultivation area for peanuts in Taiwan, followed by Changhua County, with total cultivated area shrinking from about 19,000 hectares in 2020 to 15,000 hectares last year.
Most Taiwanese prefer peanuts with large kernels and a rich flavor, the ministry said, adding that about 70 percent of domestically produced peanuts are used for processing, 20 percent are consumed fresh — often steamed or roasted — and 10 percent are reserved for seed stock.
Domestic peanuts are harvested twice a year, with the first crop harvested between June and July, and the second crop harvested between October and November, it said.
The dominant variety grown in Yunlin is “Tainan No. 14,” which features larger kernels and is suitable either for processing into peanut oil or consuming fresh after being steamed, the ministry said.
Total peanut cultivation in Changhua is about 3,200 hectares, and the primary peanut variety grown in the county is “Tainung No. 9,” which has smaller kernels, but a more intense aroma, making it suitable for roasting, it said.
New varieties such as “Tainan No. 18” and “Tainan No. 19” have been developed in recent years.
High in oleic acid and rich in unsaturated fatty acids, they have significantly longer shelf life when made into peanut oil, it added.
Most imported peanuts in Taiwan come from India, Argentina and Brazil, with US imports accounting for less than 1 percent.
Additional reporting by Yang Yuan-ting
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