Required Report - public distribution

**Date:** 06/12/2008

**GAIN Report Number:** TW8032

TW0000

**Taiwan**

**Exporter Guide**

**Annual**

**2008**

**Approved by:**

Keith Schneller,

Agricultural Trade Office![](media/image1.wmf) Taipei

**Prepared by:**

Amy Chang-Chien Hsueh, Agricultural Marketing Specialist

John Halcomb, International Intern

**Report Highlights:**

While Taiwan continues to be a strong market for U.S. products,
suppliers are also facing increased competition from other countries.
WTO trade liberalization and consumer demand for novelty and variety
have created a highly competitive environment for U.S. exporters. This
puts a strong emphasis on innovative product development, superior
marketing skills, and a trend towards high value niche product markets.

Consumers over the last few years have become increasingly interested in
markets such as organic and health products. However, like in other
countries around the world, soaring commodity prices have impacted
buyers and end-consumers in Taiwan over the past couple of years. As
long as commodity prices continue to rise, sales of new, specialty
products may be limited. On the other hand, as a result of recent
changes in the Taiwan government, relationships with mainland China are
expected to improve which should also bring more positive economic
prospects in the coming months.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Taipei \[TW1\]

\[TW\]

**Taiwan Exporter Guide 2007**

**Table of Contents**

**Section I. Market
Overview..................................................................Page
3**

**General Economy in
Brief................................................................Page
3**

**Food Market in
Brief.........................................................................Page
4**

**Section II. Exporter Business
Tips........................................................Page 6**

**Section III. Market Sector Structure and
Trends...................................Page 9**

**Section IV. Best High-Value Product
Prospects.....................................Page 12**

**Section V. Key Contacts and Further
Information.................................Page 14**

**APPENDIX -- STATISTICS**

A.  **Key Trade & Demographic
    Information........................................Page 17**

B.  **Consumer Food & Edible Fishery Product
    Imports.......................Page 18**

> **C. Top 15 Suppliers of Consumer Foods & Edible** **Fisher
> Products....Page 19**

**I. Market Overview**

**[General Economy in Brief]{.underline}**

Taiwan has a dynamic, capitalist economy that continues to expand
annually. Taiwan's foreign exchange reserves are the world's fifth
largest, exceeded by the PRC, Japan, India, and Russia. The economy
achieved steady growth in 2007, expanding at a pace of 5.7%. Currently,
the Directorate General of Budget, Accounting, and Statistics forecast
GDP growth of 4.78% for 2008. A as a result of recent changes in the
Taiwan government, relationships with mainland China are expected to
improve which should also bring more positive economic prospects in the
coming months. Taiwan is an excellent platform for U.S. companies
considering the Greater China market and the new government plans to
implement direct flights and other policy changes to facilitate trade
across the Straits.

Taiwan's economy is undergoing a fundamental restructuring in response
to the challenges posed by the emergence of China as a global
manufacturer and consumer. Much of Taiwan's own manufacturing capacity
has relocated to China, while in Taiwan companies have focused on high
tech production and the development of technical and industrial
management skills. According to Taiwan's Council for Economic Planning
and Development (CEPD), industrial products have steadily increased
their share of Taiwan's exports, accounting for more than 90% of total
exports in 1990 and reaching 99% in 2006. Within this category, exports
of capital-and technology-intensive goods have shown impressive growth,
raising their share of total exports from 32.2% in 1981 to 78.4% in
2005. And as efforts to develop high-technology industries have borne
fruit, electronics and products related to information technology have
seen their share of total exports rise considerably, from 13.7% in 1981
to 29.7% in 2005.

Japan and the United States have long been the major suppliers of
Taiwan's imports. Before 1995, these two countries consistently provided
more than half of Taiwan's total imports. In 2006, however, they
accounted for only 34%, down from 38.9% in 2004. On the other hand, the
share of Taiwan's imports originating in ASEAN has gradually increased,
from 10% in 1994 to 11.6% in 2006. Exports to the PRC have experienced
strong growth in the last 10 years, but have yet to experience the
explosive growth as imports into Taiwan from the PRC. When trade
statistics for trade with Mainland China began in 1997, 3.4% of imports
came from Mainland China. In 2002 that figure was 7.1% and in 2006 it
was 12.2%. In 1997, the PRC accounted for 0.5% of exports. In 2002 that
figure jumped to 7.6% and in 2006 exports to Mainland China accounted
for 22.7% of Taiwan exports.

+--------------------------------+-------------------------------------+
|                                | 2004 2005 2006 2007                 |
+--------------------------------+-------------------------------------+
| GNP: US\$ billion              | 342.1 364.0 374.5 394.8             |
|                                |                                     |
| GNP: US\$ per person           | 15,156 16,067 16,471 17,294         |
|                                |                                     |
| Changes in Consumer Price      | 1.6 2.3 0.6 1.8                     |
| Index (CPI) %                  |                                     |
|                                | 4.4 4.1 3.9 3.9                     |
| Unemployment Rate              |                                     |
|                                | 6.1 4.1 4.9 5.7                     |
| Economic Growth Rate %         |                                     |
|                                | 33.4 32.2 32.5 32.4                 |
| Average Annual Exchange Rate   |                                     |
|                                |                                     |
| NT\$ to 1.00 US\$              |                                     |
+--------------------------------+-------------------------------------+

Source: Taiwan Directorate General of Budget, Accounting, and
Statistics.

**[Food Market in Brief]{.underline}**

# Taiwan is the sixth largest market for U.S. food and agricultural product exports. In 2007, the United States exported US\$3.2 billion of agricultural products to Taiwan, capturing nearly 34 percent of Taiwan's total agricultural imports (US\$10.2 billion). The United States (33.8%), Europe (9.6%), and China (7.2%) were top three largest suppliers of Taiwan's agricultural imports. China replaced Japan as the third largest supplier, a change from 2006.

![](media/image2.wmf){width="6.1506944444444445in"
height="3.295138888888889in"}

The United States is a major supplier of bulk commodities to Taiwan. In
2007, the U.S. share of soybeans and soy products imported by Taiwan
rose 14% to 90.29% of total soy imports. However, coarse grains,
primarily corn, imports from the U.S. decreased by 15%. Still, greater
than 95% of coarse grain imports came from the U.S. India and China both
saw significant increases in coarse grain exports to Taiwan during 2007.
While Taiwan does not rely heavily on imports of rice, the U.S. does
supply 54% of all rice imports. The U.S. overtook Thailand as Taiwan's
largest supplier of rice in 2006. U.S. rice exports to Taiwan grew by
28% from 2006 to 2007 to a total of nearly 75,000 Tons.

In 2007, countries that depend on imports of basic agricultural
commodities for food and feed purposes have had to deal with significant
increases in commodity prices as well as transportation costs. While
Taiwan has seen some food price inflation, the well-developed economy
has been able to absorb the added costs more easily than some other
import-dependent parts of the world. The result, however, has been an
increase in the number of sources from which Taiwan is willing to import
commodities. Most likely, market share lost to India and China will not
be regained by the U.S. The U.S. is still seen as a provider of high
quality, safe products and is the largest supplier of many products to
the Taiwan market.

Taiwan became a full member of the World Trade Organization (WTO) in
2002. The lowering of tariff and non-tariff trade barriers for food and
agricultural products has provided improved market access for a wide
range of U.S. agricultural products including fresh produce, dairy
products, meat, seafood, and processed food products. Given Taiwan's
relatively small agricultural sector, Taiwan's dependence on imports is
expected to continue to grow. Taiwan's continued modernization, and
increased adoption of American and western food tastes make the country
an extremely attractive market for U.S. exporters.

Taiwan's consumers are becoming more sophisticated. Two income families
as well as single unit households are replacing the traditional extended
family. For the food industry this is creating a demand for more
"Western-style" food items, as well as an emphasis on pre-cooked and
convenience foods and snacks. Also, Taiwan's population is aging. The
elderly (age 65 and above) currently make up 10 percent of the island's
population and are increasing rapidly. According to Taiwan Food Industry
Research and Development Institute (FIRDI), products with low sugar, low
salt, natural, high calcium are most popular among Taiwan's elderly
people.

**[Demographics]{.underline}**

Taiwan is located off the southeast coast of the Asian continent,
between Japan to the north and the Philippines to the south, with a
current population of 23 million people. The total area is about 36,006
square kilometers, roughly equal to the size of the Netherlands. About
two-thirds of the island is covered with lushly forested mountains. With
633 persons per square kilometers, Taiwan is one of the most densely
populated areas in the world. Taipei and Kaohsiung on the west coast are
the two major metropolises of Taiwan with population of 6.6 million and
2.8 million respectively.

+------------------------------+---------------------------------------+
| **Consumer Demographics**    |                                       |
+------------------------------+---------------------------------------+
|                              | 2003 2004 2005 2006                   |
+------------------------------+---------------------------------------+
| Female Labor Force           | 47.1 47.7 48.1 48.7                   |
| Participation %              |                                       |
|                              | 10.06 9.56 9.06 8.96                  |
| Birth Rate per 1000          |                                       |
|                              | 9.2 9.5 9.7 10                        |
| \% of Aging population       |                                       |
|                              | 624.6 627 629.2 632.2                 |
| Pop. Density                 |                                       |
|                              | 25,947 27,939 27,274 28,095           |
| Persons per square Km        |                                       |
|                              | 19,599 21,713 21,374 21,939           |
| Average Disposable Income\   |                                       |
| per household\               | 24.0 23.7 23.6 23.5                   |
| (Adjusted for inflation)     |                                       |
| US\$                         |                                       |
|                              |                                       |
| Consumption Expenditure\     |                                       |
| per household US\$           |                                       |
|                              |                                       |
| Household Consumption of\    |                                       |
| Food, and Beverage as % of   |                                       |
| total consumption            |                                       |
+------------------------------+---------------------------------------+

Source: Directorate General of Budget, Accounting and Statistics.

There exist, however, two long-term trends that will impact future food
and beverage demand.

-   The birth rate is falling and people are living longer. This means
    less demand for infant formula and baby foods and more demand for
    healthy foods and nutrients. These are probably long term structural
    developments arising from more women in the workforce, more divorces
    and smaller families, improved diet, and better health care.

```{=html}
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```
-   The great majority of people living in apartments and new high-rise
    apartments with elevators are getting a little bigger in
    floor-space. This means more room for food storage, cooking and home
    entertainment, although we do not expect this to have a major impact
    on Taiwanese consumer habits to eat out and shop frequently and in
    small quantities.

These trends will favor Taiwan's attraction to U.S. lifestyle, with its
emphasis on space, leisure and personal enjoyment. This trend began with
McDonald's, a U.S. experience in low cost fast food for youngsters, and
continues with Starbucks, a U.S. experience in sipping rare coffees in
elegant surroundings for the young and affluent. A U.S. format for fine
dining as the economy develops, undoubtedly presents a future
opportunity.

  ---------------------------------- ------------------------------------
  Advantage                          Challenges

  U.S. products are perceived by     Competition among major world
  Taiwan consumers to be of high     agricultural and food exporters for
  quality                            a share of Taiwan's growing food
                                     import market further intensifies
                                     due to Taiwan's WTO accession

  The majority of Taiwan consumers   Low price competitors, e.g. China
  can afford imported food products  and S.E. Asia, are threatening U.S.
                                     in areas such as fresh produce,
                                     seafood, confectionery, juices, and
                                     food ingredients

  Taiwan's WTO accession in early    Lack of importer and retail
  2002 resulting in further market   knowledge and training in
  liberalization and import tariff   purchasing, handling, and
  reduction has provided U.S.        merchandising U.S. products
  exporters with more market         
  opportunities                      

  Taiwanese consumers are            Lack of buyers' awareness regarding
  increasingly affluent and open to  U.S. food products -- availability,
  Western food products              varieties, and U.S. suppliers.

  The growing modern retail industry Lack of brand awareness by Taiwan
  is looking for new imported food   consumers
  products                           
  ---------------------------------- ------------------------------------

###### II. Exporter Business Tips

**[Appointment of Import Agents]{.underline}**

Except for major exporters with their own offices in Taiwan, the
appointment of an effective import agent is a critical decision.
Background research with assistance from the Agricultural Trade Office,
the U.S. representatives of commodity/trade associations/cooperators,
and others willing to share experience cannot be over-emphasized.

Although factors will vary from case to case, key issues to be
considered include:

-   The extent of the agent's network of distributors, owned or leased
    storage capacity and owned or leased transport arrangements. In
    particular, does the agent have strong contacts with the responsible
    purchasing officers in the target sales channels?

-   Does the agent have a high proportion of direct-to-market channels
    or is he/she heavily dependent on multiple distribution levels.

-   Is the agent developing added-value communications and promotions or
    is he/she dependent on price discounts as the major sales tool.

-   Does the agent have complementary product lines? Although cases
    vary, exclusivity can provide a better incentive to the agent and
    can help the exporter to maintain improved supervision over price
    and product integrity.

**[Entry Strategy]{.underline}**

Taiwan's supermarket, hypermarket, and warehouse store chains purchase
from local importers, wholesalers, and manufacturers. However, the
current tendency is to increase the volume of direct imports to avoid
the higher cost of products purchased from importers and local
manufacturers.

The best method to reach Taiwan's retail buyers as well as prospective
importers is to initially contact them directly via e-mails or faxes.
Product catalogues and price lists are essential. Sample products are
very helpful. U.S. suppliers can obtain lists of major Taiwan retail
stores as well as potential importers from the ATO Taipei. A visit to
Taiwan is imperative in establishing meaningful relationships with
potential Taiwan buyers. Personal relationships and face to face
meetings are very important in Asian cultures. It is advisable to bring
along samples to meetings with potential buyers while visiting Taiwan as
many importers and retailers rely heavily upon subjective factors when
deciding on new products to represent.

The typical Taiwan businessman usually has several interests rather than
a single product line. The Taiwanese consumers' income continues to
increase and so is their taste in foods. In order to meet the increasing
demand, Taiwan importers keep seeking new products, e.g. new-to-market
products and new brands of certain products. On the other hand, many
Taiwan importers follow the customary Taiwanese pattern of collecting
basic information (samples, catalogues, price, supply schedule, etc)
initially for consideration. A trial order to test the market response
might then be placed after further contact.

**[Sales and marketing]{.underline}**

Although sales and marketing techniques in Taiwan are in a process of
evolution and development, there remains a high reliance on price
discounts in promotion strategies. To minimize reliance on discounting
strategies, U.S. food and beverage suppliers, particularly those higher
added value categories, may benefit from a focus on market education and
sales training to develop brand recognition (demand-pull) and consumer
preference.

Consumer concern for their personal health, as well as the health of
immediate family members (children and parents), means that foods and
beverages believed to provide specific health or nutritional benefits
can and often do earn a retail premium above what the market might
normally bear. Taiwanese consumers tend to be less concerned about cost
when shopping for products they believe provide such benefits and may
alter purchasing habits and behavior in order to include such foods or
beverages in their diet. Fresh fruit, dried berries, fruit juices,
yogurt, fresh baked breads, and a wide range of nutritional supplements
are just a few examples of product categories for which marketing
strategies founded in nutritional and health messages have proven highly
successful. Consumers also receive a great deal of news about food
safety, which is causing increased concerns and skepticism. This may
provide opportunities for U.S. companies to promote brand value thru
safety.

U.S. companies are, however, advised to keep in mind the strict product
labeling requirements enforced in Taiwan, which require that any health
or nutritional claim be first assessed and approved by the Taiwan
Department of Health (DOH) prior to inclusion on product packaging. For
more information regarding DOH labeling requirements, please refer to
the USDA "Food and Agricultural Import Regulations and Standards
(FAIRS)" Report (TW6027) at website:
[http://www.fas.usda.gov](http://www.fas.usda.gov/)

**[Taiwan Business Customs]{.underline}**

Taiwanese businessmen are often refreshingly direct and informal in
their business approach and do not have the business rituals associated
with, for example, Japan. Nonetheless, there are some local customs that
are well worth observing, for example, greetings and gifts to mark the
major festivals such as the Mid-Autumn Moon Festival and the Chinese New
Year. In fact, these holidays are like Thanksgiving and Christmas in the
United States and are key sales periods. Taiwanese enjoy "mooncakes" for
the Moon Festival which are sticky rice cakes similar to "fruitcakes"
which are exchanged in the West. However, the traditional mooncakes are
losing ground to exciting new versions of mooncakes which include
Western ingredients such as dried fruits and nuts and even ice cream
based mooncakes are becoming increasingly popular. US companies should
consider the timing of introducing new products to coincide with these
busy holiday gift giving seasons.

The most popular Taiwanese recreation is eating. Even at your first
meeting, your Taiwanese counterpart may invite you to lunch or dinner.
Entertaining is not only a basic tool to influence business
relationships, the Taiwanese consider it essential to building
friendships that will enhance mutual understanding.

Although agents and purchasing managers are always searching for new
products, they are also very thorough in their evaluation. They like to
see product samples whenever possible and will often place small initial
shipments to test the market response.

**[Language Barrier?]{.underline}**

No. You do not have to learn to speak Mandarin or Taiwanese to do
business in Taiwan. You will probably be surprised at how well your
business counterparts here speak English. In any case, interpreters are
easy to find. At the same time, written materials from name cards to
product brochures will be far more helpful to your sales efforts if
translated into Chinese. There are many ways to learn basic Mandarin and
to translate materials on-line. Check out Google's online language tools
at:

http://www.google.com/language_tools?hl=en

Lots of Americans learn basic Mandarin using a website called
[www.chinesepod.com](http://www.chinesepod.com/) which offers free mp3
lesson files. Their beginners' lessons also focus on various cultural
issues such as greetings and bar culture. For example, Chinese peoples'
family names are commonly listed first, or before their given names. The
family name usually consists of only one character or syllable. Their
given name is usually only one or two syllables as well. On bar culture,
when doing business for the first time in Taiwan or greater China,
Americans will quickly hear "gan bei" which means bottoms up. You will
quickly learn to avoid grain alcohol-based beverages and can always
counter with "sui yi" which means -- "drink as you like -- no pressure".

Many Taiwanese strive to send their children to America's finest
universities for higher education. Therefore, a large percentage of
Taiwanese speak fluent English, have lived or studied in the United
States, and are intimately familiar with American customs, food, and
culture. Costco currently has 5 very successful stores operating in
Taiwan. These stores are always full of customers who demand they have
access to the same products they were accustomed to finding at Costco
stores in the United States.

**[Due Diligence]{.underline}**

Although Taiwan purchasers have a high reputation for contract
performance, consolidation and financial pressures within the industry
make it important to maintain normal due diligence on contracts and
payment procedures. As always, foreign exchange fluctuations need to be
guarded against.

**[Food Standards and Regulations]{.underline}**

For information regarding food standards and regulations, please refer
to the annual "Food and Agricultural Import Regulations and Standards
report" found on our website at www.usfoodtaiwan.org.

**III. Market Sector Structure and Trends**

**[Manufacturing]{.underline}**

The total production value of the domestic food industry in 2007
amounted to approximately US\$14.2 billion, with growth of 7.8 percent
from 2006. The food industry ranks the fourth largest among
manufacturing industries island-wide, behind electronic/electrical
machinery, chemicals, and metal industries. Projected annual
agricultural growth for 2008 is 3.8%, while the overall economic growth
rate is projected to be 4.9 percent. Oriented primarily towards domestic
sales, the food industry consists of nearly 6,000 manufacturing
enterprises employing more than 109,000 persons. Food production has
declined since 1997 due to the outbreak of foot and mouth disease in
1997 and SARS in early 2003 which had a ripple effect throughout the
food and agricultural sector and the overall slowdown in Taiwan.

Overall food exports reached US\$1.8 billion in 2007, a 2.1 percent
increase from the previous year. Frozen foods continued to be the
leading export item, accounting for 64% of Taiwan's total food exports
in 2007. It was followed by non-alcoholic beverages (6%), and condiments
(5%). Frozen seafood comprised the largest sub sector of frozen food
exports.

In 2006 and 2007 Taiwan, like others worldwide, has witnessed decreased
production as a result of higher commodity prices. On August 1, 2007,
the Executive Yuan announced that it would reduce tariffs on imported
food products by 50%, as well as official fees on wheat, barley, corn,
and soybeans.

![](media/image3.wmf)

Based on U.S. customs data, Taiwan imported approximately US\$2 billion
worth of US bulk agricultural commodities, \$429 million worth of US
intermediate food and agricultural products, \$22 million worth of US
edible fish & seafood products, and \$671 million worth of US
consumer-oriented products in 2007. Major ingredient categories that
offer opportunities for U.S. exporters include snack food and bakery
ingredients; gluten, starch, and dextrins, ingredients for functional
and health foods; ingredients for frozen prepared foods; ingredients for
high fiber food and low calorie food; soy products; and flavorings.

In February 2005, Taiwanese primary and secondary schools united in a
ban against the sale of soft drinks containing sugar on their campuses.
Instead only 100% juice drinks and bottled water may now be sold.
Functional foods are beginning to increase in importance as 140
manufacturers employing 2,900 persons work to fill the demand. Sales of
traditional and non-traditional food styles are approximately equal
halves of the estimated \$1.8 billion market. Development of functional
foods has been concentrated on weight control, skin care and beauty,
gastroenterological digestion improvement and regulation of blood
lipids. The main sales channels are direct sales, chain drugstores,
health food stores and weight control centers.

Taiwan's accession to the WTO in 2002 has benefited the domestic food
processing industry through market liberalization. However, at the same
time imported finished food products have been taking increased market
share from domestically produced products since the WTO accession and
this trend is expected to continue. Taiwan's food processing industry is
facing a vigorous competition in the more open environment. Taiwan's
foreign investments in food processing have grown tremendously in recent
years. To take advantage of lower costs and to expand their global
markets, many of Taiwan's food processors establish production
facilities outside Taiwan. According to the Ministry of Economic
Affairs, as of April 2008, Taiwan's food and beverage processing
companies have invested approximately US\$1.8 billion in the PRC and
nearly US\$497 million in other countries (mainly Southeast Asia). The
recent tendency is to relocate processing facilities to Southeast Asia.

[**Retail Food Sector**]{.underline}

Taiwan's food retail industry has entered a phase of maturity. Mergers
and strategic alliances will continue to take place over the next few
years. The larger chains continue to grow at a constant rate while small
chains have begun to stagnate. Carrefour SA, the world's second largest
retailer, took over Tesco Taiwan's six stores and two development sites
as part of an asset-swap deal with Tesco plc in 2006. Carrefour's market
presence in Taiwan was boosted by the deal and general growth from 33
percent with 36 outlets nation-wide in 2006 to a promising 40 percent
with 48 outlets in 2007. In the last 10 years Carrefour has expanded its
locations in Taiwan by over 180%.

![](media/image4.wmf)

The Globalization is a distinguishing characteristic of Taiwan's food
retail market. Foreign operators, including Wellcome (210), Carrefour
(48), Auchan of France (23), France's Geant (14), and Costco (5) of the
United States continue to dominate Taiwan's food retail market.
Currently, the four major convenience store chains, including 7-Eleven
(4,791), Family Mart (2,269), Hi-Life (1,223), and Circle K (830)
altogether account for an estimate of over 90% of the total convenience
store market. \*\* Figures inside parentheses represent \# of stores of
the chains, as of May 2008.

Taiwan's supermarket, hypermarket, and convenience store chains purchase
from local importers, wholesalers, and manufacturers. However, the
current tendency is to increase the volume of direct imports to avoid
the higher cost of products purchased from importers and local
manufacturers.

**[Organic Market]{.underline}**

The organic segment of the Taiwan food market is growing rapidly as
consumers become more aware of available products and difference in
production methods. According to a 2006 report by the Organic Trade
Association, 70% of sales of organic products in Taiwan come from
imports. This is due primarily to limited domestic production of organic
products. It is also important to note that currently Taiwan does not
require any re-certification for products to be labeled as organic.

In 2003, the organic market in Taiwan was valued at US \$28 million, and
is forecast to reach US \$78 million in 2008. There has been a steady
growth in demand as consumers have become more aware of organic products
and educated by those in the industry on the benefits of these products.

[Market Drivers]{.underline}

-   Consumer awareness

-   Increased availability

-   Expanding retail networks

-   Increased investment

-   Health scares which have raised awareness of food safety issues

[Market Restraints]{.underline}

-   Low consumer awareness of production methods

-   High retail prices (40-200% increase) compared to conventional
    products

-   Lax regulations on organic products

-   Low consumer trust in domestic organic products

-   Large number of organic logos which confuse consumers

There are several well established importers, wholesalers, and retailers
of organic products in Taiwan, some of which have vertically integrated
into all three areas.

[Certification Requirements]{.underline}

New government regulations have gotten some traders worried recently
that required organic certification documentation on a batch basis will
slow down logistics and severely increase paperwork and costs. It may
even discourage traders from importing foreign organic products. The
proposed, new sanitary/phytosanitary inspection documentation seems to
require zero-residue tolerance on organic crops besides existing
phytosanitary requirements. Imported organic product(s) under review
through normal sanitary/phytosanitary inspection procedures that do not
meet Taiwan standards for organic agricultural and agricultural
processed products will not be allowed into Taiwan. Taiwan's harsh
phytosanitary requirements and zero-residue tolerance may result in a
ban on many imported organic products. ATO Taipei will work with the
trade and local organic industry to make sure that Taiwan's growing
organic industry is not smothered by these proposed new regulations. For
a more comprehensive review of the proposed new regulations, please
refer to
[TW7052](http://www.usfoodtaiwan.org/UploadFiles/200813181533312.pdf) on
our website at [www.usfoodtaiwan.org](http://www.usfoodtaiwan.org/).

**[HRI Food Service Sector]{.underline}**

Total sales for Taiwan's food service sector was estimated at US\$9.8
billion in 2007. Growth over the coming three years is expected to
average 5 percent. Taiwanese dine outside the home with much greater
frequency than most westerners. The high propensity to dine out is
driven by a combination of factors:

> Small size of apartments
>
> High female participation in the labor force
>
> A high level of disposable income
>
> Restaurant availability

Household Dinning-Out Expenditure as % of Total Food & Beverage
Expenditure

  ------ ------- ------- ------- -------- ------- -------- -------- --------
  Year   1999    2000    2001    2002     2003    2004     2005     2006

         28.1%   29.0%   29.6%   29.8%    31.0%   32.0%    32.8%    32.9%
  ------ ------- ------- ------- -------- ------- -------- -------- --------

###### 

###### Source: Taiwan Directorate General of budget, Accounting and Statistics 

Competition among the various hotel restaurants in Taiwan has become
intense. Consequently, innovative promotions such as country theme
promotions, Taiwan/Western holiday/festival promotions, and seasonal
promotions are popular year-round. These promotions offer market
opportunities for U.S. foods such as high quality meats, fruit,
vegetables, nuts, seafood, beverages, wines, and juice concentrates.

**IV. Best high-Value Product Prospects**

+-------+------+------+-----+--------+--------------+---------------+
|       | **20 | **20 | *   | **     | **Key        | **Market      |
|       | 05** | 06** | *5- | Import | Constraints  | A             |
|       |      |      | Yr. | Tariff | Over Market  | ttractiveness |
|       | *    | **I  | Avg | Rate** | D            | for USA**     |
|       | *Imp | mpor | .** |        | evelopment** |               |
|       | orts | ts** |     |        |              |               |
|       | (US  |      | **  |        |              |               |
|       | \$Mi | *    | Ann |        |              |               |
|       | l)** | *(US | ual |        |              |               |
|       |      | \$Mi | Imp |        |              |               |
|       |      | l)** | ort |        |              |               |
|       |      |      | Gr  |        |              |               |
|       |      |      | owt |        |              |               |
|       |      |      | h** |        |              |               |
+-------+------+------+-----+--------+--------------+---------------+
| **Red | \$66 | \$70 | 30% | 10%    | French wine  | Currently,    |
| W     |      |      |     | plus a | still        | the United    |
| ine** |      |      |     | NT\$7  | dominates    | States is     |
|       |      |      |     | per    | the red wine | Taiwan's      |
|       |      |      |     | one    | market.      | third largest |
|       |      |      |     | p      | Knowledge    | wine          |
|       |      |      |     | ercent | about wines  | supplier.     |
|       |      |      |     | a      | is generally | Despite the   |
|       |      |      |     | lcohol | low          | front-runner  |
|       |      |      |     | for    | throughout   | position of   |
|       |      |      |     | grape  | wine         | French wines, |
|       |      |      |     | wines. | distribution | US wines      |
|       |      |      |     |        | channels.    | continue to   |
|       |      |      |     |        |              | gain consumer |
|       |      |      |     |        |              | recognition   |
|       |      |      |     |        |              | and           |
|       |      |      |     |        |              | acceptance.   |
|       |      |      |     |        |              | The growth    |
|       |      |      |     |        |              | was fueled by |
|       |      |      |     |        |              | the           |
|       |      |      |     |        |              | perception    |
|       |      |      |     |        |              | that wine is  |
|       |      |      |     |        |              | good for      |
|       |      |      |     |        |              | health        |
+-------+------+------+-----+--------+--------------+---------------+
| **Che | \$53 | \$57 | 19% | 5%     | Although the | The US share  |
| ese** |      |      |     |        | import       | is growing    |
|       |      |      |     |        | volume is    | faster than   |
|       |      |      |     |        | large, it is | the larger    |
|       |      |      |     |        | dominated by | competitors,  |
|       |      |      |     |        | New Zealand  | meaning that  |
|       |      |      |     |        | (37%) and    | those US      |
|       |      |      |     |        | Australia    | cheese        |
|       |      |      |     |        | (26%).       | currently     |
|       |      |      |     |        |              | coming into   |
|       |      |      |     |        |              | the market    |
|       |      |      |     |        |              | are finding   |
|       |      |      |     |        |              | faster        |
|       |      |      |     |        |              | acceptance    |
|       |      |      |     |        |              | than those of |
|       |      |      |     |        |              | competitors   |
+-------+------+------+-----+--------+--------------+---------------+
| **W   | \$   | \$   | 3%  | 5%     | Intense      | The U.S. is   |
| hey** | 12.3 | 11.6 |     |        | competition  | the major     |
|       |      |      |     |        | from major   | supplier of   |
|       |      |      |     |        | exporting    | whey,         |
|       |      |      |     |        | nations such | approximately |
|       |      |      |     |        | as New       | 50% market    |
|       |      |      |     |        | Zealand and  | share, due to |
|       |      |      |     |        | Australia.   | competitive   |
|       |      |      |     |        |              | pricing and   |
|       |      |      |     |        |              | successful    |
|       |      |      |     |        |              | promotion     |
|       |      |      |     |        |              | efforts into  |
|       |      |      |     |        |              | hote          |
|       |      |      |     |        |              | l/restaurant/ |
|       |      |      |     |        |              | institutional |
|       |      |      |     |        |              | and processed |
|       |      |      |     |        |              | food channels |
|       |      |      |     |        |              | by U.S.       |
|       |      |      |     |        |              | exporters and |
|       |      |      |     |        |              | the U.S.      |
|       |      |      |     |        |              | Dairy Export  |
|       |      |      |     |        |              | Council.      |
+-------+------+------+-----+--------+--------------+---------------+
| **    | \    | \    | 11% | 20%    | Taiwan's WTO | Effective     |
| Stone | $112 | $120 |     |        | accession    | marketing     |
| Fr    |      |      |     | plum   | (2002)       | programs      |
| uit** |      |      |     | /peach | opened the   | targeting     |
|       |      |      |     | /nec   | island's     | reliable      |
|       |      |      |     | tarine | fruit        | quality,      |
|       |      |      |     |        | market.      | competitive   |
|       |      |      |     |        | C            | pricing, and  |
|       |      |      |     |        | onsequently, | brands of US  |
|       |      |      |     |        | competition, | stone fruits  |
|       |      |      |     |        | in terms of  | has been      |
|       |      |      |     |        | new          | undergone by  |
|       |      |      |     |        | suppliers    | the           |
|       |      |      |     |        | and new      | California    |
|       |      |      |     |        | varieties    | Tree Fruit    |
|       |      |      |     |        | from both    | Agreement     |
|       |      |      |     |        | abroad and   | that could    |
|       |      |      |     |        | domestic     | help retain   |
|       |      |      |     |        | producers,   | and improve   |
|       |      |      |     |        | is           | the market    |
|       |      |      |     |        | intensifying | for US stone  |
|       |      |      |     |        | now.         | fruit in      |
|       |      |      |     |        |              | Taiwan.       |
+-------+------+------+-----+--------+--------------+---------------+
| *     | \    | \    | 61% | Blueb  | Co           | Consumers in  |
| *Berr | $2.3 | $3.2 |     | erries | nsumer/trade | Taiwan are    |
| ies** |      |      |     | 7.5%   | lack of      | becoming more |
|       |      |      |     |        | product      | health        |
|       |      |      |     | Strawb | knowledge.   | conscious.    |
|       |      |      |     | erries | Educational  | Berries       |
|       |      |      |     |        | programs by  | continue to   |
|       |      |      |     | 20%    | US exporters | enjoy a       |
|       |      |      |     |        | are          | steadily      |
|       |      |      |     |        | necessary.   | increasing    |
|       |      |      |     |        |              | share of both |
|       |      |      |     |        |              | co            |
|       |      |      |     |        |              | nsumer/retail |
|       |      |      |     |        |              | and food      |
|       |      |      |     |        |              | service       |
|       |      |      |     |        |              | channels.     |
|       |      |      |     |        |              | There are     |
|       |      |      |     |        |              | strong growth |
|       |      |      |     |        |              | prospects for |
|       |      |      |     |        |              | berry,        |
|       |      |      |     |        |              | strawberries  |
|       |      |      |     |        |              | and           |
|       |      |      |     |        |              | blueberries   |
|       |      |      |     |        |              | in            |
|       |      |      |     |        |              | particular,   |
|       |      |      |     |        |              | category.     |
+-------+------+------+-----+--------+--------------+---------------+
| **Ch  | \$92 | \$83 | 45% | 20%    | The TRQ      | Imports are   |
| icken |      |      |     |        | controls on  | rising        |
| Meat  |      |      |     |        | chicken meat | significantly |
| &     |      |      |     |        | was          | in the wake   |
| Of    |      |      |     |        | eliminated   | of Taiwan's   |
| fal** |      |      |     |        | in January   | elimination   |
|       |      |      |     |        | 2005 and     | of all tariff |
|       |      |      |     |        | replaced by  | rate quota    |
|       |      |      |     |        | ordinary     | restrictions  |
|       |      |      |     |        | tariffs.     | in January    |
|       |      |      |     |        | However, an  | 2005. The     |
|       |      |      |     |        | SSG          | United States |
|       |      |      |     |        | assessment   | is currently  |
|       |      |      |     |        | would add an | in a strong   |
|       |      |      |     |        | estimated    | supply        |
|       |      |      |     |        | 633% to      | position with |
|       |      |      |     |        | normal       | market share  |
|       |      |      |     |        | tariffs,     | greater than  |
|       |      |      |     |        | resulting in | 82%, being    |
|       |      |      |     |        | an effective | one of only   |
|       |      |      |     |        | tariff of    | six countries |
|       |      |      |     |        | about 26.33% | certified for |
|       |      |      |     |        | for chicken  | poultry       |
|       |      |      |     |        | meat.        | exports to    |
|       |      |      |     |        |              | Taiwan and    |
|       |      |      |     |        |              | the only one  |
|       |      |      |     |        |              | of these with |
|       |      |      |     |        |              | sufficient    |
|       |      |      |     |        |              | volumes and   |
|       |      |      |     |        |              | competitive   |
|       |      |      |     |        |              | pricing       |
|       |      |      |     |        |              | points.       |
+-------+------+------+-----+--------+--------------+---------------+
| *     | \$57 | \$51 | 15% | Sweet  | Currently,   | Nuts (mainly  |
| *Tree |      |      |     | al     | the US       | almonds, and  |
| N     |      |      |     | monds: | dominates    | walnuts) are  |
| uts** |      |      |     | in     | the          | very popular  |
|       |      |      |     | shell  | following    | as            |
|       |      |      |     | 5%;    | nut market:  | ingredients   |
|       |      |      |     | s      | almonds, and | used in       |
|       |      |      |     | helled | walnuts.     | baking. The   |
|       |      |      |     | 2.5%   | Cashes from  | US currently  |
|       |      |      |     |        | China and SE | dominates     |
|       |      |      |     | Bitter | Asia has     | these         |
|       |      |      |     | al     | shifted some | categories.   |
|       |      |      |     | monds: | market share | Constant      |
|       |      |      |     | 10%    | away from    | communication |
|       |      |      |     |        | U.S.         | with the      |
|       |      |      |     | Hazel  | suppliers.   | baking        |
|       |      |      |     | nuts:  | The greatest | industry      |
|       |      |      |     | s      | competition  | technical     |
|       |      |      |     | helled | to US        | seminars and  |
|       |      |      |     | 7%     | pistachio    | trade shows   |
|       |      |      |     |        | exporters is | is essential  |
|       |      |      |     | In     | from Middle  | to grow in    |
|       |      |      |     | -shell | East and     | this          |
|       |      |      |     | 7.5%   | Australia.   | category.     |
|       |      |      |     |        |              |               |
|       |      |      |     | W      |              |               |
|       |      |      |     | alnuts |              |               |
|       |      |      |     | 5%     |              |               |
|       |      |      |     |        |              |               |
|       |      |      |     | Pist   |              |               |
|       |      |      |     | achios |              |               |
|       |      |      |     |        |              |               |
|       |      |      |     | 3%     |              |               |
|       |      |      |     |        |              |               |
|       |      |      |     | Pecan  |              |               |
|       |      |      |     | 7.5%   |              |               |
+-------+------+------+-----+--------+--------------+---------------+
| **Red | \    | \    | 15% | Be     | Beef-The     | U.S. beef is  |
| Meat  | $431 | $441 |     | ef-10% | primary      | perceived to  |
| &     |      |      |     | per kg | competitor   | be high       |
| Of    |      |      |     |        | is Australia | quality.      |
| fal** |      |      |     | Beef   | and New      |               |
|       |      |      |     | offal  | Zealand,     | There are     |
|       |      |      |     | --15%  | whose        | growth        |
|       |      |      |     |        | advantage is | opportunities |
|       |      |      |     | Pork   | custom       | for U.S. pork |
|       |      |      |     | -12.5% | er-perceived | that meets    |
|       |      |      |     |        | comparabl    | local food    |
|       |      |      |     | V      | e/acceptable | processors'   |
|       |      |      |     | ariety | quality at a | needs.        |
|       |      |      |     | me     | low price.   |               |
|       |      |      |     | at-15% | US share has |               |
|       |      |      |     |        | rebounded    |               |
|       |      |      |     |        | back to      |               |
|       |      |      |     |        | pre-BSE      |               |
|       |      |      |     |        | levels of    |               |
|       |      |      |     |        | about 30%.   |               |
|       |      |      |     |        |              |               |
|       |      |      |     |        | Pork-is a    |               |
|       |      |      |     |        | market where |               |
|       |      |      |     |        | the domestic |               |
|       |      |      |     |        | producers    |               |
|       |      |      |     |        | have many    |               |
|       |      |      |     |        | competitive  |               |
|       |      |      |     |        | advantages.  |               |
+-------+------+------+-----+--------+--------------+---------------+
| *     | \    | \    | 3%  | 9%-38% | With a bias  | The food      |
| *Seaf | $307 | $314 |     |        | towards      | service/HRI   |
| ood** |      |      |     |        | fresh fish   | venues with a |
|       |      |      |     |        | and SE       | strong        |
|       |      |      |     |        | Asia-variety | Western       |
|       |      |      |     |        | crustaceans, | orientation   |
|       |      |      |     |        | the seafood  | and up-market |
|       |      |      |     |        | segment      | positioning   |
|       |      |      |     |        | currently    | offer the     |
|       |      |      |     |        | has          | current best  |
|       |      |      |     |        | development  | opportunities |
|       |      |      |     |        | problems.    | for U.S.      |
|       |      |      |     |        |              | exporters     |
+-------+------+------+-----+--------+--------------+---------------+

Source: Taiwan Council of Agriculture

####### 

####### V. Key Contacts and Further Information

# 

# American Institute in Taiwan

Organization Name Agricultural Trade Office

Address Room 704, 7F, 136 Renai Road, Section 3, Taipei, Taiwan

Telephone (886-2) 2705-6536; Fax: (886-2) 2706-4885

E-mail ato@ait.org.tw

Internet Homepage
[http://www.usfoodtaiwan.org](http://www.usfoodtaiwan.org/)

Organization Name United States Department of Agriculture

Department Foreign Agricultural Services

Address U.S. Department of Agriculture, Washington, D.C. 20250

E-mail info@fas.usda.gov

Internet Homepage www.fas.usda.gov

# Taiwan Central Authority Agencies

Organization Name Bureau of Standards, Metrology & Inspection (BSMI)

Address No. 4 Chinan Road, Section 1, Taipei, Taiwan

Telephone (886-2) 2321-2790; Fax: (886-2) 2356-0998

Internet Homepage http://www.bsmi.gov.tw

Organization Name Council of Agriculture, Executive Yuan

Address No. 37, Nanhai Road, Taipei, Taiwan

Telephone (886-2) 2381-2991; Fax: (886-2) 2331-0341

E-mail coa@mail.coa.gov.tw

Internet Homepage http://www.coa.gov.tw

Organization Name Bureau of Animal & Plant Health Inspection &
Quarantine

> (BAPHIQ)

Address 9 Fl., No. 51, Chungching S. Rd, Sec. 2., Taipei, Taiwan

Telephone (886-2) 2343-1401; Fax: (886-2) 2343-1400

E-mail baphiq@mail.baphiq.org.tw

Internet Homepage http://www.baphiq.gov.tw

Organization Name Department of Health (DOH)

Department Bureau of Food Sanitation

Address No. 100 Aikuo E. Road., Taipei, Taiwan

Telephone (886-2) 2393-8209; Fax: (886-2) 2392-9723

Contact Person Dr. Lu-hung Chen, Director

E-mail fslhcn@doh.gov.tw

Internet Homepage http://www.doh.gov.tw

Organization Name Directorate General of Customs, Ministry of Finance
(MOF)

Address No. 13, Ta Cheng Street, Taipei, Taiwan

Telephone (886-2) 2550-5500; Fax: (886-2) 2550-8111

E-mail customs@mail.dgoc.gov.tw

Internet Homepage http://www.dgoc.gov.tw

Organization Name Food Industry Research and Development Institute
(FIRDI)

Address 331 Shih-Pin Road, Hsinchu, Taiwan

Telephone (886-3) 5223191; Fax: (886-3) 5214016

Internet Homepage http://www.firdi.org.tw

Organization Name Bureau of Foreign Trade (BOFT), Ministry of Economic
Affairs

Address No. 1, Hukou Street, Taipei, Taiwan

Telephone (886-2) 2351-0271; Fax: (886-2) 2351-3603

E-mail boft@trade.gov.tw

Internet Homepage http://www.trade.gov.tw

# Major Taiwan Trade Associations

Organization Name Taiwan Chain Stores and Franchise Association (TCSFA)

Address 7F, 197 Nanking E. Road, Section 4, Taipei, Taiwan

Telephone (886-2) 2712-1250; Fax: (886-2) 2717-7997

Internet Homepage http://www.tcfa.org.tw

Organization Name Taiwan External Trade Development Council (TAITRA)

Address 333 Keelung Road, Sec. 1, Taipei Taiwan

Telephone (886-4) 2725-5200; Fax: (886-2) 2757-6443

Internet Homepage www.taiwantrade.com.tw

Organization Name Importers and Exporters Association of Taipei (IEAT)

Address No. 350, Sungkiang Road, Taipei, Taiwan

Telephone (886-2) 2581-3521; Fax: (886-2) 2542-3704

E-mail ieatpe@ieatpe.org.tw

Internet Homepage [http://www.ieatpe.org.tw](http://www.ieatpe.org.tw/)

Organization Name Kaohsiung Importers & Exporters Association (IEAK)

Address 4F, 472 Chung Shan 2^nd^ Road, Kaohsiung, Taiwan

Telephone (886-7) 241-1191; Fax: (886-7) 201-6193

E-mail <kieanet@ms15.hinet.net>

Organization Name Tainan Importer & Exporter Chamber of Commerce
(IEATainan)

Address 5F, 50 Cheng Kong Road, Tainan, Taiwan

Telephone (886-6) 226-7121; Fax: (886-6) 226-7124

E-mail <a2267121@ms17.hinet.net>

######## **APPENDIX - STATISTICS**

+-----------------------------------------------+----------+----------+
| ######## **T                                  |          |          |
| able A. Key Trade & Demographic Information** |          |          |
+-----------------------------------------------+----------+----------+
| Agricultural Imports From All Countries       | \$9.2    | 30%      |
| (\$Bil)/U.S. Market Share (%) 1/              |          |          |
+-----------------------------------------------+----------+----------+
| Consumer Food Imports From All Countries      | \$2,719  | 27%      |
| (\$Mil)/U.S. Market Share (%) 2/              |          |          |
+-----------------------------------------------+----------+----------+
| Edible Fishery Imports From All Countries     | \$346    | 8%       |
| (\$Mil)/U.S. Market Share (%) 3/              |          |          |
+-----------------------------------------------+----------+----------+
| Total Population (Millions) Annual Growth     | 22.8     | 0.36%    |
| Rate (%) 4/                                   |          |          |
+-----------------------------------------------+----------+----------+
| Urban Population -- localities of 150,000 or  | 12.6     | 0.38%    |
| more (Millions)/Annual Growth Rate (%) 5/     |          |          |
+-----------------------------------------------+----------+----------+
| Number of Major Metropolitan Areas 6/         | 7        |          |
+-----------------------------------------------+----------+----------+
| Size of Middle Classes (Millions)/Growth Rate | 13.8     | 0.6%     |
| (%) 7/                                        |          |          |
+-----------------------------------------------+----------+----------+
| Per Capita Gross National Product (U.S.       | \$17,294 |          |
| Dollars) 8/                                   |          |          |
+-----------------------------------------------+----------+----------+
| Unemployment Rate (%) 9/                      | 3.9%     |          |
+-----------------------------------------------+----------+----------+
| Per Capita Food Expenditures (U.S. Dollars)   | \$2,024  |          |
| 10/                                           |          |          |
+-----------------------------------------------+----------+----------+
| Percent of Female Population Employed 11/     | 48%      |          |
+-----------------------------------------------+----------+----------+
| Exchange Rate (US\$1=NT\$) 12/                | \$32.40  |          |
+-----------------------------------------------+----------+----------+
|                                               |          |          |
+-----------------------------------------------+----------+----------+
| 1/ UN Trade Data 2007                         |          |          |
+-----------------------------------------------+----------+----------+
| 2/ UN Trade Data 2006                         |          |          |
+-----------------------------------------------+----------+----------+
| 3/ UN Trade Data 2006                         |          |          |
+-----------------------------------------------+----------+----------+
| 4/ Directorate General of Budget, Accounting  |          |          |
| and Statistics (2006)                         |          |          |
+-----------------------------------------------+----------+----------+
| 5/ Directorate General of Budget, Accounting  |          |          |
| and Statistics (2006)                         |          |          |
+-----------------------------------------------+----------+----------+
| 6/ Ministry of Interior Affairs Statistics    |          |          |
| (2004)                                        |          |          |
+-----------------------------------------------+----------+----------+
| 7/ ATO Taipei Estimate                        |          |          |
+-----------------------------------------------+----------+----------+
| 8/ Directorate General of Budget, Accounting  |          |          |
| & Statistics (DGBAS) 2007                     |          |          |
+-----------------------------------------------+----------+----------+
| 9/ DGBAS 2007                                 |          |          |
+-----------------------------------------------+----------+----------+
| 10/ DGBAS 2007                                |          |          |
+-----------------------------------------------+----------+----------+
| 11/ DGBAS 2006                                |          |          |
+-----------------------------------------------+----------+----------+
| 12/ 2006                                      |          |          |
+-----------------------------------------------+----------+----------+

######## **APENDIX - STATISTICS**

<table>
<colgroup>
<col style="width: 35%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><h1
id="table-b.-consumer-food-edible-fishery-product-imports">Table B.
Consumer Food &amp; Edible Fishery Product Imports</h1></td>
</tr>
<tr class="even">
<td>Taiwan Imports<br />
(US$Million)</td>
<td colspan="3">Imports from the World</td>
<td colspan="3">Imports from the U.S.</td>
<td colspan="3">U.S. Market Share</td>
</tr>
<tr class="odd">
<td></td>
<td>2004</td>
<td>2005</td>
<td>2006</td>
<td>2004</td>
<td>2005</td>
<td>2006</td>
<td>2004</td>
<td>2005</td>
<td>2006</td>
</tr>
<tr class="even">
<td>CONSUMER-ORIENTED<br />
AGRICULTURAL TOTAL</td>
<td>2,334</td>
<td>2,710</td>
<td>2,719</td>
<td>577</td>
<td>702</td>
<td>743</td>
<td>25%</td>
<td>26%</td>
<td>27%</td>
</tr>
<tr class="odd">
<td>Snack Foods (Excl. Nuts)</td>
<td>110</td>
<td>128</td>
<td>123</td>
<td>12</td>
<td>13</td>
<td>11</td>
<td>11%</td>
<td>10%</td>
<td>9%</td>
</tr>
<tr class="even">
<td>Breakfast Cereals &amp; Pancake Mix</td>
<td>8</td>
<td>9</td>
<td>10</td>
<td>2</td>
<td>3</td>
<td>4</td>
<td>25%</td>
<td>33%</td>
<td>40%</td>
</tr>
<tr class="odd">
<td>Red Meats, Fresh/Chilled/Frozen</td>
<td>375</td>
<td>431</td>
<td>441</td>
<td>47</td>
<td>74</td>
<td>128</td>
<td>13%</td>
<td>17%</td>
<td>29%</td>
</tr>
<tr class="even">
<td>Red Meats, Prepared/Preserved</td>
<td>3</td>
<td>5</td>
<td>4</td>
<td>2</td>
<td>3</td>
<td>3</td>
<td>67%</td>
<td>60%</td>
<td>75%</td>
</tr>
<tr class="odd">
<td>Poultry Meat</td>
<td>58</td>
<td>92</td>
<td>84</td>
<td>56</td>
<td>89</td>
<td>82</td>
<td>97%</td>
<td>97%</td>
<td>98%</td>
</tr>
<tr class="even">
<td>Dairy Products (Excl. Cheese)</td>
<td>177</td>
<td>207</td>
<td>198</td>
<td>8</td>
<td>8</td>
<td>8</td>
<td>5%</td>
<td>4%</td>
<td>4%</td>
</tr>
<tr class="odd">
<td>Cheese</td>
<td>49</td>
<td>53</td>
<td>57</td>
<td>5</td>
<td>5</td>
<td>7</td>
<td>10%</td>
<td>9%</td>
<td>12%</td>
</tr>
<tr class="even">
<td>Eggs &amp; Products</td>
<td>7</td>
<td>8</td>
<td>8</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>14%</td>
<td>13%</td>
<td>13%</td>
</tr>
<tr class="odd">
<td>Fresh Fruit</td>
<td>281</td>
<td>340</td>
<td>333</td>
<td>141</td>
<td>156</td>
<td>144</td>
<td>50%</td>
<td>46%</td>
<td>43%</td>
</tr>
<tr class="even">
<td>Fresh Vegetables</td>
<td>49</td>
<td>82</td>
<td>75</td>
<td>21</td>
<td>30</td>
<td>27</td>
<td>43%</td>
<td>37%</td>
<td>36%</td>
</tr>
<tr class="odd">
<td>Processed Fruit &amp; Vegetables</td>
<td>183</td>
<td>200</td>
<td>196</td>
<td>68</td>
<td>73</td>
<td>72</td>
<td>37%</td>
<td>37%</td>
<td>37%</td>
</tr>
<tr class="even">
<td>Fruit &amp; Vegetable juices</td>
<td>27</td>
<td>30</td>
<td>33</td>
<td>4</td>
<td>4</td>
<td>5</td>
<td>15%</td>
<td>13%</td>
<td>15%</td>
</tr>
<tr class="odd">
<td>Tree Nuts</td>
<td>43</td>
<td>57</td>
<td>51</td>
<td>17</td>
<td>24</td>
<td>19</td>
<td>40%</td>
<td>42%</td>
<td>37%</td>
</tr>
<tr class="even">
<td>Wine &amp; Beer</td>
<td>130</td>
<td>149</td>
<td>161</td>
<td>19</td>
<td>20</td>
<td>20</td>
<td>15%</td>
<td>13%</td>
<td>12%</td>
</tr>
<tr class="odd">
<td>Nursery Products &amp; Cut flowers</td>
<td>19</td>
<td>20</td>
<td>20</td>
<td>0.3</td>
<td>0.1</td>
<td>0.3</td>
<td>2%</td>
<td>1%</td>
<td>2%</td>
</tr>
<tr class="even">
<td>Pet Food (Dog &amp; Cat Food)</td>
<td>49</td>
<td>57</td>
<td>63</td>
<td>15</td>
<td>23</td>
<td>26</td>
<td>31%</td>
<td>40%</td>
<td>41%</td>
</tr>
<tr class="odd">
<td>Other Consumer-Oriented Products</td>
<td>766</td>
<td>844</td>
<td>863</td>
<td>160</td>
<td>177</td>
<td>186</td>
<td>21%</td>
<td>21%</td>
<td>22%</td>
</tr>
<tr class="even">
<td>　</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr class="odd">
<td>FISH &amp; SEAFOOD PRODUCTS</td>
<td>312</td>
<td>342</td>
<td>346</td>
<td>28</td>
<td>31</td>
<td>27</td>
<td>9%</td>
<td>9%</td>
<td>8%</td>
</tr>
<tr class="even">
<td>Salmon</td>
<td>28</td>
<td>40</td>
<td>42</td>
<td>0.4</td>
<td>0.7</td>
<td>0.4</td>
<td>1%</td>
<td>2%</td>
<td>1%</td>
</tr>
<tr class="odd">
<td>Surimi</td>
<td>23</td>
<td>26</td>
<td>28</td>
<td>5</td>
<td>4</td>
<td>4</td>
<td>22%</td>
<td>15%</td>
<td>14%</td>
</tr>
<tr class="even">
<td>Crustaceans</td>
<td>115</td>
<td>129</td>
<td>142</td>
<td>13</td>
<td>14</td>
<td>14</td>
<td>11%</td>
<td>11%</td>
<td>10%</td>
</tr>
<tr class="odd">
<td>Groundfish &amp; Flatfish</td>
<td>32</td>
<td>26</td>
<td>22</td>
<td>0.4</td>
<td>0.9</td>
<td>2</td>
<td>1%</td>
<td>3%</td>
<td>9%</td>
</tr>
<tr class="even">
<td>Molluses</td>
<td>49</td>
<td>51</td>
<td>43</td>
<td>3</td>
<td>5</td>
<td>3</td>
<td>6%</td>
<td>10%</td>
<td>7%</td>
</tr>
<tr class="odd">
<td>Other Fishery Products</td>
<td>65</td>
<td>70</td>
<td>70</td>
<td>6</td>
<td>7</td>
<td>4</td>
<td>9%</td>
<td>10%</td>
<td>6%</td>
</tr>
<tr class="even">
<td>AG PRODUCTS TOTAL</td>
<td>6,219</td>
<td>6,531</td>
<td>6,624</td>
<td>2,431</td>
<td>2,614</td>
<td>2,714</td>
<td>39%</td>
<td>40%</td>
<td>41%</td>
</tr>
<tr class="odd">
<td>AG FISH &amp; FORESTRY TOTAL</td>
<td>7,768</td>
<td>8,099</td>
<td>8,196</td>
<td>2,537</td>
<td>2,715</td>
<td>2,811</td>
<td>33%</td>
<td>34%</td>
<td>34%</td>
</tr>
</tbody>
</table>

Source: FAS' Global Agricultural Trade System using data from the United
Nations Statistical Office

\* Last statistics update: July 31, 2007

######## **APPENDIX - STATISTICS**

  ------------------- ------------------ --------------- -----------------
  **Table C. Top 15                                      
  Suppliers of                                           
  Consumer Foods**                                       

  **Taiwan Imports -                                     
  Consumer-Oriented                                      
  AG Total                                               
  (US\$1,000)**                                          

                                                         

                      2004               2005            2006

  United States       577,006            702,302         743,111

  Australia           301,124            323,335         282,390

  New Zealand         323,419            359,709         331,673

  Japan               155,943            184,551         197,874

  China               124,131            162,210         178,190

  Thailand            106,623            113,445         112,501

  Netherlands         105,243            123,871         127,146

  France              96,624             102,566         101,057

  Canada              65,671             68,675          65,569

  South Korea         49,820             59,284          58,709

  Denmark             31,694             28,675          31,210

  Chile               39,792             55,749          73,362

  Vietnam             32,723             42,054          41,780

  Indonesia           30,103             43,577          30,712

  Malaysia            36,952             50,925          51,811

  Total               2,334,827          2,710,793       2,719,420
  ------------------- ------------------ --------------- -----------------

Source: United Nations Statistics Division

Last statistics update: July 31, 2007

######## 

######## **APPENDIX - STATISTICS**

  ------------------- ------------------ --------------- -----------------
  **Table C. Top 15                                      
  Suppliers of                                           
  Consumer Foods**                                       

  **Taiwan Imports -                                     
  Fish & Seafood                                         
  Products                                               
  (US\$1,000)**                                          

                      2004               2005            2006

  Thailand            34,934             35,146          37,398

  Australia           30,510             34,392          31,805

  United States       28,338             31,225          27,418

  Norway              19,407             19,431          20,493

  Japan               18,900             22,915          19,595

  Indonesia           25,054             28,314          32,414

  Canada              20,017             24,800          30,542

  Chile               18,581             24,514          17,622

  India               10,294             10,445          12,454

  Greenland           5,108              4,832           3,879

  Philippines         10,147             13,831          19,141

  China               12,793             15,182          15,200

  Mexico              6,867              8,591           13,381

  New Zealand         12,807             7,574           3,543

  United Kingdom      1,094              1,194           228

  Total               312,563            342,129         345,707
  ------------------- ------------------ --------------- -----------------

Source: United Nations Statistics Division

Last statistics update: July 31, 2007