Voluntary Report - public distribution

**Date:** 2005/7/12

**GAIN Report Number:** TW5023

TW0000

**Taiwan**

**Poultry and Products**

**Dioxin Identified in Duck Eggs**

**2005**

**Approved by:**

![](media/image1.wmf)Hoa Van Huynh

American Institute in Taiwan

**Prepared by:**

Jeff Miller

**Report Highlights:**

Earlier this year, duck eggs produced in the Changhua township of
Hsienhsi were found to have high levels of dioxin. The Council of
Agriculture, Department of Health, and the Environmental Protection
Administration destroyed 20,853 ducks and 1.27 million duck eggs before
making a formal announcement, in mid June, of the contamination and its
successful control. The immediate impact on production and sales of duck
eggs was minimal and no specific long-term impacts are anticipated. This
latest incident of food contamination in Taiwan by industrial pollutants
underscores the problem of managing modern agricultural production in an
environment severely compromised by decades of industrial growth and lax
environmental regulations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Taipei ATO \[TW2\]

\[TW\]

**Summary**

Earlier this year, duck eggs produced in the Changhua township of
Hsienhsi were found to have high levels of dioxin. The Council of
Agriculture, Department of Health, and the Environmental Protection
Administration destroyed 20,853 ducks and 1.27 million duck eggs before
making a formal announcement, in mid June, of the contamination and its
successful control. The immediate impact on production and sales of duck
eggs was minimal and no specific long-term impacts are anticipated.
However, this latest incident of food contamination in Taiwan by
industrial pollutants underscores the problem of managing modern
agricultural production in an environment severely compromised by
decades of industrial growth and lax environmental regulations.

###### **Background**

Little of the relatively level land adjacent to Taiwan's western coast,
on which is located much of the island's agriculture and animal
husbandry industries (as well as population), remains untouched by three
decades of industrial development. While factories set next to fields of
paddy rice and vegetable gardens remain a common sight, it is the
dangers not immediately visible that deserve the most attention in terms
of food safety and cause the most concern for regulators and
policymakers. Long-term contamination of soil and groundwater,
undocumented waste dumps, and illicit releases of industrial effluents
into the atmosphere remain perennial problems. While Taiwan's Council of
Agriculture, Department of Health and Environmental Protection
Administration are making headway to control and clean up the most
visible problems, there remains much yet to do.

University researchers identified early in 2005 high concentrations of
dioxin in a popular processed duck egg product ("1,000-year eggs") sold
at retail outlets in Taiwan. In response to this news, the Council of
Agriculture (COA), coordinating with the Department of Health and
Environmental Protection Administration, traced the contamination back
to farms in the Changhua County township of Hsienhsi. The area of
contamination is in close proximity to the Chiang-Pin Industrial Park.

While authorities admit levels of dioxin found in the 1,000-year egg
products were high (compared with EU standards noting concern above the
0.4 picogram (pg) per gram level), a research report on the issue, which
will include study results on actual dioxin levels found in Hsienhsi
duck eggs, has yet to be completed and released.

In order, according to COA officials, to sidestep a market overreaction
to what was identified as a geographically limited instance of
contamination, Taiwan authorities proceeded to slaughter ducks raised on
farms in the contaminated area without formally notifying the public.

According to the COA, 20,853 head of duck were culled and 1.27 million
eggs were destroyed / recalled in order to prevent the further release
of dioxin-contaminated eggs into the market. In a statement released by
the Council of Agriculture on June 10^th^, their efforts were
successful.

###### **Market Impact**

While it is too early to determine the overall market impact of this
most recent food contamination issue, retail contacts indicate that
sales of fresh eggs, 1,000-year eggs and poultry meat have remained
comparable to the norms expected for the summer season. Retailers
attribute this to the limited nature of the reported contamination
problem, the light overall media attention given to the issue, and the
delay by some 4 months between the discovery of contamination and the
COA public announcement of the problem (and, concurrently, its
resolution).

In terms of production, the reported number of eggs destroyed / removed
from wholesale and retail channels (1.27 million) represent 0.3% of
annual duck egg production and around 0.4% of annual 1,000-year egg
production.

Taiwan imports no duck eggs (and no significant quantity of any poultry
eggs) from the United States or other countries. The minimal exports of
processed duck eggs that Taiwan exports (mostly to overseas
ethnically-Chinese markets) may see some negative impact from this
contamination incident.

###### **Conclusions**

Industrial pollutants in the food supply chain represent an increasingly
recognized and admitted problem in Taiwan. Because of largely
unrestrained development policies practiced in previous decades, Taiwan
authorities have only just begun to discover and address latent
pollution issues.

While this latest discovery of contamination in the food chain has not
resulted in significant changes in consumption patterns or disruptions
in the demand for / supply of duck eggs, it is another in an already
lengthy record of problems with local food supplies. Such revelations
can only underscore consumer questions about the safety of locally
produced food and can, in turn, lead to increasing consumer interest in
identifying and purchasing foods from sources (both domestic and
overseas) deemed to have credible control over factors affecting
production quality. As such, in marketing foods grown and processed in
the United States, suppliers and food associations are advised, when
appropriate, to address how growing and processing conditions help
ensure and enhance food quality and safety.