Required Report - public distribution

**Date:** 2006/03/01

**GAIN Report Number:** TW6008

TW6008

**Taiwan**

**HRI Food Service Sector**

**Stronger Economic Performance**

**2006**

**Approved by:**

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

American Institute in Taiwan

**Prepared by:**

Amy Chang-Chien Hsueh, Marketing Specialist

**Report Highlights:**

The stronger economic performance and a rebound in domestic consumption
in Taiwan since the last quarter of 2003 has driven the HRI food service
sector to be more lively in the prior two years, and is expected to
continue to grow over the next few years. This can also be attributed to
several factors, including rise in incomes, smaller family size, and
increasing working women.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Taipei ATO \[TW2\]

\[TW\]

######### 

######### 

######### 

######### Table of Contents

Section I. Market Summary

1\. Taiwan in
Profile...............................................................................................Page
3 of 17

2\. Taiwan Food Service Sector in
Overview................................................... Page 4 of 17

3\. Advantages & Challenges for U.S.
Exporters.............................................Page 5 of 17

Section II. Road Map for Market Entry

1.  Entry
    Strategy...................................................................................................Page
    5 of 17

2.  Market
    Structure..............................................................................................Page
    6 of 17

3.  Sub-Sector Profiles

\(A\)
Hotels/Resorts......................................................................................
Page 7 of 17

\(B\)
Restaurants.............................................................................................Page
8 of 17

\(C\) Institutional
Contract...........................................................................Page
11 of 17

Section III.
Competition..........................................................................................
Page 12 of 17

Section IV. Best Product
Prospects........................................................................
Page 15 of 17

Section V. Post Contact and Further
Information............................................... Page 16 of 17

######### 

##### SECTION I. MARKET SUMMARY 

**1. Taiwan in Profile**

## Geography

![](media/image2.jpeg){width="2.9166666666666665in"
height="3.83125in"}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 nearly 23 million people. The total
area is about 14,000 square miles. About two-thirds of the island is
covered with lushly forested mountains. Taipei and Kaohsiung on the west
coast are the two major metropolises of Taiwan with population of 6.3
million and 2.8 million respectively. Currently, the urban population
accounts for 68% of the total population. The elderly (age 65 and above)
make up 9.2 percent of the island's population, and is increasing
rapidly.

## Economic Situation

Taiwan has a dynamic, capitalist economy that continues to expand
annually. Taiwan's foreign exchange reserves are the world's second
largest, exceeded only by the PRC. In 2004, Taiwan's economy, freeing
from the hit by the outbreak of SARS in 2003, rebounded significantly
with an annual GDP growth rate of 6.07%. Despite the global economic
slowdown in 2005, Taiwan's economy has strongly rebounded in the second
half of the year. The preliminary real GDP growth rate in the fourth
quarter was 6.40%. For 2005 as a whole, real GDP grew 4.09%. Taiwan's
trade sector is expected to stay in a fairly upward trend. The GDP is
projected to increase by 4.25% in 2006.

## 

## Trading Partners

The United States and Japan have long been the two major suppliers of
Taiwan's imports. Prior to 1995, these two countries consistently
provided more than half of Taiwan's total imports. However, the ASEAN
and the PRC have shifted some import share away from the US and Japan.
In 2005, the United States and Japan altogether accounted for 37% of
Taiwan's imports.

# Agricultural Trade

According to the Council of Agriculture (COA), Taiwan imported a nearly
US\$9.4 billion of Agri-food products in 2005, a 5.6% increase compared
with the previous year. Taiwan is the sixth largest market for U.S. food
and agricultural product exports. In 2005, the United States, exported
US \$2.8 billion of agricultural products to Taiwan, a 6.5 percent
increase from 2004, capturing 30 percent of total Taiwan's agricultural
imports. The United States (30%), Australia (8%) and Japan (7%) were top
three largest suppliers of Taiwan's agricultural imports.

+--------------------------------------+-------------------------------+
| ## Taiwan At a Glance                |                               |
+--------------------------------------+-------------------------------+
|                                      | **2003 2004 2005**            |
+--------------------------------------+-------------------------------+
| GNP: US\$ billion                    | 309.3 333.4 354.7             |
|                                      |                               |
| GNP: US\$ per person                 | 13,752 14,770 15,659          |
|                                      |                               |
| Average Disposable Income            | 25,947 26,638 \*26,904        |
|                                      |                               |
| US\$ per Household                   | 24.0% 23.7% \*23.4%           |
|                                      |                               |
| Food & Beverage Total Spend          | 34.42 33.42 32.17             |
|                                      |                               |
| Average Annual Exchange Rate         | -0.28 1.60 2.30               |
|                                      |                               |
| NT\$ to 1.00 US\$                    | 4.99 4.44 4.13                |
|                                      |                               |
| Consumer Price Index                 | 3.43% 6.07% 4.09%             |
|                                      |                               |
| Unemployment Rate                    | 7.8 8.9 9.4                   |
|                                      |                               |
| Economic Growth Rate                 | 3.2 3.6 3.6                   |
|                                      |                               |
| Total Agri-Food Imports US\$ billion | 6% 5% 5%                      |
|                                      |                               |
| Total Agri-Food Exports US\$ billion |                               |
|                                      |                               |
| Agri-Food Imports as a Share of      |                               |
| Total Imports                        |                               |
+--------------------------------------+-------------------------------+

Source: Taiwan Director-General of Budget, Accounting, and Statistics
(DGBAS)

\* ATO Taipei forecast

2.  **Taiwan Food Service Sector in Overview**

![](media/image3.wmf)

Source: Food Industry Research & Development Institute (FIRDI); DGBAS

According to Taiwan's Director-General of Budget, Accounting, and
Statistics (DGBAS), total sales for the food service sector, excluding
the institutional food service, are estimated at US \$9.1 billion in
2005, a seven percent increase from the previous year. The stronger
economic performance and a rebound in domestic consumption in Taiwan
since the last quarter of 2003 has driven the HRI food service sector to
be more lively in the prior two years and is expected to continue to
grow over the next few years. This can also be attributed to several
factors, including rise in incomes, smaller family size, and increasing
working women. It is anticipated that strategic alliances between the
HRI food service sector and food processing sector will continue to
grow. Trends in Taiwan's food service sector are also related to
globalization, personalized style management, and chain management of
the industry.

+----------------------+-----------+-----------+----------+-----------+
| **Market Size -      |           |           |          |           |
| Taiwan's Food        |           |           |          |           |
| Service Sector (US\$ |           |           |          |           |
| million)**           |           |           |          |           |
+----------------------+-----------+-----------+----------+-----------+
|                      | **2002**  | **2003**  | **2004** | **2005**  |
|                      |           |           |          |           |
|                      |           |           |          | **(Est    |
|                      |           |           |          | imated)** |
+----------------------+-----------+-----------+----------+-----------+
| **Restaurants**      | 6,544     | 6,764     | 7,169    | 8,060     |
+----------------------+-----------+-----------+----------+-----------+
| **Coffee/Tea Shops** | 834       | 754       | 783      | 794       |
+----------------------+-----------+-----------+----------+-----------+
| **Other Eating &     | 237       | 219       | 248      | 260       |
| Drinking Places**    |           |           |          |           |
+----------------------+-----------+-----------+----------+-----------+
| **Total**            | 7,615     | 7,737     | 8,200    | 9,114     |
+----------------------+-----------+-----------+----------+-----------+

Source: Taiwan Ministry of Economic Affairs (MOEA); ATO Taipei estimate

\* There is no specific data available regarding the food and beverage
revenue from the institutional segment, which includes schools,
factories/companies, hospitals, the army, as well as similar venues.

+---------------------+-----------+-----------+----------+------------+
| **\# of Food        |           |           |          |            |
| Service Venue in    |           |           |          |            |
| Taiwan**            |           |           |          |            |
+---------------------+-----------+-----------+----------+------------+
|                     | **2002**  | **2003**  | **2004** | **2005**   |
|                     |           |           |          |            |
|                     |           |           |          | **(Es      |
|                     |           |           |          | timated)** |
+---------------------+-----------+-----------+----------+------------+
| **Restaurants**     | 44,677    | 54,710    | 55,627   | 61,368     |
+---------------------+-----------+-----------+----------+------------+
| **Coffee/Tea        | 9,278     | 11,741    | 10,994   | 11,928     |
| Shops**             |           |           |          |            |
+---------------------+-----------+-----------+----------+------------+
| **Other Eating &    | 8,749     | 10,925    | 12,037   | 13,715     |
| Drinking Places**   |           |           |          |            |
+---------------------+-----------+-----------+----------+------------+
| **Total**           | 62,704    | 77,376    | 78,658   | 87,011     |
+---------------------+-----------+-----------+----------+------------+

Source: Taiwan Ministry of Finance; ATO Taipei estimate

**3.** **Advantages and Challenges for U.S. Exporters**

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Importers and wholesalers have an   Facing low price competitors in
  awareness and appreciation for the  areas such as beef, juice, and
  quality of U.S. products            vegetables

  More Westernized diet increases     High fragmentation makes it hard
  consumers demand for quality U.S.   for US exporters to achieve scale
  products                            and scope advantages in terms of
                                      volume

  Admiration of U.S. lifestyle in     
  food service                        

  Strong attraction to novelty and    
  fashion in food product and service 
  ----------------------------------- -----------------------------------

*Section II. Road Map for Market Entry*

**1. Entry Strategy**

The majority of Taiwan's HRI businesses do not import directly. They
prefer to place small, but frequent orders with local suppliers who are
able to meet such needs. Therefore, U.S. companies should concentrate on
establishing their business relationships with a reliable and efficient
importer and distributor, who in turn, will sell the imports to HRI end
users. The ATO Taipei maintains listings of potential importers for U.S.
suppliers.

Also, U.S. suppliers are encouraged to take part in various menu
promotions that are sponsored by well-known hotels in Taiwan.
Competition among the various hotel restaurants in Taiwan has become
intense. Innovative promotions such as country theme promotions,
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. U.S. companies interested in in-house
restaurant menu promotions to promote their products in Taiwan are
welcome to contact the ATO Taipei for information on upcoming events or
hotels interested in hosting such activities.

**2. Market Structure**

All HRI sub-sectors purchase most of their foods from importers,
distributors, wholesalers, regional wholesale markets, wet markets, and
supermarkets/hypermarkets, depending on the food items. Imported fresh
items such as fresh produce, fish/seafood, and beef, are usually
purchased and delivered directly from importers or through distributors
or wholesalers. Institutional markets buy more products from local
distributors or import directly. A recent trend is that retail outlets
such as Costco, are frequented by many small food service/HRI operators
to buy items at the lowest possible cost in quantity, thereby avoiding
the hassle of trying to get a small volume of items via traditional
import channels.

Food and beverage managers and executive chefs at international hotels
are the key persons who decide which items are purchased. The purchasing
department procures various food ingredients based on the list that F&B
section provides. This sector, especially those who employ foreign chefs
or offer authentic foreign cuisines, and other high-end family style
restaurants, use more imported items, either delivered from importers or
wholesalers/distributors on a regular and frequent basis.

Western and local fast food restaurant chains usually have their own
distribution centers or, they connect to an independent distribution
center to purchase, partly process, and deliver the daily needs to each
outlet island-wide. Other fast food chains such as Pizza Hut, which
offer not only take-out pizzas but also sit-down buffet meals, usually
maintain their own R&D team. They work closely with one or more
contracted regional catering service(s) to develop and frequently renew
menus to meet consumers' demand. These contracts deliver all buffet
items to all outlets of the chain on a daily basis.

Medium-level chain family style restaurants usually maintain a
centralized purchasing department and a centralized kitchen as well. The
centralized kitchen prepares meals and delivers the foods to all outlets
of the restaurant chain.

Other drinking and eating places purchase majority of their daily needs
from regional wholesale markets or wet markets.

**3. Sub-Sector Profiles**

**(A) Hotels and Resorts**

Socializing in hotel restaurants has been a popular practice in Taiwan.
As a result, restaurants in hotels have become an important dollar
earning business for Taiwan's international hotels, accounting for
almost 45 percent of total operating income. In 2005, in terms of income
generated by hotel restaurants, the "Grand Hyatt Hotel" in Taipei topped
the list with US \$34.7 million in sales, closely followed by the "Grand
Formosa Regent Hotel Taipei" (US\$34.5million), the "Far East Plaza
Hotel" (US\$25 million), "Sheraton Taipei Hotel" (US\$23.2 million), and
the "Howard Plaza Hotel Taipei" (US\$22.5 million). \*\*International
tourist hotels only consist of four and five star establishments.

Taiwanese people often entertain their business counterparts, friends
and relatives in restaurants especially on special occasions such as
weddings/engagements, birthdays, Mother's Days, "Honorary Banquets in
Praise of Teachers," and Lunar year-end parties hosted by management.
Food served at these occasions tends to be either Western-style buffets
or Chinese-style food banquets. Taiwan's hotel restaurants use any of
these occasions to aggressively promote set menus, which are excellent
opportunities to promote American foods and beverages. U.S. companies
with products used principally for the HRI sector should consider how to
take advantage of these promotional opportunities by developing recipes,
special menus or merchandise to help draw in the different group.

The catering services of Taiwan's international hotels have been growing
significantly in the past few years. In addition to catering for
banquets/receptions outside the hotels, they have focused in recent
years on specific food packages for various festivals, such as moon cake
packs for Moon Festival, chocolate packs for Valentines' Day, and turkey
packs for Thanksgiving. It is anticipated that hotel catering market
will continue to grow.

Resorts in Taiwan, classified by areas of focus, fall primarily into the
classifications of amusements parks, cultural/education sites and scenic
areas. Over one-third of resorts are located in Northern Taiwan, less
than one third is distributed equally in Central and Southern Taiwan,
and the remaining 10 percent are in Eastern Taiwan. It is estimated that
almost 17% of resort revenues can be attributed to food sales. Food
venues are weighted towards cafeteria and served-style Chinese/Taiwanese
food, followed by fast food and Western-style restaurants, and
snack/beverage vending kiosks. Over two-thirds of the resorts manage the
food venues themselves. They purchase primarily through importers and
wholesalers.

+------------------------+---------------+---------+------------------+
| ## Comp                |               |         |                  |
| any Profile -- Hotels  |               |         |                  |
+------------------------+---------------+---------+------------------+
|                        | **2005**      | **No.   | **Location**     |
|                        |               | of      |                  |
|                        | **Food        | Ou      |                  |
|                        | Revenue (US\$ | tlets** |                  |
|                        | million)**    |         |                  |
+------------------------+---------------+---------+------------------+
| **Grand Hyatt Taipei** | 34.7          | 1       | Taipei           |
+------------------------+---------------+---------+------------------+
| **Grand Formosa Regent | 34.5          | 1       | Taipei           |
| Taipei**               |               |         |                  |
+------------------------+---------------+---------+------------------+
| **Far Eastern Plaza    | 25.0          | 1       | Taipei           |
| Hotel**                |               |         |                  |
+------------------------+---------------+---------+------------------+
| **Sheraton Taipei      | 23.2          | 1       | Taipei           |
| Hotel**                |               |         |                  |
+------------------------+---------------+---------+------------------+
| **Howard Plaza Hotel** | 22.5          | 5       | Taipei,          |
|                        |               |         | Kaohsiung,       |
| **Taipei**             |               |         |                  |
|                        |               |         | Kenting,         |
|                        |               |         | Hsinchu,         |
|                        |               |         | Taichung         |
+------------------------+---------------+---------+------------------+
| **Grand Hi-Lai Hotel** | 20.5          | 1       | Kaohsiung        |
|                        |               |         |                  |
| **Kaohsiung**          |               |         |                  |
+------------------------+---------------+---------+------------------+
| **Ambassador Hotel**   | 19.7          | 3       | Taipei,          |
|                        |               |         | Kaohsiung,       |
| **Taipei**             |               |         | Hsinchu          |
+------------------------+---------------+---------+------------------+
| **Grand Hotel**        | 18.3          | 2       | Taipei,          |
|                        |               |         | Kaohsiung        |
| **Taipei**             |               |         |                  |
+------------------------+---------------+---------+------------------+
| **The Westin Taipei**  | 17.6          | 1       | Taipei           |
+------------------------+---------------+---------+------------------+
| **The Splendors        | 15.4          | 1       | Kaohsiung        |
| Hotel**                |               |         |                  |
|                        |               |         |                  |
| **Kaohsiung**          |               |         |                  |
+------------------------+---------------+---------+------------------+
| **Sherwood Hotel       | 9.6           | 1       | Taipei           |
| Taipei**               |               |         |                  |
+------------------------+---------------+---------+------------------+

Source: Taiwan Tourism Bureau, Ministry of Transportation &
Communication

**(B) Restaurants**

The restaurant sector dominates the local food service market in Taiwan
with the largest share (88%) of the market. Based on Taiwan Ministry of
Economic Affairs' data, this sector was estimated to be worth over US
\$8 billion in 2005. The restaurant sector is made up of:

###### Family Style Restaurants

Family style restaurants, except some high-end steak houses, mostly buy
materials from local importers or wholesalers. U.S. beef is widely used
in most of the high-end steak houses such as Ruth Chris and Wang Steak,
and even for some expensive menu items in the low-end steak houses such
as Noble Family and My Home Steakhouse.

+----------------+---------------+--------+--------+------------------+
| ###### C       |               |        |        |                  |
| ompany Profile |               |        |        |                  |
|  -- Family Sty |               |        |        |                  |
| le Restaurants |               |        |        |                  |
+----------------+---------------+--------+--------+------------------+
| **Company      | **Business    | **     | **     | **Location**     |
| Name**         | Type**        | Year** | 2005** |                  |
|                |               |        |        |                  |
|                |               | **Fou  | **\#   |                  |
|                |               | nded** | of     |                  |
|                |               |        | St     |                  |
|                |               |        | ores** |                  |
+----------------+---------------+--------+--------+------------------+
| Noble Family   | Steakhouse    | 1995   | 18     | Nationwide       |
| Steak House    |               |        | 0(180) |                  |
+----------------+---------------+--------+--------+------------------+
| Bullfighter    | Steakhouse    | 1983   | 43     | Nationwide       |
|                |               |        | (44)   |                  |
+----------------+---------------+--------+--------+------------------+
| ### Wa         | Steak house   | 1993   | 12     | Nationwide       |
| ng Steak House |               |        | (12)   |                  |
+----------------+---------------+--------+--------+------------------+
| ### Skylark    | American      | 1982   | 18     | North/Central    |
|                | style         |        | (19)   | Taiwan           |
+----------------+---------------+--------+--------+------------------+
| Hsin Yeh       | Taiwanese     | 1977   | 14     | Northern Taiwan  |
|                | style         |        | (14)   |                  |
+----------------+---------------+--------+--------+------------------+
| TGIFriday      | American      | 1991   | 13     | Nationwide       |
|                | style         |        | (13)   |                  |
+----------------+---------------+--------+--------+------------------+
| Swensen's      | Steakhouse    | 1987   | 5 (5)  | Nationwide       |
+----------------+---------------+--------+--------+------------------+
| Sizzler        | American      | 1990   | 2 (2)  | Taipei           |
|                | style         |        |        |                  |
+----------------+---------------+--------+--------+------------------+
| Ponderosa      | Western       | 1985   | 7 (7)  | North/Central    |
|                | buffet        |        |        | Taiwan           |
+----------------+---------------+--------+--------+------------------+
| Royal Host     | Family        | 1991   | 7 (7)  | Taipei           |
+----------------+---------------+--------+--------+------------------+
| Hai-Pa-Wang    | Taiwanese     | 1983   | 7 (7)  | Northern Taiwan  |
| Seafood        | seafood       |        |        |                  |
+----------------+---------------+--------+--------+------------------+
| Chilis Steak   | Steak house   | 2001   | 3 (3)  | Taipei, Taichung |
| House          |               |        |        |                  |
+----------------+---------------+--------+--------+------------------+
| ### Tas        | Steak house   | 2001   | 13     | Nationwide       |
| ty Steak House |               |        | (13)   |                  |
+----------------+---------------+--------+--------+------------------+
| Ruth Chris     | Steak house   |        | 3 (3)  | Taipei,          |
|                |               |        |        | Taichung,        |
|                |               |        |        | Kaohsiung        |
+----------------+---------------+--------+--------+------------------+

> Source: ATO Taipei survey; Taiwan Chain Stores & Franchise Association

\* Figures inside the parentheses represent \# of stores as of February
2006

**Western-style Fast Food**

Taiwan's first Western fast-food restaurant, McDonald's, opened in 1984.
In 2004, there were around 1,880 Western-style fast food restaurant
outlets, including pizza houses, in Taiwan**.** The previous rapid
growth of the industry has slowed down in recent years. The major
players have either slowed down opening new stores or exited from the
market. Strong competition mainly comes from the rise of coffee shops,
exotic restaurants, domestic restaurant chains, and convenience stores
currently spreading all over the island. Currently, McDonald's still
predominates, with 346 stores on the island. Many new products such as
Italian coffee, bagels, spaghetti, pita pockets, and rice burgers were
introduced in the market and have led to diversity in consumer choice
and expectations. Chicken is still the primary focus of consumer demand.
Promotions offered by fast food establishments including price-off,
giveaways, and volume discounts were employed everywhere.

+------+---------------------+---------+-------------+----------------+
| #    |                     |         |             |                |
| #### |                     |         |             |                |
| # Co |                     |         |             |                |
| mpan |                     |         |             |                |
| y Pr |                     |         |             |                |
| ofil |                     |         |             |                |
| e -- |                     |         |             |                |
|  Wes |                     |         |             |                |
| tern |                     |         |             |                |
| -Sty |                     |         |             |                |
| le F |                     |         |             |                |
| ast  |                     |         |             |                |
| Food |                     |         |             |                |
+------+---------------------+---------+-------------+----------------+
|      | **Company Name**    | *       | **2005**    | **Location**   |
|      |                     | *Year** |             |                |
|      |                     |         | **No. of    |                |
|      |                     | **Fo    | Stores**    |                |
|      |                     | unded** |             |                |
+------+---------------------+---------+-------------+----------------+
| #    | Domino's Pizza      | 1991    | 109 (109)   | Nationwide     |
| ## P |                     |         |             |                |
| izza |                     |         |             |                |
+------+---------------------+---------+-------------+----------------+
|      | Pizza Hut           | 1986    | 122 (123)   | Nationwide     |
+------+---------------------+---------+-------------+----------------+
|      | Napoli Pizza        | 1997    | 80 (85)     | Nationwide     |
+------+---------------------+---------+-------------+----------------+
| **   | McDonald's          | 1984    | 346 (347)   | Nationwide     |
| Fast |                     |         |             |                |
| Fo   |                     |         |             |                |
| od** |                     |         |             |                |
+------+---------------------+---------+-------------+----------------+
|      | Kentucky Fried      | 1985    | 125 (130)   | Nationwide     |
|      | Chicken             |         |             |                |
+------+---------------------+---------+-------------+----------------+
|      | Mos Burger          | 1990    | 103 (104)   | Nationwide     |
+------+---------------------+---------+-------------+----------------+
|      | Burger King         | 1989    | 20 (24)     | Nationwide     |
+------+---------------------+---------+-------------+----------------+
|      | Ding-Gua-Gua        | 1974    | 65 (70)     | Nationwide     |
+------+---------------------+---------+-------------+----------------+

Source: ATO Taipei Survey; Taiwan Chain Stores & Franchise Association

\* Figures inside the parentheses represent \# of stores as of February
2006

**Chinese-style Fast Food**

The entry barrier for Chinese-style fast food outlets is low for
individually owned/operated stores. Greater competition amongst service
outlets, combined with increasing convenience store expansion into
prepared meal service (i.e. the ready-to-eat food segment) and coffee
shops, have led to increased pressure on margins for this segment. High
labor and land costs, and the fact that not many chains have the ability
to provide standardized products, have made the chain scale of outlet
numbers relatively small compared to Western fast food restaurants.

+-----------------------+---------+---------------+-------------------+
| ######                |         |               |                   |
| Company Profile -- Ch |         |               |                   |
| inese-Style Fast Food |         |               |                   |
+-----------------------+---------+---------------+-------------------+
| **Company Name**      | *       | **2005**      | **Location**      |
|                       | *Year** |               |                   |
|                       |         | **No. of      |                   |
|                       | **Fo    | Stores**      |                   |
|                       | unded** |               |                   |
+-----------------------+---------+---------------+-------------------+
| Mercury Noodle        | 1983    | 180 (180)     | Nationwide        |
+-----------------------+---------+---------------+-------------------+
| Taiwan Yoshinoya      | 1987    | 41 (40)       | Nationwide        |
+-----------------------+---------+---------------+-------------------+

Source: ATO Taipei Survey; Taiwan Chain Stores & Franchise Association

\* Figures inside the parentheses represent \# of stores as of February
2006

# Department Store Food Courts & Restaurants

Total revenue in 2005 for Taiwan's department stores was estimated at US
\$6 billion, a nearly 3 percent increase from the previous year. Each
major department store has 2-9 sit-down restaurants and a floor, or part
of a floor, devoted to a food court. Revenues from restaurants and food
courts represent 3-4% of the total department store revenue. Currently,
Taiwan/Japan joint venture chains dominate the market. They are: Shin
Kong Mitsukoshi, Sogo, Dayeh Takashimaya, and Hanshin. Far Eastern
Department Store Chain is the only local player.

**Coffee Shop Chains**

Coffee consumption in Taiwan has seen rapid growth in recent years. The
market size is currently estimated at over US\$1 billion. According to
Taiwan Chain Stores and Franchise Association's (TCSFA) research,
current per capita coffee consumption in Taiwan is 80 cups, compared
with 400 cups in Japan. TCSFA anticipated that opportunities still exist
for coffee business in Taiwan. ATO Taipei also anticipates that strong
competition, mergers, and greater concentration will take place in the
near future. Currently, young people in Taiwan are more westernized.
Drinking coffee in coffee shop chains symbolizes fashion and taste.
High-end coffee shop franchises are of two principal types: Japanese and
Taiwanese style (table service, more food items) and US-style (self
service with coffee being the main item.) Most US-style high-end coffee
shops only provide sandwiches, cakes, pastries, and salad prepared by
air catering or other food processors, while domestic and Japanese style
coffee shops offer freshly made sandwiches and hot meals, shipped frozen
from their food processors for reheat in the outlets. These companies
purchase materials from importers wholesalers, and distributors. The
significant growth of café industry in recent yeas in Taiwan creates a
niche market for especially imported candy/chocolate and cookie
products. Many café stores, such as Starbucks, Dante, Kohikan, Is
Coffee, and Barista, not only sell coffee and light meals, but also sell
candy/chocolate/cookie products with small and attractive packaging.
Currently, major players include:

+------------------+---------+-----------------+----------------------+
| ###### Compa     |         |                 |                      |
| ny Profile -- Co |         |                 |                      |
| ffee Shop Chains |         |                 |                      |
+------------------+---------+-----------------+----------------------+
| **Company Name** | *       | **2005**        | **Region**           |
|                  | *Year** |                 |                      |
|                  |         | **No. of        |                      |
|                  | **Fo    | Stores**        |                      |
|                  | unded** |                 |                      |
+------------------+---------+-----------------+----------------------+
| Starbucks        | 1998    | 167 (167)       | Nationwide           |
+------------------+---------+-----------------+----------------------+
| Dante            | 1993    | 112 (112)       | ########             |
|                  |         |                 |  North/South Taiwan  |
+------------------+---------+-----------------+----------------------+
| Manabe           | 1992    | 55 (55)         | Nationwide           |
+------------------+---------+-----------------+----------------------+
| IS               | 1997    | 40 (40)         | North/Central Taiwan |
+------------------+---------+-----------------+----------------------+
| Kohikan          | 1992    | 70 (62)         | Nationwide           |
+------------------+---------+-----------------+----------------------+
| Barista          | 1997    | 34 (34)         | Nationwide           |
+------------------+---------+-----------------+----------------------+
| Ikari            | 1994    | 45 (45)         | Northern Taiwan      |
+------------------+---------+-----------------+----------------------+
| Rose House       | 1990    | 40 (40)         | Nationwide           |
+------------------+---------+-----------------+----------------------+
| DCS Doutor       | 1991    | 19 (19)         | Taipei, Kaohsiung    |
+------------------+---------+-----------------+----------------------+

Source: ATO Taipei Research Survey; Taiwan Chain Stores & Franchise
Association

\* Figures inside the parentheses represent \# of stores as of February
2006

\(C\) Institutional

# 

# Air Catering 

Currently, Evergreen Sky Catering, China Pacific Catering Service, and
the TransAsia Airway Corporation dominate the local air catering market.
In order to catch up to competition among themselves, they are
aggressively expanding their catering business to also cater to local
convenience stores, top restaurants, coffee shops, schools, and
hospitals. According to industry sources, 35% of the food materials used
for these flight kitchens are imported items. These airline flight
kitchens purchase from local importers, manufacturers, and wholesalers,
as well as import directly. The industry is widely expected to continue
to grow over the next few years. Contact information of these air
catering services are available upon request.

### Schools

# There are 2,646 elementary and 723 junior high schools in Taiwan. According to the data from the Ministry of Education, 87% of the elementary, and 60% of the junior high schools operated a lunch meal program in 2005, which means a total of 1.5 million students ate at school. The budget for a meal is about NT\$50 (US\$1=NT\$32.17 in 2005) per child. Some schools outsource their lunches to food packagers, while others hire kitchen aids and nutritionists. School teachers are also involved in purchasing materials. In terms of materials, beef is not used as much as pork and chicken, especially for elementary children's meals. Leafy vegetables are preferred. Given the budget of school meals and small scale operations, U.S. products are rarely used. International schools such as Taipei American School have a cafeteria-type service, providing breakfast and lunch for 2,000 students. U.S. products are widely used at TAS. There are over 150 food processors supply lunch to schools, organization, and factories. Given the high labor cost and limited scale, these companies have increasing needs for consistent quality, pre-cut food giving attractive growth potential for appropriate U.S. products.

### Hospitals

# There were 590 hospitals in Taiwan by the end of 2004, among which, 4 offer 2,000 beds or more and 14 offer 1000-1999 beds. Major hospitals are located in big cities like Taipei, Kaohsiung, and Taichung. Most of the major hospitals have restaurants for visitors and internal restaurants for employees and patients. Restaurants for visitors are normally operated by outside contractors, while restaurants for employees and patients are normally managed by the hospital internally with nutritionists controlling the menus. Some small-scale hospitals outsource all their food service business to catering companies. Since most hospitals run on a tight budget for food, US-sourced food is rarely specified. However, some niche opportunities exist, with pureed foods for dietary needs of the elderly and frozen items like sheet cakes for labor saving dessert items.

##### 

##### Section III. Competition

![](media/image4.wmf)

In 2005, Taiwan imported nearly US \$9.4 billion of food and
agricultural products from many different sources, of which US \$2.8
billion (30%) was imported from the United States. The United States was
the number one agricultural supplier to Taiwan, followed by Australia
(8%), and Japan (7%). Australia dominates the beef/mutton markets. Japan
dominates the swine skin and biscuit markets and is very competitive in
other consumer-ready food products. New Zealand ranks as the top
supplier of dairy products.

While maintaining its position as a substantial supplier of bulk
commodities such as soybeans (72%), corn (97%), and wheat (86%), the
Untied States supplies 97% of turkey meat, 56% of fresh & frozen pork,
37% of vegetable & products, and 41% of fruit and products. The United
States is the top supplier of most varieties of imported fresh fruits:
apples (35% or US \$35,678,000), table grapes (68% or US \$25,557,000),
oranges (68%, or US\$5,698,000), cherries (73%, or US \$36,874,000),
peaches (77%, or 35,402,000), and plums (76%, or US\$11,485,000).

+---------------+-----------+---------+--------------------------------+
| **Product     | **Total   | **U.S   | **Major Supply Sources and     |
| Category**    | Import    | Market  | Market Share**                 |
|               | Value     | Share** |                                |
|               | 2005 (US  |         |                                |
|               | \         |         |                                |
|               | $1,000)** |         |                                |
+---------------+-----------+---------+--------------------------------+
| Total         | 9,355,061 | 30%     | Australia (8%), Japan (7%),    |
| Food-Agr      |           |         | China (6%), Malaysia (6%),     |
| Imports       |           |         | Thailand (5%), New Zealand     |
|               |           |         | (5%), Indonesia (4%), Canada   |
|               |           |         | (3%), Brazil (3%)              |
+---------------+-----------+---------+--------------------------------+
| ### An        |           |         |                                |
| imal Products |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Beef,         | 286,866   | 15%     | Australia (42%), New Zealand   |
| Fresh/Frozen  |           |         | (41%)                          |
+---------------+-----------+---------+--------------------------------+
| Processed     | 357       | 0%      | Australia (76%)                |
| Beef          |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Pork,         | 38,609    | 56%     | Canada (37%)                   |
| Fresh/Frozen  |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Processed     | 645       | 75%     | Canada (15%)                   |
| Pork          |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Turkey Meat   | 17,363    | 97%     | \-                             |
+---------------+-----------+---------+--------------------------------+
| **Fish &      |           |         |                                |
| Seafood**     |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Salmon        | 39,532    | 2%      | Norway (32%), Canada (31%),    |
|               |           |         | Chile (28%)                    |
+---------------+-----------+---------+--------------------------------+
| Lobster       | 42,582    | 32%     | Australia (42%), Indonesia     |
|               |           |         | (6%), Vietnam (5%), Cuba (3%)  |
+---------------+-----------+---------+--------------------------------+
| Fish Roe      | 433       | 10%     | Japan (63%), Canada (11%)      |
+---------------+-----------+---------+--------------------------------+
| Surimi        | 24,209    | 17%     | India (33%), Thailand (32%),   |
|               |           |         | Indonesia (5%)                 |
+---------------+-----------+---------+--------------------------------+
| **Dairy       |           |         |                                |
| Products**    |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Cheese        | 52,620    | 10%     | New Zealand (37%), Australia   |
|               |           |         | (31%)                          |
+---------------+-----------+---------+--------------------------------+
| Powder Milk   | 114,915   | 0.4%    | New Zealand (55%), Australia   |
|               |           |         | (33%)                          |
+---------------+-----------+---------+--------------------------------+
| Fruits &      | 505,083   | 41%     | Thailand (7%), China (8%),     |
| Products      |           |         | Chile (9%), Japan (6%), New    |
|               |           |         | Zealand (5%)                   |
+---------------+-----------+---------+--------------------------------+
| Apples, Fresh | 101,938   | 35%     | Japan (21%), Chile (24%), New  |
|               |           |         | Zealand (14%)                  |
+---------------+-----------+---------+--------------------------------+
| Table Grape,  | 37,584    | 68%     | Chile (23%), South Africa (4%) |
| Fresh         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Cherries,     | 50,513    | 73%     | Chili (11%), Canada (7%), New  |
| Fresh         |           |         | Zealand (6%)                   |
+---------------+-----------+---------+--------------------------------+
| Grapefruits,  | 3,993     | 16%     | South Africa (82%)             |
| Fresh         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Plum, Fresh   | 15,112    | 76%     | Chile (17%), Australia (6%)    |
+---------------+-----------+---------+--------------------------------+
| Peaches,      | 45,977    | 77%     | Chile (11%), Australia (5%)    |
| Fresh         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Oranges,      | 8,380     | 68%     | South Africa (15%), Australia  |
| Fresh         |           |         | (12%)                          |
+---------------+-----------+---------+--------------------------------+
| **Vegetable & | 236,488   | 37%     | China (13%), Thailand (11%),   |
| Products**    |           |         | Vietnam (6%), Indonesia (5%),  |
|               |           |         | Canada (4%), Netherlands (4%)  |
+---------------+-----------+---------+--------------------------------+
| Potatoes,     | 69,508    | 56%     | Netherlands (12%), Canada (9%) |
| fresh,        |           |         |                                |
| frozen,       |           |         |                                |
| processed     |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Celery, fresh | 3,067     | 100%    | \-                             |
+---------------+-----------+---------+--------------------------------+
| Onions, fresh | 8,370     | 76%     | New Zealand (10%), Thailand    |
|               |           |         | (8%)                           |
+---------------+-----------+---------+--------------------------------+
| Broccoli,     | 10,679    | 98%     | \-                             |
| fresh         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Lettuce,      | 5,043     | 92%     | Thailand (8%)                  |
| fresh         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Almond        | 21,359    | 94%     | China (5%)                     |
+---------------+-----------+---------+--------------------------------+
| **Beverage**  |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Wine          | 67,953    | 12%     | France (53%), Australia (11%), |
|               |           |         | Chile (6%), Italy (4%), Canada |
|               |           |         | (2%), Japan (2%)               |
+---------------+-----------+---------+--------------------------------+
| Apple Juice   | 2,752     | 9%      | China (70%), South Africa      |
|               |           |         | (8%), Japan (4%)               |
+---------------+-----------+---------+--------------------------------+
| Grapefruit    | 1,610     | 7%      | Israel (54%), Japan (36%)      |
| Juice         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Grape Juice   | 6,061     | 19%     | Spain (31%), Italy (22%)       |
+---------------+-----------+---------+--------------------------------+
| **Processed   |           |         |                                |
| Food**        |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Pre Mix &     | 7,679     | 59%     | Japan (245)                    |
| Dough         |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Soups &       | 3,494     | 21%     | Japan (37), China (32%)        |
| Broths        |           |         |                                |
|               |           |         |                                |
| Powder/Solid  |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Cookies &     | 69,930    | 6%      | Japan (28%), Indonesia (21%),  |
| Other Baked   |           |         | Malaysia (14%)                 |
| Products      |           |         |                                |
+---------------+-----------+---------+--------------------------------+
| Canned Corn   | 24,817    | 64%     | Thailand (19%), France (17%)   |
+---------------+-----------+---------+--------------------------------+
| Soybean Oil   | 21,966    | 0.5%    | Argentina (53%), Brazil (46%)  |
+---------------+-----------+---------+--------------------------------+
| Sunflower Oil | 18,568    | 3%      | Argentina (82%), Singapore     |
|               |           |         | (4%), Germany (4%), China (4%) |
+---------------+-----------+---------+--------------------------------+

Source: Council of Agriculture; Bureau of Foreign Trade

##### SECTION IV. BEST PRODUCT PROSPECTS

+------+-------+-------+------+--------+------------+----------------+
|      | **2   | **2   | **5  | **     | **Key      | **Market       |
|      | 004** | 005** | -Yr. | Import | C          | Attractiveness |
|      |       |       | Av   | Tariff | onstraints | for USA**      |
|      | *     | *     | g.** | Rate** | Over       |                |
|      | *Impo | *Impo |      |        | Market     |                |
|      | rts** | rts** | **An |        | Dev        |                |
|      |       |       | nual |        | elopment** |                |
|      | **(   | **(   | Im   |        |            |                |
|      | US\$M | US\$M | port |        |            |                |
|      | il)** | il)** | Grow |        |            |                |
|      |       |       | th** |        |            |                |
+------+-------+-------+------+--------+------------+----------------+
| Wine | \$56  | \$68  | 35%  | 10%    | French     | Currently, the |
|      |       |       |      | plus a | wine still | United States  |
|      |       |       |      | NT\$7  | dominates  | is Taiwan's    |
|      |       |       |      | per    | the red    | second largest |
|      |       |       |      | one    | wine       | wine supplier. |
|      |       |       |      | p      | market.    | Despite the    |
|      |       |       |      | ercent | Knowledge  | front-runner   |
|      |       |       |      | a      | about      | position of    |
|      |       |       |      | lcohol | wines is   | French wines,  |
|      |       |       |      | for    | generally  | US wines       |
|      |       |       |      | grape  | low        | continue to    |
|      |       |       |      | wines. | throughout | gain consumer  |
|      |       |       |      |        | wine       | recognition    |
|      |       |       |      |        | di         | and            |
|      |       |       |      |        | stribution | acceptance.    |
|      |       |       |      |        | channels.  | The growth was |
|      |       |       |      |        |            | fueled by the  |
|      |       |       |      |        |            | perception     |
|      |       |       |      |        |            | that wine is   |
|      |       |       |      |        |            | good for       |
|      |       |       |      |        |            | health         |
+------+-------+-------+------+--------+------------+----------------+
| Ch   | \$49  | \$53  | 23%  | 5%     | Although   | The US share   |
| eese |       |       |      |        | the import | is growing     |
|      |       |       |      |        | volume is  | faster than    |
|      |       |       |      |        | large, it  | the larger     |
|      |       |       |      |        | is         | competitors,   |
|      |       |       |      |        | dominated  | meaning that   |
|      |       |       |      |        | by New     | those US       |
|      |       |       |      |        | Zealand    | cheese         |
|      |       |       |      |        | (37%) and  | currently      |
|      |       |       |      |        | Australia  | coming into    |
|      |       |       |      |        | (31%).     | the market are |
|      |       |       |      |        |            | finding faster |
|      |       |       |      |        |            | acceptance     |
|      |       |       |      |        |            | than those of  |
|      |       |       |      |        |            | competitors    |
+------+-------+-------+------+--------+------------+----------------+
| Whey | \$11  | \$12  | 5%   | 5%     | Intense    | The U.S. is    |
|      |       |       |      |        | c          | the major      |
|      |       |       |      |        | ompetition | supplier of    |
|      |       |       |      |        | from major | whey due to    |
|      |       |       |      |        | exporting  | competitive    |
|      |       |       |      |        | nations    | pricing and    |
|      |       |       |      |        | such as    | successful     |
|      |       |       |      |        | New        | promotion      |
|      |       |       |      |        | Zealand    | efforts into   |
|      |       |       |      |        | and        | ho             |
|      |       |       |      |        | Australia. | tel/restaurant |
|      |       |       |      |        |            | /institutional |
|      |       |       |      |        |            | and processed  |
|      |       |       |      |        |            | food channels  |
|      |       |       |      |        |            | by U.S.        |
|      |       |       |      |        |            | exporters and  |
|      |       |       |      |        |            | the U.S. Dairy |
|      |       |       |      |        |            | Export         |
|      |       |       |      |        |            | Council.       |
+------+-------+-------+------+--------+------------+----------------+
| Berr | \$1.8 | \$2.3 | 66%  | Blueb  | Cons       | Consumers in   |
| ies, |       |       |      | erries | umer/trade | Taiwan are     |
| F    |       |       |      | 7.5%   | lack of    | becoming more  |
| resh |       |       |      |        | product    | health         |
|      |       |       |      | Strawb | knowledge. | conscious.     |
|      |       |       |      | erries | E          | Berries        |
|      |       |       |      |        | ducational | continue to    |
|      |       |       |      | 20%    | programs   | enjoy a        |
|      |       |       |      |        | by US      | steadily       |
|      |       |       |      |        | exporters  | increasing     |
|      |       |       |      |        | are        | share of both  |
|      |       |       |      |        | necessary. | c              |
|      |       |       |      |        |            | onsumer/retail |
|      |       |       |      |        |            | and food       |
|      |       |       |      |        |            | service        |
|      |       |       |      |        |            | channels.      |
|      |       |       |      |        |            | There are      |
|      |       |       |      |        |            | strong growth  |
|      |       |       |      |        |            | prospects for  |
|      |       |       |      |        |            | berry,         |
|      |       |       |      |        |            | strawberries   |
|      |       |       |      |        |            | and            |
|      |       |       |      |        |            | blueberries in |
|      |       |       |      |        |            | particular,    |
|      |       |       |      |        |            | category.      |
+------+-------+-------+------+--------+------------+----------------+
| Chi  | \$36  | \$71  | 87%  | 20%    | The TRQ    | Imports are    |
| cken |       |       |      |        | controls   | rising         |
| Meat |       |       |      |        | on chicken | significantly  |
| &    |       |       |      |        | meat was   | in the wake of |
| O    |       |       |      |        | eliminated | Taiwan's       |
| ffal |       |       |      |        | in January | elimination of |
|      |       |       |      |        | 2005 and   | all tariff     |
|      |       |       |      |        | replaced   | rate quota     |
|      |       |       |      |        | by         | restrictions   |
|      |       |       |      |        | ordinary   | in January     |
|      |       |       |      |        | tariffs.   | 2005. The      |
|      |       |       |      |        | However,   | United States  |
|      |       |       |      |        | an SSG     | is currently   |
|      |       |       |      |        | assessment | in a strong    |
|      |       |       |      |        | would add  | supply         |
|      |       |       |      |        | an         | position,      |
|      |       |       |      |        | estimated  | being one of   |
|      |       |       |      |        | 633% to    | only six       |
|      |       |       |      |        | normal     | countries      |
|      |       |       |      |        | tariffs,   | certified for  |
|      |       |       |      |        | resulting  | poultry        |
|      |       |       |      |        | in an      | exports to     |
|      |       |       |      |        | effective  | Taiwan and the |
|      |       |       |      |        | tariff of  | only one of    |
|      |       |       |      |        | about      | these with     |
|      |       |       |      |        | 26.33% for | sufficient     |
|      |       |       |      |        | chicken    | volumes and    |
|      |       |       |      |        | meat.      | competitive    |
|      |       |       |      |        |            | pricing        |
|      |       |       |      |        |            | points.        |
+------+-------+-------+------+--------+------------+----------------+
| Tree | \$39  | \$54  | 20%  | Sweet  | Currently, | Nuts (mainly   |
| Nuts |       |       |      | al     | the US     | almonds, and   |
|      |       |       |      | monds: | dominates  | walnuts) are   |
|      |       |       |      | in     | the        | very popular   |
|      |       |       |      | shell  | following  | as ingredients |
|      |       |       |      | 5%;    | nut        | used in        |
|      |       |       |      | s      | market:    | baking. The US |
|      |       |       |      | helled | almonds,   | currently      |
|      |       |       |      | 2.5%   | and        | dominates      |
|      |       |       |      |        | walnuts.   | these          |
|      |       |       |      | Bitter | Cashes     | categories.    |
|      |       |       |      | al     | from China | Constant       |
|      |       |       |      | monds: | and SE     | communication  |
|      |       |       |      | 10%    | Asia has   | with the       |
|      |       |       |      |        | shifted    | baking         |
|      |       |       |      | Hazel  | some       | industry       |
|      |       |       |      | nuts:  | market     | technical      |
|      |       |       |      | s      | share away | seminars and   |
|      |       |       |      | helled | from U.S.  | trade shows is |
|      |       |       |      | 7%     | suppliers. | essential to   |
|      |       |       |      |        | The        | grow in this   |
|      |       |       |      | In     | greatest   | category.      |
|      |       |       |      | -shell | c          |                |
|      |       |       |      | 7.5%   | ompetition |                |
|      |       |       |      |        | to US      |                |
|      |       |       |      | W      | pistachio  |                |
|      |       |       |      | alnuts | exporters  |                |
|      |       |       |      | 5%     | is from    |                |
|      |       |       |      |        | Middle     |                |
|      |       |       |      | Pist   | East and   |                |
|      |       |       |      | achios | Australia. |                |
|      |       |       |      |        |            |                |
|      |       |       |      | 3%     |            |                |
|      |       |       |      |        |            |                |
|      |       |       |      | Pecan  |            |                |
|      |       |       |      | 7.5%   |            |                |
+------+-------+-------+------+--------+------------+----------------+
| Red  | \$371 | \$429 | 18%  | Be     | Beef-The   | U.S. beef is   |
| Meat |       |       |      | ef-10% | primary    | perceived to   |
| &    |       |       |      | per kg | competitor | be high        |
| O    |       |       |      |        | is         | quality.       |
| ffal |       |       |      | Beef   | Australia, |                |
|      |       |       |      | offal  | whose      | There are      |
|      |       |       |      | --15%  | advantage  | growth         |
|      |       |       |      |        | is         | opportunities  |
|      |       |       |      | Pork   | customer   | for U.S. pork  |
|      |       |       |      | -12.5% | -perceived | that meets     |
|      |       |       |      |        | c          | local food     |
|      |       |       |      | V      | omparable/ | processors'    |
|      |       |       |      | ariety | acceptable | needs.         |
|      |       |       |      | me     | quality at |                |
|      |       |       |      | at-15% | a low      |                |
|      |       |       |      |        | price.     |                |
|      |       |       |      |        |            |                |
|      |       |       |      |        | Pork-is a  |                |
|      |       |       |      |        | market     |                |
|      |       |       |      |        | where the  |                |
|      |       |       |      |        | domestic   |                |
|      |       |       |      |        | producers  |                |
|      |       |       |      |        | have many  |                |
|      |       |       |      |        | c          |                |
|      |       |       |      |        | ompetitive |                |
|      |       |       |      |        | a          |                |
|      |       |       |      |        | dvantages. |                |
+------+-------+-------+------+--------+------------+----------------+
| Sea  | \$314 | \$345 | 3%   | 9%-38% | With a     | The food       |
| food |       |       |      |        | bias       | service/HRI    |
|      |       |       |      |        | towards    | venues with a  |
|      |       |       |      |        | fresh fish | strong Western |
|      |       |       |      |        | and SE     | orientation    |
|      |       |       |      |        | As         | and up-market  |
|      |       |       |      |        | ia-variety | positioning    |
|      |       |       |      |        | cr         | offer the      |
|      |       |       |      |        | ustaceans, | current best   |
|      |       |       |      |        | the        | opportunities  |
|      |       |       |      |        | seafood    | for U.S.       |
|      |       |       |      |        | segment    | exporters      |
|      |       |       |      |        | currently  |                |
|      |       |       |      |        | has        |                |
|      |       |       |      |        | d          |                |
|      |       |       |      |        | evelopment |                |
|      |       |       |      |        | problems   |                |
+------+-------+-------+------+--------+------------+----------------+

Source: Taiwan Bureau of Foreign Trade: Taiwan Council of Agriculture

####### Section V. Post Contact and Further Information

Mailing Address

Agricultural Trade Office

Department of State

4170 AIT Taipei

Washington, D.C. 20521-4170

Street Address:

ATO Taipei

American Institute in Taiwan

Room 704, 7^th^ Floor

136 Renai Road, Section 3

Taipei, Taiwan

Phone: (886-2) 2705-6536

Fax: (886-2) 2706-4885

E-mail: [ato@ait.org.tw](mailto:ato@mail.ait.org.tw)

Web Site: http://www.ait.org.tw/en/agriculture/ato/

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