Required Report - public distribution

**Date:** 12/30/2005

**GAIN Report Number:** TW6001

TW6001

**Taiwan**

**Oilseeds and Products**

**Annual Report 2006**

**2006**

**Approved by:**

![](media/image1.wmf)Alan Hallman

American Institute in Taiwan

**Prepared by:**

Chiou-Mey Perng

**Report Highlights:**

Soybean imports are forecast to remain at the 2004/05 level of 2.255
million metric tons in 2005/06 and 2006/07. In-spite of the removal of
Tariff Rate Quotas on most poultry and pork products at the start of
2005, and avian influenza, animal production and feed demand are
forecast to be relatively stable. In addition, the niche market for food
grade non-biotech soybeans is growing very rapidly.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Taipei \[TW1\]

\[TW\]

**Table of Contents**

[Executive Summary 3](#executive-summary)

[Oilseed Situation and Outlook 3](#oilseed-situation-and-outlook)

[Imports driven by demand for food beans and crushing.
3](#imports-driven-by-demand-for-food-beans-and-crushing.)

[Local Pork and Poultry Production, Trade, and Traceability
3](#local-pork-and-poultry-production-trade-and-traceability)

[Soybean Crush 4](#soybean-crush)

[Food Soybeans 4](#food-soybeans)

[Market Share 4](#market-share)

[PRC Trade 5](#prc-trade)

[Container Shipments 5](#container-shipments)

[Oilmeal Situation and Outlook 5](#oilmeal-situation-and-outlook)

[Consumption & Trade 5](#consumption-trade)

[Oil Situation and Outlook 6](#oil-situation-and-outlook)

[Consumption & Trade 6](#consumption-trade-1)

[Biodiesel 6](#biodiesel)

[Tables 7](#tables)

[Table 1: Soybean PSD 7](#table-1-soybean-psd)

[Table 2: Soybean Meal PSD 8](#table-2-soybean-meal-psd)

[Table 3: Soybean Oil PSD 9](#table-3-soybean-oil-psd)

[Table 4: Soybean Imports 10](#table-4-soybean-imports)

[Table 5: Soybean Meal Imports 11](#table-5-soybean-meal-imports)

[Table 6: Soybean Oil Imports 12](#table-6-soybean-oil-imports)

[Table 7: Soybean Meal Prices 13](#table-7-soybean-meal-prices)

[Table 8 -- SSG Triggers for imports in 2005
13](#table-8-ssg-triggers-for-imports-in-2005)

[Table 9 - Pork Imports vs Domestic Production and Wholesale Market
14](#table-9---pork-imports-vs-domestic-production-and-wholesale-market)

[Table 10 -- Total Poultry Meat Imports vs Domestic Production
14](#table-10-total-poultry-meat-imports-vs-domestic-production)

[Table 11 - Tariff Rates for Edible Oils and Oil Seeds
15](#table-11---tariff-rates-for-edible-oils-and-oil-seeds)

[Table 12 -- Oil Prices, CIF Taiwan, USD/Kg
16](#table-12-oil-prices-cif-taiwan-usdkg)

[Table 13 -- Oil Imports & Production, 1,000 MT
16](#table-13-oil-imports-production-1000-mt)

# Executive Summary

Soybean imports for 2005/06 and 2006/07 are forecast to remain unchanged
from 2004/05 at 2.255 million metric tons. An increase in demand for
soybean meal for hog production is forecast to partially offset a
reduction in soybean meal demand due to a decrease in poultry
production. The U.S. share of the soybean import market returned to its
historical level of 70-75 percent in 2004/05, up from 61 percent in
2003/04. Over the next few years, lower priced imported soybean meal may
displace addition quantities of soybean meal from locally crushed
soybeans.

The local livestock sector is relatively competitive with imports.
Domestic pork production is estimated to have increased by one percent
in 2005, in spite of the fact that Taiwan lifted its import quota
limitation on pork and poultry meat and products in January 2005. An
increase in local pork production has reduced imports in 2004/05. The
consumption of imported poultry is mostly limited to the HRI sector,
which constituted about 17% of local consumption, or 80 thousand metric
tons in 2005. Concern over the bird flu viruses reportedly reduced
consumption of poultry meat and products by 30 percent in October, and
will continue to influence consumption thru the first few months of
2006.

# Oilseed Situation and Outlook

## 

## Imports driven by demand for food beans and crushing.

Taiwan imports almost all of its soybeans, and its demand for soybeans
is composted of demand for food use, which is relatively constant, and
demand for crushing, which is more variable. Taiwan has been a soybean
import market and locally crushed meal has historically accounted for
about 98 percent of total soybean meal consumption. However, crushers
and feed millers imported larger than normal quantities of soybean meal
from India and the United States, respectively, over the last two years.
Soybean meal imports for 2005/06 are expected to fall to traditional
levels before rebounding in 2006/07. Soybean imports for 2005/06 and
2006/07 are forecast to remain at the current level of 2.255 million
metric tons.

## Local Pork and Poultry Production, Trade, and Traceability

###  

Domestic production of poultry and pork remains competitive with imports
one year after the removal of the TRQ. In January 2005 quota
restrictions on importation of poultry, pork and other meat products
were lifted, but these commodities are still subject to Special
Safeguards (SSG). Taiwan can add a 33 percent duty surcharge when import
volumes rise above the trigger volume or if CIF import prices fall below
the trigger price (see Table 8 for SSG trigger levels). Tariffs,
including the 33.3 percent SSG surcharge, were much lower than the out
of quota tariff in 2004, and imports of pork and poultry meat products
exceeded trigger volumes in 2005. In 2006, the volume trigger level for
poultry and pork meat products will increase significantly from the
level for 2005, and the impact of pork product imports may become
significant.

The local poultry and swine sectors are trying to increase their
competitiveness with imported meat and poultry products by introducing a
tractability system. Consumers can use an identification code to trace
production information about the packaged poultry or meat products, such
as who was the producer, where the animal was raised and processed, date
of processing and the sanitary quality of the meat product, and what
kind of feed was used etc. The traceability system is now applied to
value added production.

### Poultry Production and Imports 

Imported poultry is expected to be limited to HRI use, and is expected
to remain at about 80,000 metric tons. Local poultry production in
2006/07 is expected to increase to 390 million birds, after falling in
2004/05 and 2005/06 due mainly to concerns about bird flu. Reportedly,
there was a 30 percent decrease in poultry meat consumption in October
2005. Taiwan authorities have begun a consumer education program on bird
flu in an attempt to reduce consumer fears.

### Local Pork Production and Imports

The local swine sector is relatively competitive with imported products.
According to the May 2005 hog consensus, the hog standing population was
7.17 million head, a 6.45 percent increase from November 2004. Total hog
production in 2005 is estimated to have increased one percent from last
year. Hog prices at the wholesale level are also 10 percent lower than
last year, which has made local pork more competitive with imported
pork. Pork production in 2005/06 and 2006/07 is anticipated to return to
2003/04 levels.

## 

## Soybean Crush

The soybean crush is forecast to remain at about 1.7 million metric tons
in 2005/06 and 2006/07, in line with local livestock and poultry
production. Locally crushed soybeans supply almost all soybean meal
consumed in Taiwan. This is partly due to steady demand for soybean oil.

## Food Soybeans 

Although about 89 percent of soybeans are used for animal feed, Taiwan
has a strong market for soybeans for food use that is estimated at about
255 thousand metric tons. Most of this is consumed as tofu and soymilk,
and the estimate is based on sales by crushers of sorted US#2 beans. In
2004/05, approximately 20 thousand metric tons of food beans were
identity-preserved (IP), non-GM "food grade", and/or organic beans. Of
this total, the US supplied about 12 thousand metric tons (with a 20%
increase over last year), Canada 4 thousand metric tons (a 56%
increase), Australia 2 thousand metric tons (a 76% growth), South Africa
one thousand metric tons and all other countries combined supplied the
remaining one thousand metric tons.

The market for non-biotech food grade soybeans grew at about 60 percent
in 2003/04 and at about 40 percent in 2004/05. It is being driven by the
adoption of mandatory bio-engineered food labeling requirements that
came into effect on January 1st 2004 for some products and on January
1^st^ 2005 for more processed products. Taiwan's draft biotechnology act
requires that all GM products be labeled. It is anticipated that local
demand for Non-GM, or IP beans will continue to increase rapidly.
Reportedly, some major #2 bean distributors are planning to enter the
non-GM bean market in 2006. Taiwan's demand for IP beans for 2005/06 is
anticipated to increase to 25 thousand metric tons - according to local
package tofu and soymilk processors.

## Market Share

According to our estimates, The United States had a 72 percent share of
2004/05 imports, an 11-percentage point increase from a year earlier. In
recent years, U.S. soybeans have been facing strong competition from
South American soybeans. Price competition may stimulate additional
interest in South American beans, or in less expensive soybean meal from
India or the U.S. Despite these changes, the United States is expected
to retain its leading position in the Taiwan soybean market because of
increasing U.S. attention to quality, the year-round availability of
U.S. soybeans, and the reliability of U.S. supplies. U.S. market share
is expected to average about 70-75 percent.

## 

## PRC Trade

Taiwan still bans most imports of PRC soybean and products. However,
since 2003 Taiwan has allowed industrial associations of soybean food
processors to import a small quantity of PRC soybeans for use in food
processing on a special import permit basis. Taiwan imported 40 mt and
42 mt of soybeans from Mainland China in 2003 and 2004, respectively.
While no PRC soybean meal has been imported, Taiwan temporarily lifted
the import ban on PRC soybean meal from November 18, 2003 to January 31,
2004. Over the next few years, these restrictions on soybeans and other
PRC agricultural products may be gradually relaxed. As of December 14,
2005, Taiwan permitted the import of products from the PRC in 63 percent
of its agricultural and food product customs categories. The
availability of cheap PRC soybean meal will likely result in renewed
pressure to open the Taiwan market permanently.

## Container Shipments

About 420 thousand metric tons of soybeans, accounting for 18 percent of
soybean imports, were reportedly shipped to Taiwan using shipping
containers because of attractive discounts offered sea lines. While
local importers are pleased with the quality of U.S. soybeans shipped in
containers, these shipments sometimes have higher foreign material
contents and may be at risk of ragweed (Ambrosia trifida L.)
contamination. Ambrosia trifida L. is not endemic to on Taiwan and is a
regulated pest. If Ambrosia trifida L. is detected the shipment will be
rejected.

# 

# Oilmeal Situation and Outlook

## Consumption & Trade

## 

Total feed demand is estimated at 7.3 million metric tons in 2005, and
forecast at 7.0 and 7.2 million metric tons in 2006 and 2007
respectively. These estimates are consistent with stable hog production
and reductions in poultry production of 5.5, and 10.2 percent in 2005
and 2006 respectively, followed by a 10.2 percent increase in 2007.
Taiwan's demand for soybean meal is forecast to decline in line with the
anticipated decline in feed demand. While feed millers generally source
soybean meal from the lowest cost local supplier, they imported high
protein soybean meal from the U.S. in 2004/05. In 2003/04 crushers
imported low cost Indian soybean meal as a substitute for locally
crushed meal. Soybean meal imports in 2004/05 represented 5 percent of
total consumption. It is anticipated that soybean meal imports will fall
to approximately 40 thousand metric tons in 2005/06 before returning to
the current level of approximately 90 thousand metric tons in 2006/07.

### Soymeal Inclusion Remains High

The feed inclusion rate of soybean meal remained at a relatively high 23
to 24 percent of feed production in 2004/05. Full fat meal and dehulled
high protein meal with CP 47.5% or above remained popular, with a
premium of NT\$0.7/kg over conventional soy meal with CP at 42.5%. The
production of full fat soybeans is estimated at 300 thousand metric
tons, unchanged from a year earlier, and dehulled soy meal is estimated
to have to declined to 200 thousand metric tons because of imported high
protein meal from the United States. (Note: Full fat soy soybeans are
indicated as feed use beans in the PSD Table. Full fat soybeans were
included as beans for crushing in previous reports. Meal and oil
extraction rates are adjusted accordingly.)

The use of other types of oil meals remained low. In 2004/05, the feed
inclusion rate of fishmeal was estimated at 3.2 percent, a 0.2 percent
increase from a year earlier, while the total for other oilseed meals
(HS2306) remained at 3.1 percent. Local feed mills have also started to
introduce fermented full fat meal as a substitute for dairy products in
feed rations. There are no import statistics in 2004/05 for milk powder
(HS0402.2910) and whey (HS0404.1010) for feed use. Increased distillers
dried grain (DDGS) imports may substitute for soybean meal imports. In
addition to the 19 thousand metric tons of DDGS that were imported under
HS2303 in 2004/05, 20 thousand metric tons may have been imported under
HS2306.7000, which has a zero percent rather than a three percent duty
rate.

## 

## 

# Oil Situation and Outlook

## Consumption & Trade

### Oil Imports

Vegetable oil consumption in 2004/05 Taiwan is estimated at 563 thousand
metric tons (see Table 13). Soybean oil's market share dropped by 6
percentage points, with palm oil's share rising by the same amount due
to relative market prices (see Table 12). Imported soy oil supply
decreased approximate 30 thousand tons compared to a year earlier. Total
vegetable oil consumption for the coming two years is forecast to remain
at 2004/05 levels. Taiwan maintained its relatively high level of oils
and fats consumption of 25.11 kg per capita in 2004/05. The
Protein:Fat:Carbohydrate (PFC) ratio was 13:39:48, compared with the
recommendation of 12:25:63.

### Competition between Oils

There are three segments in the Taiwan vegetable oil market:

1)  Market leaders: these are soybean oil and palm oil, with market
    shares of 61% and 25% respectively in 2004/05.

2)  New-to-market oils: olive, canola, corn, sunflower, and safflower
    oils with a combined 11% share.

3)  Traditional Chinese oils: peanut and sesame oil with a combined 3%
    share.

Despite post-WTO tariff reductions for new-to-market oils (see Table
11), soybean oil and palm oil are expected to retain their market
leading position because of their widespread use in the HRI and food
processing sectors. A reduction in the soybean crush will likely boost
import demand for soy oil and new-to-market oils - in particular canola
oil and sunflower oil which compete with soy oil in household use.
However, the relatively high prices of new-to-market oils have prevented
them from gaining market share.

The tariff rates on soybean oil, sunflower oil, safflower oil, and corn
oil are fixed at 5 percent, however the tariff rates on olive and canola
oil will be reduced gradually to 0 and 4 percent, respectively, by 2007.
This is unlikely to increase market competition for imported U.S.
sunflower oil and domestic crushed soy oil, however, not only because of
the small size of the tariff reduction, but because olive oil is not
well suited to Chinese cuisine and canola oil is under increasing
scrutiny because it is derived from biotech crops. However, the
increasingly health conscious Taiwan market may demand increasing
quantities of NuSun oil, which is non-GM and has lower saturated fats.

## Biodiesel

The American Soybean Association has been working with Taiwan
authorities to encourage the use of biodiesel since 1995. The Taiwan
Environmental Protection Agency approved B20 (20 percent biodiesel) as a
clean fuel in November 2000 and successful tests were complete on Taipei
city garbage trucks in 2002. In 2004, Taiwan built its first biodiesel
plant and produces biodiesel from recycled cooking oil. The current
output is one million liter a year from about the same amount of cooking
oil. Taiwan authorities at the Council of Agriculture (COA) have
launched a trail planting program to grow sunflower, rape and soybean
crop in three selected set-aside paddy fields, 10 hectares each in
Southern, Central and Northern Taiwan out of 250,000 hectares of total
fallowed land. There are also reports that a firm plans to establish
facilities to convert imported palm oil into biodiesel, and that another
firm has developed a new process, using nanotechnology, to turn
vegetable oil into biodiesel.

# Tables

## Table 1: Soybean PSD

  ----------------- ------------ ---------- ---------- ---------- ---------- ---------- --------- --
  **PSD Table**                                                                                   

  **Country**       **Taiwan**                                                                    

  **Commodity**     **Oilseed,                                    (1000                           
                    Soybean**                                     HA)(1000                        
                                                                  MT)                             

                    2004         Revised    2005       Estimate   2006       Forecast   UOM       

                    USDA         Post       USDA       Post       USDA       Post                 
                    Official     Estimate   Official   Estimate   Official   Estimate             
                    \[Old\]      \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]              

  **Market Year                  10/2004               10/2005               10/2006    MM/YYYY   
  Begin**                                                                                         

  Area Planted      0            0          0          0          0          0          (1000 HA) 

  Area Harvested    0            0          0          0          0          0          (1000 HA) 

  Beginning Stocks  82           81         117        110        82         110        (1000 MT) 

  Production        0            0          0          0          0          0          (1000 MT) 

  MY Imports        2300         2255       2210       2255       0          2255       (1000 MT) 

  MY Imp. from U.S. 0            1626       0          1650       0          1630       (1000 MT) 

  MY Imp. from the  0            0          0          0          0          0          (1000 MT) 
  EC                                                                                              

  TOTAL SUPPLY      2382         2336       2327       2365       82         2365       (1000 MT) 

  MY Exports        0            0          0          0          0          0          (1000 MT) 

  MY Exp. to the EC 0            0          0          0          0          0          (1000 MT) 

  Crush Dom.        2010         1671       1990       1700       0          1700       (1000 MT) 
  Consumption                                                                                     

  Food Use Dom.     255          255        255        255        0          255        (1000 MT) 
  Consump.                                                                                        

  Feed,Seed,Waste   0            300        0          300        0          300        (1000 MT) 
  Dm.Cn.                                                                                          

  TOTAL Dom.        2265         2226       2245       2255       0          2255       (1000 MT) 
  Consumption                                                                                     

  Ending Stocks     117          110        82         110        0          110        (1000 MT) 

  TOTAL             2382         2336       2327       2365       0          2365       (1000 MT) 
  DISTRIBUTION                                                                                    

  Calendar Year     0            2025       0          2350       0          2218       (1000 MT) 
  Imports                                                                                         

  Calendar Yr Imp.  0            1138       0          1700       0          1630       (1000 MT) 
  U.S.                                                                                            

  Calendar Year     0            0          0          0          0          0          (1000 MT) 
  Exports                                                                                         

  Calndr Yr Exp. to 0            0          0          0          0          0          (1000 MT) 
  U.S.                                                                                            
  ----------------- ------------ ---------- ---------- ---------- ---------- ---------- --------- --

## Table 2: Soybean Meal PSD

  --------------- ------------ ---------- ---------- ---------- ----------- ---------- -----------
  **PSD Table**                                                                        

  **Country**     **Taiwan**                                                           

  **Commodity**   **Meal,                                       (1000 MT)              
                  Soybean**                                     (PERCENT)              

                  2004         Revised    2005       Estimate   2006        Forecast   UOM

                  USDA         Post       USDA       Post       USDA        Post       
                  Official     Estimate   Official   Estimate   Official    Estimate   
                  \[Old\]      \[New\]    \[Old\]    \[New\]    \[Old\]     \[New\]    

  **Market Year                10/2004               10/2005                10/2006    MM/YYYY
  Begin**                                                                              

  Crush           2010         1671       1990       1700       0           1700       (1000 MT)

  Extr. Rate,     0.789552     0.804309   0.788945   0.790588   0           0.790588   (PERCENT)
  999.9999                                                                             

  Beginning       52           124        27         72         25          50         (1000 MT)
  Stocks                                                                               

  Production      1587         1344       1570       1344       0           1344       (1000 MT)

  MY Imports      90           86         90         42         0           89         (1000 MT)

  MY Imp. from    0            75         0          35         0           75         (1000 MT)
  U.S.                                                                                 

  MY Imp. from    0            0          0          0          0           0          (1000 MT)
  the EC                                                                               

  TOTAL SUPPLY    1729         1554       1687       1458       25          1483       (1000 MT)

  MY Exports      8            5          7          5          0           3          (1000 MT)

  MY Exp. to the  0            0          0          0          0           0          (1000 MT)
  EC                                                                                   

  Industrial Dom. 0            0          0          0          0           0          (1000 MT)
  Consum                                                                               

  Food Use Dom.   0            0          0          0          0           0          (1000 MT)
  Consump.                                                                             

  Feed Waste Dom. 1694         1477       1655       1403       0           1452       (1000 MT)
  Consum                                                                               

  TOTAL Dom.      1694         1477       1655       1403       0           1452       (1000 MT)
  Consumption                                                                          

  Ending Stocks   27           72         25         50         0           28         (1000 MT)

  TOTAL           1729         1554       1687       1458       0           1483       (1000 MT)
  DISTRIBUTION                                                                         

  Calendar Year   0            77         0          42         0           89         (1000 MT)
  Imports                                                                              

  Calendar Yr     0            33         0          35         0           75         (1000 MT)
  Imp. U.S.                                                                            

  Calendar Year   0            0          0          0          0           0          (1000 MT)
  Exports                                                                              

  Calndr Yr Exp.  0            0          0          0          0           0          (1000 MT)
  to U.S.                                                                              
  --------------- ------------ ---------- ---------- ---------- ----------- ---------- -----------

## Table 3: Soybean Oil PSD

  --------------- ------------ ---------- ---------- ---------- -------------- ---------- -----------
  **PSD Table**                                                                           

  **Country**     **Taiwan**                                                              

  **Commodity**   **Oil,                                        (1000                     
                  Soybean**                                     MT)(PERCENT)              

                  2004         Revised    2005       Estimate   2006           Forecast   UOM

                  USDA         Post       USDA       Post       USDA Official  Post       
                  Official     Estimate   Official   Estimate   \[Old\]        Estimate   
                  \[Old\]      \[New\]    \[Old\]    \[New\]                   \[New\]    

  **Market Year                10/2004               10/2005                   10/2006    MM/YYYY
  Begin**                                                                                 

  Crush           2010         1671       1990       1700       0              1700       (1000 MT)

  Extr. Rate,     0.171642     0.179533   0.171859   0.18       0              0.18       (PERCENT)
  999.9999                                                                                

  Beginning       58           41         30         30         27             30         (1000 MT)
  Stocks                                                                                  

  Production      345          300        342        306        0              306        (1000 MT)

  MY Imports      30           35         45         30         0              30         (1000 MT)

  MY Imp. from    0            0          0          0          0              0          (1000 MT)
  U.S.                                                                                    

  MY Imp. from    0            0          0          0          0              0          (1000 MT)
  the EC                                                                                  

  TOTAL SUPPLY    433          376        417        366        27             366        (1000 MT)

  MY Exports      1            1          0          0          0              0          (1000 MT)

  MY Exp. to the  0            0          0          0          0              0          (1000 MT)
  EC                                                                                      

  Industrial Dom. 15           15         15         15         0              15         (1000 MT)
  Consum                                                                                  

  Food Use Dom.   387          330        375        321        0              321        (1000 MT)
  Consump.                                                                                

  Feed Waste Dom. 0            0          0          0          0              0          (1000 MT)
  Consum                                                                                  

  TOTAL Dom.      402          345        390        336        0              336        (1000 MT)
  Consumption                                                                             

  Ending Stocks   30           30         27         30         0              30         (1000 MT)

  TOTAL           433          376        417        366        0              366        (1000 MT)
  DISTRIBUTION                                                                            

  Calendar Year   0            40         0          30         0              30         (1000 MT)
  Imports                                                                                 

  Calendar Yr     0            0          0          0          0              0          (1000 MT)
  Imp. U.S.                                                                               

  Calendar Year   0            0          0          0          0              0          (1000 MT)
  Exports                                                                                 

  Calndr Yr Exp.  0            0          0          0          0              0          (1000 MT)
  to U.S.                                                                                 
  --------------- ------------ ---------- ---------- ---------- -------------- ---------- -----------

## Table 4: Soybean Imports 

  ------------------ ------------------------- --------------- -----------
  **Import Trade                                               
  Matrix**                                                     

  **Country**        Taiwan                                    

  **Commodity**      Oilseed, Soybean                          

  Time Period        10/2004                   Units:          1,000 mt

  Imports for:       2004                                      **2005**

  U.S.               1626                      U.S.            1650

  Others                                       Others          

  Brazil             499                       Brazil          500

  Argentina          122                       Argentina       95

  Canada             4                         Canada          4

  Australia          2                         Australia       3

  South Africa       1                         South Africa    1

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others   628                                       603

  Others not Listed  1                                         2

  Grand Total        2255                                      2255
  ------------------ ------------------------- --------------- -----------

## Table 5: Soybean Meal Imports

  ------------------- ----------------------- ---------------- -----------
  **Import Trade                                               
  Matrix**                                                     

  **Country**         Taiwan                                   

  **Commodity**       Meal, Soybean                            

  Time Period         10/2004                 Units:           1,000 mt

  Imports for:        2004                                     **2005**

  U.S.                75                      U.S.             35

  Others                                      Others           

  India               11                      India            7

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others    11                                       7

  Others not Listed                                             

  Grand Total         86                                       42
  ------------------- ----------------------- ---------------- -----------

## Table 6: Soybean Oil Imports

  -------------------- --------------------- ----------------- ------------
  **Import Trade                                               
  Matrix**                                                     

  **Country**          Taiwan                                  

  **Commodity**        Oil, Soybean                            

  Time Period          10/2004               Units:            1,000mt

  Imports for:         2004                                    **2005**

  U.S.                                       U.S.               

  Others                                     Others            

  Argentina            18                    Argentina         15

  Brazil               17                    Brazil            15

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others     35                                      30

  Others not Listed                                             

  Grand Total          35                                      30
  -------------------- --------------------- ----------------- ------------

## Table 7: Soybean Meal Prices

  ------------------- ---------------- ----------------------- -----------
  **Prices Table**                                             

  **Country**         Taiwan                                   

  **Commodity**       Meal, Soybean                            

  Prices in           NT Dollar        per uom                 100 KG

                                                               

  Year                2004             2005                    \% Change

  Jan                 1198             912                     -24%

  Feb                 1177             893                     -24%

  Mar                 1243             977                     -21%

  Apr                 1325             976                     -26%

  May                 1261             948                     -25%

  Jun                 1100             933                     -15%

  Jul                 1060             958                     -10%

  Aug                 1063             982                     -8%

  Sep                 1034             980                     -5%

  Oct                 950              966                     2%

  Nov                 933              752                     -19%

  Dec                 938                                      -100%

                                                               

  Exchange Rate       NT\$33.13        Local Currency/US \$    

  Date of Quote       12/28/2005       MM/DD/YYYY              
  ------------------- ---------------- ----------------------- -----------

## Table 8 -- SSG Triggers for imports in 2005

  ----------------- ----------------- ---------------- ------------------
  Category/Year     2005 Trigger      Current Tariff   2005 Trigger Price
                    Volume (MT)       Rate (%)         (NT\$/kg)

  Pork Belly        10,066            12.5             30

  Pork Offal        15,177            15               Not-established

  Poultry Meat:     19,719            20               30
  legs & wings                                         

  Poultry Meat:     4,903             20               42
  other cuts                                           

  Poultry Offal     801               25               Not-established

  Source: Taiwan                                       
  Council of                                           
  Agriculture                                          
  ----------------- ----------------- ---------------- ------------------

## Table 9 - Pork Imports vs Domestic Production and Wholesale Market 

+--------+-----------+-------------+---------------------+------------+
| Year   | **Pork    |             | **Domestic Pork     | **Auction  |
|        | Imports   |             | Production in 1,000 | Price in   |
|        | in 1,000  |             | head**              | NT\$/10    |
|        | mt**      |             |                     | 0kg-head** |
+--------+-----------+-------------+---------------------+------------+
|        | **Meat**  | **Offal**   |                     |            |
+--------+-----------+-------------+---------------------+------------+
| 2001   | 16        | 5           | 10,420              | 3,976      |
+--------+-----------+-------------+---------------------+------------+
| 2002   | 19        | 10          | 10,060              | 4,336      |
+--------+-----------+-------------+---------------------+------------+
| 2003   | 33        | 23          | 9,460               | 5,298      |
+--------+-----------+-------------+---------------------+------------+
| 2004   | 40        | 38          | 9,410               | 5,912      |
+--------+-----------+-------------+---------------------+------------+
| 2005   | 25        | 20          | 9,500               | 5,336      |
| (      |           |             |                     |            |
| esti.) |           |             |                     |            |
+--------+-----------+-------------+---------------------+------------+
| 2006   | 35        | 26          | 9,450               | 5,300      |
|        |           |             |                     |            |
| (      |           |             |                     |            |
| fore.) |           |             |                     |            |
+--------+-----------+-------------+---------------------+------------+
| 2007   | 35        | 26          | 9,400               | 5,300      |
|        |           |             |                     |            |
| (      |           |             |                     |            |
| fore.) |           |             |                     |            |
+--------+-----------+-------------+---------------------+------------+
| *S     |           |             |                     |            |
| ource: |           |             |                     |            |
| C      |           |             |                     |            |
| ouncil |           |             |                     |            |
| of     |           |             |                     |            |
| Agric  |           |             |                     |            |
| ulture |           |             |                     |            |
| (COA)  |           |             |                     |            |
| and    |           |             |                     |            |
| Na     |           |             |                     |            |
| tional |           |             |                     |            |
| Animal |           |             |                     |            |
| In     |           |             |                     |            |
| dustry |           |             |                     |            |
| Foun   |           |             |                     |            |
| dation |           |             |                     |            |
| (N     |           |             |                     |            |
| AIF).* |           |             |                     |            |
+--------+-----------+-------------+---------------------+------------+

## Table 10 -- Total Poultry Meat Imports vs Domestic Production 

+----------+----------------+--------------------+--------------------+
| Year     | **Chicken Meat | **Domestic Poultry | **Farm Price in    |
|          | Imports in     | Production in      | NT\$/kg**          |
|          | 1,000 mt**     | 1,000,000 birds**  |                    |
+----------+----------------+--------------------+--------------------+
| 2001     | 19             | 415                | 30.96              |
+----------+----------------+--------------------+--------------------+
| 2002     | 28             | 415                | 33.70              |
+----------+----------------+--------------------+--------------------+
| 2003     | 37             | 409                | 33.37              |
+----------+----------------+--------------------+--------------------+
| 2004     | 46             | 417                | 33.73              |
+----------+----------------+--------------------+--------------------+
| 2005     | 80             | 394                | 33.95              |
| (esti)   |                |                    |                    |
+----------+----------------+--------------------+--------------------+
| 2006     | 80             | 354                | 33.00              |
|          |                |                    |                    |
| (fore.)  |                |                    |                    |
+----------+----------------+--------------------+--------------------+
| 2007     | 80             | 390                | 33.00              |
|          |                |                    |                    |
| (fore.)  |                |                    |                    |
+----------+----------------+--------------------+--------------------+
| *Source: |                |                    |                    |
| Council  |                |                    |                    |
| of       |                |                    |                    |
| Agr      |                |                    |                    |
| iculture |                |                    |                    |
| (COA)    |                |                    |                    |
| and      |                |                    |                    |
| National |                |                    |                    |
| Animal   |                |                    |                    |
| Industry |                |                    |                    |
| Fo       |                |                    |                    |
| undation |                |                    |                    |
| (NAIF).* |                |                    |                    |
+----------+----------------+--------------------+--------------------+

## Table 11 - Tariff Rates for Edible Oils and Oil Seeds

+------------------+----------------+--------------+---------+--------+
| HS Code          | Seed/Oil       | Tariff       | Current | Tariff |
|                  |                | before WTO   | Tariff  | in     |
|                  |                | accession    |         |        |
|                  |                |              |         | 2007   |
+==================+================+==============+=========+========+
| 1201.00          | Soybeans       | 0            | 0       | 0      |
+------------------+----------------+--------------+---------+--------+
| 1507             | Soybean Oil    | 6            | 5       | 5      |
+------------------+----------------+--------------+---------+--------+
| 1513.21.10 &     | Palm Kernel    | 1.25         | 0       | 0      |
| 1513.29.10       | Oil            |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1511             | Palm Oil       | 2.5          | 0       | 0      |
+------------------+----------------+--------------+---------+--------+
| 1513.11 &        | Coconut Oil    | 3            | 0       | 0      |
| 1513.19          |                |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1509 & (1510)    | Olive Oil      | 5            | **1.6** | 0      |
|                  |                |              | (5)     |        |
+------------------+----------------+--------------+---------+--------+
| 1205.00.10       | Rape Seeds     | 3.5          | 0       | 0      |
+------------------+----------------+--------------+---------+--------+
| 1514             | Rape (Canola)  | 6            | 5       | 4      |
|                  | Oil            |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1515.21 &        | Corn Oil       | 7.5          | **4.7** | 5      |
| 1515.29          |                |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1207.60.00       | Safflower      | 9            | 0       | 0      |
|                  | Seeds          |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1512.11.20 &     | Safflower Oil  | 12.5         | 5       | 5      |
| 1512.19.20       |                |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1206.00.00       | Sunflower      | 11           | 0       | 0      |
|                  | Seeds          |              |         |        |
+------------------+----------------+--------------+---------+--------+
| 1512.11.10 &     | Sunflower Oil  | 15           | 5       | 5      |
| 1512.19.10       |                |              |         |        |
+------------------+----------------+--------------+---------+--------+
| *Source: Taiwan  |                |              |         |        |
| Customs Tariff   |                |              |         |        |
| Schedule*        |                |              |         |        |
+------------------+----------------+--------------+---------+--------+

## Table 12 -- Oil Prices, CIF Taiwan, USD/Kg

  -------------------------------------------------------------------------
  Type of Edible Oil     MY 2002/03      MY 2003/04       MY 2004/05
  ---------------------- --------------- ---------------- -----------------
  Palm Oil               \$0.36          \$0.50           \$0.44

  Canola Oil             \$0.68          \$0.72           \$0.64

  Sunflower Oil          \$0.65          \$0.70           \$0.70

  Soybean Oil            \$0.54          \$0.62           \$0.52

  *Source: Taiwan                                         
  Customs*                                                
  -------------------------------------------------------------------------

## 

## Table 13 -- Oil Imports & Production, 1,000 MT

  ------------------------------------------------------------------------
  Type of Edible Oil    MY 2002/03       MY 2003/04       MY 2004/05
  --------------------- ---------------- ---------------- ----------------
  Palm Kernel Oil       1.1              0.9              1.4

  Palm Oil              96.8             109.5            138.3

  Coconut Oil           8.0              5.8              7.0

  Olive Oil             5.5              4.5              4.5

  Canola Oil            18.0             25.2             27.0

  Corn Oil              0.1              0.0              0.0

  Sunflower Oil         26.9             26.3             24.2

  Safflower Oil         0.1              0.1              0.1

  **Total Non-Soy       **156.5**        **172.3**        **202.4**
  Imports**                                               

  Soybean Oil Imports   39.0             61.0             34.6

  Taiwan Soybean Oil    355.0            315.0            310.0
  Production                                              

  Chinese traditional   9.0              8.1              8.1
  oil: Peanut Oil                                         

  Chinese traditional   9.5              13.2             13..2
  oil: Sesame Oil                                         

  *Source: Taiwan                                         
  Customs Statistics*                                     
  ------------------------------------------------------------------------