INDUSTRY RECOVERY: Taisugar’s increase of live pigs is expected to stabilize domestic prices, which have seen a sharp increase due to tariffs and farming costs
By Lin Ching-hua and Esme Yeh / Staff reporters
Taiwan Sugar Corp （Taisugar）, a major pig farming operator in Taiwan, yesterday said that its pig count would recover to 200,000 as farm renovation completes next year, which is expected to help stabilize domestic pork prices.
Taiwan’s wholesale pork price remained high at about NT$100 per kilogram since the end of May ahead of the Dragon Boat Festival this year, data from the National Animal Industry Foundation showed.
The domestic supply of live pigs has been affected by several factors.
A source from the industry speaking on condition of anonymity said that the import of pigs became expensive due to tariff wars, which caused the numbers to decline.
Pig farming costs also increased this year as the price of soybean meal — a major pig feed — surged by 20 percent following a scandal in which cooking oil was found to be tainted with benzopyrene, they said, adding that rising labor costs and electricity fees also added to the industry’s operational pressure.
Taisugar launched a project to upgrade pig farms with a budget of NT$12.4 billion （US$377.6 million） in 2018, aiming to renovate its 13 pig farms nationwide and equip them with green power circulation facilities.
That brought down the total pig count from the peak of 330,000 pigs to about 140,000 pigs last year and about 160,000 pigs this year.
While most of the 13 pig farms would have completed pig stocking tests by the end of this year, the remaining three farms — located in Chiayi County’s Lucao Township （鹿草） and Pingtung County’s Sincuo （新厝） and Sihlin （四林） areas — are under construction and would not be evaluated until June next year, a Taisugar managerial member said on condition of anonymity.
Once all the farms finish reconstruction, the number of sows at Taisugar’s farms would be 26,500, and the total number of pigs should bounce back to more than 200,000 next year, they said, adding that, at its peak, annual live pig sales could reach 540,000.
Although the increased pig supply is expected to help stabilize domestic pork prices, the company must adjust the volume in line with government policies and market demand to prevent oversupply.
The source said that frozen storage and processing would be used to extend the shelf life for later market entry. While unrefrigerated pork is more popular in the domestic market, the demand for frozen products is rising due to convenience, they said.
Taisugar has established export distribution channels in collaboration with licensed meat processors and overseas sales networks, such as Taiwan Farm Industry Co （台畜） and Sings Kout Trading Co （信功）, the source said.
Pork exports are also contingent on pig farm audits and local market access rules, the source said, adding that Singapore is believed to have completed the audits while communication with Japan and the US is ongoing.
Regarding contract fulfillment disputes with the contractor of the project’s second phase, Tatung Co, the source said that cooperation has improved and Tatung has referred disputes to the Executive Yuan’s Public Construction Commission for mediation.
Taisugar would respect the results of mediation by the third party, but the reconstruction must be promptly completed in line with the contract, which would be a win-win for both sides, they said.
新聞來源：
TAIPEI TIMES