Supply/Demand Basics

  • #7 U.S. agricultural product market ($3.3 billion in MY 2019/2020).
  • #8 U.S. corn market (805 TMT in MY 2019/2020).
  • #5 U.S. barley market (3.5 TMT in MY 2019/2020).
  • #11 U.S. DDGS market (253 TMT in MY 2019/2020).
  • Imported grains meet about 98% of local demand.
  • Feed sector uses about 95% of imported corn.
  • Swine and poultry (including duck) are major coarse grain users.
  • Two wet milling plants producing HFCS, using about five percent of imported corn.
  • Total coarse grain imports maintain at about 4.5 MMT annually.

Country Overview

  • Diplomatic isolation, limited land space, aging population, small agricultural sector and dependent on imported raw materials and fuels

Trade and Market Share Overview

  • U.S. market share diminished in MY 2019/2020 due to quality issue & increased competition.
  • DDGS inclusion rates in animal feeds is slightly trending higher but still having concerns on mycotoxins to curb the expansion.
  • Aging population with negative growth rate means little growth in food demand and grain imports.
  • The trade dispute between China and Australia has resulted in cheap Australian barley flooding the market.
  • Taiwan imported sorghum mostly for liquor production, but U.S. sorghum varieties is not what the Taiwanese Baijiu industry desires.
  • Taiwan increased ethanol imports in 2020 for sanitizer demand.

Policy Overview

  • Implemented chemical residues test by the government for grains import.
  • Some Legislators and NGOs’ activists are trying to revise the threshold level of GM labelling from 3 percent to 0.9 percent.
  • The government is studying to propose a draft of gene-editing technology derived food management norms.
  • There is no supportive policy of using fuel ethanol in Taiwan yet.