Domestic Producers Raise Output to Meet Demand
To address the impact of the Zhonglian Oils shutdown on domestic salad oil supply, the MOEA continues to accept oil demand from food businesses, and is increasing market supply sources through measures including coordinating domestic production increases, supply-demand matching, and encouraging expanded imports, to help businesses obtain needed raw materials. On the domestic supply side, the MOEA said it has coordinated Ttet Union, Chang Hui and Taiwan Sugar to raise output, increasing salad oil supply by a combined 4,400 tons per month. It has also coordinated Taiwan Sugar to accelerate crude oil procurement and expand refining capacity, with a further increase of 700 tons per month expected from December to continue filling market demand.
Tariff Cut to Expand Imports
On the import side, the Executive Yuan announced that from October 1, the salad oil import tariff will be cut from 5% to zero for 6 months, to encourage importers to expand salad oil imports and further increase market supply. The MOEA has coordinated oil importers to expand imports by 5,000 tons in Q4, including 1,100 tons already imported in October, 2,000 tons to be imported in November and 1,900 tons to be imported in December. The MOEA noted that as domestic oil still faces a shortfall, some businesses have imported foreign salad oil, and food processing, catering and bakery businesses continue to report demand for oil, and it will continue matching both sides to ease supply pressure.
Matching Services to Stabilize Market Order
The MOEA continues to help food businesses in need obtain salad oil through a supply-demand matching mechanism. As of the end of October, it had cumulatively matched 89 businesses in catering, canned foods, pastry fillings and school group meals, supplying 1,842 tons of salad oil. The MOEA said that in addition to previously matching large businesses, it will also assist small and medium-sized businesses on a shopping-district, market or night-market association basis, with matching assistance from the MOEA, to stabilize market supply order.
Central and Local Governments Respond Jointly
The MOEA stressed that in the face of the salad oil supply gap, it will continue to respond actively through domestic production increases, expanded imports and supply-demand matching, and will continue to monitor Taiwan Sugar's production expansion progress. Stable salad oil supply requires joint efforts by central and local governments, and urgently needs relevant agencies to coordinate actively and cooperate closely to jointly promote stable salad oil supply and a return to normal operations for the food industry on the premise of ensuring food safety.