Zhonglian Shutdown Impact, Demand Applications Still Accepted
To address the impact of the Zhonglian Oil shutdown on domestic salad oil supply, the MOEA continues to accept oil demand applications from food businesses, increasing market supply sources through coordinating domestic production increases, supply-demand matching, and encouraging expanded imports, to help businesses secure needed raw materials. 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.
Domestic Output Up 4400 Tonnes Per Month
On domestic supply, the MOEA has coordinated TTET Union, Chang Hui and Taiwan Sugar to increase production, adding a combined 4400 tonnes of salad oil supply per month. It has also coordinated Taiwan Sugar to accelerate crude oil procurement and expand refining capacity, expected to add another 700 tonnes of supply per month from December, continuing to fill market demand.
Tariff-Free, 5000 Tonnes Imported in Q4
On imports, the Executive Yuan announced that from October 1 the salad oil import tariff will be cut from 5% to duty-free for 6 months, to encourage importers to expand salad oil imports and further increase market supply. The MOEA has currently coordinated oil importers to expand imports by 5000 tonnes in Q4, including 1100 tonnes already imported in October, 2000 tonnes to be imported in November and 1900 tonnes in December.
89 Firms Matched, 1842 Tonnes Supplied
On supply-demand matching, as of the end of October, a cumulative 89 businesses in catering, canning, pastry fillings and school catering have been matched, supplying 1842 tonnes of salad oil. As a domestic oil shortfall remains, some businesses have already imported foreign salad oil, and food processing, catering and baking businesses have recently continued to report oil demand. The MOEA will continue matching both sides to ease salad oil supply pressure.
The MOEA stressed that, facing the salad oil supply gap, it will continue to respond actively through domestic production increases, expanded imports and supply-demand matching, and continue to monitor Taiwan Sugar's production-increase progress. Stable salad oil supply requires joint central-local efforts, with active coordination and close cooperation among relevant agencies, on the premise of ensuring food safety, to jointly promote stable salad oil supply and a return to normal operations for the food industry.