Expanding production to stabilize pig prices 2》Taiwan Sugar Expands Pig Production 2 Moves to Win More

Taiwan Sugar has spent about 12.4 billion yuan to promote the reconstruction of modern pig farms. The last three are expected to be completed in June next year, by which time pig production capacity will be gradually expanded. However, Taiwan Sugar not only strives for output, but also adjusts pig production in line with policies and market demand to avoid increasing production capacity and causing oversupply in the market. Taiwan Sugar stated that if the short-term pig supply exceeds market demand, it can extend the shelf life of the meat through slaughtering, freezing storage and processing, and then arrange sales according to market conditions, which can help stabilize pig prices. In addition, Taiwanese sugar pigs have been exported to Central Africa, and overseas markets continue to contact markets such as Singapore and Japan to seek more export opportunities.

With the completion of the new pig farm, Taiwan Sugar's pig sales have increased significantly, but if it cooperates with the adjustment of pig prices, Taiwan Sugar can also adjust the excess production capacity. A Taiwan Sugar executive said that since the market cannot digest pigs in the short term, frozen storage and processing methods can be used to extend the shelf life of the meat, and then sales can be arranged according to market demand. At present, the Taiwanese market still prefers warm-bodied live pigs, but in an era of convenience, demand for frozen meat is also increasing.

In terms of export layout, Taiwan Sugar's cooked food products have always been exported, and fresh and frozen pork has also been sold to Central Africa, mainly supplying the local Chinese market. There were shipment records last year and this year. However, Taiwan Sugar does not establish all overseas channels on its own. Instead, it relies on partners such as Taiwan Animal Husbandry and Xingong, using each other's slaughterhouse qualifications and overseas sales networks to supply suitable pork parts according to local market demand, and does not necessarily sell them directly under the Taiwan Sugar brand. Taiwan Sugar's executive revealed that related export sales still depend on the progress of factory inspections and market access. At present, Singapore seems to have completed factory inspections, and relevant markets in Japan are in contact. As for the U.S. market, factory inspections will also be arranged in the near future.

The entire project to rebuild Taiwan Sugar's modernized pig farm was originally to be completed in 2025. However, due to the epidemic and rising prices of raw materials, the budget of about 10.7 billion yuan was adjusted to about 12.4 billion yuan. As for the dispute over project performance, a Taiwan Sugar executive said that although the top management of Datong Company, the contractor for the second phase, continues to change, the new team taking over has an engineering background, and the project discussions and cooperation between the two parties have improved. At present, Datong has sent the dispute to the Public Works Committee for mediation and has held multiple mediation meetings. Taiwan Sugar will respect the results of third-party mediation, but the project progress must still be completed as soon as possible in accordance with the contract. It is a win-win situation for both the owner Taiwan Sugar and the contractor.