《TAIPEI TIMES》 Pig numbers to increase from next year: Taisugar

Taiwan Sugar Corporation (Taisugar), Taiwan's main pig producer, said yesterday that with the completion of farm reconstruction next year, its pig number will return to 200,000, which is expected to help stabilize domestic pork prices.

Taiwan's wholesale pork prices have remained at a high of about NT$100 per kilogram since the end of May this year, just before this year's Dragon Boat Festival, according to data from the National Animal Industry Foundation.

Domestic live pig supply is affected by many factors.

One industry source, who spoke on condition of anonymity, said pig imports have become expensive due to the tariff war, leading to a decline in numbers.

The cost of raising pigs has also risen this year as the price of soybean meal, a major pig feed, jumped 20% following a scandal that found cooking oil contaminated with benzopyrene, the person said, adding that rising labor costs and electricity bills also added to the industry's operating pressure.

Taiwan Sugar launched a pig farm upgrade project in 2018 with a budget of NT$12.4 billion (approximately US$377.6 million), aiming to renovate its 13 pig farms across the country and equip them with green power recycling facilities.

This has brought the total number of pigs down from a peak of 330,000 to about 140,000 last year and about 160,000 this year.

While most of the 13 farms are expected to complete pig entry testing by the end of this year, the remaining three farms - located in Lucao Township in Chiayi County and Xincuo and Silin areas in Pingtung County - are currently under construction and will be evaluated by June next year, a Taiwan Sugar management member said on condition of anonymity.

Once all farms are rebuilt, the number of sows at Taisu Farm will reach 26,500, and the total pig population should rebound to more than 200,000 next year, they said, adding that at its peak, annual live pig sales could reach 540,000.

While the increased pig supply is expected to help stabilize domestic pork prices, companies must adjust quantities based on government policies and market demand to prevent oversupply.

Frozen storage and processing will be used to extend shelf life for later release, the person said. While unrefrigerated pork is more popular in the domestic market, demand for frozen products is rising due to convenience, they said.

Taiwan Sugar has partnered with licensed meat processors and overseas sales networks to establish export distribution channels, such as Taiwan Animal Husbandry (Taiwan Agriculture Company) and Xingong Trading Co., the person said.

Pork exports also depend on pig farm audits and local market access rules, the person said, adding that Singapore is believed to have completed the audit while communications with Japan and the United States are still ongoing.

Regarding the dispute over the contract performance of Datong Company, the contractor for the second phase of the project, the person said that cooperation has improved and Datong Company has submitted the dispute to the Public Works Committee of the Executive Yuan for mediation.

Taiwan Sugar will respect the third-party mediation results, but the reconstruction must be completed as soon as possible in accordance with the contract, which is a win-win for both parties, they said.