Taiwan Probes High Milk Prices Despite Zero Tariffs
Sourse: dairynews.today
Taiwan legislators are investigating why New Zealand milk prices remain high even after tariffs were eliminated.
Taiwan's lawmakers are seeking explanations from the Fair Trade Commission regarding the persistently high prices of New Zealand milk despite the recent elimination of tariffs. TPP Legislator Chang Chi-kai (張啓楷) pointed out that while dairy companies' profits remain low, consumers are facing inflated prices, suggesting that the benefits of tariff cuts may not be reaching the public.
The price discrepancy between raw and retail milk stands at a factor of 3.28, prompting calls for a rigorous and transparent investigation, involving multiple agencies, to understand the market dynamics. FTC Acting Chair Chen Chih-min (陳志民) noted the possibility of transport and storage costs contributing to the price. The zero-tariff agreement, stemming from the 2013 Taiwan-New Zealand Economic Cooperation Agreement, has nonetheless put pressure on local farmers. In response, Taiwan's Ministry of Agriculture has introduced subsidies and is exploring logistical streamlining to aid domestic producers in competing with New Zealand imports.
Farmers advocate for clearer product labeling to differentiate local "fresh milk" with a shorter shelf life from New Zealand's "extended shelf life" milk. Ongoing discussions with the agriculture ministry aim to ensure transparent labeling, which is also supported by consumer groups as a measure to uphold buyer rights.
The price discrepancy between raw and retail milk stands at a factor of 3.28, prompting calls for a rigorous and transparent investigation, involving multiple agencies, to understand the market dynamics. FTC Acting Chair Chen Chih-min (陳志民) noted the possibility of transport and storage costs contributing to the price. The zero-tariff agreement, stemming from the 2013 Taiwan-New Zealand Economic Cooperation Agreement, has nonetheless put pressure on local farmers. In response, Taiwan's Ministry of Agriculture has introduced subsidies and is exploring logistical streamlining to aid domestic producers in competing with New Zealand imports.
Farmers advocate for clearer product labeling to differentiate local "fresh milk" with a shorter shelf life from New Zealand's "extended shelf life" milk. Ongoing discussions with the agriculture ministry aim to ensure transparent labeling, which is also supported by consumer groups as a measure to uphold buyer rights.
