On Feb. 25, China unilaterally announced that starting in March, the importation of pineapples from Taiwan would be banned.
On the eve of the Mid-Autumn Festival, the pineapple ban was followed by a notice from the Chinese General Administration of Customs that the importation of custard apples and wax apples from Taiwan would be suspended from the next day, citing pest concerns.
It is neither pineapple, custard apple nor wax apple season; importation of these fruits ended in April, and the timing of the pest concern notification raises questions about whether there are real pest concerns or there is a different motive.
Because of the proximity of the two sides of the Taiwan Strait, the positive image of Taiwan’s agricultural products and their high acceptance among Chinese consumers, China has long been the main market for the nation’s agricultural products, buying more than 20 percent of the exports at a value of more than US$1 billion. The top three fruit exports are pineapples, custard apples — or more precisely mainly atemoya, a hybrid of custard apple and cherimoya — and wax apples, so it is not surprising that the ban on pineapples was followed by a ban on the other two fruits.
A lot of work must be done to mitigate the effects of the ban before custard apples and wax apples reach the market in December.
The first step should be a direct response, including specific improvements of the safety management of orchards, post-harvest handling and inspection, batch-by-batch quarantine before shipment, and the establishment of a production and sales history tracing system.
The second step should be export diversification. This sounds like a cliche, but Taiwanese custard apples and wax apples are unique on the world market, so this is an opportunity to promote these fruits in Japan and Singapore, or even the US and Canada, and to invite overseas traders and distributors to learn more about them and taste them.
Third, new products should be developed to enter new markets. In addition to being eaten fresh, custard apples can be frozen or used to make ice cream, and wax apples can be dried, or processed into jam or syrup. These products would stand out.
Moreover, processed or frozen products can be exported to China without quarantine requirements.
Fourth, the Council of Agriculture should initiate a NT$1 billion (US$36.06 million) fund for international promotion of custard apples and wax apples, new product development, and transportation and cold chain subsidies as it did to address the pineapple ban. These funds would not necessarily be used up, because the NT$560 million invested after the pineapple ban was enough to support the market and diversify exports.
Finally, agricultural insurances should once more be promoted. Four years ago, the council started promoting custard apple income insurance to mitigate natural disasters and price risks, but due to good weather conditions, good harvests and price stability over the past few years, farmers have increasingly ignored the importance of insurance, and currently only 3.8 percent of land for atemoya cultivation is covered by insurance, while for wax apples only climate-indexed insurance — which does not cover price risks — is available.
The recent ban will hopefully lead to a greater emphasis on fundamental export inspection, and further lead to the development of new products, the diversification of risk and added value, and the expansion of agricultural income insurance.
Yang Min-hsien is a professor at Feng Chia University and former president of the Rural Economics Society of Taiwan.
Translated by Perry Svensson
Trying to force a partnership between Taiwan Semiconductor Manufacturing Co (TSMC) and Intel Corp would be a wildly complex ordeal. Already, the reported request from the Trump administration for TSMC to take a controlling stake in Intel’s US factories is facing valid questions about feasibility from all sides. Washington would likely not support a foreign company operating Intel’s domestic factories, Reuters reported — just look at how that is going over in the steel sector. Meanwhile, many in Taiwan are concerned about the company being forced to transfer its bleeding-edge tech capabilities and give up its strategic advantage. This is especially
US President Donald Trump last week announced plans to impose reciprocal tariffs on eight countries. As Taiwan, a key hub for semiconductor manufacturing, is among them, the policy would significantly affect the country. In response, Minister of Economic Affairs J.W. Kuo (郭智輝) dispatched two officials to the US for negotiations, and Taiwan Semiconductor Manufacturing Co’s (TSMC) board of directors convened its first-ever meeting in the US. Those developments highlight how the US’ unstable trade policies are posing a growing threat to Taiwan. Can the US truly gain an advantage in chip manufacturing by reversing trade liberalization? Is it realistic to
The US Department of State has removed the phrase “we do not support Taiwan independence” in its updated Taiwan-US relations fact sheet, which instead iterates that “we expect cross-strait differences to be resolved by peaceful means, free from coercion, in a manner acceptable to the people on both sides of the Strait.” This shows a tougher stance rejecting China’s false claims of sovereignty over Taiwan. Since switching formal diplomatic recognition from the Republic of China to the People’s Republic of China in 1979, the US government has continually indicated that it “does not support Taiwan independence.” The phrase was removed in 2022
US President Donald Trump, US Secretary of State Marco Rubio and US Secretary of Defense Pete Hegseth have each given their thoughts on Russia’s war with Ukraine. There are a few proponents of US skepticism in Taiwan taking advantage of developments to write articles claiming that the US would arbitrarily abandon Ukraine. The reality is that when one understands Trump’s negotiating habits, one sees that he brings up all variables of a situation prior to discussion, using broad negotiations to take charge. As for his ultimate goals and the aces up his sleeve, he wants to keep things vague for
RSS