Agriculture and Trade Relations in Taiwan
Taiwan is a small archipelago nation dominated by a main large island. Similarly, the nation is located to the north of the South China Sea and claimed by the People’s Republic of China as part of its national territory. Taiwan has a total territory of almost 36.000 square kilometers, which is somewhat larger than Maryland. Geographically, Taiwan is mostly composed of rugged mountains alongside some rolling plains. Taiwan has a total population of approximately 23.5 million citizens, of which 2.6 million live in the capital city of Taipei. Currently, Taiwan’s annual gross domestic product (GDP) is of approximately US$1 trillion and its national economy has experienced positive economic growth in recent years. Taiwan’s national economy is divided into 2% agriculture, 36% manufacturing, and 62% services. However, the agriculture industry utilizes about 23% of the national territory. Likewise, the Taiwanese agricultural industry employs some 5% of the national labor force, while manufacturing employs about 36% and services employ another 59%.
In terms of natural resources, Taiwan has coal, natural gas, limestone, marble, asbestos, and arable land. Within manufacturing, the national industry is focused on electronics, communications technology, petroleum, chemicals, textiles, iron, steel, machinery, cement, food processing, vehicles, and pharmaceuticals. Meanwhile, the country’s agricultural industry has as main products rice, vegetables, fruit, tea, flowers, pigs, poultry, and fish. In terms of trade, Taiwan’s main partners are China, Hong Kong, Japan, and the United States. This article explores the status of agricultural markets and trade relations in Taiwan.
Agriculture and Trade Relations in Taiwan
Ironically, in spite of being Taiwan’s political enemy, China is one of the island nation’s most important trade partners. Throughout the first half of the 20th century, most of the international community recognized the Chinese government based in Taiwan as the legitimate political representative of China. However, this changed dramatically during the last half century, with Beijing being increasingly recognized as the legitimate seat of Chinese government. Today, only a handful of Latin American and Pacific Ocean nations still recognize Taipei.
Though much smaller than the mainland, Taiwan’s domestic market is highly developed and has a higher per capita income than China. Just like mainland China, Taiwan is a large consumer of soybeans. During 2016/17, total soybean consumption in Taiwan is expected to reach 2.38 million tons, followed by an increase to 2.41 million tons in 2017/18. However, given domestic limitations, during 2016/17, Taiwan will only devote 5.000 hectares of land to soybean production and is expected to yield some 8.000 tons. Therefore, the vast majority of Taiwan’s soybean supply comes from imports, which are expected to account for 2.35 million tons in 2016/17 and 2.4 million tons in 2017/18.
The domestic soybean production in Taiwan is mainly used for food products, including crushing for the confection of soybean oil. The annual soybean oil consumption in Taiwan accounts for some 338.000 tons of this agricultural commodity. Meanwhile, the majority of the imported soybeans are destined for human consumption as well as animal feed, particularly for swine and poultry.