Taiwan Sugar Corp., the state-run company, has denied yesterday the charge by legislators that it has been hoarding animal feed for profiteering purposes.
Legislator Chung Shao-ho of the opposition People First Party, accused the Sugar Corp. and its affiliate Cargill Taiwan (formed together with the US Cargill Group) of profiteering from withholding feed supply in a time of dire straits for hog breeders.
Prices of feed corn and increasing transportation costs have inflicted a loss of NT$1,200 (US$37) on each livestock head for pig farmers.
Chung continued on to state that supply of hogs has surpassed demand. Currently, 1 million head of hogs are in surplus supply which “only benefits pork traders, who have lowered stock prices, frozen the product and are thus waiting until shortages appear in the market”.
Market price manipulation and preventing hog price fluctuations in view of the rising feed costs are among the charges he raises against businessmen.
Taiwan Sugar has retaliated saying that it has been importing corn and soybean at a rate of NT$500 million (US$15m) each month despite high international prices and that is has never hoarded stocks for lost profits.
In addition, the company has stated that it has no control over Cargill Taiwan in which it has a mere 40% share.
The Council of Agriculture has announced that it is ready to release the security stocks of rice.