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COA says Typhoon Haitang may cut into fruit exports

2005-07-25
COA says Typhoon Haitang may cut into fruit exports

2005-07-25 / Taiwan News, Staff Reporter / By Chang Ling-Yin

The damage done to many of Taiwan's fruit crops by Typhoon Haitang could seriously impact local fruit exports, as agriculture losses from the storm mounted to NT$3.5 billion, the Council of Agriculture said yesterday.

The COA also indicated that the recent dramatic jumps in some produce prices were caused mostly by the typhoon and not price gouging by middlemen.

The COA's deputy chief, Lee Jen-chyuan ( 李健全 ), said the storm ravaged fruits grown higher up on trees or vines that were more exposed to the typhoon's wind and rains, including papayas, mangoes, bananas and grapes.

With papayas and mangoes among Taiwan's most popular exports, local fruit sales abroad were bound to suffer, he indicated.

The COA official also suggested that the momentum toward higher prices for these fruits because of decreasing supplies also lifted the costs of other agricultural products that were not as ravaged by the storm.

The typhoon directly and indirectly damaged Taiwan's export crops in a variety of ways that were sure to hamper their competitiveness in international markets. Fruit quality detoriated, prices went up, and supplies declined, Lee said.

In addition, it was unlikely that the export potential for this year would be fulfilled because the June downpours and July typhoon arrived at the peak harvesting season between June and August, the COA said.

With this year's exports certain to decline, the council has suggested that farmers concentrate on a domestic market that will tolerate higher prices because of the reduction in supply.

Meanwhile, council officials insisted yesterday that the large price hikes for some fruits and vegetables immediately following the typhoon were generally created by the laws of supply and demand, not by greedy middlemen.

The council's Agriculture and Food Agency said that the production and marketing supply chains for produce in Taiwan have become increasingly diversified, making it difficult for any single group to corner the market.

In the storm's immediate aftermath, prices for greens such as scallions, cabbage, bok choy and others rose 200-300 percent above normal prices in traditional markets. In response, the government vowed to crack down on price gougers to stabilize the market.

But the COA indicated yesterday that vegetable supplies were also hard-hit by the typhoon, which ultimately was the main factor in driving prices higher.