In 2022, the total value of U.S. agricultural and related products exported to Taiwan reached a record $4.4 billion, an increase of 13 percent compared to the previous year.
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Taiwan successfully remains the 6th largest market for U.S. agricultural & related exports. The record year surpassed the previous record set in 2018 of $4.1 billion.
Products in the Consumer Oriented category continue to play an increasingly important role, with beef, poultry, and dairy products hitting new highs.
Top 5 U.S. export categories to Taiwan in 2022 included soybeans ($1.1 billion), beef ($746 million), wheat ($379 million), poultry ($287 million), and corn ($268 million).
In recent years, the consumer-oriented category has accounted for 40 to 50 percent of total U.S. agricultural exports to Taiwan. U.S. products have benefited from Taiwan’s maturing consumer base which demands high value and quality imported consumer products.
Taiwan consumers generally associate U.S. origin products with premium quality. Beef and dairy have seen the biggest growth in the past ten years.
U.S. beef exports continued to set new export records with year-over-year trade value gaining 13 percent to reach $747 million. Poultry exports also set a record at $287 million a gain of 74 percent versus 2021.
The United States is set to retain as the largest exporters of consumer-oriented products to Taiwan in 2022 with trade value expected to be more than twice that of the next highest exporter, New Zealand.
However, favorable tariff treatment resulting from the FTA between New Zealand and Taiwan (under the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu or TPKM) signed in 2013 gives New Zealand a distinct advantage in many consumer-oriented products (fresh fruits and dairy products in particular) which are otherwise usually subject to high tariff rates.
U.S. bulk commodities face strong competition from other exporters and as a result can see wide fluctuations from year to year. From the latest AMS’s Grain Transportation Report published in February 2023, from Jan-Nov 2022, Taiwan remained as the largest export destination for U.S. containerized grain shipments, accounting for 17 percent of exports.
Container shipping has been one of U.S. advantage, allowing Taiwan to import regular shipments while using the free time provided at port as a temporary storage option. However, viability of this trade flow is dependent on container logistics and supply.
In 2022, Taiwan purchased $1.1 billion of U.S. soybeans which set a record surpassing $854 million achieved during 2018 in the midst of U.S.-China trade war. U.S. corn exports, however, were at times uncompetitive against Brazil, Argentina and South Africa and saw its trade value decline by 35 percent and quantity declined by 49 percent YoY.
U.S. wheat exports value grew 24 percent YoY to $ 379 million, the highest value in 10 years despite an 8 percent decline in quantity. Australian wheat was able to gain some volume back from U.S. due to competitive prices from favorable weather leading to increased supply.
2018 remains the high-water mark in recent years for U.S. exports in the bulk category which reached $1.95 billion in sales. As Taiwan’s population trend looks set to decline, imports of bulk commodities are not predicted to expand significantly. U.S. products will need to explore new ways to differentiate to defend market share.
U.S. distiller dried grains and solubles (DDGS) exports value gained 35 percent YoY to $84 million which set a new record versus the old record of $72 million set back in 2013. Hay exports on the other hand decreased 10 percent to $67 million.
The Other Feeds category, worth $59 million, includes animal feed preparation ($36 million) and corn gluten meal ($23 million). protein concentrates ($34 million) and protein isolates ($22 million) were the main components of the Dextrins, Peptones, & Proteins category ($57 million).
The U.S. is only a minor exporter to Taiwan in the Agricultural Related category. The leader in this category, Seafood Products, was valued at $32 million. The largest individual components are lobster ($8 million) and livers, roes & milt ($5 million). ■