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๐Ÿ‡น๐Ÿ‡ผ Taiwan /Economy & Trade

Cooking Oil Shortage Looms in Taiwan After Major Producer Halts Operations Over Contamination

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • A shortage of cooking oil is emerging in Taiwan after Zhonglian Oil was ordered to halt operations due to carcinogen contamination.
  • The price of an 18-kilogram barrel of cooking oil has surged to between 940 and 1000 Taiwanese dollars, a significant increase for small businesses.
  • Zhonglian Oil holds a 33% market share, and its suspension is causing supply chain disruptions for major brands.

Taiwan is facing a cooking oil shortage following the suspension of Zhonglian Oil, a major supplier, due to contamination with a Class 1 carcinogen, benzopyrene. Theๅฐไธญ City Government ordered the company to cease operations, triggering immediate market concerns.

Small businesses are bearing the brunt of the crisis, with the price of an 18-kilogram barrel of commercial cooking oil skyrocketing. Prices have jumped from 800-860 Taiwanese dollars in June to 940-1000 dollars currently, representing a 10-16% increase. Some online platforms are listing the same size barrels for 1200-1300 dollars, further straining small eateries and vendors.

Zhonglian Oil is the second-largest cooking oil supplier in Taiwan, commanding a substantial 33% market share. Its inability to operate, with no clear timeline for resuming production, has created significant supply chain disruptions. Major brands like Taishun, Fushou, and Fuma are unable to restock their products as they rely on Zhonglian Oil for their supply.

The 18kg barrel of cooking oil has increased by 200 dollars, and there are purchase limits. Everyone is adding 'oil'.

โ€” Small business ownerDescribing the impact of the shortage and price hikes on small businesses.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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