Domestic vs. Imported Peanuts: How Taiwan's Food Factories Decide

Liberty Times reports on the distinct uses of domestic versus imported peanuts in Taiwan's food industry. While Taiwan's annual peanut demand reaches 65,000 tons, domestic production falls short, necessitating imports. A key distinction lies in their processing: approximately 70% of locally grown peanuts are transformed into popular snacks such as peanut candy, spicy peanuts, and peanut powder for traditional items like gua bao. In contrast, imported peanuts, largely from India, Argentina, and Brazil, are predominantly used for producing peanut oil and peanut butter due to their higher oil content. The article highlights that despite the upcoming zero tariff on U.S. peanuts under the ART agreement, domestic production, which holds a 75% market share, is expected to remain resilient. This is largely attributed to consumer loyalty; food manufacturers find that altering the familiar taste derived from domestic peanuts risks alienating customers, even if imported alternatives are cheaper. The Ministry of Agriculture is implementing measures like a wet pod trading system and joint drying centers to bolster the competitiveness of local peanuts and mitigate risks such as aflatoxin. Furthermore, the ministry is exploring options to assist peanut farmers in transitioning to crops like sweet potatoes or soybeans, which have strong contract farming bases and high demand, particularly from international markets like Japan, where consistent supply is crucial.