Taiwan Sugar Denies Prior Knowledge of Contamination, Cites Raw Material Distinction

Taiwan Sugar Corporation (TSC) has clarified its position regarding a batch of crude oil it rejected in May, asserting that the material was a raw ingredient and not a finished food product, therefore exempting it from mandatory food safety reporting obligations. The company is responding to external questions suggesting it had prior knowledge of contamination issues with Zhonglian Grease.

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The raw material or soybean salad oil products purchased since this year have been tested for 32 batches, all of which meet the standards, and the Benzopyrene (Bap) is lower than the standard 2ppb. TSC's oil products are absolutely fine.

TSC emphasized that its edible oil products have consistently met safety standards. Recent inspections of 32 batches of raw materials and salad oil products since the beginning of 2026 have all complied with regulations, with Benzopyrene (Bap) levels well below the standard 2ppb threshold. The company insists that its own oil products are safe and free from issues.

The specific batch of crude oil in question was identified as "raw material" (non-edible oil) and was rejected by TSC upon discovering it did not meet inspection standards. The company stated that this rejected material was never brought into TSC's facilities, supply chain, or warehouses, nor was it transported or processed. This situation, TSC argues, is entirely different from that of other companies, such as Nanqiao, which proactively discovered and reported violations in their own finished food products.

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The 'raw material' (non-edible oil) supplied by Zhonglian Grease is a 'raw material' for manufacturing food oils, not a product, and therefore does not fall under the reporting obligation stipulated in Article 7, Paragraph 5 of the Food Safety and Sanitation Act. Thus, TSC did not violate any laws.

TSC further explained that under Taiwan's "Act for Food Safety and Sanitation," "products" and "raw materials" are distinct concepts. The crude collagen oil supplied by Zhonglian Grease was a "raw material" for manufacturing food oils, not a "product" itself. Consequently, TSC maintains it was not obligated under Article 7, Paragraph 5 of the Act to report the non-compliance, and therefore did not violate any laws. An inspection by the Ministry of Economic Affairs on July 28 confirmed TSC's account of oil (raw material, semi-finished) inflow and outflow records at its Kaohsiung Xiaogang plant for the first half of the year.

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That batch of crude oil 'raw material' was sealed in the seller's factory from beginning to end. Because its inspection was not up to standard, TSC directly 'rejected' it and did not bring it back. It never entered TSC's supply chain, factory, or warehouse, nor was it transported or processed.