Legal Affairs Bureau of the Legislative Yuan: Climate factors and wholesale markets closing for 11 days in a short period caused vegetable prices to crash; amendment to the law recommended for adjustment
After the Lunar New Year, consecutive closures of wholesale markets caused vegetable price fluctuations. The Council of Agriculture yesterday (the 9th) released a review report stating that, apart from the Lunar New Year holiday, agricultural product wholesale markets should no longer be closed for three consecutive days. The Legal Affairs Bureau of the Legislative Yuan published an article titled "Analysis of Wholesale Market Closures Causing Vegetable Price Crashes," arguing that stable climate conditions combined with some wholesale markets being closed for 11 days within a mere 20-day period caused vegetable supply to surge and prices to fall, resulting in major losses for vegetable farmers.
The Legal Affairs Bureau of the Legislative Yuan pointed out that although agricultural product types vary by region and each wholesale market's operations need to be adapted to local conditions, when production and sales become imbalanced, the central competent authority must intervene in a timely manner in the operations of the respective wholesale markets to stabilize agricultural product supply. It recommended that the Agricultural Products Market Transaction Act could reference the legislative intent of Article 23, Paragraph 1 of the Animal Industry Act, and add a provision allowing the central competent authority to implement relevant adjustment measures for wholesale markets when necessary to stabilize production and sales.
The full text of the Legal Affairs Bureau of the Legislative Yuan's "Analysis of Wholesale Market Closures Causing Vegetable Price Crashes" is as follows:
(1) Stable climate conditions combined with some wholesale markets being closed for 11 days in a short period caused vegetable supply to surge and prices to fall, resulting in major losses for vegetable farmers
During the Lunar New Year period, stable climate conditions shortened the vegetable growing period. Furthermore, as temperatures rose, first-crop rice needed to be transplanted promptly, so farmers rushed to harvest vegetables in order to plant rice in time. Under these dual factors, vegetable supply increased significantly. At the same time, after the Taipei Agricultural Products Marketing Corporation, Sanchong Fruit and Vegetable Marketing Corporation, and fruit and vegetable wholesale markets in metropolitan areas such as New Taipei City were closed for 5 days during the Lunar New Year period, they were closed again for 3 days starting February 24. At this point, supply and demand had already become imbalanced and prices had fallen due to the rush harvesting of vegetables, yet they were closed for a third time for 3 days from March 5 to 7, which was unprecedented in past years. This also caused vegetable arrivals to surge on the first day after the consecutive closures, creating a crisis of crashing vegetable prices.
(2) To stabilize production and sales, the Agricultural Products Market Transaction Act should be amended to allow the central competent authority to implement timely adjustment measures regarding the operations of wholesale markets when necessary
According to the definition in Article 3 of the Agricultural Products Market Transaction Act, the Taipei Agricultural Products Marketing Corporation is an agricultural product wholesale market (hereinafter referred to as the market). Furthermore, Article 8, Paragraph 1 of the Regulations Governing the Management of Agricultural Product Wholesale Markets, authorized by Article 14, Paragraph 3 of the same Act, states: "A market shall establish operating procedures and management regulations, report them to the local competent authority for approval and implementation, and may implement planned procurement and planned sales." Therefore, the closure days for the Taipei Agricultural Products Marketing Corporation are decided the previous year jointly by the Taipei City Government, relevant production and marketing groups, and vendors at retail markets, and are implemented after being reported to the Taipei City Government for approval.
The current production-sales imbalance had already become apparent after the 3-day closure from February 24 to 26. Although the Taipei City Government invited wholesalers and the four major companies to discuss whether to proceed with the originally planned 3-day closure from March 5 to 7, after discussion they maintained the original closure plan. As a result, vegetables from some production areas could not be released due to the renewed closure, and the already-harvested vegetable supply could not be relieved, potentially worsening the imbalance.
Last year, the pork market also experienced a supply-demand imbalance. Although the meat wholesale market, in accordance with Article 8 of the Regulations Governing the Management of Agricultural Product Wholesale Markets, should have its closure dates determined by the local government, the central competent authority, based on the preamble of Article 23, Paragraph 1 of the Animal Industry Act, which states: "To stabilize the production and sales of livestock and poultry, the central competent authority may designate livestock and poultry and implement the following adjustment measures," was able to intervene. Therefore, in that instance of meat imbalance, the central competent authority, in accordance with Article 23, Paragraph 1 of the Animal Industry Act, immediately intervened to adjust the closure dates of the meat market, thereby resolving the meat supply-demand imbalance.
However, in this instance, because wholesale markets were closed for 11 days within just 20 days, vegetable arrivals surged after the closures, causing vegetable prices to crash and vegetable farmers to suffer major losses. Yet the central competent authority still could not intervene in the decision of whether to shorten the closure from March 5 to 7, because the Agricultural Products Market Transaction Act and its related subsidiary regulations do not contain a provision equivalent to Article 23, Paragraph 1 of the Animal Industry Act, which allows the central competent authority to implement relevant adjustment measures to stabilize production and sales.
According to Article 12, Paragraph 1 of the Agricultural Products Market Transaction Act, agricultural product wholesale markets are public utilities. The supply of agricultural products involves the public's essential right to "food." Since wholesale markets serve as platforms (channels) for agricultural product supply, their operations greatly affect the production and sales of agricultural products.
Regarding the operations of wholesale markets, although they must be adapted to local conditions due to regional differences in agricultural product types, when production and sales become imbalanced, the central competent authority indeed needs to intervene in a timely manner in the operations of the respective wholesale markets to stabilize agricultural product supply. Therefore, it is recommended that the Agricultural Products Market Transaction Act reference the legislative intent of Article 23, Paragraph 1 of the Animal Industry Act and add a provision allowing the central competent authority to implement relevant adjustment measures for wholesale markets when necessary to stabilize production and sales.