Where do the 120,000 tonnes of imported pork go every year? Pork knuckle rice and braised pork intestines are the mainstays, and it also turns up in dumplings, vegetable buns and pork balls

Text / by Upstream and Downstream reporters Yang Yuyun and Lin Yijun

The government will open the door to imports of US ractopamine pork (pork raised with leanness-enhancing feed additives) starting January 1 next year, triggering a backlash from pig farmers and consumers. Although the government says imported pork does not taste as good as Taiwanese pork and that it is not worried about competition, and will require clear labelling to protect the public's right to know, Taiwan already imports nearly 120,000 tonnes of pork (including offal) every year, which goes into pork knuckle rice, braised pork intestines, dumplings and meat buns - products most people cannot tell apart.

Once US ractopamine pork is imported in future, what foods might it be used in? The government says that from then on even street food stalls and night markets will have to label the meat source of pork products - is that actually feasible? Upstream and Downstream interviewed leading figures in the frozen and imported meat trade and people in the domestic pig industry for an in-depth explanation and analysis. At the request of interviewees, some names in this article are pseudonyms.

Taiwan imports about 120,000 tonnes of frozen pork a year; hind leg, shoulder and tenderloin rank first, pig trotters second

According to Council of Agriculture statistics, domestic pork consumption is 900,000 tonnes a year. In 2019, about 118,060 tonnes of pork were imported, of which about 90,000 tonnes was frozen pork and more than 20,000 tonnes was offal (rectum, pork knuckle).

Statistics show that imported pork has risen year by year, nearly doubling since 2010. The largest category by cut is "frozen boneless pork hind leg, shoulder, tenderloin, large loin and cuts thereof", with 52,049 tonnes imported in 2019. This type of meat can be made into pork chops, minced pork and shredded pork, and can also be used to make pork thick soup, dumplings and meat buns.

Second is "frozen pig trotters (including front and hind leg knuckles and shank meat) and diaphragm", with imports of 19,000 tonnes, which can be used for braised pork knuckle, pork knuckle rice and various other foods.

Imported pork is more than 30 percent cheaper than domestic pork, and US pork hind leg is even cheaper

Our top three sources of frozen pork (including offal) are Canada, the United States and Spain. The average import price of Canadian frozen pork (excluding offal) is 61.28 yuan per kilogram (the largest imported cuts are hind leg, tenderloin, shoulder and loin; our tariffs do not distinguish between cuts, so the price is calculated as a composite).

However, according to information provided by the domestic pig farming industry, the current bulk wholesale price of hind leg meat in Taiwan is about 110 yuan per kilogram, tenderloin 100 yuan, and loin 140 yuan - a gap of nearly 30 to 40 percent from the import price (pork prices fluctuate with the seasons).

The import price of US pork last year was 78 yuan per kilogram. However, according to pork prices published by the US Department of Agriculture, converted to the delivered-to-port price in Taiwan (including tariffs and freight), it is 62.87 yuan per kilogram. Hind leg meat (hams, excluding loin) is even cheaper: at the low point the price converted to Taiwan dollars is only about 35 yuan per kilogram (including tariffs and freight), and at the high point about 50 yuan per kilogram - a gap of more than 50 percent compared with Taiwanese hind leg meat.

Imported pork goes into rectum and pig trotter dishes; offal is actually not a concern

Mr Chen (pseudonym), a meat importer, said Taiwan's market is very shallow, and imports only make up for shortfalls in Taiwanese supply. Pork is a futures commodity, and the tug-of-war between demand and supply naturally causes price fluctuations. "Our principle for importing is very simple: we just look at whether there is domestic demand and whether imports are cheap." Taking pig hind leg and knuckle as examples, imported hind leg is made into pork knuckle rice, and imported knuckle is a familiar sight among New Year dishes. "Imported knuckle is 30 or 40 yuan per kilogram cheaper than domestic," he said.

Taking offal, which people worry about, as an example, Mr Chen said Taiwan's own production of pig liver and pig kidney (kidney) runs a surplus every year. "If we can sell 300 sets out of 1,000, the meat traders are very happy; the rest all goes to fish feed." So people need not worry that after January 1 next year pig liver and pig kidney will be mixed into the consumer market.

However, the Taiwanese-flavour dishes people eat often - pork rectum and pig trotters - have long been imported in large quantities. Pork rectum (the pig's rectum) has wide uses, from spicy hot pot, sliced cold offal, misua to braised foods, as well as the famous "nine-turn fatty intestine" - all use pork rectum, and more than 6,000 tonnes were imported last year alone. In addition, depending on domestic demand, processors occasionally import liver lean (the pig's diaphragm).

Yuan Renqi, secretary-general of the Republic of China Livestock Meat Commercial Association, confirmed that highway restaurants that generally supply group meals mostly use low-priced ingredients, and imported pig trotters are one option. For consumers, the pig trotters and pork rectum commonly seen in market braised foods are very likely to be cuts from imported pigs.