Jinwei feed oil downstream Dingxiang Trading is suspected of being a shell company selling edible oils and fats

The Council of Agriculture (COA) at 10 p.m. yesterday (10th) released the flow of feed oil products produced by the "Jinwei" company, a downstream operation of Pingtung's Guo Liecheng's swill oil. According to the shipping lists and transaction records provided by Jinwei, a total of 14 manufacturers had purchased feed-use animal fats and oils from Jinwei to produce feed. Among them, "Dingxiang Hang" advertised its business on the internet as selling "edible oils and fats," but no company registration information for "Dingxiang Hang" could be found in the Ministry of Economic Affairs. Inspection personnel who actually went to the company address in Qiaotou District, Kaohsiung City, China, which the company advertised online, also found no such company.

The COA stated that according to a follow-up investigation by the Pingtung County Agriculture Department, the person in charge of "Dingxiang Hang," Su Qinghuang, is the husband of Jinwei company representative Guo Chunye. "Dingxiang Hang" is also one of the few among the 14 downstream manufacturers named by Jinwei that does not directly or indirectly produce feed. The COA did not express an opinion on what the purpose and flow were for the animal fats and oils produced by Jinwei and supplied to "Dingxiang Hang," or whether they were sold as edible oils and fats. It only stated that samples had been sealed and taken from 8 oil tanks within the Jinwei company plant for testing.

In addition to "Dingxiang Hang," Jinwei company's shipping records show that it had transactions with Yuandong Oils & Fats Company of Taoyuan County, and Yuandong Oils & Fats' company registration information in the Ministry of Economic Affairs also lists "edible oils and fats manufacturing" and "international trade," with no production of animal feed. In response, the COA stated that Yuandong Oils & Fats had once processed imported oils and fats together with Jinwei company, and the transaction records between the two companies were mainly because Yuandong Oils & Fats was repaying loan accounts owed to Jinwei company in the 101st year of the Republic of China (2012), so Yuandong Oils & Fats had not actually purchased goods from Jinwei company.

COA Deputy Director Zhu Qingcheng stated that Jinwei company currently has 8 oil tanks storing feed oil products. The person in charge claimed that 1 tank was goose oil, 1 tank was imported palm oil, 2 tanks were imported beef tallow, 2 tanks were imported fish oil, and 2 tanks were animal fats and oils. Inspectors suspect that the source of these 2 tanks of animal fats and oils may be Guo Liecheng's swill oil, so they sealed and sampled these 8 oil tanks to test whether the contents of the oils are truly as Jinwei company claimed.

The COA stated that based on the results of the Pingtung County Government Agriculture Department's inspection visit to Jinwei company and relevant information sources, and after relevant county and city governments continued follow-up investigations over several days, it had initially determined that Jinwei company's lard, beef tallow, fish oil and other animal fats and oils had been sold to 3 feed mills in Kaohsiung City, China -- Xieyi Feed (fish oil), Shengfu Biotechnology (lard), and Nongsheng Enterprise (fish oil) -- as well as Dingxiang Hang (whose person in charge, Su Qinghuang, is the husband of the Jinwei company representative).

As for the Tainan City, China, portion, Jinwei had sold to 6 feed mills: Dade Company (lard), Zhongying Industrial (lard), Taiwan Fuji Livestock (beef tallow), Yuli Industrial (lard), Junong Feed (beef tallow), and Dayang Feed (beef tallow).

In the Chiayi County portion, Jinwei shipped goods to 2 companies, Changcong Biotechnology (lard) and Taiwan Province Jianan Livestock and Poultry Production Cooperative, Limited Liability (lard); in Taichung City, China, there was Hanbao Agricultural and Livestock Company (whose pig farm is located in Changhua County and which purchased lard); and in Taoyuan County there was Yuandong Oils & Fats.

The COA stated that these feed mills purchased different animal fats and oils from Jinwei company, mainly adding 1% to 3% to compound feed for livestock, poultry or aquatic products. Changcong Biotechnology Company of Chiayi County resold to the Taiwan Province Jianan Livestock and Poultry Production Cooperative, which then commissioned the production of compound feed for use by its members; Hanbao Agricultural and Livestock Company of Taichung City used it to prepare feed for its own pig farm; and Yuandong Oils & Fats Company of Taoyuan County was repaying loan accounts owed to Jinwei company from the 101st year of the Republic of China (2012), and did not actually purchase Jinwei company's oils and fats this year.

The COA stated that according to Jinwei company's shipping data to these 14 companies, an estimated 815.7 metric tons of animal fats and oils were involved, of which only 5 companies still had inventory totaling about 26 metric tons of animal fats and oils and 1 feed mill still had 350 kg of feed in stock. The COA has asked local units to seal and sample them for analysis, collecting a total of 6 oil samples and 5 feed samples for testing. As for the animal fats and oils and feed of the other 9 companies, they have already been used and shipped out, and there is no oil left in the tanks to seal.

Among the 14 downstream manufacturers of Jinwei company, "Dingxiang Hang" made the COA more suspicious. In addition to the company not being a feed mill, an actual inspection at its registered address in Qiaotou District, Kaohsiung City, China, found no business registration number or equipment for the company. Although the company advertised on the internet that it was engaged in the sale of edible oils and fats, and also had a unified number and the name of person in charge Su Qinghuang, no information could be found when entering the Ministry of Economic Affairs' company registration information query system.

Because "Dingxiang Hang" person in charge Su Qinghuang is the husband of Jinwei company representative Guo Chunye, and "Dingxiang Hang" has no feed mill equipment and only has animal fats and oils transaction records with Jinwei Enterprise, the COA suspects that "Dingxiang Hang" may be a shell company selling edible oils and fats. It is strengthening the investigation into where "Dingxiang Hang" used Jinwei's animal fats and oils, and does not rule out reporting the relevant information to the Food and Drug Administration of the Ministry of Health and Welfare.

Because there is currently no quality standard for feed-use lard, the COA stated that it will follow the quality requirements of CNS2421 N 5069 "edible lard" to test acid value, heavy metals, aflatoxins, etc. The test results of the currently sampled oil samples are expected to be completed and announced tomorrow. As for whether to establish quality specifications for feed-use lard and add other testing items, a meeting of scholars and experts will be held next Monday for discussion.