Yunlin's lettuce exports to Japan blocked, caused by low-price competition from abroad
Yunlin head lettuce (commonly known as iceberg lettuce) has become hugely popular with Japanese consumers in recent years, with annual export value topping NT$100 million, but in January this year southern Japan was warm enough to be self-sufficient, and with Malaysia and China grabbing market share at prices 30% lower than Taiwan's, 1,500 tonnes of iceberg lettuce originally slated for export were blocked and could only be sold to China at a loss. Guo Shufen, production planning specialist at the Mailiao Fruit and Vegetable Production Cooperative, said that this year all of Asia has had a bumper crop and overseas costs are low, so exports are not moving; next year they will plan production and plant only as much as there are orders for.
Japanese orders cut by 20%, farmers sell to China at a loss
Taiwan's main iceberg lettuce production areas are in Mailiao, Lunbei, Erlin and Baozhong in Yunlin, with the peak season falling from October to March, exactly when high-latitude countries cannot easily produce it because of low temperatures. Although Taiwan's iceberg lettuce costs 30% more than Malaysia's and China's, its excellent quality and complete production planning have made it favored by Japan, with export volumes growing from 2,904 tonnes in 2009 to 7,726 tonnes in 2012, of which 80% went to Japan, generating more than NT$200 million in value.
Most domestic iceberg lettuce exports follow planned production, but in January this year the climate in southern Japan was warmer than usual and demand fell, disrupting Taiwan's export plans. Fortunately, with the assistance of the Ting Hsin International Group, 60 containers were exported to China for the first time, preventing the domestic market from collapsing, though some farmers said exports were still sold at a loss, just a smaller one: "We used to lose NT$10 per head, now we lose NT$5."
The Mailiao Fruit and Vegetable Production Cooperative produced about 12,000 tonnes this year and had expected half to be exported, but with Japanese demand cut by 20%, 1,000 tonnes of iceberg lettuce had to find another outlet. Cooperative production planning specialist Guo Shufen said that in the past, slow sales were more common after Japan warmed up in March and April, but this year it came early, in February, and with Asia's output rising sharply this year and costs in China and Malaysia 30% to 40% lower than Taiwan's, the cooperative's orders for Hong Kong, China, South Korea and Singapore all declined.
Guo Shufen said the cooperative estimates contract-growing acreage each August based on past data, then adds acreage and schedules production times after overseas orders are formally placed in September, but usually plants more to guard against weather effects; next year it plans to be more conservative and plant only as much as the orders it has signed.
