TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) on Thursday directed the Ministry of Agriculture, Ministry of Justice, and Fair Trade Commission (FTC) to investigate whether peanut purchasing prices in production areas have been artificially depressed to their lowest level in a decade.
Reports have suggested the price decline stems from a combination of unsold inventory from the 2025 harvest and the Agreement on Reciprocal Trade, which will allow tariff-free imports of US peanuts, per CNA. Agriculture Minister Chen Junne-jih (陳駿季) rejected the claim, describing it as misinformation.
At a Cabinet meeting Thursday, Chen said peanut harvesting had been delayed by heavy rainfall and that media reports linking falling prices to the trade agreement had caused farmers to panic over a potential market collapse. He said prices at the beginning of the harvest season do not necessarily reflect those later in the season and recommended an investigation into the situation.
Following the meeting, Cho announced that the agriculture ministry, justice ministry, and FTC would examine whether prices in peanut-producing regions had been artificially depressed. Yunlin County Magistrate Chang Li-shan (張麗善) welcomed the investigation but urged the central government to prepare for the potential impact of tariff-free US peanut imports, per Liberty Times.
Industry representatives, however, disputed Chen’s assessment. Former ROC Peanut Industry Association Chair Ting Ming-kuei (丁明貴) said approximately 120 metric tons of peanuts remain in storage across Changhua, Yunlin, and Chiayi counties, per UDN. He added that storage costs amount to about NT$140 (US$4.40) per kilogram.
Ting said farmers naturally hope prices will remain stable but argued that current market conditions reflect normal supply-and-demand dynamics. A peanut processing business owner said buyers are reluctant to purchase higher-priced domestic peanuts when cheaper US imports are expected to enter the market.
Yuku Township Farmers’ Association official Huang Wan-tsung (黃萬聰) warned that Taiwanese peanuts could become increasingly uncompetitive if the industry fails to modernize and mechanize production.
Recent rainfall has also raised concerns about crop quality and farm income. Ting said drying rain-soaked peanuts is both costly and time-consuming, but failing to do so could result in spoilage, per PTS.
ROC Peanut Industry Association Chair Huang Po-wen (黃柏文) said concerns about uneven quality have made buyers more cautious. He argued that even if the government encourages processors to purchase peanuts from farmers, lower-quality products may ultimately be unusable.
Peanut drying business owner Chang Chien-hao (張建豪) said the combination of heavy rain and low bulk purchasing prices has left many farmers struggling, adding that “simply avoiding losses would be considered fortunate” under current conditions, per UDN.
