Due to the fact that the growing cost of feed materials and transportation in the international market gave rise to an escalation of the production cost of livestock and poultry industry, which put a squeeze on the profit margin of producers, the Council of Agriculture accordingly invoked a related policy so as to assist the pig and chicken farmers as well as other livestock and poultry farmers to receive the needed financial assistance. COA and the industry will establish a fund and provide half of the fund .The total fund is expected to raise as much as 2 billion NTD so it could push for the system of balancing the overall production and demand of the livestock and poultry and stabilizing the prices of the products. COA would also release stock brown rice ground fine to offer it for the livestock producers as the feed material. Furthermore, it would promote the conversion of paddy fields lying fallow into those for the production of fodder corn to increase the domestic supply of corn. Apart from that, COA has also released a great advantage for farmers to take out loans by announcing the reduction of annual interest rate from 2% to 1.75% for the loans used to produce the livestock and poultry products for 2008 and an increase of revolving funds from the current 3 million NTD to five million NTD with a total loaning fund of 5 billion NTD. COA hopes for a long-term stabilization of the prices of livestock and poultry products by means of implementing the above measures so as to safeguard the profits of producers as well as take care of consumers’ rights.
COA pointed out that, in order to put into practice the spirit of autonomous management of the industry, after a consultation with the production groups, it has reached a consensus with them concerning the rising of the funds. Production groups including those of pigs, chicken, milk, sheep, ducks and geese are in the process of laying down principles and designing the mechanism of funds reception. COA will take actions in accordance with the producers who submit capital as a contribution to the funds to augment their scale. It is estimated that, starting from 2008, it will receive one billion NTD from livestock and poultry producers as funds in three years, which, coupled with the proportional infusion of funding from the government, will make 2 billion NTD as the established funds and be utilized to assist the livestock and poultry farmers as the prices of livestock and poultry products fail to cover their production costs. It will also be used to take emergent measures to minimize farmers’ damages so as to guarantee a sustainable development of livestock and poultry industry. As for the utilization of the funds, the industry will be responsible for operating it autonomously.
Apart from that, in order to achieve the long-term stabilization of the production and marketing of livestock and poultry products, COA went out of its way to plan and push for the institution of the regulation of the overall amount of livestock and poultry production. Starting from 2008, COA will conduct the preliminary regulation system of the overall amount of livestock and poultry production, including packaged measures of the report of the numbers of livestock and poultry being fed and to be offered next year, and establishing the control system at trading markets like meat markets and slaughter houses, to start implementing the institution of the regulation of the overall amount in 2009. COA went on to explain that establishing the industrial funds and pushing for the institution of the regulation of the overall amount involves the amendment of the Law of Animal Husbandry. COA will amended the articles and their explications as soon as possible and submit them to Legislative Yuan for approval so as to make complete the statutes, regulations and processes.
Due to the surge of the fodder prices, some livestock and poultry farmers stand in need of revolving capital badly. COA made efforts to amend the current loans used to upgrade the management of livestock and poultry industry as a special case. Apart from lifting the loaning ceiling from 1.9 billion NTD in 2007 to 5 billion NTD, COA has reduced the current annual interest rate of 2% to 1.75%. At the same time, the loaning ceiling for each borrower has been lifted to 20 million NTD, in which the revolving capital has been increased from the current 3 million NTD to 5 million NTD. As for the not-yet-due capital of those borrowers who have difficulties paying it back, COA will grant them an extended one-year grace period. Besides, in order to enhance the assistance for livestock and poultry farmers, who have insufficient abilities to offer guarantees, to increase their abilities to loan on credits, it has obliged the Agricultural Credit Guarantee Funds to assist them in offering guarantee in the hope of allowing the farmers to obtain the funds needed for managing their business.
Furthermore, COA will release 100,000 more tons of state-owned brown rice ground fine in the near future under the condition that there runs no risking of depleting domestic safety in-stock rice, which will be distributed with the price of 8.47 NTD per kilogram to supply the livestock and poultry producers as a substitute for fodder corn. Starting from 2008, it will also incorporate fodder corn into the rewarded items produced by contract in the follow-up plan of the adjustment of the utilization of paddy land by providing farmers with a reward of no more than 45,000 NTD per hectare. Farmers’ organizations on each level will take initiatives to counsel farmers to conduct the production by contract and marketing and assist farmers effectively in reducing the fodder costs by encouraging domestic production of fodder corn and providing low-priced substitute fodder materials.
COA pointed out that it is the responsibility that COA has no choice but shoulder to safeguard farmers’ interests and create a beneficial environment for a sustainable development of livestock and poultry industry, therefore, it took initiatives to incorporate suggestions from various livestock and poultry producers and brought forth four innovative measures. It called on local government on every level and livestock and poultry farmers to join hands in giving their support to fight for the purpose of creating a more solid and wholesome new environment for livestock and poultry production.