US Peanuts to Enter Taiwan Duty-Free; Agricultural Ministry Estimates 20-30% Impact on Local Production
Under the Taiwan-US Initiative on 21st-Century Trade (ART), US peanuts will benefit from zero tariffs. Taiwan's Ministry of Agriculture estimates a 20-30% impact on domestic production and plans to support industry upgrades and crop diversification.
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- 📰 Published: April 28, 2026 at 14:06
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(CNA, Taipei, 28th) Under the Taiwan-US Initiative on 21st-Century Trade (ART), US peanuts will be imported into Taiwan with zero tariffs. Hu Jong-i, Deputy Minister of Agriculture, stated that while ART is not yet in effect, it is estimated to impact 20-30% of domestic peanut production once implemented. The Ministry will respond by increasing the value of local peanuts and guiding farmers to switch to other crops.
Following reports that US peanuts might flood the Taiwan market, causing concern among local farmers, Hu Jong-i explained on the Ministry's Facebook page last night that the government will assist in industrial transformation to keep Taiwan peanuts the top choice for consumers.
In a media interview this morning, Hu detailed specific measures. He noted that although ART has been signed, it requires legislative approval before becoming effective. Once implemented, an estimated 20-30% of domestic production will be affected.
According to Ministry statistics, peanut cultivation in Taiwan is concentrated in Yunlin and Changhua. However, the total area has been decreasing due to labor shortages, dropping from 19,000 hectares in 2020 to 15,000 hectares in 2025. Currently, imports mainly come from India, Argentina, and Brazil, with the US accounting for less than 1%.
Hu noted that US shelled peanuts cost about NT$47 per kg, while Taiwan's prices rose to NT$150-160 per kg last year due to typhoon-related yield reductions. The low price of US imports will indeed have an impact.
However, Hu urged farmers not to worry excessively. Taiwan's consumption exceeds its production, with about 30% currently relying on imports. Furthermore, imported peanuts are mostly shelled to prevent aflatoxin growth. Domestic peanuts, which are 70% used for processing, are preferred by local processors for their freshness and flavor. US peanuts are harder, and processors would prioritize local ones to maintain flavor profiles.
Secondly, Hu said Taiwan has developed superior peanut varieties with high unsaturated fatty acids and antioxidants. The Ministry has been promoting 'Group Production Areas' for three years to ensure quality control from seed selection to harvest.
Additionally, the Ministry is promoting 'Wet Pod Trading' and establishing 'Automated Drying Centers' to ensure hygiene and solve the problem of limited space for sun-drying pods.
For smaller farms, the Ministry encourages joining group production areas or switching to more export-competitive crops like sweet potatoes or edamame. (Editor: Wu Su-jou) 1150428
Following reports that US peanuts might flood the Taiwan market, causing concern among local farmers, Hu Jong-i explained on the Ministry's Facebook page last night that the government will assist in industrial transformation to keep Taiwan peanuts the top choice for consumers.
In a media interview this morning, Hu detailed specific measures. He noted that although ART has been signed, it requires legislative approval before becoming effective. Once implemented, an estimated 20-30% of domestic production will be affected.
According to Ministry statistics, peanut cultivation in Taiwan is concentrated in Yunlin and Changhua. However, the total area has been decreasing due to labor shortages, dropping from 19,000 hectares in 2020 to 15,000 hectares in 2025. Currently, imports mainly come from India, Argentina, and Brazil, with the US accounting for less than 1%.
Hu noted that US shelled peanuts cost about NT$47 per kg, while Taiwan's prices rose to NT$150-160 per kg last year due to typhoon-related yield reductions. The low price of US imports will indeed have an impact.
However, Hu urged farmers not to worry excessively. Taiwan's consumption exceeds its production, with about 30% currently relying on imports. Furthermore, imported peanuts are mostly shelled to prevent aflatoxin growth. Domestic peanuts, which are 70% used for processing, are preferred by local processors for their freshness and flavor. US peanuts are harder, and processors would prioritize local ones to maintain flavor profiles.
Secondly, Hu said Taiwan has developed superior peanut varieties with high unsaturated fatty acids and antioxidants. The Ministry has been promoting 'Group Production Areas' for three years to ensure quality control from seed selection to harvest.
Additionally, the Ministry is promoting 'Wet Pod Trading' and establishing 'Automated Drying Centers' to ensure hygiene and solve the problem of limited space for sun-drying pods.
For smaller farms, the Ministry encourages joining group production areas or switching to more export-competitive crops like sweet potatoes or edamame. (Editor: Wu Su-jou) 1150428