December 6, 2000

Wheat purchases by Taiwan are at a record high this calendar year following a 20% increase. With the latest purchase of 34,000 metric tons, Taiwan has bought 1.03 million tons of U.S. wheat, marking the first time that country has imported 1 million tons or more from the United States, according to the U.S. Wheat Associates.

So far this year, buyers in Taiwan have purchased a total of 1.09 million tons from all sources, including a 94% market share for the United States, a 3% share for Canada (34,000 tons) and a 3% share for Australia (28,000 tons).

Last May, the Taiwan Flour Mills Association of the Republic of China committed to purchasing 1.5- 1.7 million metric tons of U.S. wheat for the two year period encompassing 2000 and 2001. The pace of this year's purchases exceed that commitment, according to USWA.

"We look forward to building on this relationship," Nelson Denlinger, U.S.Wheat Associates vice president, told the Taiwan delegation during a ceremony last spring, when Taiwan's purchasing commitment was documented. "Last year [1999] Taiwan exceeded their commitment, and we sincerely hope you turn that into a habit."

In 1999, the United States had a 92% market share of Taiwan's wheat imports, 903,100 metric tons from estimated total imports of 981,000 tons. Taiwan's purchases exceeded commitments made by the Taiwan Flour Millers Association in a 1998 letter of intent in which they pledged to purchase 750,000- 850,000 tons in 1999. Their traditional commitment had to be postponed in 1999 because of Taiwan's devastating earthquake.