Market Information
Asia Pacific

THE PET FOOD MARKET IN TAIWAN

November 2000

Prepared by the Market Research Centre and the Canadian Trade Commissioner Service

© Department of Foreign Affairs and International Trade
(FaxLink no. 34039)

The Market Research Centre produces a wide range of market reports by region and sector for Canadian exporters. For further information please contact:

Market Support Division (TCM) 
Department of Foreign Affairs and International Trade 

E-mail: mrc@dfait-maeci.gc.ca 
- FaxLink Domestic service (613-944-4500); 
- DFAIT Internet site (http://www.dfait-maeci.gc.ca)

Trade Evaluation and Analysis Division (TEAD) 
Agriculture and Agri-Food Canada 
Contact: Jim Lowe
 Telephone: (613) 759-7652 

Fax: (613) 759-7505 

E-mail: lowej@agr.gc.ca 
Agri-Food Trade Service:  http://ats.agr.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter.

EXECUTIVE SUMMARY

Taiwan is a densely populated island of 36 000 square kilometres with the majority of Taiwan's 22 million residents living in urban and semi-urban rural areas. Unlike its Asian neighbours, Taiwan remained relatively unscathed by the Asian economic crisis, and remains one of Asia's most dynamic economies. In 1999, the economy grew by 5.7% and is predicted to grow by 6.7% in 2000. Official per capita income continued to rise to approximately $18 100⁽¹⁾ in 1999. Unofficial per capital income in 1999 was closer to $20 000.

The Taiwan pet food market was valued at over $72.5 million in 1999. This was an 18% increase from the 1998 pet food market, which was valued at $61 million. With further economic expansion and increases in per capital income, the market is projected to increase to $75 million in 2000 and continue expanding in the near future.

Imported pet food in 1999 accounted for over 90% of the pet food market, and was valued at $65.5 million and a volume of 48 742 tonnes. This was an increase of almost 49% over the previous six years, ($44 million in 1993). Imports will continue to constitute the major share the pet food market in 2000 and beyond, due to a perception of lower quality and nutritional value of domestic pet foods amongst consumers, and a relative lack of interest in the domestic production of pet food.

Taiwan imports the bulk of its pet food from the United States and Australia, which together account for over 70% of all imports. Canada's share of the imported pet food market has grown dramatically over the past seven years, from less than 1% in 1993 to 5.6% ($3.7 million) in 1999.

There are a number of opportunities for Canadian producers seeking to enter the Taiwan market. The rapid and extensive expansion of convenience outlets, supermarkets and the hypermarket industry have created greater access to Taiwan consumers, and has also created an opportunity for Canadian companies to supply the larger retail chains with private label products.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

MARKET OVERVIEW

Key Factors Shaping Market Growth
Opportunities

COMPETITIVE ENVIRONMENT

Local Capabilities
International Competition
Canadian Position
Competitive Advantage Through Canadian Government Policies and Initiatives

PRIVATE-SECTOR CUSTOMERS

MARKET LOGISTICS

Channels of Distribution
Direct Sales
Distributors and Wholesalers
Agents and Sales Representatives
Market-entry Considerations
Suggested Business Practices
Import Regulations
Customs duties, tariffs and taxes
Transportation and storage
Local Standards, Certificates or Registrations
Authentication of Documents
Export Credit Risks, Restrictions on Letters of Credit or Currency Controls

PROMOTIONAL EVENTS

KEY CONTACTS AND SUPPORT SERVICES

BIBLIOGRAPHY

OTHER REFERENCE MATERIAL

MARKET OVERVIEW

Taiwan is an island of 36 000 square kilometres (the size of Vancouver Island), with a population that can be characterized as urbanized, highly educated, and living in a densely populated territory. The majority of the Taiwan's 22 million people live in urban and semi-urban areas along the western corridor of the island, with the three major population centres located in Taipei (north), Taichung (centre) and Kaohsiung (south). The literacy rate is 94%. Although the current population growth is slightly lower than the replacement rate, Taiwan is still classified by the World's Population Council as one of the world's most densely populated countries.

Unlike its Asian neighbours, Taiwan was relatively unscathed by both the Asian economic crisis, and the earthquake that hit the region in September 1999. It is one of Asia's most dynamic economies, with an economic growth rate of nearly 5.7% in 1999, and projections for the growth rate to increase to 6.7% in 2000. In 1999, Taiwan's population enjoyed a per capita income of $18 100, which is predicted to increase in 2000. However, Taiwan's unofficial per capita income is estimated to average approximately $3000 higher than the officially reported figures. Consequently, Taiwan's standard of living has steadily risen over the past thirty years and Taiwan's consumers are becoming increasingly sophisticated shoppers.

Traditionally, dogs and cats in Taiwan have been fed with leftovers. However, this is changing, and growth in the local pet food market is being driven by several related and long term trends, including an increase in the average marriage age (delayed marriages); the move to smaller families with fewer children; and, most importantly, the increase in disposable personal income. With the delay in marriages, pets are increasingly perceived as companions, particularly by unmarried females. As local living standards increase, families consider pets as affordable and desirable. Local pet owners are taking better care of their pets by using more imported, 'higher quality' pet food.

In 1999, the Taiwan pet food market was valued at $72.5 million. With the exception of in regional economic downturn in 1997, which led to a decline in the imported pet market, the long-term trend in the Taiwan pet food market has been one of steady expansion. The market is projected to increase to $75 million in 2000 and to continue expanding in the near future.

Imported pet food accounted for over 90% of the pet food market in 1999, with imports valued at $66.5 million and 48,742 tonnes. This was an increase of over 49% over the previous six years ($44 million in 1993). Imports will continue to constitute the major share of the pet food market in 2000 and beyond, due to the perceived lower quality and nutritional value of domestic suppliers, and their relative lack of interest in domestic production.

Note: Values converted from US dollars using annual average currency conversion rates.
Source: Board of Foreign Trade, ROC.

The exception to this trend of steady expansion occurred during the three years between 1997 and 1999, when pet food imports actually decreased in value (in US dollars) and volume from the amounts imported in 1996. This market decline was not due to increased local production by domestic competitors. Rather, the decline reflected a downturn in the entire pet food market, as pet owners used more leftovers from meals in an effort to economize during the Asian economic turmoil in 1997 and 1998. The decline stopped in 1999, and the market is once again expanding. The total value of pet foods imported during 1999 increased by more than 17% over the value imported the previous year.

The local government's Council of Agriculture estimates that the local pet dog population ranges between 1 to 1.7 million, with dog food representing over 90% of the total pet food market. The pet cat population has been estimated at 240 000, resulting in cat food representing the second largest market sector, at less than 10% of the pet food market. Fish and bird food each comprise a very small percentage of the existing pet food market. The short-term growth of fish and bird segments are projected to be relatively insignificant.

Key Factors Shaping Market Growth

Several long term social trends are contributing to the expansion of Taiwan's pet food market. These include rising per capital income, a trend for young adults to marry later in life and a decrease in family sizes.

With the rising per capital incomes and the increasing affluence of Taiwan consumers, pet ownership is becoming an increasingly affordable luxury. With young adults marrying later in life and the size of families shrinking (from 5.06 people in 1965 to 3.75 in 1994), domestic pets are increasingly being perceived as potential companions, and, particularly for dogs, less likely to be considered as commodities for consumption.

However, growth in the Taiwan pet food market ultimately will depend on the increasing affluence of Taiwan consumers. Increases in pet ownership are expanding the pet population. Local pet owners are taking better care of their pets with an increasing propensity to buy pet food rather than rely on traditional left overs from meals to feed their pets.

Opportunities

The pet food market is currently dominated by several established domestic and overseas brands. However, there are a number of opportunities for Canadian companies seeking to enter the Taiwan market. Among these include the opportunity for supplying private label pet food to the expanding retail industry of convenience outlets, supermarkets and hypermarkets in Taiwan. These three kinds of stores are replacing the 'mom & pop' family groceries. The centralized distribution and purchasing of convenience stores, supermarkets, and hypermarkets may also provide Canadian exporters with increased access to Taiwan consumers.

Actual and Planned Projects

As pet foods have not been designated by the local government as a strategic industry, there are no specific government investment incentives offered for foreign investors in manufacturing pet food.

Domestic producers are reducing the percentage of pet food manufactured locally, and are increasing their own imports of pet food, manufactured offshore, in lower cost manufacturing countries. None of the domestic manufacturers announced planned infrastructure or improvement projects for locally manufacturing pet foods.

Asian Crisis

Taiwan experienced an economic slowdown as a result of the financial crisis which first hit southeast Asia in 1997. However, compared to its Asian neighbours, Taiwan emerged from the crisis relatively unscathed. Taiwan continues to maintain the world's third-largest foreign exchange reserve which has been actively used to shore up Taiwan's currency. Taiwan's inflation remained relatively constant at 1% throughout the crisis, and unemployment was up only slightly to 2.9%. GDP growth reached 5% in 1998, the lowest total in 13 years. Due to the continued slow down in Asian export markets and the September 1999 earthquakes in Taiwan, the GDP growth rate remained below 6% in 1999. However the economy is resilient, and the slowdown is not expected to last long. GDP growth if predicted to reach 6.7% in 2000.

Taiwan's export market suffered during the economic crisis; however, domestic consumption and demand remained high. Experts remain optimistic about Taiwan's future growth because of Taiwan's strong base of small and medium-size companies, and due to the government's sound, well-implemented economic planning.

COMPETITIVE ENVIRONMENT

Local Capabilities

Local production accounted for approximately 10% of the pet food market in 1999. Locally manufactured pet food offers little competition to potential foreign imports, even in the lower priced market tier, due to the consumer perception that it is a lower quality product. Taiwan pet food producers are mainly limited to two large food manufacturers, President and Fwusow, both of which produce pet food for dogs, cats, and tropical fish. Two smaller firms, Hi-Fong and Hi-Wang-Hsin are engaged in the production of only fish feed.

Both President and Fwusow began production in the early 1990's and the two companies manufacture dry and canned food, with dry items accounting for the majority of production. The two firms together account for about over 8 percent of the Taiwan market for pet food.

Neither President nor Fwusow have plans to expand domestic production. There are no government programs to encourage domestic production and Taiwan suppliers enjoy no special advantages over foreign competitors, other than cost. Instead, President and Fusow are expanding their respective imports of pet food which is produced overseas in technical cooperation with foreign firms for shipment back to Taiwan. This development is most likely to influence sales in the lower priced tier of the pet food market, particularly in the less sophisticated market sectors in central and southern Taiwan, and to a lesser extend in northern Taiwan.

International Competition

Over 90% of pet food is imported, with the United States and Australia accounting for over 70% of the imported total. Although this domination has existed over the past five years, their respective market shares change each year. In 1996, Australia enjoyed a 43.8% market share, slipping to 25% in 1998 and rising to over 40% in 1999. Meanwhile, the U.S. held a 39.8% market share in 1996, which rose to 50% in 1998 and fell to a little under 30% in 1999.

In 1999, four other countries, including Japan, Thailand, Canada, and New Zealand, accounted for another 16% of the imported pet food market. Fourteen other countries accounted for the remaining share of the market.

Australian Pedigree has been particularly successful in the Taiwan market, owed in part to advertisements on television. Other popular Australian brands seen in the Taiwan market include Whiskas, Buddy and Chappi which are all represented by Effem Foods, an international firm with branch offices through out Asia.

U.S. firms which are particularly strong in the local market include Precept, Starpro, Hills, 9-Lives, and Tuffy's. Each of these lines of pet food are distributed through their own import agents in Taiwan.

Canadian Position

The Canadian market position has improved from less than 1% share in 1994 to over 5.6% in 1999. This growth in Canadian imported pet food was at the expense of the market leaders importing from the U.S. and Australia.

Canadian producers planning to enter the Taiwan market are advised to stress product quality and competitive prices. Promotion is important for launching new products, and customer services, such as providing Chinese language information for pet owners on the feeding habits and instructions on the care and raising of pets, is critical to sales success.

Canadian suppliers, like most of their U.S. and Australian competitors, have entered the Taiwan pet food market by appointing local distribution agents from among Taiwan's local importing companies.

Competitive Advantage Through Canadian Government Policies and Initiatives

The Canadian Agriculture and Food International (CAFI) Program

The Canadian Agriculture and Food International (CAFI) Program is a key element of Canada's international strategy. It is designed to support Canada's agriculture and food industry by helping to build long-term international strategies that will help ensure the industry is well-positioned to succeed in key markets, and to respond to increasing consumer demands and global competition.

The CAFI Program matches industry funds dollar for dollar to support activities that enhance and promote Canada's reputation as the world leader in supplying safe, high-quality agriculture, agri-food, beverage, and seafood products that meet the changing demands of world markets.

In this way, the Canadian agriculture and food industry will enjoy improved access to global markets, and will strengthen its ability to increase international sales.
http://www.agr.gc.ca/int/cafi-picaa/index_e.php?page=intro

Canadian Commercial Corporation⁽²⁾

The Canadian Commercial Corporation (CCC) gives Canadian companies access to financing and better payment terms under the Progress Payment Program (PPP). The PPP concept was developed as a partnership between major Canadian financial institutions and the CCC. It enables the exporter's bank to open a project line of credit for the exporter's benefit, based on CCC approval of the project and the exporter's ability to perform. The CCC will also act as a prime contractor on behalf of Canadian small and medium-sized enterprises, giving those businesses increased credibility and competitive advantage.

Export Development Corporation

Export Development Corporation (EDC) offers export financing and insurance to Canadian exporters. Additionally, insurance can be provided for larger transactions that are subject to the terms and conditions established by the buyer. EDC prefers to work through letters of credit, bank credits or bank guarantees. Approval for financing is considered on a case-by-case basis.

Program for Export Market Development

The Program for Export Market Development (PEMD) helps Canadian companies enter new markets by sharing the costs of activities that companies normally could not or would not undertake alone, thereby reducing risks involved in entering a foreign market. Eligible activities include market visits, trade fairs, incoming buyers, product testing for market certification, legal fees for international marketing agreements, transportation costs of offshore company trainees, product demonstration costs, promotional materials, and other costs necessary to execute a market development plan. Activity costs are shared on a pre-approved, 50/50 basis.

The PEMD refundable contribution ranges from $5000 to a maximum of $50 000. Preference is given to companies with less than 100 employees for a firm in the manufacturing sector and 50 in the service industry, or with annual sales between $250 000 and $10 million. Other components of the program include international bid preparation (Capital Project Bidding) and, for trade associations, developing international marketing activities for their membership. For more information, visit http://www.infoexport.gc.ca/pemd-e.asp or call 1-888-811-1119.

WIN Exports

WIN Exports, a database of Canadian exporters and their capabilities, is used by trade commissioners around the world and by Team Canada Inc partners in Canada to match Canadian suppliers with foreign business leads, and to share information on trade events. To register your company in WIN Exports or for more information, visit http://www.infoexport.gc.ca/winexports/menu-e.asp or call 1-888-811-1119.

PRIVATE-SECTOR CUSTOMERS

Due to limited living space, small dogs and cats are preferred by city dwellers. Medium- to large-size dogs are preferred by pet owners in semi-urban areas.

Taiwan's pet food market is a quality-oriented market with emphasis placed on flavour and nutritional value. The trend for dog food and cat food is to emphasize flavour variety. Some flavours which you can find in certain types of pet food include barbequed beef, fish and scallop, sushi, club sandwich, spinach, or tomato. Ingredients are also improving, while pets are receiving higher nutritional value from eating those products. Some products even emphasize "high calcium"or "vitamins" on the labels. Both dry and canned foods are popular and sell well. Price will also be a factor in most purchase decisions.

MARKET LOGISTICS

The distribution system in Taiwan is becoming increasingly centralized as various supermarkets, hypermarkets and convenience store chains either subcontract or set-up their own distribution centres. As the population in Taiwan is highly concentrated and increasingly prosperous, traffic congestion is making physical distribution both complicated and expensive.

Both distributors and wholesalers are employed in Taiwan, but small and medium-sized exporters generally rely exclusively on distributors. Distributors in Taiwan act as sales agents and, in the case of small transactions, may also act as product promoters. Wholesalers purchase imported goods for sale to numerous outlets, generally in rural regions.

Channels of Distribution

Retailers (convenience stores, supermarkets and hypermarkets) are their major sales outlets. Currently, about 65% of pet food is sold through pet food speciality stores, including pet grooming clinics, pet stores and animal (pet) hospitals. The remaining 35% are sold through supermarkets and hypermarkets.

The majority of pet food in Taiwan is sold through one of two channels: speciality shops, or convenience stores, supermarkets and hypermarkets. Currently, the majority of pet food is sold through the speciality stores, including pet grooming shops, pet hospitals and pet breeders & pet retail outlets. However, this share is decreasing, and an increasing proportion of pet food is being sold through convenience stores, supermarkets and hypermarkets. Convenience stores sell both dry and canned pet foods. Dry food is available in 1.5, 2.0 and 4.0 kilogram packages, while canned food is sold in 100g and 400g cans. Supermarkets also sell dry pet food in the same sized packages as convenience stores, plus in a 3.5 kilogram package. Canned pet foods are sold in 400 and 700 g cans at supermarkets. Hypermarkets sell both dry and canned foods in the larger sizes carried at supermarkets, in addition to bulk packages of up to 25 kilograms.

Prices in supermarkets range from $5.49 to $6.41 (NT$119-139) and $8.99 to $10.56 (NT$195-NT$229) for dried dog food in 2.0 and 4.0 kg packages, respectively. Canned dog food will typically sell at $0.97 to $1.24 (NT$21-NT$27) for 400g size, and $1.71 (NT$37) for the 700g size. Pet food in speciality stores, as well as convenience stores, are generally sold at higher prices while pet food sold in hypermarkets are priced lower.

It is anticipated that as the market presence of supermarkets and hypermarkets expands, than the proportion of pet food sold through the increasing number of these sales outlets will also grow from the current 35% to 40% in the near future.

Direct Sales

It is now possible to make direct sales in Taiwan, since many retailers are looking for ways to reduce costs and to be more competitive. One strategy adopted by retailers is to deal with manufacturers directly, in order to decrease the number of wholesalers used in getting the product to the customer. This strategy is most common among large retailers, who are more likely than smaller retailers to have the means and resources to provide their own distribution network. Company-owned convenience chain stores frequently purchase directly from manufacturers and often operate affiliated distribution companies.

Distributors and Wholesalers

Generally Taiwan importers also act as a master agents and distributors, maintaining control over their own network of branch offices or network of wholesalers, in order to reach a national distribution targets. Canadian exporters must select a local representative in Taiwan, who may do some or all of the following: import product, deal with regulatory agencies, handle local sales, distribute directly to retail and food service outlets and promote the product locally. Great care should be taken in selecting an agent as agents increase opportunity for face-to-face contact. The use of an agent also demonstrates to the Taiwanese that the Canadian exporter is taking a serious approach to commercial relations. Also, the Canadian Trade Office in Taipei (CTOT) is available to assist Canadian exporters in the process of identifying appropriate agents.

Agents and Sales Representatives

Agents/importers/master distributors have the advantage of superior market intelligence and improved communication for customer servicing. Sales representatives play an important role in the direct sale of products. Generally speaking, foreign firms are better served by agents with whom they have close ties.

Canadian suppliers are encouraged to establish relations with those individuals and companies that have a solid understanding of Taiwan's retail sector. It is also important that potential sales partners have well-established industry contacts.

Market-entry Considerations

In general, the following steps must be taken to import pet food into Taiwan: An exporter's local representative must possess an import license and must obtain an import permit for each product. All products and labels must be registered with the local government. All documents must be authenticated in Canada prior to shipment. Ordinarily, an exporter's local representative will handle all dealings with Taiwanese government agencies.

Suggested Business Practices

Conducting business in a country with cultural and economic differences can be both challenging and rewarding. Taiwan's status as a rapidly developing country presents unique obstacles and opportunities in this region.

Personal relations and trust are very important in Taiwan, the initial stages of a business relationship are vital. Although incidents in Taiwan are rare, exporters should be wary of "opportunities" that promise to expedite the export process or facilitate market entrance through money or alternative avenues of market entry. Companies are advised to establish relations with reputable and trustworthy local business partners or representatives. Taiwan businessmen have an excellent reputation for their practical and straight forward approach to business relationships and business ventures.

Since it is difficult to make appointments in Taiwan on short notice, it is wise to plan commercial itineraries before arriving. Having business cards are essential. If the cards are printed in both English and Chinese then the effort is greatly appreciated. Mandarin (the official language of Taiwan) is greatly appreciated. Presenting small, inexpensive gifts during business functions is a common and highly regarded practice.

Import Regulations

With the exception of pet foods that contain medicine, Taiwan does not have any legal requirements specifically for packaging of pet foods.

Currently, all imports entering Taiwan through one of its five ports are required to pay a 0.4% harbour construction tax and a 5% value added tax. Goods entering Taiwan by air freight or parcel post are exempt from harbour tariffs. Highly processed foods are generally subject to high import tariffs, which can hinder their competitiveness against locally produced goods. Please contact the Canadian Trade Office in Taipei for current import duty rates.

Companies wishing to export to Taiwan are under obligation to adhere to local legal requirements for labelling. Pet food package labels may be written in English, but an additional, clearly legible label written in Chinese must also be placed on each container. The labels must be affixed prior to customs clearance and must bear the following information:

• brand names;
• quantitative analysis of contents, weights, volumes or numbers of the contents;
• food additives and names;
• net weight in metric units (dual labelling in metric and non-metric is allowed);
• manufacturer's and importer's name, address, phone number;
• date of manufacturer;
• expiration date;
• shelf line/ best before date; and
• requirements under other laws and regulations.

All shipments of food to Taiwan, including pet food, must be accompanied by the proper import licenses, import permits, food registration certificates, and shipping documents. All documentation must be in English or be accompanied by an English translation.

Import license: Where licenses are required the importer may also have to obtain the authorization of numerous relevant agencies. Import licenses are valid for six months. Extension may be granted for justifiable reasons, although goods must be shipped within the validity period of the license. Licenses may not be transferred from one importer to another.

Import permit: A foreign supplier's proforma invoice (quotation) is required for an application of an import permit from Taiwan's Board of Foreign Trade (BOFT). Most import permits are valid for six months from the day of licensing. Most agricultural products such as bottled water require licensing, from the Council of Agriculture before importation.

Shipping documents: Documents required for shipments to or from Taiwan include the following:

Commercial invoice signed by the exporter in triplicate including:

• Import license number;
• F.O.B., C&F or c.i.f. value;
• Insurance;
• Freight; and

Notice of any discounts or commissions that have been made. The commodity description and value shown on the commercial invoice must agree with those on the import license.

Bill of lading or air waybill which must include all marks and case numbers that appear on the packages. Customs does not permit the grouping of marks or numbers on shipments of mixed commodities.

Pro-forma invoice required by the importer to obtain an import license and to establish letter of credit. It must include a full description of goods including:

• brand name;
• method of packing;
• quantity;
• unit price, total cost, freight, insurance and other charges;
• method of shipment;
• date and port of shipment;
• port of destination;
• terms of payment;
• validity of offer;
• name and address of letter of credit beneficiary; and
• any other details as required by the importer.
• Packing list - a minimum of two copies to clear customs.
• Import permit which is valid for six months from the day of licensing.
• Insurance certificate.
• Certificate of origin which is occasionally requested by an importer, bank or letter of credit clause. It must be issued by the governments of the countries of origin or by their authorized issuing units.

Customs duties, tariffs and taxes

The current Taiwan tariff rate system is based on the Harmonized System. The duty on imported products is defined on an ad valorem basis. The dutiable value of all imports which is defined as its cost, insurance, freight (c.i.f.) value. If an invoice's value is considered to be low by customs officials, they will value the item based on the actual transaction value. There is a general Customs clearance fee of approximately $26 per shipment.

Transportation and storage

Most exports of pet food are shipped to Taiwan by sea. Taiwan is currently the third largest cargo handler in the world, with five international harbours. As Taiwan is a relatively small island, the market is concentrated and easily accessed by its main ports.

There are bonded warehouse facilities in Taiwan, however, importers and exporters must deal with Taiwan's bonded warehouse facilities directly; banks cannot act as agents. All import cargo must bear a mark of distinctive design, a set of three or more letters, or a combination of design and letters indelibly painted, stencilled, stamped or burned on the packing or the cargo itself. For cargo packed in cases, boxes, crates, casks, drums or cylinders each container should bear a separate number. This number cannot be repeated for two years. Each package of a consignment must be numbered consecutively. Numbering is not essential for large lots of cargo except when packed in cases, boxes, or crates provided that each package of the consignment contains cargo of identical weight.

Local Standards, Certificates or Registrations

Taiwan has very strict standards for imported agricultural goods. These standards are outlined in the publication Chinese National Standards (CNS), produced by the National Bureau of Standards of the Ministry of Economic Affairs. Many of Taiwan's standards for processed foods far exceed internationally accepted standards, and in some cases, standards and food quality are established through unorthodox means. Imported agricultural goods are regularly tested for compliance with national standards, while domestic products are seldom tested.

Taiwan does not currently maintain any special grading or sanitation requirements for pet foods. Nor does Taiwan currently maintain any other special import or testing regulations for pet foods.

In order to export food items, an exporter must obtain approval and registration from Taiwan's National Laboratories of Food and Drug, Department of Health.

Authentication of Documents

The Taiwanese government requires that some documents need to be authenticated, such as certificates of sale and letters authorizing an exporter's local agent or importer to act on their behalf. Companies should rely on their local contact to inform them of the specific requirements for their situation. The documents should be notarized in Canada and can be authenticated by sending them to the Authentication and Service of Documents (JLAC) division at the Department of Foreign Affairs and International Trade.

Export Credit Risks, Restrictions on Letters of Credit or Currency Controls

Most sales to Taiwan are conducted on bank-to-bank letters of credit. Letters of credit are recommended until good business relations have been established, alongside credit checks on individual concerns. There are no foreign exchange limitations for trade transactions, insurance or authorized investments. Advance payments are permitted under letter of credit arrangements only; however, the beneficiary will have to present a performance guarantee issued by a bank in order to receive it. Credit terms last 60 to 90 days, although longer terms may be requested. Foreign exchange delays of two months are currently reported, although no foreign exchange delay should occur on smaller sales.

PROMOTIONAL EVENTS

Foodtech Taipei 22-26 June 2000 (Annual) Taipei World Trade Centre Taipei, Taiwan   Food & beverage processing and equipment.

Organizer:
China External Trade Development Council (CETRA) 
CETRA Exhibition Department 5 Hsin-yi Rd., Section 5 Taipei, Taiwan 10548 Contact: Mr. C.N. Hsu
Tel.: (886-2) 2725-1111 ext. 611
Fax: (886-2) 2725-1314
E-mail: foodtech@cetra.org.tw
Internet: http://www.taipeitradeshows.com.tw

2000 Taipei International Food Show 15-18 June 2000 (Annual) Taipei World Trade Centre Taipei, Taiwan   Beverages, condiments, meat products, frozen foods, food ingredients and additives, biscuits and confections, dairy products and cereals, diet foods, vegetarian products, fruit and vegetables

Organizer:
China External Trade Development Council (CETRA) 
CETRA Exhibition Department 5 Hsin-yi Rd., Section 5 Taipei, Taiwan 10548 Contact: Ms. Christie Huang
Tel.: (886-2) 2725-1111 ext. 615
Fax: (886-2) 2725-1314
E-mail: foodshow@cetra.org.tw
Internet: http://www.taipeitradeshows.com.tw

Taiwan International Best Food Products 20-23 September 2000 (Annual) Taipei World Trade Centre Taipei, Taiwan   The best national & international fair for meeting producers and distribution at one place of food, aliments, beverage products. Jointly exhibit newest food processing, packaging machinery and manufacturing technology.

Organizer:
China External Trade Development Council (CETRA) 
CETRA Exhibition Department 5 Hsin-yi Rd., Section 5 Taipei, Taiwan 10548
Tel.: (886-2) 2725-1111
Fax: (886-2) 2725-1314
E-mail: foodshow@cetra.org.tw
Internet: http://www.taipeitradeshows.com.tw

Foodex 27 September - 1 October 2000 Taipei World Trade Centre Taipei, Taiwan   Food products manufacturers, food processing equipment suppliers, supermarkets, catering, wines and liquors, dairy products, beverage and health drinks, frozen prepared foods, meat and seafood products, canned food, edible oil, cereal products, importers, exporters and distributors.

Organizer:
China External Trade Development Council (CETRA) 
CETRA Exhibition Department 5 Hsin-yi Rd., Section 5 Taipei, Taiwan 10548 Contact: Ms. Christie Huang
Tel.: (886-2) 2725-1111 ext. 615
Fax: (886-2) 2725-1314
E-mail: foodshow@cetra.org.tw
Internet: http://www.taipeitradeshows.com.tw

KEY CONTACTS AND SUPPORT SERVICES

Canadian Contacts

Agriculture and Agri-Food Canada International Markets Bureau 
930 Carling Ave., 10th Floor Ottawa, ON K1A 0C5 Contact: John Smiley
Tel.: (613) 759-7632
Fax: (613) 759-7506
E-mail: smileyj@agr.gc.ca   

Alliance of Manufacturers & Exporters Canada 
75 International Blvd., 4th Floor Toronto, ON M9W 6L9
Tel.: (416) 798-8000 or (613) 563-9218
Fax: (416) 798-8050
E-mail: national@the-alliance.com
Internet: http://www.the-alliance.com   

Canadian Commercial Corporation Metropolitan Centre 
50 O'Connor St., 11th Floor Ottawa, ON K1A 0S6
Tel.: 1-800-748-8191 or (613) 996-0034
Fax: (613) 995-2121
E-mail: info@ccc.ca
Internet: http://www.ccc.ca   

Canadian Trade Office 
365 Fu Hsing North Rd, 13th Floor Taipei 10483, Taiwan
Tel.: (886-2) 2547-9500
Fax: (886-2) 2712-7244
Internet: www.ctot.org.tw

Canadian Food Inspection Agency (CFIA) 
59 Camelot Dr. Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6653
E-mail: cfiamaster@agr.gc.ca   

Department of Foreign Affairs and International Trade (DFAIT) 
125 Sussex Dr. Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca   

Authentication and Service of Documents (JLAC)
Tel.: (613) 992-6602
Fax: (613) 992-2467   

Korea and Oceania Division (PKE)
Tel.: (613) 995-1183
Fax: (613) 996-1248   

Market Support Division (TCM)
Tel.: (613) 995-1773
Fax: (613) 943-1103   

Tariffs and Market Access Division (EAT)
Tel.: (613) 992-2177
Fax: (613) 992-6002 or (613) 944-4840   

Export Development Corporation (EDC) 
151 O'Connor St. Ottawa, ON K1A 1K3
Tel.: 1-888-332-4593 or (613) 598-2500
Fax: (613) 598-6697
E-mail: export@edc4.edc.ca
Internet: http://www.edc.ca

Agriculture and Agri-Food Canada

The Agri-Food Trade Service regional contacts are as follows:

Al McIsaac 
St. John's, NF
Tel.: (709) 772-0330
E-mail: mcisaaca@agr.gc.ca

Chris Pharo 
Charlottetown, PEI
Tel.: (902) 566-7310
E-mail: pharoc@agr.gc.ca   

Fay Abizadeh 
Winnipeg, MB
Tel.: (204) 983-8622
E-mail: abizadehf@agr.gc.ca   

Max Xiao 
New Westminster, BC
Tel.: (604) 666-9353
E-mail: xiaom@agr.gc.ca

Shelley Manning 
Halifax, NS
Tel.: (902) 426-2137
E-mail: mannings@agr.gc.ca   

Bernard Gravel 
Montreal, QC
Tel.: (514) 283-3815 (ext.506)
E-mail: gravelb@agr.gc.ca   

Roy Gordon 
Regina, SK
Tel.: (306) 780-7134
E-mail: gordonr@agr.gc.ca

Bernard Mallet 
Fredericton, NB
Tel.: (506) 452-3732
E-mail: malletb@agr.gc.ca   

Carol Kerley 
Guelph, ON
Tel.: (519) 837-5866
E-mail: kerleyc@agr.gc.ca   

Colin J. Campbell 
Edmonton, AB
Tel.: (780) 495-4186
E-mail: campbellc@agr.gc.ca

International Trade Centres

For export counselling or publications for Canadian exporters, contact a local International Trade Centre by calling 1-888-811-1119.

Taiwan Government Offices in Canada

Far East Trade Service, Inc. Vancouver Office #650-409 Granville ST. Vancouver, BC V6C 1T2
Tel.: (604) 682-9501
Fax: (604) 682-9775
E-mail: fetsvan@uniserve.com

Taiwan Trade Centre, Montreal Place Montreal Trust 1800 McGill College Ave., Suite 2108 Montreal, QC H3A 3J6
Tel.: (514) 844-8909
Fax: (514) 844-9246
E-mail: ttc.mtl@minet.ca

Taiwan Government Offices

Board of Foreign Trade (BOFT) 
1 Hu Kou St. Taipei, Taiwan
Tel.: (886-2) 2351-0271
Fax: (886-2) 2331-5387   

Bureau of Animal and Plant Health Inspection and Quarantine 
9F, 51 Chung Ching South Road Section 2 Taipei, Taiwan 100
Tel.: (886-2) 2343-1401
Fax: (886-2) 2343-1400
Internet: www.baphiq.gov.tw   

Bureau of Standards, Metrology and Inspections Ministry of Economic Affairs 
4 Chi Nan Rd., Section 1 Taipei, Taiwan
Tel.: (886-2) 2343-1700
Fax: (886-2) 2356-0998

Council of Agriculture 
37 Nanhai Road, Taipei Taiwan
Tel.: (886-2) 2381-2991
Fax: (886-2) 2331-0341
Internet: http://www.coa.gov.tw   

Customs Authority Director General, Directorate General of Customs 
13 Ta Cheng Street Taipei, Taiwan
Tel.: (886-2) 2550-5500
Fax: (886-2) 2550-8111   

National Laboratories of Foods and Drugs, Department of Health 
161-2 Kun Yang St. Nanking District Taipei, Taiwan
Tel.: (886-2) 2785-6283
Fax: (886-2) 2389-9860

Importers of Pet Food to Taiwan

Appreciate Corp 5Fl 217 Fu Ho Rd Yunho City, Taiwan Contact: Mr. Shih-chung Shih, Chairman
Tel.: (886-2) 8295-6850
Fax: (886-2) 8295-3639

J. John Industry Co Ltd (Trader) 8Fl 160 Min Chuan East Rd Section 6 Neihu District, 114 Taipei, Taiwan Contact: Mr. Kuo-hsiung Shiao, Chairman
Tel.: (886-2) 2792-8022
Fax: (886-2) 2791-3562

Kingbird Textile Co Ltd (Trader) 3Fl 760 Pateh Rd Section 4 Nankang Dist, 115 Taipei, Taiwan Contact: Mr. Yu-hsien Pen, Chairman
Tel.: (886-2) 8787-0202
Fax: (886-2) 8787-3300
E-mail: kb5128@ms13.hinet.net
Internet: www.kb.com.tw

Chee Da Industrial Co Ltd 14 Alley 4 Lane 217 Chung Hsiao East Rd Section 3 Ta-an District, 106 Taipei, Taiwan Contact: Mr. Fei-lung Chen, Chairman
Tel.: (886-2) 2293-1404
Fax: (886-2) 2293-3704
E-mail: allarriv@ms23.hinet.net

Chow Chu Distribution Co Ltd (Trader) 3Fl 65 Hwai Ning St Chungcheng Dist, 100 Taipei, Taiwan Contact: Mr. Fei-lung Chen
Tel.: (886-2) 2592-4088
Fax: (886-2) 2535-1271

Natural Pet Corp 1Fl 33 Lane 3 Chao Ti Wei Shenkeng Hsiang, 222 Taipei, Taiwan Contact: Mr. Midas Goh, Chairman
Tel.: (886-2) 2662-1977
Fax: (886-2) 2664-2727

Pedgroup Co Ltd 1Fl 6 Lane 97 Wuku Industrial Park Wu Kung 1st Rd Hsinchuang City, Taiwan Contact: Mr Cindy Yu-kuan Ho, Chairman
Tel.: (886-2) 2298-8122
Fax: (886-2) 2298-3752

Effem Foods Inc - Taiwan Branch 11Fl 35 Lane 11 Kwan Fu North Rd Sungshan District, 105 Taipei, Taiwan Contact: Ms Hsiao-sheng Sun, Chairperson
Tel.: (886-2) 2747-2828
Fax: (886-2) 2748-7468
E-mail: jonathan.chan@ap.effem.com

Everich Pet Food Co Ltd 1Fl 6-1 Hsin Ming St Chungho City, Taiwan Contact: M/s Yen-mei Chou, Chairperson
Tel.: (886-2) 2225-0878
Fax: (886-2) 2226-0767

Tung Ying Industrial Co Ltd 6F 283 Sung Chiang Rd Chungshan District, 104 Taipei, Taiwan Contact: Mr. Kewang Kuo-En Wang, Chairman
Tel.: (886-2) 2500-7011
Fax: (886-2) 2502-0694

Canadian Banks in Taiwan

Bank of Montreal
Contact: Peter Yuan, Senior RepresentativeWorld Wide House, Suite 903
131 Minsheng East Rd., Sec. 3
Taipei, Taiwan
Tel.: (886-2) 719-2652
Fax: (886-2) 713-5803

Royal Bank of Canada
Contact: D.B. Topham, Vice President12th Floor, Union Enterprise Plaza
109 Min Sheng East Road
Section 3, Taipei, Taiwan
Tel.: (886-2) 713-0911
Fax: (886-2) 713-2884

Canadian Imperial Bank of Commerce Contact: Lawrance Liang, General Manger 8/F Walsin Lihui Infor. Building 117 Min Shen E. Rd., Section 3 Taipei, Taiwan
Tel.: (886-2) 719-2338
Fax: (886-2) 719-5996

Commercial Banks in Taiwan

Asia Pacific Bank 
66 Min Chuan Rd Taichung, Taiwan
Tel.: (886-4) 227-1799
Fax: (886-4) 220-4297

Bankers Association of the R.O.C. 
46 Kuanchien Rd., 8F Taipei, Taiwan
Tel.: (886-2) 361-6019
Fax: (886-2) 383-1783

Central Trust of China 
49 Wu Chang St. Section 1, Taipei, Taiwan
Tel.: (886-2) 23111151
Fax: (886-2) 23118107

Chang Hwa Commercial Bank Ltd. 
38 Tsuyu Rd., Section 2 Taichung, Taiwan 40010
Tel.: (886-4) 222-2001
Fax: (886-4) 223-1170

Chinatrust Commercial Bank Head Office(Banking Department) 
3, Sungshou Road, Taipei, Taiwan 
Tel. (886-2) 2722-2002
Internet: http://www.chinatrust.com.tw/english/english.html

Bank of Taiwan 1120 Chungking South Rd., Section 1 Taipei, Taiwan 10036
Tel.: (886-2) 349-3456
Fax: (886-2) 311-5145

Central Bank of China 
2 Roosevelt Rd Section.1, Taipei, Taiwan
Tel.: (886-2) 2393-6161
Fax: (886-2) 2397-3750

Export-Import Bank 
3 Nan Hai Rd., 8th Floor Taipei, Taiwan 10728
Tel.: (886-2) 321-0511
Fax: (886-2) 394-0630

International Commercial Bank of China 
100 Chi Lin Rd. Taipei, Taiwan 10424
Tel.: (886-2) 563-3156
Fax: (886-2) 563-2614

Taipei Bank 50 Chungshan 
North Rd. Section 2 Taipei, Taiwan 104
Tel.: (886-2) 2542-5656
Fax: (886-2) 2542-8870

Chambers of Commerce and Industry Associations

Asia-Pacific Foundation of Canada 
999 Canada Place, Suite 666 Vancouver, BC V6C 3E1
Tel.: (604) 684-5986
Fax: (604) 681-1370   

China External Trade Development Council (CETRA) 
4th Floor, 333 Keelung Rd Section 1, Taipei, Taiwan
Tel.: (886-2) 2738-2345
Fax: (886-2) 2757-6653

International Trade Association of the Republic of China 
8F 148 Chung Hsiao E. Rd Section 4, Taipei, Taiwan
Tel.: (886-2) 2772-6252
Fax: (886-2) 2751-2411   

Taiwan Importers' and Exporters' Association (not including Taipei and Kaohsiung) 
14th Floor, 2 Fu Hsing N. Rd Taipei, Taiwan
Tel.: (886-2) 2773-1155
Fax: (886-2) 2773-1159

BIBLIOGRAPHY

Printed

Department of Foreign Affairs and International Trade, Taiwan - A Guide for Canadian Business (InfoCentre code 160CA), April 1991.

Taiwan Institute of Economic Research - Economic Climates & Trends After the Chi Chi Earthquake (Unpublished) April 2000.

Canadian Trade Office in Taipei - An Update on the Dog and Cat Food Market in Taiwan, (Unpublished), January 2000.

FBR Database Inc. - The Pet Food Market in Taiwan-1996, July 1997.

Asia Intelligence Wire - Taiwan Pet Food Market-1997, (US&FCS) July 1997.

Statistics Department, Ministry of Finance, ROC.

Electronic

Asian Business Information Services: http://www.asianbis.com

China External Trade Development Council (CETRA): http://www.cetra.org.tw

Department of Foreign Affairs and International Trade: http://www:publish.gio.tw

OTHER REFERENCE MATERIAL

Print

Curry, Jeffrey. Passport Taiwan. World Trade Press, San Rafael, CA, 1998. WorldPress@aol.com

Useful Internet Sites

Agriculture and Agri-Food Canada: http://www.agr.ca/

Agri-Food Trade Service: http://atn-riae.agr.ca/public/menu-e.htm

Asia Pacific media links: http://www.neog.com/asianow/links1.html

Canada Business Service Centres: http://www.cbsc.org

Canadian-Taiwan Business Association: http://www.ctot.org.tw/e/ctba.html

Database of Asian importers: http://www.asianbis.com

Department of Foreign Affairs and International Trade: http://www.dfait-maeci.gc.ca

Economic Development Corporation: http://www.edc.ca

ExportSource: http://exportsource.gc.ca

Governments on the WWW : Taiwan: http://www.gksoft.com/govt/en/tw.html

InfoExport: www.infoexport.gc.ca

Montgomery Network (International trade show organization): http://www.montnet.com/

Political and Economic Risk Consultancy: http://www.asiarisk.com

Regional industrial profiles for Asia Pacific: http://aspac.kpmg.com/asiashphere

Search engine for Taiwan and Southeast Asia: http://www.sinica.edu.tw

Tradeport: http://www.tradeport.org/

Source: IDD Information Services, Tradeline, January-March 2000.

1. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, January 2000. Please see Table 2 on page 26.

2. For contact information regarding key organizations and references mentioned in this report, see Key Contacts.