Evaluating the Impacts on Soybean Price of the Taiwan Fair Trade Act Exemption

• Main Authors: Ming-Hao Wu, 吳明浩
• Other Authors: 張宏浩
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/tfv659

碩士 === 國立臺灣大學 === 農業經濟學研究所 === 106 === Becaues the self-sufficiency ratio of soybean in Taiwan are lower than 1%, most of the crops sold in Taiwan comes from international suppliers, especially from the United States and Brazil.So the international grain market supply and demand affect the import of our country. Review the history of Taiwan''s grain purchases, before the implementation of the fair trade act, the government opened up domestic traders to import freely. However, in order to increase the purchasing advantage, some importers would coordinate the joint import of privately.This business move had been prohibited after the implementation of the fair trade act.However, because Taiwan’s individual grain importers cannot sustain the high total cost alone. Joint import has been a must to sustain business profit for each importers.In Feb, 1992, Taiwan government set up a special exemption from its fair trade act to allow individual soybean importers to have joint imports and to share the total cost. This paper explores if special exemption from Taiwan fair trade law, allowing regulated soy importers to have joint-import operations, can successfully lower the price of soybean meal and related products. The price comparison products include soybean meal, soybean,corn and related farmed feed prices. Hypothesis testing method was used for this experiment. According to our empirical results, the paper shows that average value of soy and corn import prices, as well as other related feed product prices, all showed a price decline after the special exemption from Taiwan fair trade act.