Taiwan faces monthly 4,200-ton salad oil shortage

Taiwan is facing a monthly shortage of approximately 4,200 metric tons of commercial salad oil, following the suspension of operations at Zhonglian Oil in July. To address the deficit, the Taichung City Government is encouraging businesses to utilize alternative oils, specifically palm oil and canola oil.

Combined, palm and canola oil supplies reach approximately 7,250 metric tons per month. Palm oil, produced by companies including Datongyi, Fomao, and Fuhsu, averages 5,800 metric tons monthly. Canola oil provides an additional 1,450 metric tons. However, these alternatives come at a higher cost: palm oil is roughly 4% more expensive than salad oil, while canola oil is approximately 36% more expensive.

Nanjiao has reported that the Zhonglian Oil incident will impact its third-quarter financial results due to product returns and customer-related losses. While soybean oil shortages are noted, Nanjiao plans to mitigate supply risks by importing soybean oil directly from Southeast Asia.