Taiwan’s dairy sector stays confident as tariff-free US milk arrives, relying on fresh milk labeling and strong local market share to stay competitive.
Taiwan Dairy Sector Confident Despite Zero Tariffs on US Milk
A selection of milk is pictured at a supermarket in Taipei in an undated photograph, Photo: Taipei Times

Local milk holds 88% market share and “fresh milk” label protection shields producers under new Taiwan-US trade pact.

Taiwan’s dairy industry is maintaining a strong competitive stance even as tariff-free US milk enters the market under the recently signed Taiwan-United States trade agreement. Government and industry leaders say domestic producers are prepared to withstand the new import landscape, leaning on consumer preferences and legal protections to preserve market share.

The Taiwan Ministry of Agriculture reported that locally produced milk still commands an 88.6 % share of the domestic market, and that stable annual production of around 430,000 tonnes contributes to healthy profitability among local dairy farmers. Officials argued that coordinated government-industry initiatives have bolstered resilience against international competition.

In terms of import volumes, New Zealand continues as the dominant foreign supplier, accounting for nearly half of the 239,153 tonnes of dairy products imported into Taiwan last year. The United States ranked second with more than 47,000 tonnes imported. Despite US exports entering duty-free under the new agreement, industry voices believe this will have limited impact in consumer markets.

A key competitive edge for local milk is branding: Taiwanese law reserves the label “fresh milk” exclusively for domestically produced product, a designation highly valued by local shoppers. From July 2026, the Agriculture Ministry plans to ban imported milk from being labeled as “fresh milk”, reinforcing differentiation and helping local producers maintain premium positioning.

Industry stakeholders also highlight consumer habits and product formats. US liquid milk is typically sold in larger containers that do not match the buying patterns of Taiwanese households, which tend to purchase smaller-packaged dairy products. Comparatively, New Zealand’s concentrated and reconstitutable dairy imports remain more price-competitive even with tariff reductions.

Source: Taipei Timeshttps://www.taipeitimes.com/News/taiwan/archives/2026/02/15/2003852361

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