〈Toxic Oil Food Safety Crisis〉MOEA Announces Response: Stable Supply, No Price Hikes, 7 Batches Destroyed, Support for Collective Compensation

The Ministry of Economic Affairs (MOEA) convened an emergency response meeting with food industry stakeholders this afternoon (22nd) regarding the edible oil food safety incident. Minister Kung Ming-hsin emphasized that the meeting aimed to clarify inspection results and announce follow-up measures. Key outcomes include the relisting of qualified oil products and the destruction of unqualified batches, along with commitments to alleviate financial pressure on affected downstream businesses through credit guarantee mechanisms and support for industry associations in initiating collective compensation claims. To stabilize public livelihood and consumer confidence, the government has coordinated with other reputable manufacturers to increase production capacity without raising prices, ensuring sufficient supply during the Mid-Autumn Festival.

Minister Kung, speaking after a roundtable discussion with Huang You-chuan, Deputy General Manager of Hu Xu Zhang Co., Ltd., and Hung Chiao-ju, Deputy Secretary-General of the Taiwan Canned Food Industry Association, stated that a total of 30 oil batches were tested in this incident. After excluding unshipped and exported batches, 26 underwent strict inspection—19 passed and are cleared for relisting, while 7 failed and will be destroyed.

To address potential distribution challenges during relisting, the Department of Industrial Development and the Department of Commerce will actively assist in coordination to ensure smooth processes. The Food and Drug Administration (FDA) has instructed local health authorities to expedite the relisting of qualified oil products. For the disposal of the 7 failed batches, the MOEA will coordinate with the Environmental Protection Administration (EPA) and local environmental agencies to manage the process orderly and is considering subsidies for related disposal costs.

Regarding economic losses suffered by downstream businesses that used the unqualified oil, Minister Kung stated that the MOEA will fully support collective compensation claims initiated by industry associations. For financial relief, the existing credit guarantee mechanism can provide loan extensions or new credit guarantees, with support for associated fees. The MOEA will compile industry feedback and submit it to the Executive Yuan for further support.

Huang You-chuan, Deputy General Manager of Hu Xu Zhang, expressed gratitude for the MOEA’s swift and transparent response, praising the inter-ministerial coordination mechanism for alleviating operational financial pressure. Hung Chiao-ju, Deputy Secretary-General of the Taiwan Canned Food Industry Association, suggested enhancing the industry’s laboratory testing capabilities and certification capacity in future operations.

On supply and pricing for the Zhongyuan and Mid-Autumn festivals, Minister Kung confirmed that the MOEA has communicated with four upstream manufacturers (excluding those involved in the Zhongyuan Festival incident). These manufacturers have expressed willingness to increase production and release inventory, ensuring stable supply in August and even offering to import oil from abroad if needed. Despite market rumors of a 13% price increase and partial shortages, the four manufacturers have explicitly stated they are not raising prices and have no such plans. The MOEA attributes such rumors to middlemen’s psychological expectations and will continue monitoring the market, urging businesses to report any anomalies.

Finally, on the review of information disclosure speed, Minister Kung emphasized the need to balance transparency with the completeness of investigation results to prevent market panic from unconfirmed information. Once the incident’s cause is clarified, the government will provide full technical assistance if needed and request businesses to report their losses within a deadline to facilitate future compensation procedures.