Nan Chiao Statement: Detected Abnormal Oil Sample from Fu Shou, Reported but No Response – Demands Apology and Compensation

Following the discovery of excessive benzopyrene levels in soybean oil produced by Chung Lien Oils, Nan Chiao (1702-TW) broke its silence today (29th) with a public statement. Fu Shou (1219-TW) has long been Nan Chiao’s supplier of soybean oil. Nan Chiao detected abnormal benzopyrene levels in samples collected from a tanker truck, confirmed through three separate tests, and immediately followed up with Fu Shou for resolution. However, to date, Fu Shou has not provided any test result reports, nor has it responded, taken responsibility, or issued an apology. Nan Chiao strongly condemns this behavior and demands that Fu Shou apologize and compensate Nan Chiao for all losses incurred.

After Chung Lien Oils’ soybean oil was found to contain excessive benzopyrene, companies including Tatung (1218-TW), Fu Shou, and Fu Mao Oils (1225-TW) faced product recalls and fines. Nan Chiao was also fined and has now issued a formal statement condemning Fu Shou and detailing the incident.

Nan Chiao emphasizes its long-standing commitment to food safety, implementing strict source control and legal self-management protocols. In 2019 (Minguo Year 108), the company invested in establishing the 'Nan Chiao Group Food Safety Research and Testing Center' (hereinafter: Nan Chiao Testing Center), which conducts comprehensive testing on edible oils and other group products and raw materials. In 2020 (Minguo Year 109), the center passed evaluation by the Taiwan Accreditation Foundation (TAF) and was certified as compliant with the international ISO/IEC 17025 laboratory standard. To date, the center has completed certification for six major testing categories covering 21 substances. From 2014 (Minguo Year 103) to July 6, 2026, Nan Chiao has conducted 6,275 self-management inspections on edible oils, including 1,002 tests specifically for benzopyrene.

Nan Chiao has invested significant resources to ensure food safety, prioritizing and conducting tests based on group needs. Except for the sample collected on April 8, 2026, from a tanker supplied by Fu Shou, all previous benzopyrene test results have been either non-detectable or within acceptable limits.

Nan Chiao sources its soybean oil long-term from upstream supplier Fu Shou, which in turn sources from its own upstream supplier, Chung Lien Oils. On April 8, 2026, Nan Chiao received a shipment of Grade 1 edible soybean salad oil from Fu Shou. Fu Shou provided standard quality inspection reports with the shipment. Nan Chiao’s quality control team then collected two sample bottles from the tanker’s sampling port for retention. Routine quality control tests on the incoming oil met acceptance standards, and the warehouse proceeded to transfer the oil into storage tanks. The retained samples were designated for mandatory periodic testing under the '2026 Food Safety Monitoring Plan – Mandatory Inspection Cycle Guidelines,' to be conducted by the Nan Chiao Testing Center.

On May 13, 2026, the Nan Chiao Testing Center tested the retained sample from Fu Shou’s tanker and found benzopyrene levels at 4.6 μg/kg (ppb), exceeding the standard limit of 2.0 μg/kg (ppb). This marked the first time in 12 years that benzopyrene levels had exceeded the limit.

Upon detecting this anomaly, Nan Chiao immediately tested the oil in its storage tanks and the finished products, all of which were within acceptable limits (the Taoyuan City Health Bureau also tested the tank oil on July 2, 2026, and confirmed compliance). On May 14, 2026, Nan Chiao initiated a retest of the retained tanker sample, and on May 22, the result confirmed an elevated level of 4.8 μg/kg (ppb). To ensure accuracy, Nan Chiao commissioned independent third-party SGS on May 28, 2026, to urgently test the April 8, 2026, tanker sample. On June 4, 2026, SGS reported a benzopyrene level of 8.0 μg/kg (ppb), further confirming the severity. This demonstrates Nan Chiao’s extremely cautious and rigorous approach to food safety.

As Fu Shou is a long-term supplier, Nan Chiao immediately followed up after detecting abnormal benzopyrene levels in the tanker sample through three separate tests. However, Fu Shou has yet to provide any test reports or take any public action or issue an apology. Nan Chiao expresses deep regret over this lack of response, issues a strong condemnation, and demands that Fu Shou apologize and compensate Nan Chiao for all losses.

Nan Chiao discovered the benzopyrene exceedance in the retained sample from Fu Shou’s tanker on May 13, 2026. It immediately tested the batch of oil in its tanks and the resulting products, all of which met standards. Therefore, Nan Chiao determined that the incident did not meet the reporting criteria under Article 7, Paragraph 5 of the Food Safety and Hygiene Management Act. After repeated confirmatory tests showed consistent exceedances, Nan Chiao formally notified Fu Shou on June 10, 2026, that the tanker sample was不合格 (non-compliant) and requested an explanation. Fu Shou responded that it would investigate its production process, trace the batch, and test its own retained samples, but has not yet reported the test results to Nan Chiao.

Nan Chiao clarifies that it is merely a buyer of soybean oil from Fu Shou and is not a shareholder of Chung Lien Oils, Fu Shou, Fu Mao Oils, or Tatung. Therefore, it could not have conspired with these companies to conceal the issue. Nan Chiao has cooperated as a witness in investigations by prosecutors and regulatory authorities and has actively complied with food safety directives and inspections from health authorities, demonstrating its serious and transparent approach to the incident.

Nan Chiao implements stricter standards than legally required, conducting batch-by-batch testing on incoming raw oils to ensure its entire production process meets the highest safety standards. The repeated testing was conducted for accuracy and prudence, with no intention of delay or concealment. Prior to amendments to the Food Safety and Hygiene Management Act, Nan Chiao began batch-by-batch benzopyrene testing on incoming raw oils starting July 4, 2026, to ensure the highest level of food safety for consumers. Nan Chiao welcomes ongoing inspections, audits, and guidance from regulatory authorities and agrees to accept legal responsibility for any product quality or hygiene issues.