Taipei City, September 24, 2025 — Taiwan’s Fair Trade Commission (FTC) has approved a joint procurement arrangement allowing 35 companies, led by Qiao Taixing Enterprise Co., to coordinate bulk wheat purchases through shared shipping arrangements for the next five years.
The approval for the scheme is valid from October 1, 2025, to September 30, 2030. The regulator said the move was justified under provisions of the Fair Trade Act, which permit certain cooperative behavior if it benefits the economy and public interest.
However, the FTC stipulated that participants may not use the authorization to engage in other forms of collusion or to unjustifiably exclude new entrants from joining the joint scheme. Companies cannot restrict individual members from deciding their own procurement volumes or prohibit them from importing wheat independently.
Additionally, participants are required to submit quarterly reports to the FTC on the implementation of the arrangement.
Taiwan relies heavily on wheat imports, as domestic production is negligible. Industry players have long used “joint shipping procurement” to reduce costs. By pooling orders, the companies can charter full bulk carriers, secure stable supply volumes, and negotiate better terms with international grain suppliers.
The FTC noted that single importers typically lack the scale to fill bulk carriers on their own. Collective procurement therefore not only saves on shipping costs but also stabilizes wheat import schedules and volumes. This, in turn, helps prevent sharp fluctuations in flour prices, supporting stability across downstream industries such as bakeries and food manufacturing.
Source: https://www.ftc.gov.tw/internet/main/doc/docDetail.aspx?uid=126&docid=18216
