0:00:00 The episode is prompted by viral discussions about Taiwan's expensive milk, timed with new July 1 labeling regulations; guests are NTU journalism students Caiyu and Lijue, plus Dairy Association Secretary-General Fang Qingquan.

0:03:00 The investigation began with data showing Taiwan's dairy and beef cattle numbers in long-term decline, prompting reporters to investigate why.

0:04:00 The Taiwan–New Zealand trade agreement's first full year of zero-tariff imports in 2025 became a second entry point for the investigation.

0:05:00 Reporters found the share of imported milk steadily rising and suspected a causal link: more imports leading dairy processors to demand lower output from local farmers.

0:06:00 Taiwan's milk recently rose from second to first most expensive globally; a one-liter bottle at convenience stores costs roughly NT$80–120.

0:06:00 Cost breakdown per liter: roughly 30% to the farmer, 30% to the dairy processor, and 40% to retail shelf fees.

0:06:00 Nearly all raw materials are imported, with material costs alone approaching NT$30 per liter; almost every farm employs foreign migrant workers.

0:08:00 Costco's Kirkland milk was about NT$66 per liter last year; if a Taiwan–US zero-tariff deal passes, it is expected to drop to NT$60.

0:09:00 Regulations allow up to 200 cows per hectare; average land cost across Taiwan is about NT$40 million per hectare, meaning land alone costs NT$200,000 per cow.

0:10:00 Taiwan's hot, humid, typhoon- and earthquake-prone climate requires barns with high ceilings for ventilation, earthquake-resistant structures, and waterbeds for animal welfare, adding about NT$150,000 per cow in construction costs.

0:10:00 Equipment and cold-chain costs add about NT$50,000 per cow, and the cow itself costs around NT$100,000, bringing total per-cow investment to roughly NT$500,000 — a NT$100 million commitment for a 200-head farm.

0:11:00 It takes about two years from breeding to milk production; Taiwan's fresh milk reaches store shelves nationwide within 24 hours, one of the fastest farm-to-shelf supply chains in the world.

0:12:00 Farmers receive NT$30 per liter while the retail price reaches NT$90, a 1:3 ratio; the US and Europe average 1:2 to 1:2.2, making Taiwan's markup notably higher.

0:14:00 Taiwan's subtropical humid climate — unlike Israel's dry desert heat — fundamentally raises the cost of keeping cows comfortable, and this cannot easily be reduced.

0:14:00 About 70% of feed is imported; during COVID-19, shipping costs for a 40-foot container surged from US$2,000–3,000 to US$15,000–20,000, causing feed prices to spike roughly tenfold.

0:16:00 Milk is classified by pasteurization: domestic fresh milk uses 120–130°C for 2–5 seconds; Costco Kirkland is ESL (extended shelf life), pasteurized at 138°C+ for 2 seconds in sterile packaging, with a 90-day refrigerated shelf life.

0:17:00 NTU's fresh milk uses low-temperature long-time (LTLT) pasteurization at around 63–72°C for 30 minutes, preserving more nutrients but resulting in a shorter shelf life.

0:18:00 Domestic fresh milk lasts 13 days; imported ESL milk lasts up to 90 days; UHT (sterilized) milk can be stored at room temperature for six months.

0:19:00 Starting July 1, 2026, only milk holding one of three certifications — Fresh Milk Certification Mark, CAS Excellent Agricultural Product, or Production and Sales Resume — may be labeled "fresh milk (鮮乳)"; others must be labeled "milk (牛乳)."

0:20:00 The rule's background: imported long-life milk had also been labeled "fresh milk," creating unfair competition; the Dairy Association formally petitioned the Ministry of Agriculture, Ministry of Health, and Ministry of Economic Affairs in 2024.

0:21:00 Ice-brick concentrated milk is an even bigger issue: water and some components are removed abroad, then the bricks are imported and reconstituted in Taiwanese factories — usually diluted to 4× volume — and widely used in B2B channels like hotel breakfasts and convenience store lattes.

0:22:00 Under the new rules, a café advertising "fresh milk latte" must use Taiwan-certified fresh milk, as must "fresh milk buns"; the goal is to ensure what consumers pay for matches what they receive.

0:25:00 In 2008, domestic raw milk production was about 310,000 metric tons; by 2025 it reached 466,000 metric tons, a roughly 47% increase.

0:25:00 Over the same period, imported liquid milk (including ESL and UHT) surged from 4,196 to 59,596 metric tons — a 14-fold increase.

0:26:00 Ice-brick milk went from 424 to 24,712 metric tons between 2008 and 2025; reconstituted at 4× volume, that equals 98,848 metric tons — combined with imported liquid milk, imports now account for 34% of Taiwan's market.

0:29:00 Using Ministry of Agriculture data, reporters calculated the average import price of ice-brick milk at about NT$27 per liter, versus NT$37 for domestic raw milk — ice-brick milk is about 30% cheaper than locally produced raw milk.

0:32:00 This year all four major dairy processors — Uni-President, Wei Chuan, Kuang Chuan, and I-Mei — demanded lower purchase quotas at contract renewal; one northern farmer who had just expanded capacity was immediately told to reduce output.

0:33:00 Excess raw milk that cannot be sold to smaller processors must be dumped — farmers described this as the most heartbreaking part of their situation.

0:34:00 The four major processors account for about 76% of raw milk purchases; over 90% of dairy farmers have exclusive contracts, creating near one-to-one dependent relationships.

0:35:00 Animal Husbandry Act requires farms to sign with a dairy processor; food hygiene regulations prohibit selling unprocessed raw milk, effectively closing off direct-to-consumer sales for farmers.

0:37:00 Major processors refuse to contract-manufacture for competing farm brands; legal small co-manufacturers are scarce and low-capacity; parcel delivery costs (e.g., Yamato Transport) versus bulk truckload delivery make small-farm direct sales economically unviable.

0:40:00 Secretary-General Fang calls for three-year contracts with fixed purchase volumes — allowing only annual price adjustments — to give farmers a stable production base.

0:42:00 The government should strengthen food-agriculture education to help consumers distinguish fresh milk from various imports, and require bubble tea shops, coffee chains, and hotels to honestly label the milk products they use.

0:30:00 Milk is framed as a "national defense food": when Qatar's diplomatic rift with Saudi Arabia cut off milk imports, Qatar faced an immediate crisis — demonstrating the strategic importance of maintaining domestic dairy capacity.

0:43:00 The key thing to watch after July 1 is whether clearer product labeling allows domestic fresh milk and imported dairy products to find their respective market positions, and whether the imbalanced relationship between processors and farmers can be rebalanced.