Chapter Four Regulation and Guidance of Supply and Market
The central competent authority shall draw up annual livestock production goal. Municipal and prefectural (city) competent authorities shall institute annual livestock production plan on the basis of the aforesaid goal, and provide guidance to farms, industrial organizations and farmers to carry out production and marketing accordingly.
To promote the development of a healthy dairy industry and to facilitate sound marketing system of the dairy products, the central competent authority herein-referred to-shall set the related regulations and enforcement procedures governing the dairy industry.
For the purpose of stabilizing market supply and demand, the central competent authority may specify the kind of livestock or poultry and announce regulating measures with regard to the following particulars:
1. The heads of livestock or poultry raised by individual farm.
2. The heads of livestock or poultry the wholesale produce market may accept from the suppliers.
3. The ratio of domestic sale and export of livestock or poultry produced by large farm.
4. Temporarily suspending acceptance of farm registration or applications for construction of new farms, increase building of farm facilities, and expanding breeding scale.
5. Other necessary items.
The central competent authority will carry out the regulating measures in previous paragraph, which should be publicly announced.
Those who have obtained farm facility permits before the public announcement by the central competent authority are not covered by the announcement in the previous paragraph.
The temporary suspension pursuant to Subparagraph 4, Paragraph 1 is one year, which may be extended if necessary.
The competent authority shall provide guidance to farms to join the membership of the provincial (municipal) or national industrial organization that coordinates the marketing of their production, and observe the production and marketing operation set up by the said organization. The competent authority will not provide guidance to non-member farms or farmers.
A industrial organization may charge farms and a livestock/poultry raising establishments necessary fees for the marketing service it provides; the fee schedule will be set by the said organization, subject to the approval of the municipal authority, if the organization is a local organization, or the approval of the central competent authority, if the organization is a national organization.
For the sake of effective implementation of the livestock production and marketing system and promoting the development of the animal industry, the central competent authority should donate a reserve fund for the establishment of National Animal Industry Foundation; the central competent authority shall prescribe the measure for its establishment.
The funding resources for the establishment of the National Animal Industry Foundation shall originate from:
1. Appropriation of the central competent authority.
2. Donation of the industrial organizations.
3. Other donations.
The businesses of the National Animal Industry Foundation includes:
1. When the supply and demand of livestock/poultry products are out of balance, coordinating among industrial organizations or farms to draw up response measures and overseeing their implementation after the approval of the central competent authority.
2. Providing information on the supply and demand of important livestock materials, such as feeds and animal medications.
3. To stabilize the prices of important livestock/poultry product, coordinating among farmers' organization or farm product wholesale market to buy and sell in the wholesale market, or engage in joint transportation and sale of that particular livestock product.
4. Upon the commission of the central competent authority, coordinating among industrial organizations, farms, livestock/poultry raising establishment, merchants, and consumer representatives that are associated with a particular livestock product to set the production quantity and appropriate prices of the said product.
5. Assisting industrial organizations to carry out the relevant policy set forth by the central competent authority.
6. Carrying out other matters as commissioned by the central competent authority.
7. Making suggestions with regard to livestock/poultry supply and marketing.
The National Animal Industry Foundation may charge a fee for the service it provides; the Corporation, subject to the approval of the central competent authority will set the fee schedule.
To stabilize the supply and demand of livestock and poultry, the central competent authority should establish livestock and poultry funds according to actual industry needs. The central competent authority may ask participating breeders, members of various livestock and poultry groups, and business owners to pay regulatory fees of not more than 0.04% of livestock and poultry prices.
The central competent authority shall determine the terms of payment of the regulatory fees, actual payment rates, payment deadlines, and scope of payment.
Fund management associations for both the livestock and poultry industries need to be established with several committee members to take care of the balance of payments, management, and use of the funds mentioned in Paragraph 1.
The central competent authority has to appoint a government agency or a group to collect on its behalf the regulatory fees in Paragraph 1.
The central government authority should draw up a budget for subsidies should the industry fund be temporarily suspended due to the following reasons:
1. Major plague or calamity in the country
2. Severe imbalance in supply and demand
3. Other force majeure factors making the collected regulatory fees in adequate.