TAIPEI (Taiwan News) — Taiwan's legislators are pressing the Fair Trade Commission to explain why New Zealand milk prices remain high even after tariffs were cut to zero, CNA reported Thursday.

TPP Legislator Chang Chi-kai (張啓楷) said the price gap between raw milk and retail milk has reached 3.28 times. He said dairy companies earn little profit while consumers are paying more and suggested retailers may be reaping the benefits.

Chang called for an FTC report on the structure of the dairy market. He said the investigation should involve multiple agencies and must be transparent.

FTC Acting Chair Chen Chih-min (陳志民) said the report will be ready in about a month. He explained that unless retailers are fixing prices, higher transport and storage costs could be the reason for expensive milk.

After the Taiwan-New Zealand Economic Cooperation Agreement was signed in 2013, tariffs on New Zealand dairy products were gradually reduced and reached zero this year. However, the agreement put pressure on domestic farmers.

To help local producers, the Ministry of Agriculture provided subsidies to strengthen production and sales. Officials also looked at ways to improve sustainability and resilience in the industry.

Farmers highlighted inefficiencies in Taiwan’s distribution system, saying milk shipments between counties added unnecessary costs. They urged the government to streamline logistics to help them compete with lower-priced New Zealand imports.

At the same time, farmers called for stricter product labeling rules. They argued that only local milk with a 14-day shelf life should be labeled “fresh milk,” while imported New Zealand milk should be clearly marked “extended shelf life.”

The agriculture ministry said it is continuing discussions with farmers over labeling concerns. Consumer groups have also joined the debate, stressing that transparent labeling is important to protect buyer rights.