Taiwan Affairs Office Hits Back Over World’s Highest Milk Prices

Beijing’s Taiwan Affairs Office (TAO) on Thursday responded to growing public anger in Taiwan over the island’s milk prices, which rank as the highest in the world according to the global statistical database Numbeo. Spokesperson Zhu Fenglian used the opportunity to criticize the Democratic Progressive Party (DPP) authorities for neglecting livelihood issues and diverting public frustration through anti-mainland rhetoric.

The Price Shock

According to data from Numbeo, Taiwan’s milk prices stand at approximately $3.07 per liter (roughly NT$98 or 21.5 RMB), placing the island at the top of a global ranking of dairy costs. The revelation, first posted on Facebook around June 20 by Taiwanese social media user “Cheap,” sparked intense online debate about the cost of living in Taiwan.

TAO’s Response

At a routine press conference on July 2, Zhu Fenglian presented a stark comparison. Mainland China produced 40.91 million tons of milk in 2025, she noted, while the average retail price of fresh milk in Chinese cities stood at just 11.5 RMB per liter in May 2026 — roughly half of Taiwan’s price. She also highlighted that during the 14th Five-Year Plan period, boys aged 6-17 grew an average of 2.1 cm taller and girls grew 2.2 cm taller, attributing this in part to improved nutrition through accessible dairy products.

“Mainland fresh milk supply is stable, of excellent quality, and cost-effective,” Zhu said, as reported by China News Service. “There is great potential for cross-strait cooperation in dairy products.”

Structural Issues Behind the Price Tag

The high cost of milk in Taiwan is not simply a matter of geography or climate, analysts say. According to Taiwan’s dairy industry association, the pricing structure reveals a deeply imbalanced supply chain. Only 30% of the retail price goes to dairy farmers covering production costs, while 25-30% is captured by processing plants and a striking 40-45% is taken by retail channels such as supermarkets and convenience stores. In the United States, the farmer-to-consumer price ratio is roughly 1:2; in Taiwan, it reaches 1:3, as reported by QQ/Strait Herald.

China Times, a Taiwanese newspaper, published an editorial bluntly stating: “The ones best at fleecing Taiwanese people are still their own people.” The outlet noted that even after New Zealand liquid milk entered Taiwan tariff-free in 2025, local dairy prices failed to decline, suggesting that structural inefficiencies — not import costs — are the primary driver.

Political Fallout

The milk price controversy quickly became politicized. When “Cheap” posted the Numbeo ranking, pro-DPP supporters and green-leaning media accused him of being a “mainland sympathizer” and attempted to shift the conversation by invoking a 2008 mainland milk quality incident, according to QQ/Global News.

“Laughable — discussing milk prices now makes you a ‘mainland sympathizer,’” Cheap responded on social media. “What’s so shameful about admitting Taiwan’s milk is expensive?”

Zhu Fenglian took direct aim at the DPP’s handling of the issue. “The DPP authorities care nothing about livelihood issues that affect the people of Taiwan,” she said. “They are only focused on political self-interest and manipulation. On one hand, they unilaterally restrict mainland agricultural imports into Taiwan, hindering cross-strait exchanges and cooperation, going far and spending lavishly, willingly acting as an ‘ATM’ for external forces. On the other hand, they rely on stirring up confrontational emotions to divert public attention.”

Broader Economic Pressures

The milk price controversy comes against a backdrop of mounting economic strain in Taiwan. Median disposable income per capita in 2024 was NT$356,000 (approximately US$11,000), while real wage growth in the first quarter of 2026 stood at just 1.4%. Electricity consumer prices rose 5% year-on-year in June, and liquefied natural gas import costs surged 50% month-on-month in April 2026.

Implications

The episode highlights growing economic dissatisfaction in Taiwan and the increasing politicization of everyday consumer issues. For the TAO, the controversy provides a platform to showcase mainland China’s economic advantages and promote cross-strait economic integration. For the DPP, it represents a mounting challenge as voters question whether the government can address tangible livelihood concerns rather than relying on political diversion tactics.

As one Taiwanese netizen commented on the debate: “If you bring up ‘resisting China and protecting Taiwan,’ then price gouging is fine.”