According to the Council of Agriculture (COA), Taiwan’s agricultural exports in the year of 2012 was valued at US$5.08 billion, a figure representing an 8.8% growth in comparison to 2011 numbers. Foreign demand for Taiwanese produce grew by 14%, whereas total aquaculture products witnessed an 11% jump in export volume; moreover, the total trade deficit for agricultural products fell by US$610 million between 2011 and 2012.

Taiwan’s top four agricultural trade partners are Japan (21.1% of annual export value), mainland China (15.5%), Hong Kong (10.1%) and the United States (9.3%), said the Council, adding that the average export value to these four markets has been steadily increasing by 4.5 to 17.7% on a yearly basis. Boosted by the signing of the Economic Cooperation Framework Agreement (ECFA) in 2010, China remains the fastest-growing consumer of Taiwanese produce, in which total cross-strait agricultural trade climbed by 17.7% last year and 18 agricultural items on the ECFA’s Early Harvest List enjoyed a stunning 28.5% increase in demand.

Agricultural trade deficit shrinks across the Taiwan Strait

The Council’s push for agricultural reforms, which began in the 1960s, was characterized by switching over to foreign sources for raw materials such as maize, soybeans, wheat and wood. Statistics show that between 2002 and 2012, Taiwan’s annual agricultural imports weighed within the range of 16.62 million tons to 19.14 million tons; 2012 was the exception, with a total import volume of 17.82 tons that did not exceed the annual medium but came with a higher-than-average cost due to the hike in international grain prices stemming from the drought in the U. S. In terms of exports, the government’s efforts in promoting the nation’s agricultural output have resulted in a substantial reduction in trade deficit, namely a US$610-million decrease between 2011 and 2012. Taiwan’s overall trade deficit related to the agricultural sector was US$9.55 billion in 2012, whereas the cross-strait agricultural trade deficit was a mere US$38 million, a far cry from the aggregated US$301-million deficit with China measured in 2002.

The allure of Taiwan’s spray orchids grows

With the objective of setting up global deployment from the isle of Taiwan, the COA has identified several key products with widespread potential and subsequently arranged international promotion campaigns that target specific markets. Take, for example, Taiwan-grown spray orchids, whose global exports tallied US$13.95 million in 2010, US$14.73 million in 2011 and US$18.47 million in 2012. Although Japan has been the main target of the Council’s orchid publicity operation, leading to a 25% leap in demand last year, other emerging markets such as Australia (2,216% increase in demand), Vietnam (1,280%), Macau (660%), Hong Kong (101%) and Canada (83%) have proven to be equally receptive to the allure of Taiwan’s spray orchids in 2012.

Concerned about possible over-dependence on the Japanese market, the Council has begun to educate the nation’s orchid growers on the overarching possibilities of the vast mainland Chinese market. Although cross-strait talks have previously touched upon the possibility of including spray orchids on the ECFA’s Early Harvest List, Taiwanese floral producers were reluctant to export to China due to last year’s dismal prices; as a result, Taiwan has temporarily lost its grip on China’s competitive flower markets. In the light of the rapidly expanding Chinese economy, however, there is no reason stopping Taiwan to re-enter and capture its rightful shares with its incomparable blossoms, the Council added.

Exports of fresh fruits jump by 42%

According to COA statistics, Taiwan’s global exports of fresh fruits and produce amounted to US$62.02 million last year, which translates into a 51.7% increase in comparison to 2007 numbers but a 0.6% decrease in comparison to 2011 output due to that year’s ravaging natural disasters. The resumption of direct flights across the Taiwan Strait also played an important role in fostering cross-strait agricultural trade growth — Taiwanese exports of fruits to China exceeded US$15.39 million in 2012, a figure seven times higher than that of 2007 and 42% more than that of 2011. More specifically, items on ECFA’s Early Harvest List such as bananas, oranges, lemons, cantaloupes and dragon fruits raked in a total of US$1.386 million, representing a 71.4% increase in comparison to the whole of US$809,000 in 2007, the Council pointed out.

From attending international food exhibitions in new target markets, partnering with sales channels to host promotional events and establishing overseas offices to achieve long-term marketing objectives, the COA pledged to continue its endeavors in promoting the international image and export volume of Taiwan’s agricultural products.