1. International marketing of agri-products

Facing an ever-increasing global competition under the influence of the WTO, the COA has strengthened its endeavors for international marketing of premium agri-products since 2004. The strategy entails overseas sales promotion, elimination of export duties and non-tariff barriers, establishment of export-oriented value-chain for agri-products, supply of export market information, and human resource development. The export value of four flagship agri-products in 2006 was US$120 million, which is an increase of 11% from the previous year. Among them, Phalaenopsis orchid increased 31%, mango 20%, and Taiwan tilapia 5%, whereas Formosan tea (oolong tea) dropped 4%.

Facing the challenge of free market for agri-products, the COA has launched the New Agriculture Movement that promotes global deployment of superior agri-products and targets 20% increase of export value within the next three years. Toward this direction, the movement will focus on: 1) accession of domestic and overseas market information and promotion of integrated market strategy; 2) strengthening of quality control and establishment of stable export system; 3) human capacity building; 4) increasing competitiveness of agri-products; 5) establishing highest quality image in the global market; and 6) eliminating tariffs and non-duty barriers of agri-products. For an expansion of international market share, in addition, Taiwan is planning to establish special export zones in order to strengthen supply chain, to establish traceability system of exported agricultural commodities, to improve quality, and to stabilize supply volume.

2. Establishment of supply chain forecasting system

Due to fine weather and farmers’ own decisions, there were overproductions of banana and orange in 2006. Measures were taken to dispose overproduced products and to stabilize the price. Concomitant with these measures, the COA has launched the agricultural security project, creating a stage to encourage purchase of overproduced agri-products among schools, private and public sectors, and the military. The COA’s Food and Agriculture Agency is designated to serve as a selling station and liaison point with the potential purchasers, to disseminate information on the latest glut of agricultural crops and the order protocol, and to receive orders. With this project scheme, more than 500 tons of banana and 2,400 tons of oranges were sold in 2006. This has effectively stabilized the price of both banana and orange.

In compliance with the New Agriculture Movement and to strengthen the forecasting system of supply chain, the COA now plans to request that all of the producers register the size of their lands, the existing facilities, the type of agri-products they produce, etc. The system is to procure production information, to balance supply and demand, to stabilize the price, and to secure producers’ benefits. Under this system, three separate set of protocols are designed for crops, aquaculture and livestock. The crop category encompasses banana, orange, papaya, pineapple, garlic, onion, and peanut; the aquaculture category milkfish, Taiwan tilapia, eel, grouper, sea perch, and hard clam; and the livestock category pig, broiler, native chicken, and egg. Apart from the aforementioned commodities, the system is subject to yearly adjustment in response to the prevailing supply and demand situation, and to include other commodities when deemed necessary to stabilize their prices for the benefits of both producers and consumers.