(1) International agricultural development trends

　In recent years, the rapid development of international trade organizations has deeply affected the world economy. Of these groups, the World Trade Organization (WTO) had made significant advances in trade liberalization, especially for agricultural products. Increasing economic globalization allows goods, capital, and technology to easily cross national boundaries. Each country must prepare itself to handle this phenomenon, which has the potential to significantly influence the development of each nation’s agricultural sector.

　As developing nations’ economies expand and populations increase, so does the global demand for foodstuffs, heightening the importance of food security. With the increased population and the development of these countries’ commercial and industrial sectors, the expected demand for food will continue to increase by large margins. At the same time, the diversion of farmland and agricultural water resources to other uses, global warming, climate change, and environmental protection advocacy lead to uncertainties regarding food production and put added emphasis on the need to maintain food security.

　In the 2009–10 planting season, the total world-wide coarse grain produced was 3 million metric tons less than the 2008–09 season, mainly due to less than ideal crop yields in India. In addition, the global production of corn for 2009–10 is expected to be up due to increases in preliminary estimates of Ukrainian corn production. Over the same period, wheat production estimates show that global production could reach 674 million metric tons, a decrease of about 8 million metric tons over the previous season. In the 2009–10 season, global rice production estimates are 434 million metric tons, a decrease of about 2.7% over 2008–09.

(2) Domestic agricultural development trends

　Overall agricultural production in 2009 was severely affected by Typhoon Morakot and unstable temperatures, which led to decreased farming and livestock production. Fish farms, buffeted by heavy rains, also faced losses. Deep-sea squid and mackerel pike catches were down, and tuna production was affected by environmental protection and quota restrictions. In 2009, the value of agricultural products totaled an estimated NT$391.7 billion, a decrease of 5.76% over the previous year. Farming products made up 45.38% of this amount, livestock 33.76%, fishery products 20.73%, and forestry products rounded out the total at 0.13%.

　In 2009, agricultural imports were valued at US$10.046 billion, a year-on-year decrease of 17.12%. Major imported goods included cereals and their secondary products, Chinese herbal medicines, and lumber and its secondary products. Agricultural exports totaled US$3.207 billion, representing a decrease of 16.67% over 2008. Exports were mainly made up of fish and leather along with both their secondary products. Average wholesale prices of farming, forestry, fishery, and livestock products were 6.7% lower in 2009 than the previous year. This decrease was due in most part to the higher costs of imported raw materials in 2008, which moved lower in 2009. The prices for agricultural crops decreased by 13.65% in 2009, while forestry product prices were down 10.79%, livestock and poultry prices decreased by 2.73%, and fishery products saw a 3.2% price increase.