Efficiency through expanded scale of production

The Pingtung Agricultural Biotechnology Park

The Pingtung Agricultural Biotechnology Park (PABP) has a total of 77 firms already moved in, with cumulative investment of NT$7.28 billion, driving annual production value of about NT$380 million. Moreover, the Park has proven to have “industrial cluster” effects, as value chains have taken shape involving upstream, downstream, and peripheral producers both in the PABP and outside of it.

The COA has chosen to promote “ornamental fish” as one core industry in the PABP, and, to this end, built the “YAITAI Operational Center for Aquaculture” in the Park. Work on the Center was completed in September of 2013, and so far 10 firms (all in fields related to ornamental fish) have received approval to move in. The Center also brings together several government agencies, including the Customs Administration, the Bureau of Animal and Plant Health Inspection and Quarantine, and the Animal Health Research Institute, to provide comprehensive services to firms including (i) research and development, marine-animal feeding and care, (iii) product concentration, (iv) packaging, (v) health inspection and quarantine, (vi) customs clearance, (vii) warehousing, and (viii) shipping and transport.

The PABP also boasts an “Ornamental Marine Life International Transshipment Center,” set up in the PABP’s “warehousing and logistics zone,” that provides firms with rapid customs clearance services. This creates the foundation for Taiwan to become a major center for international transshipment and export of ornamental marine life, and will also drive demand for peripheral industries (such as aquariums, life support systems, feed, and fish pharmaceuticals), resulting in expanded economies of scale and greater efficiency in the entire industry.

The Taiwan Orchid Plantation

The COA has been funding the government of Tainan City to construct the “Taiwan Orchid Plantation” (TOP). Basic infrastructure is now complete in the entire 175 hectares of the Plantation. Thus far 72 firms have signed contracts to move into the TOP, and 96% of land available for rent has been rented out. Total investment thus far is NT$7.23 billion. Already 54 firms have operations and production under way, with operating revenues totaling NT$6.84 billion. Most of the investing firms are domestic orchid growers, but the Plantation has also attracted two firms from Japan, one from the US, and one materials supplier. The materials supplier will be able to provide needed goods on a collective basis to firms in the TOP, thereby reducing their production costs.

Production-and-marketing groups and special agricultural zones

Agricultural land in Taiwan is fragmented. In order to raise efficiency in use of farmland, the COA has adopted a strategy of creating “agricultural special zones” to produce designated core products. With the special zone as a platform, we are able to create standard operating procedures for integrated water management and coordinated pest management and control, and also to concentrate the COA’s limited resources available for attracting young people into farming and for providing expert advice and guidance. The result is production bases that boast high levels of safety and quality.

Key data for categories of “agricultural special zones” or “group production areas” for the year 2013 is as follows: (a) Vegetables: 9 locations totaling 5000 hectares; export volume of 52,000 metric tons with export value of NT$2.459 billion (an increase of 2.8% over 2012). (b) Flowers: 16 locations totaling 406 hectares; export volume of over 24.5 million stems (bulbs) with export value of NT$440 million (an increase of 2.2% over 2012). (c) Fruit: 26 locations totaling 1034 hectares. (d) Tea: 25 locations totaling 450 hectares. (e) Rice: 34 locations totaling 15,103 hectares; 79,471 metric tons of unhusked rice provided for public procurement. With respect to rice, we also invited scholars and experts, agricultural research stations, and local governments to evaluate all 34 special rice-growing zones, and to select five “premium” rice production-and-marketing zones and five “superior” rice production-and-marketing zones.

Creating a superior environment for aquaculture

The COA aims to ensure that the aquaculture industry can develop sustainably. A major problem is that many aquaculture operators draw groundwater for their ponds, leading to land subsidence, creating the risk of catastrophic flooding during heavy rains or periods of elevated river levels. Thus the COA, working hand in hand with other interested ministries, works to pro-actively guide aquaculture operators to switch to seawater aquaculture. We are building comprehensive systems for supply of seawater to aquaculture special zones, systems that will bring in clean, pollution-free seawater. By providing a positive seawater environment for aquaculture, we can ensure that citizens get premium quality seafood, an important source of protein.

The COA also promotes water recycling-and-reuse technology, and we teach aquaculture operators about the effectiveness and benefits of using water recycling equipment. This approach can also help reduce demand for water in the aquaculture industry and thereby reduce reliance on groundwater.

In 2013, the COA: (a) continued infrastructure projects nationwide to construct water supply and drainage channels and accompanying service roads for inland and coastal aquaculture zones; (b) built complete seawater supply systems, increased the area served by seawater, and steadily added water supply and drainage channels in major aquaculture zones, including three in Pingtung County (Linbian, Jiadong, and Fangliao), two each in Kaohsiung (Yong’an and Mituo) and Yilan (Jiaoxi and Toucheng), and one in Yunlin County (Kouhu); (c) provided expert advice to operators in aquaculture zones on switching over to seawater aquaculture.

Building a high-efficiency production-and-marketing model for animal husbandry

The COA guides animal husbandry farms to strengthen management and upgrade facilities and equipment. In 2013:

(1) We promoted the use of high-efficiency poultry production systems, building negative-pressure or completely enclosed environmentally-controlled poultry houses at five locations and installing two sets of egg-collecting equipment for floor-reared egg-producing ducks. We also promoted use of a comprehensive standard operating system for the poultry industry.

(2) We guided slaughterhouses and butchers to install improved chopping, processing, freezing, and storage equipment at 13 locations. We also created sales channels for traditionally-raised chickens and water fowl that have been butchered and processed using new methods. Processors produce ready-to-eat individual packages of prepared foods, thereby raising the competitiveness of this industry.

(3) Through information platforms that introduce new techniques and technologies to the livestock industry, and also through consulting teams, we provide livestock ranchers with education and training to increase their expertise and professionalism. In 2013 over 95% of livestock production- and-marketing groups participated in education and training, helping spread modern production methods through the entire industry.

Innovating industries with unique characteristics

Tea for health and fashion

Taiwan is a leading producer of high-quality teas, meeting the highest standards of hyginene and safety. Taiwan has extensive tea plantations (primary industry), processes ready-to-use tea (secondary industry), and also has a highly sophisticated and advanced tertiary industry for tea- based products. Our role at the COA is to continue to build brand-name image for Taiwan teas. We are especially aiming to promote concepts of tea culture (the “tea arts” or “way of tea”) among the public, to train “seed teachers” for tea culture in daily life, to set roots among younger-generation learners, to incorporate the latest in creative design and aesthestic values, and to develop a unique tea-drinking culture that is seen as up-to-date and fashionable.

Wines, liqueurs, and spirits

As part of the COA’s larger strategy to diversify the rural economy, we have assisted 23 farmers’ organizations to establish wineries and/or distilleries. In 2013 total production was 184,000 liters, with production value of NT$172 million. The highest-quality items were selected for participation in specialized international competitions, winning one gold medal and three silvers. The COA also conducted its own evaluations and gradings, grading 12 wineries/ distilleries as “outstanding” and giving prizes to 18 specific wines, liqueurs, or spirits.

Boutique forestry products

The COA has developed seven boutique applications of, or products processed from, bamboo, including: (a) bamboo fiber air filters, (b) freshness-preserving paper made with bamboo charcoal, (c) bamboo charcoal cat litter, (d) bamboo-vinegar ant repellent, (e) bamboo-vinegar green biological agent, (f) bamboo-strip boards for health uses. We have organized two industrial clusters—one for the “Taiwan Charcoal Industry” and one for the “Bamboo Building Materials Industry”—with a total of 29 firms, with the goal of building industrial value chains and expand marketing and sales.

Synergy between rural rejuvenation and local industries

Training and encouraging rural residents to engage actively in their communities

The COA has long had a policy in place to revitalize rural communities. To this end we have: (1) trained specialized manpower in rural communities nationwide, (2) worked to bring rural dwellers into more informed awareness of the natural resources and cultural attributes unique to their communities (both of which can become centerpieces of local pride and new economic opportunities), (3) endeavored to inspire enthusiasm, “constructive dreaming,” and hands-on action among residents for revitalizing their communities, and (4) encouraged residents to devise their own concrete plans for diversified and innovative development. Training has been offered in 2,149 communities (51% of all rural communities), to 138,002 persons. In 2013 we completed Phase 4 of grass-roots education and training, reaching a total of 474 communities. Citizens in 360 locales have taken the initiative to devise their own proposals for community rejuvenation.

Improving environmental quality in rural communities

The COA has worked continually to improve the overall environment and quality of life in rural communities. Our projects take into account the software and hardware development needs of different types of rural communities in their rejuvenation efforts. The COA is pro-active about improving rural infrastructure and the overall environment, creating safe and comfortable living spaces and allowing residents of rural communities to live and work with security and a sense of well-being. As of the end of 2013, we assisted a total of 1,260 rural communities to undertake improvement of infrastructure and conditions for production; improvements in the convenience and quality of life; and renovation of disused and unattractive spaces.

Implementing cross-disciplinary cooperative mechanisms

A core goal in the COA’s rural diversification plans is to integrate typically rural industries (farming, fishing) with other industries (e.g. eco-tourism, gift products) in a cross-disciplinary fashion. In 2013 we completed drawing up the “implementing mechanism” for demonstration projects in “cross-disciplinary cooperation that brings together rural rejuvenation with development of local industries.” This mechanism brings together all major actors: (a) relevant ministries and agencies, (b) local governments, (c) farmers’ and fishermen’s associations, (d) community organizations, and (e) the private sector. Communities are assessed for their local industries, cultural assets, ecological/natural assets and needs, and overall environment, and scattered policy resources are then brought to bear in an organized and unified way to produce a “multiplier effect.” The goal is for these projects to stimulate local economies, raise local incomes, make rural areas more attractive places for young people to live and work. In 2013 we chose 25 communties for priority launch of cross-disciplinary demonstration projects.

Attracting young people into farming

Individualized guidance of selected young farmers

As Taiwan’s farmers age, it is essential to make farming more attractive to young people, few of whom have any concrete farming experience. One way to help them is training and guidance in starting up their businesses. In 2013 we chose 100 young farmers (average age 33) for a two-year, one-on-one tutorial program. The program will (a) teach them operational and professional knowledge; (b) assist them to aquire land, capital, and equipment; and (c) help them with design and marketing of their products. The goal is to achieve sustainable long-term operations and creative value-added.

In 2013, this program resulted in 11 special-case loans; 250 man-times of participation in the Farmers Academy and other training; help with product design and creating a “brand story” in 68 cases; R&D on processing methods for 38 items; technical services 505 times; personal guidance 1,226 times; and assistance to 63 individuals in finding 115 sales outlets for their products. The program also created opportunities for 66 full-time and 158 part-time hires, led to new purchases or leasing of 97.4 hectares of land, and increased substitute cultivation by 384 hectares.

The COA also led the way in getting 14 local governments (municipalities, cities, counties) to begin creating databanks of their young farmers, in order to understand the situation of young farmers in each locality. So far 2014 persons have been surveyed. A platform for exchange between young farmers is also in place, and at present there are over 600 participants, with an average age of 35. The COA has also organized educational visits by young farmers to other farms as well as consultations with successful nearby farmers, to create an environment in which young farmers can communicate with and assist one another.

Education and training through the Farmers Academy

The Farmers Academy is a platform for systematic education and training in the latest agricultural knowledge and skills. In 2013 the Academy offered classes at four levels: introductory (36 courses/1,099 attendees), primary (13/382), advanced (84/2,398), and high (8/211), for a total of 141 courses with 4,090 attendees. The average age of attendees was 41.7, and 65% were university or technical college graduates. The Academy also (a) signed contracts with 100 farms to accept interns, (b) held courses for operators of these farms, on six occasions involving 142 persons, to set up on-site training programs for the interns, and (c) introduced 111 interns to these farms, of whom 53 have completed their internships.

Other programs offered by the Farmers Academy included: (1) three seminars, involving 284 attendees, on the theme “value innovation”; (2) collective employee recruitment for farms through upgraded functions of the Academy’s online services (97 openings were listed, and 133 introductions were made); (3) a program to match sellers looking for new products with producers looking for new sales outlets (a total of 115 sellers and 391 products are listed); (4) production of two sets of digital teaching materials on safe use of pesticides and appropriate use of fertilizers, with 98 online classes; (5) ten events for Farmers Academy students to return to their family homes, as well as other efforts to enhance mutual exchanges of ideas and experiences between farmers.

Continuing the Small Landlords, Big Tenants Farmer program

In 2013, the land available for rent in Taiwan included all of the land from the base period 1994- 2003. The COA continued to implement policies to guide and reward Big Tenants, including: (a) a subsidy of NT$10,000 per hectare for BTFs to rent continously fallow land (baseline 2011) and bring it back under cultivation; (b) an incentive of NT$10,000 per hectare for BTFs to cultivate new (contract) crops; (c) subsidies to purchase farming machinery, equipment, and facilities; (d) low-interest loans (one percent) for operating capital, with interest-free loans for money specifically to rent land; and (e) case-by-case natural-disaster relief funds.

The COA also rewards elderly farmers (qualifications: age 65 or over, five years seniority in farmers’ health insurance) for renting their land to BTFs. The COA provides a subsidy of NT$2,000 per month per hectare to these elderly farmers, to a maximum of three hectares (i.e. NT$72,000 per year).

As of the end of 2013, the “Small Landlords, Big Tenants” program covered 13,187 hectares of land, with 25,724 landlords and 1,578 BTFs. Importantly, the average age of the BTFs is only 44, far lower than the figure of 62 for all farmers nationwide, showing that the policy is helping rejuvenate the farm labor structure. Also, BTFs manage on average 8.4 hectares of land (including their own land plus rented land), 7.6 times the area of the average farm nationwide (1.1 hectares).