Quality Agriculture Development Program By Council of Agriculture

Quality Agriculture Development Program By Council of Agriculture Republic of China (Taiwan) May 7, 2009

Outline 1. A Diversified Agriculture 2. Program Themes and Visions Ä Healthful Agriculture Ä Excellent Agriculture Ä LOHAS Agriculture 3. Budget Estimate 4. Projected Benefit

A Diversified Agriculture PCovering both local Though low in production farmers’ markets and value, the new agriculture world-class orchid export can have the strong effect of: industry. － fighting business cycles. PCovering both products for the general public and － adding value domestically. high-value trendy products. The new agriculture is not just a primary industry, but PCovering both traditional also a green and service culture and agrotourism. industry. 1

Themes and Visions of Quality Agriculture Healthful Agriculture Excellent Agriculture Strengthening quality certification to make Taiwan a toxic-free island Advancing R&D to make Taiwan an island of excellent agricultural technology LOHAS Agriculture Rejuvenating rural life to make Taiwan a LOHAS island Three Themes Three Visions Enhancing quality of life Rejuvenating rural communities Developing new markets Developing quality products and upgrading services Pushing a chain reaction of improvement 2

New agricultural technology New agricultural management Molecular markerassisted selection High-performance and high bio-safety bioreactors Direct-fed microbials and probiotics Development of biopesticides and biofertilizers Development of vaccines and disease screening technology New markets Enlarging farming scale through the small landlord-turned large tenant program Using creative culture and tourism to develop agrotourism Promoting agricultural upgrading with the aid of branding Integrating all R&D resources Establishing a system whereby orders are placed in Taiwan and products delivered in mainland China Promoting distance marketing and service by using information technology Healthful products for senior citizens Products for weddings and high-income people Products for festivals and as gifts Products for highincome districts in mainland China and foreign targeted markets. strategies of implementation Quality Agriculture Rural Renewal Coastal Revival Information Technology and Favorable Environment Support Measures Diversified Ecology and Culture 60, 000 ha. Afforestation Program High Quality of R&D Human Resources 3

Theme I --- Healthful Agriculture Toxic-free agriculture island Organic farming GAP Establishing specialized production areas to benefit from the clustering effect Product traceability system CAS products Strengthening product certification and quality inspection Promoting marketing channels for safe products 4

Theme I Healthful Agriculture In 2008 Taiwan had about 820, 000 ha. in arable land, of which 25, 000 ha. or 3% of the total produced GAP, organic, and traceable products. By 2012 such products will come from 50, 000 ha. , or 6% of the total farm land. 5

Theme I Areas for organic products and percentages of the total arable land in main countries in 2007 In 2007 the world had 30, 550, 000 ha. planted in organic products, which was a 289% increase over 2000. Nearby countries, such as Japan and South Korea, also strive to develop organic farming. 0. 61% 2012 6

Theme I Healthful Agriculture Organic farming The objective is for Taiwan to achieve toxic-free status. By 2012 organic products acreage will be doubled to 5, 000 ha. with a total value of NT$ 3 billion. GAP (Good Agricultural Practice) GAP is the basis of toxic-free agriculture. By 2012 the acreage for GAP fruit and vegetables will reach 30, 000 ha. with a production value of NT$ 12. 6 billion. Good products with CAS label This labeling system ensures the safety of processed products. By 2012 the CAS-marked products will reach a value of NT$ 53 billion. TAP traceability system This system is to ensure compliance with international safety standards. By 2012 the value of products certified under this system will reach NT$ 5. 4 billion. 7

Healthful Agriculture—Important Measures New technology development Develop non-chemical production requisites Develop environmentally controlled and highly efficient production systems New management model Establish specialized production areas for organic products Establish farm products distribution centers New market development Establish diversified marketing channels Develop markets catering to special groups of people Develop non-chemical Set up specialized disease prevention and production areas on farms control technology, owned by Taiwan Sugar materials, and fertilizers Company or Veteran Develop environmentally Affairs Council or large controlled green-energy areas of fallow land Distribution centers and highly efficient production systems will integrate combined with remote processing, sensing, energy-efficient distribution and related and automation operations to improve technology efficiency and branding Assist the development of local farmers’ markets, corporate purchases and e-commerce Develop outlets for fresh food at convenience stores and markets for family meals Assist religious and volunteer groups to produce organic products Select a day for promoting organic products to strengthen consumer awareness 8

Theme II --- Excellent Agriculture Comparative advantages of Taiwan’s agricultural technology development Geographical location Taiwan leads the world in tissue culture technology for propagating ex-vitro orchid plantlets Taiwan has developed technology for artificially propagating six out of seven grouper varieties that can be thus propagated IPRs for plant varieties have been established The EU, Japan, the U. S. A. and Australia have recognized Taiwan’s right to apply for plant variety rights protection The EU and Taiwan have agreed to mutually accept DUS test reports Taiwan ranks 12 th in agricultural technology development in the world Taiwan owns the most orchid varieties in the world Taiwan has won many awards for developing new ornamental fish varieties The easing of tensions between mainland China and Taiwan will help the sale of quality agricultural products in mainland China 9

Theme II Excellent Agriculture Taiwan’s agricultural technology has achieved remarkable advances over the years. Biotechnology, orchids, groupers, ornamental fish, seeds and seedlings, and breeding animals posted a combined production value of NT$ 21 billion in 2008. The value will reach NT$ 34. 3 billon in 2012. The production value of biotechnology, orchids, groupers, and ornamental fish will double by 2012. Taiwan orchids are highly competitive in the world market because of their seemingly endless new varieties. 10

Theme II Excellent Agriculture Agricultural biotechnology The production value of agricultural biotechnology in the world reached USD 41. 1 billion in 2008, which is expected to rise to USD 63 billion in 2013. In 2007 Taiwan’s agricultural biotechnology had a production value of NT$ 3. 5 billion, which amounted to 15. 4% of the total value of new technologies. Ping-tung Agricultural Biotechnology Park now has given approval to 67 companies for operation in the Park and twenty have set up shop there, with a total investment of NT$ 3. 67 billion. Taiwan’s florescent ornamental fish were selected by Time magazine as one of the 40 best inventions in 2003. 11

Theme II Excellent Agriculture Orchids The total orchid acreage was 579 ha. in 2008, with a total production value of NT$ 2. 65 billion. Over 70% of the products are exported. 12

Taiwan leads the world in artificial propagation for groupers Every year Taiwan produces 17, 234 MT of groupers by artificial propagation. The production is 25% of the world total; its value reaches NT$ 3. 8 billion, or 58% of the world value. 13

Theme II Excellent Agriculture Seedlings and breeding animals Such industries look promising if Taiwan can possess the key technology. In 2008 seedlings had a production value of NT$ 8. 1 billion, of which NT$ 1. 1 billon was exported. Breeding livestock and poultry were valued at NT$ 2. 4 billion. Ornamental fish Taiwan enjoys the advantages of quality and technology. Currently, the world trade in ornamental fish is valued at USD 5. 8 billion (the total value would be USD 14 billion if the peripheral products were included). In 2008 Taiwan produced NT$ 2 billion in such fish. The favorable climate and superior technology have made southern Taiwan an ideal area for breeding ornamental fish. Taiwan has won first prizes for bee shrimp and angel fish. 14

Excellent Agriculture: important measures I New technology research and development Using insects and animals as bioreactors Using artificial propagation to shorten the time for breeding new animal breeds Using molecular marker and breeding technology to build a national genetic selection system for native chickens Using molecular biology to understand animal life Establishing Taiwan as a seedling research and distribution center for the Asia-Pacific region 15

Excellent Agriculture: important measures II Maximizing Benefit from Agricultural IPRs Strengthen the management of R&D results and build a favorable climate for cooperation between industry and academe, coupled with requisite measures. Establish a special office of agricultural technology industry to promote agricultural IPRs and make the best of them. Hold training in IPR protection and conduct analyses and inventories of R&D benefits and patents deployment. 16

Excellent Agriculture: important measures III Establish a research institute for agricultural science and technology The new institution will be in Chung-hsing New Village, which is being developed as a science and research park. It will integrate all research resources. Establish three new incubation centers at the following institutes: ðLlivestock Research Institute ð Agricultural Research Institute ð Fishery Research Institute Establish five commercialization platforms for: New Management Model Crops Fish fry Breeding animals Safe agriculture Molecular farming Establish six GM and safety evaluation facilities. GM crops, GM animals, vaccines 17

Excellent Agriculture: important measures IV Develop markets for cosmetic, anti-aging and health-nourishing agricultural biotechnology products Establish the first integrated matching platform for agricultural technology transfer website New Market Development Expand exports to Singapore, mainland China and other emerging markets Grant overseas franchises for new varieties to promote branding in the world market Sponsor or participate in international shows and schedule trade consultations to secure business opportunities 18

Theme III --- LOHAS Agriculture Develop in-depth agrotourism Exquisite agricultural products - Forest recreation - Sport fishing and whale viewing - Recreation in rural areas - Finest tea - Farm-brewed wine - High-quality rice - Fine bamboo products - Choice fishery products - Safe and quality livestock products Goals for 2012: More than 30 million visitors Market value will be doubled to about NT$ 19. 9 billion Accumulated employment will reach 24, 000 persons Goals for 2012: Production value: NT$ 12. 3 billion Increased employment: 4, 500 persons 19

Theme III LOHAS Agriculture --- Status of in-depth agrotourism Totally there are 63 agrotourism areas and 177 certified agrotourism farms. In 2008 the market value created by agrotourism was 7. 4 billion, and the total of visitors was 9. 59 million, of which 63, 739 were from abroad. There are 18 forest recreational areas and 8 nature education centers and hiking systems. In 2008 the market value was NT$ 3. 3 billion, and the number of visitors 4. 8 million in total. Fishing ports total 77, accommodating a total of 266 recreational or sport fishing boats, which carry a total of 1. 2 million visitors a year for whale watching or sport fishing. The Fishermen’s Wharf in Damshui has over one million visitors annually. 20

LOHAS Agriculture: important measures I Promoting 4 demonstrational agrotourism areas Establishing agrotourism certification and service certification Establish 3 flatland forest recreational areas of over 1, 000 ha. each They will serve as energy-saving, carbonreducing ecoeducational centers New Management Model of In-depth Agrotourism Establish a dynamic and user-friendly global information platform using modern information technology Revitalize and beautify 310 rural communities Establish 4 yacht berthing areas and 2 recreational fishing harbors 21

主軸 3 Tashan Hiking Trail New view of Chisong agrotourism area LOHAS Agriculture: important measures I 22

LOHAS Agriculture: important measures II Develop theme itineraries catering to different groups of travelers For health For parents and children Develop new markets for in-depth agrotourism Trips for promoting health, inside forest, on bike DIY farming, whale viewing and ecosystem experiencing Learning and experiencing Off-school teaching, agri-business experiencing, and farm stays Cuisine trips 2 meals and one night stay to enjoy delicious meals and culture Relaxation and healing Herbal and flower healing Number of foreign visitors will double by 2012 Attract group visitors from Japan, South Korea, Malaysia and mainland China and backpack travelers from Singapore, Hong Kong , U. S. A. and Europe Promote airport to farm travel plans 23

n Building house with straw and bamboo at Neimen, Kaohsiung 24

Before the flower festival starts, people in Hwa-Tung Valley set to work painting a tinplate-and-steel house n The most beautiful tinplate-and-steel building by the highway in Hwa-Tung Valley n Art students from National Taitung University lend a helping hand 25

Each rural community needs its peculiar features and beauties 26

LOHAS Agriculture --- Exquisite agricultural products Finest tea: The yearly production is 17, 000 M. T. , of which 900 M. T. carries origin and traceability certificates with a total value of NT$900 million. Farm-brewed wine: 23 wineries produce 200 thousand liters, worth NT$ 100 million. High-quality rice: Taiwan's annual brown rice production is 1, 170 M. T. , of which 962, 000 M. T. is good quality rice. The best quality rice is about 2, 500 M. T. valued at NT$400 million. Fine bamboo products: The traditional bamboo industry has an annual production value of about NT$ 10 million. New bamboo commodities including bamboo charcoal products, bamboo articles and other fine products fetch over NT$ 2 billion a year. Choice fishery products: The total value of 11 fishery products including tuna frozen at ultra-low temperature, clam essence, mullet roe, and cobia reaches NT$ 880 million a year. þ Safe and quality livestock products: High-quality products such as chicken essence, black-boned chicken gelatin, ham and gelatinized eggs post a production 27 value of about NT$2. 9 billion annually.

LOHAS Agriculture --- Major measures for promoting exquisite agricultural products New technology development Develop preservation at room temperature and freezing technology to prolong shelf life Integrate traditional, winemaking method with biotechnology to manufacture fine wine commercially þ Develop core technology for producing fine bamboo products for use in industries such as semi-conductor, medicine or energy New management model Expand labeling products with origin and traceability certificates to diversify marketing channels Assist producers and manufacturers to build common brands as well as help farmers’ organizations, food processors and marketers to form strategical alliances Promote food quality accreditation in order to link up with ISO þ For the convenience of mainland China tourists, promote an “order in Taiwan and take delivery in China” scheme 28

LOHAS Agriculture --- New Market Development Integrate local industrial culture, rural beauty, agrotourism and e-commerce to promote exquisite agricultural products To meet the needs of agrotourism and consumers, develop gift products with local characteristics The plum factory of Hsin-yi farmers’ association sells beautifully packaged plum products. Plums are purchased from farmers, processed by the association, and sold to consumers at reasonable prices. 29

Tea-drinking art includes tea-making, teaware, tea literature as well as tea manufacturing. It is part of Taiwan culture. 30

Develop fine products for such occasions as weddings, birthday parties and baby showers in addition to being used as gifts for various purposes. 31

Combined with local legend and other associations, wines can become local symbols and instant successes. The millet wine produced by Hsinyi farmers’ association gets highly popular with the launch of a very successful movie called “Cape No. 7”. 32

Budget Estimate Hundreds of million NT$ Year Industry 2009 2010 2011 2012 Total Healthful agriculture* Excellent agriculture 6. 47 8. 33 9. 76 9. 86 34. 41 7. 16 14. 47 23. 67 17. 11 62. 40 LOHAS agriculture 20. 20 33. 51 48. 53 43. 26 145. 49 Total 33. 82 56. 31 81. 95 70. 22 242. 30 *The budget for healthful agriculture mainly used in building rural infrastructure and regulating production and marketing operations. 33

Projected Benefit By 2012 the quality agricultural program is projected to have a total production value of NT$ 140. 5 billion. The industries which will have their values doubled by 2012 include: Organic farming, Farm products with traceability labels, Agricultural biotechnology products, Orchids, Groupers, GAP products, Ornamental fish, Agrotourism, Exquisite farm products. By 2012 the accumulated employment under this program will be 53, 000 persons. 34

The Quality Agriculture Program Will Create a High Quality of Life Agriculture is not just an economic industry; it also creates such noneconomic external effects as contribution to both physical and mental health, help in social stability, and increase in green national income. Such effects have a value far beyond the GDP calculated traditionally. Tree planting, reborn coastal areas, and rural renewal all help revive the agricultural sector and promote agrotourism. Most important of all, this program will leave future generations with ecological beauties and pleasant living space. Besides economic benefit, the quality agriculture program will contribute to: Safer food products. A greener environment. A more attractive local culture. More creative technology. Less pollution. Better quality of life. 35

The quality agriculture program will make Taiwan agriculture: A healthful industry in the interests of all the people. An excellent industry with cutting-edge science and technology. A LOHAS agriculture that provides a comfortable and happy life. 36

–The End–