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Council of Agriculture Fiscal 2012 year-end press conference Achievements and Prospects
Minister: Bao-ji Chen 陳保基
January 29, 2013
1. Opportunities and Challenges
2. 2012 Fiscal Year Achievements
3. 2013 Fiscal Year Policy Priorities
1) to adjust agricultural policies in response to the liberalization of economic and trade
2) to construct agricultural cloud
3) to adjust land farming system as well as to reactivate the idle farmland to involve in Agriculture production
4) to expedite new “gold corridor” agric ultural programs
5) to nurture young potential agricultural operators
1. Opportunities and Challenges
- Highly liberalized trade , accelerating climate change , food crisis and environmental resource contention .
- Smallholder farming patterns lack sufficient economic benefit.
- Most of the agricultural budget used for statutory benefits and subsidies ( such as farmers' subsidy , administrative food policy and fallow and subsidy , fertilizer subsidy etc., )
- Taiwan's agricultural products and technology should not be limited to the domestic market; it s hould be replaced with an active , innovative strategy to strengthen Taiwan's agricultural brands and sell to the international markets.
- To innovate and extend the value chain , expand the traditional way of thinking , to seek cross-border cooperation and value-added services and open up new business opportunities.
- To replace the previous welfare policy with counseling and additional advanced technology , to develop an efficient energy-saving and environmentally-friendly business model , assisting a new generation of agricultural operators to work together to create new agriculture value .
To build a good agricultural environment with a dynamic, highly competitive industry and a stable income to farmers.
- Dynamic LOHAS agriculture which is highly competitive with stable income as well as encouraging the participation of the younger generation.
- To promote Rural Regeneration Program ; to highlight ecological aspects, landscape aesthetics , and cultural considerations when developing a new look for the countryside.
- To develop the m ultifunctional roles of agriculture , activate fallow land , improve agricultural water use efficiency and support the sustainable agriculture.
- To enhance competitiveness: to construct an agricultural cloud to cooperate across fields and construct a value chain; to develop a highly efficient, energy-saving industry; to disseminate agricultural products and technology all over the world.
- To adjust the structure of agriculture: project to cultivate new generations of agricultural operators; to promote small landowners and large tenants and encourage re-use of fallow land; to revitalize farming villages through cooperation with industry.
- To ensure food safety: to construct food security mechanisms; to transform traditional agriculture by agro-optimization methods; to improve usage of the traceability system for agricultural products; to strengthen effectiveness of animal and plant epidemic prevention.
- To cultivate agricultural resources: to adjust the system of cultivating farms; agricultural land resources survey as well as adjustment of agricultural land management; to promote energy-saving as well as water-saving industry; to conserve forest and fishery resources.
- To take care of farmers’ benefits: farmers allowance and benefits; to promote agricultural insurance; to strengthen the operation of farmers’ organizations and the function of serving people.
2. 2012 Fiscal Year Achievements
- In 2012, agricultural exports reached US$ 5.08 billion , representing an increase of 8.8% over the previous year . As an integral part of this total, the export of groupers grew by 36 percent and the export of orchids increased 15.9%.
- In 2012, Taiwan's agricultural exports to China reached US $ 790 million , an increase of 17.7% , of which the ECFA early harvest (the early list of product tariff reduction) of 18 categories of agricultural product exports amounted to US $ 160 million, an increase of 28.5% . The deficit of agricultural trade between Taiwan and China fell to US $ 38 million .
- Through a cooperative arrangement with Vietnam, in January of 2013, 55 excellent quality breeding pigs were exported to Vietnam; this once again shows a turning point for our breeding pigs to play a key role in Southeast Asian markets .
- The output of total agricultural products was $ 134.5 billion , an increase of 8.5% ; creating 18,239 jobs , and promoting private investment of $ 2.89 billion dollars.
- There were 213,857 foreign tourists coming to Taiwan for agri-tourism , an increase of 28%.
- Organic group meal supply via farmers' markets and other channels supplied 104 schools; 50,000 students received one meal weekly of nutritious organic vegetable lunch in New Taipei City ; in 2013, the goal will be expanded to 284 schools and 360,000 students .
- There was an increase in publicity of the traceability system; traceability label s reached 1.13 million per month , growing by 48% in 2012.
Promote Domestic Beef Production Traceability System
- Completion of 21 briefings about beef origin labeling; as well as visits to 272 domestic beef selling spots in Taiwan to implement the policies of labeling beef sources.
- Hanging 26,000 cattle ear tags , building up a complete information list on more than 30,000 cattle. More importantly. Since November 1, 2012, providing a domestic beef traceability information system to consumers to know cattle slaughter date, farms, slaughterhouses and other relevant information as needed.
Promote Domestic Down Brand Marketing, Extending the Value Chain
Strengthen the Use of Agricultural R & D
In 2012, obtained 50 intellectual property rights and contributed to 111 technology transfer cases , which led to commercialization of agricultural technology . Signed a cooperation agreement in four cases; this is expected to bring in license fees of $32 million with the amount of investments nearly $ 100 million.
Development of the ornamental fish industry
Taiwan Flowers won many international awards
Aogu Wetlands and Forest Park
3.2013 Fiscal Year Policy Priorities
1) To adjust agricultural policies in response to liberalization of world economic and trade
2) To construct agricultural cloud
3) To adjust land farming system as well as to reactivate the idle farmland to involve in agriculture operation
4) To expedite new “gold corridor” agricultural programs
5) To nurture young potential agricultural operators
1)To adjust agricultural policies in response to liberalization of world economy and trade
- Nearly 540 FTA / RTA agreements signed and notice given to the WTO by the end of 2012 ; of which more than 350 agreements have become effective.
- Actively negotiating free trade agreements with our trade competitors , our President has repeatedly expressed our will to join the " Trans-Pacific Partnership Agreement (TPP) " .
- Agricultural sectors will accelerate the pace of adjustments in the economic structure, in order to be more proactive in dealing with the challenges of economic and trade liberalization .
- During the negotiation process for sensitive products, we will seek to adapt flexibility needed to protect domestic industry.
Strategic Thinking : the " new agricultural value chain " instead of " production agriculture”
Adjustment Countermeasures for A gricultural resources
- To adjust cultivation system, reactivate the fallow land .
- To reinforce water-saving agricultural information and technology, to develop irrigation functions on production, ecology and life, as well as the capability to avoid disaster.
- To utilize and manage agricultural land resources with flexibility, as well as to consider resource utilization’s economic efficiency.
- To strengthen marine fisheries, forestry resources management and conservation.
Welfare and Subsidies Adjustment Measures
- To establish a sound system of agricultural survey statistics and planning system as the basis for the standard method of payment to the target subsidies. To establish farmers’ smart cards, to improve management efficiency.
- To establish an export product relief fund, to adjust agricultural structure, and to activate relief measures for import product damages.
- To plan to establish farmers' income support scheme.
Innovative tea industry value chain
Building healthy and fashionable tea industry
- Market research: new emerging markets, young groups
- Research: new varieties, new technology, energy-saving tea-making equipment.
- Secure production and value added: excellent secure production, business cooperation (by contracts), export processing zones, production bases abroad.
- Build brands and international marketing: feature tea classification evaluation; origin and safety labeling; consumer communication; domestic and international marketing and promotion
- Industry association: art of tea, tea culture; cross-industry alliance (pearl milk tea, leisure tourism, cultural and creative art (porcelain, art works); healthy meals.
To Establish Value-added Agricultural Product Distribution Centers
Preparation for opening the Institute of Agricultural Science and Technology
To provide agricultural technology , commercialization services for enterprises, farmers groups and farmers; to accelerate the development of new agricultural ventures for internationalization.
To introduce industrial investment of $1 billion in 2014-2017; technology transfer to bring in $180 million; technical services amounting to $100 million; estimated annual output will reach $4 billion once has this program launched.
Cross-border cooperation between industrial sector and Rural Regeneration Program
- Have established a main platform of Rural Regeneration Program, in which to show cross-border cooperation, and six regional platforms in 2012, initially combining 26 industrial units to invest in industry chain integration , to revitalize rural economy and improve farmers’ income and attract young people back to the farm .
- Have established 15 demonstration communities , and plan to expand to 50 communities in 2013.
Use and management of agricultural land with greater flexibility
- With a pragmatic, flexible outlook in response to diversified development, to take overall inventory of agricultural land resources, adjust utilization and management, taking into account of resource inputs and industry requirement.
- To actively and properly maintain high-quality agricultural production areas, will make the integration of resources a priority.
- To correct the concepts of agricultural land and its utilization.
- To study and modify principles of agricultural facilities which are allowed to be used, and agricultural production and marketing-related facilities, in response to the needs of the agricultural sector, which will be based on the principles of deregulation to promote diversified development.
- To clearly establish and define the central and local authority. The responsibility government regulations will be gradually adjusted according to this consensus and provision of appropriate manpower, with enough funding assistance to help to make progress with existing management situation.
2) To construct agricultural cloud
The Construction of an Agricultural Cloud Service
Promote Food Cloud Link Across Government
Establish Farmers’smart card
To establish a smart card , integrating the information of agricultural production, marketing and administrative policies in order to provide farmers with diverse services.
- In the initial trial stage, to apply appropriate oil and fertilizer subsidies, as well as other agricultural subsidies, then gradually include the relevant parts of key policies.
- To plan to use a farm machinery oil IC card to replace paper oil vouchers in the second half of 2013, to simplify farmers’ application procedures, to subsidize the programs.
- To promote a fertilizer IC card which includes crop registration and fertilizer subsidy measures ; in 2013, this will automate the information about farmers’ land, fertilizer purchase with farmer’s smart card.
3) Mid-term plan for a djusting land farming system as well as to repurpose land (2013-2016)
To a djust farming systems, reactivate fallow farmland , expand business scale, increase output and create jobs.
Total 31,000 hectares of farmland which satisfies the requirements of the contract in 1994 to 2003 for rice, insured grain and sugar cane, or rice which are repurpose field in 1994 to1996.
- To adjust the payment for fallow period times which encourages use of the same field area for at least a period of farming, to resume production (initially targeting 50,000 hectares of land)
- To promote the cultivation of import substitution crops and organic crops with products having export potential.
- To strengthen cooperation between central and local government, and to develop regional specialties
- To continue to promote "Small Landlords and Big Tenant-Farmers Program" policy
To improve food self-sufficiency rate by 1.4% to 34.9%; to increase repurposed land in 2016 by about 45,000 hectares, compared to that in 2011; to increase the overall production amount and benefits to $8.8 billion and to create 100,000 jobs and to stimulate the development of related industries.
The establishment a decision-making platform of agricultural irrigation water management
To construct a rolling management mechanism to ensure that policies are implemented effectively
4) To promote new “gold corridor” agricultural programs
To choose land subsidence areas as trial locations, e.g. nearby Yunlin- Changhua Taiwan High Speed Rail, to implement new farming style of saving energy and water
To build energy efficient agriculture:
COA planned to invest $3.1 billion for new “gold corridor” agricultural programs in 2013-2020, covering approximately 3 kilometers along the High Speed Rail area to forge a corridor for saving energy and water.
The establishment of a water-saving agricultural production area , repurposing of agricultural resources use; strengthening the application of water-saving agriculture information and technology; e xpanding the scale of agricultural operations , the introduction of a new generation of farmers; development of agri-tourism industry .
To cut the pumping of ground water by 28,006,700 tons per year, which is about half volume of Hu-shan Reservoir ( 52,001,800 tons) ; to bring in 12,000 visitors annually for agri-tourism.
The Overall Planning of the Gold Corridor Example
- To cultivate new farmers: to promote farmer colleges, small landowners and large tenants, as well as farm loans.
- Introduction of new technologies and facilities: to build controlled environment greenhouse, plant workshop; sophisticated water-saving greenhouses and solar-powered barns.
- To cultivate new industries: to expand the industry value chain; to plan leisure and tourism, to establish farmers' markets and to create a feature agriculture.
- To strengthen cloud services: to promote agricultural cloud platform, including funding, relief, management of cultivation, market trading information, resources, epidemic outbreak alert and education.
To promote modern irrigation techniques and employ high-capacity and efficient energy-saving agricultural equipment at the north end of new Huwei Creek; at the south end, due to lack of ground water, the authority planned to change 2203 acres of rice fields to grow crops such as sorghum, corn, forage, sugar cane and soybeans.
5) To nurture young potential agricultural operators
- Preparation (to reinforce Professional Practical Training)
- Operation (to help to obtain farmland and low-interest loans)
- Stabilize Operation (providing training and counseling services and rewarding distinguished operators)
- To use "new value agricultural chain” to replace traditional, passive methodology in response to the challenges of world trade liberalization; to construct active, young and highly competitive LOHAS agriculture.
- To innovate value chain through cross-border cooperation, to create Taiwan’s brand and encourage more young people to become a new generation of agricultural operators.
- To actively promote agricultural restructuring; upgrading and adjusting the farming system to repurpose farmland and promoting new “gold corridor” agricultural programs
- To ensure the supply of all kinds of agricultural products in the period before and after Chinese New Year; monitoring the supply, price volatility, pesticide residue as well and pig and other livestock disease inspections, to ensure the safety and health of all varieties of food.