Some local print media reported that after the signing of ECFA, Taiwan’s grouper industry is faced with severe competitions in which large companies take over small ones. In response, the Council of Agriculture (COA) stated that the current grouper industry is divided into different breeding phases, including brood fish, egg, midterm incubation and adult fish. As the ECFA provides an opportunity of exporting groupers to China, most Taiwan’s fish breeders in different breeding phases benefit in general. There is no case of large companies taking over small ones. The COA stressed that it would continue related assistant measures, such as helping fishermen develop high-priced grouper commodities, strengthen breeding techniques in different breeding phases, expand and diversify grouper’s domestic and export markets, as well as produce quality breeds. The purpose is to enhance the overall competitiveness of Taiwan’s grouper industry.

The signing of ECFA boosts the development of grouper industry

The COA also said that Taiwan’s groupers are mainly exported alive to China on fishing boats. Both regulation on transport of live bred fish on fishing boats and regulation on Taiwan’s fishing boats sailing to China’s area legalize the transaction of groupers sold to China’s fishing boats, offer protection to fishermen and promote this industrial development. The export of Taiwan’s groupers to China amounted to 4,159 tonnes in 2010. After the ECFA took effect in 2011, the export significantly increased, from 7,876 tonnes in 2011, to 12,309 tonnes in 2012, and up to 14,234 tonnes in 2013. From January to March in 2014, the export of groupers reached 5,043 tonnes. Obviously, the signing of ECFA already increased significantly the export of groupers to China.

Faced with international competition, the COA takes active assistant measures to adjust industrial structure

The COA noted that according to FAO statistics, China is the world’s largest producer of bred groupers, mainly composed of orange-spotted groupers. As the breeding technique of this breed is mature and the requirement of water quality is lower, China can produce orange-spotted groupers in a large quantity. However, the use of heating greenhouse and other facilities also increases the cost of production. It is profitable in the high price (over NT$300/kg), but still risky when the price falls. In contrast, Taiwan has a suitable geographic location, with a variety of grouper breeds. Moreover, with meticulous division of labor, Taiwan can provide numerous standards and customized products. Furthermore, Taiwan has a high rate of incubation and mature breeding techniques. Compared with other Southeast Asian competitors, Taiwan is closer to major consumer markets like China and Hong Kong, thus full of strong competitiveness.

In order to differentiate Taiwan’s products from those of other competing countries, the COA has been recently assisting fishermen to apply for traceability system, with a view to produce high-quality aquatic products exported to the world market. Moreover, Taiwan has a good command of key breeding techniques. In addition to orange-spotted groupers, the price of giant groupers, dragon tiger groupers, leopard coral groupers and potato groupers still remains high. Therefore, the COA and industrial sectors are striving to develop mass production techniques of high-price groupers. Through promotion of breeding techniques and complete supply chains of young fish, Taiwan is able to boost the nation’s grouper breeding industry in addition to orange-spotted groupers. Furthermore, a number of assistant measures are adopted: helping produce high-quality breeds; improving breeding environments to uplift the overall survival rate; lowering the import tariff of grouper baits to 6%; rewarding those who construct large (over 350 tonnes) transport vessels of live fish to explore the live fish market north to China’s Shanghai; assisting the development of ultra-low temperature grouper products; building the MIT brand; and helping organize delegations to participate in international aquatic exhibitions to explore global markets.

ECFA’s 18 early harvest products continue their growth, which shows the positive effect of signing ECFA

Benefiting from the opening of cross-strait direct flights, the signing of Agreement on Cooperation in Inspection and Quarantine of Agricultural Products, and the signing of ECFA, Taiwan’s export of its agricultural products to China increases every year. Since 2013, China has replaced Japan as Taiwan’s largest export country of agricultural products. In 2009, one year before the signing of ECFA, Taiwan exported its agricultural products valued at US$360 million to China and imported US$550 million from China. The trade deficit was US$190 million. However, in 2013, Taiwan’s export to China increased to US$920 million, with the import of US$900 million. The trade turned from a deficit to a surplus of US$20 million.

The COA vowed to continue diversified marketing strategies in the future. In addition to consolidating major export markets such as China and Japan, Taiwan should simultaneously explore emerging markets such as Southeast Asia, Europe and the Middle East. It is expected to comprehensively expand the export amount and value of Taiwan’s agricultural products as well as increase local farmers’ income.