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The Quality Agriculture Development Program and Diversification of Sources of Value

HEALTHFUL AGRICULTURE

The GAP produce safety system

The Good Agricultural Practices (GAP) certification and labeling system for safe produce (fruits and vegetables) was launched in 1993. It has served as the cornerstone of all of the COA’s subsequent food safety programs, with some rural producers going on to win certifications for organic farming, traceability, and CAS quality assurance labeling. (These other programs are described in detail below.) As of the end of December of 2011, the COA had provided guidance to 1950 produce “production and marketing groups” (PMGs) to assist them to pass GAP review, accounting for 45% of the nation’s 4336 produce PMGs. In 2011, these GAP-certified PMGs accounted for 23,225 hectares of land, about 480,000 metric tons of production volume, and NT$10.7 billion in production value.

The COA has also promoted better packaging and marketing systems for GAP products. We have set up a system of double-packaging for 31 types of GAP-certified fruits and vegetables which are traded through the wholesale markets in Taipei, Sanchong, and Taichung (total trading volume in 2011 was 20,380 metric tons). We have also arranged to have special GAP product displays or counters set up in 172 locations in chain supermarkets, and have set up 20 GAP product sales or information points in traditional markets, in order to raise the visibility of GAP products and make them more readily available to consumers.

The CAS labeling system for premium agro-products

The COA launched the CAS labeling system for premium agricultural products back in 1989, and it has since won widespread support from agro-businesses and trust from consumers. The CAS label means that the product is hygienic, safe to consume, and of superior quality. Surveys show that 82% of consumers recognize the CAS label, and it has become an important reference for day-to-day food shopping.

As of the end of December of 2011, four institutions were accredited by the COA to do CAS certifications of products for quality and safety. Certification services cover 15 categories of products including meat, rice, eggs, seafood, forestry products, and dairy products. Each year these certification organizations make 900 inspections at factories and producers, and test more than 3000 samples, working to ensure public trust in the CAS label. As of this writing, 6500 products from 344 producers had won CAS certification, with total production volume in 2011 of 880,000 metric tons and production value in excess of NT$50.8 billion.

Development of organic farming

The COA has taken a number of steps to encourage organic farming, including: setting up organic- farming technical consulting teams, advising organic farmers on applying for certification, establishing organic farming special zones, expanding production of organic crops, guiding retail outlets to set up special displays or counters for organic-farming products, establishing Internet sales channels, and opening farmers’ markets dedicated exclusively to organic foods. As of the end of December of 2011, there were 12 institutions accredited to inspect and certify organic products. A total of 2300 producers of grains and produce, cultivating 5015 hectares of land, had received certification, and six animal husbandry operations had also been certified. Total land area devoted to organic farming special zones reached 587 hectares, with total production value of NT$3 billion.

For imports of organic foods, when the goods come from countries that regulate and manage their organic farming using standards equivalent to those in Taiwan, the COA has in place procedures to review and approve their import documentation and to permit them to label their products as organic. In 2011 the COA issued 1291 documents agreeing to labeling of imported grain or produce as organic, covering import volume of 7536 metric tons, and issued a further 28 documents for animal husbandry products, covering import volume of 86.5 metric tons.

In 2011, 1898 tests were conducted of the quality and condition of organic foods, both in the field and at points of sale. In 1886 cases (99.4%) the tested items were found to meet relevant standards. Label checks were conducted on 3254 occasions, with the items found to meet requirements in 3185 cases (97.8%).

Traceability of agro-products

Under the “Agricultural Production and Certification Act,” the COA has been promoting the adoption of a traceability certification system for domestic agro-products. As of the end of December of 2011, 13 institutions were accredited to conduct inspections covering eight major categories: general crops, organic crops, products processed from crops, livestock products, poultry products, processed livestock and poultry products, aquaculture products, and processed fisheries products.

There are currently 1174 operators whose certification is still in its validity period, and they supply 144 kinds of farm, fisheries, and animal husbandry products. A total of 9.22 million items with the TAP (traceable agricultural products) mark indicating participation in the traceability certification system have gone on sale in the marketplace, with a total production value of NT$3.9 billion.

A seamless food safety system

The COA has been engaged in a long-term project to create a seamless food safety system. There are three elements to this system: (1) management of the basic environment where the food originates; (2) management of the agricultural production process to ensure that food is safe and healthy; and (3) management of agricultural products.

Under element (1), the COA has determined safety parameters for the production of agro-products, constructed a crop inspection and disease-prevention system, and strengthened controls over the materials and equipment used in agriculture. Under element (2), we have promoted systematic cultivation of healthy seedlings, promoted the use of standardized crop cultivation models that follow pre-set safety parameters, strengthened monitoring systems for pest control and disease prevention, and counseled farmers in the safe use of agro-hemicals. And under element (3), we have promoted the adoption of labeling systems that identify and certify safe and high-quality foods, strengthened testing for residues of agro-chemicals, and set up a notification system in the event that any health risk or problem is detected.

Appropriate use of agro-chemicals

The COA has also worked to ensure that agro-pesticides are neither lacking when needed, nor overused when not necessary. To this end, based on scientific principles and the effectiveness and safety of usage, the COA has issued revisions to the “Regulations for Agro-Pesticide Field Trials” and “Extrapolation of Spectra by Crop Grouping and Pest Grouping.” Thus far, 1592 spectra of agro-pesticides have been announced. Meanwhile, the COA has requested that the Department of Health coordinate with our policy and amend 574 maximum residue limits. We have thus solved regulatory problems that led to a lack of available pesticides affecting 123 crops and 78 pests, while taking into account the requirements of plant protection and the safety and healthfulness of agro- products.

Rational use of fertilizers

The various agricultural improvement stations of the COA, together with the Taiwan Banana Research Institute, have organized technical assistance teams to guide farmers in rational application of fertilizers. Moreover, the Agriculture and Food Agency of the COA has crafted a rational fertilizer use program, and has been actively promoting relevant measures, advising farmers on how to appropriately apply fertilizers, reduce costs of production, and protect the production environment. This program will contribute to sustainable development of the agricultural sector.

In 2011, a total of 479 seminars and lectures on fertilizer use were organized, with 27,680 attendees. In addition, advice on proper fertilizer use was incorporated into other instructional events on 1324 occasions. In 44,276 cases, we provided soil testing, diagnosis of fertilizer needs, and fertilizer recommendations to farmers free of charge, saving farmers an estimated NT$300 million. In addition, the COA has led the way in setting up model farms for rational fertilizer use in 309 locations, covering 62 types of crops, and has also organized 157 field trips to learn correct concepts and methods of fertilizer application, with 13,139 attendees.

EXCELLENCE IN AGRICULTURE

Innovative agricultural R&D

The COA supports the development of creative technologies and promotes their application in assisting in the upgrading and transformation of Taiwan’s agricultural industries, in stabilizing food supply, and in ensuring environmental sustainability. In 2011 we continued to strengthen the employment of science and technology with multiple functions to facilitate agricultural development. Research teams for ten important agricultural industries—such as fruit, flowers, animal vaccines, and so on—continued to work through cross-disciplinary and inter-agency cooperation to promote high efficiency and high quality, to increase production acreage and value, and to increase exports of agro-products.

Major R&D achievements in 2011 included: (1) Enhancing the safety of production though development of inactive grouper iridovirus vaccine, biological control of yellow leaf patho gen in Phalaenopsis orchids, molecular markers for resistance genes to tomato leaf curl virus (TYLCV) and tomato spotted wilt virus (TSWV), and a remote monitoring system for agricultural field pests and provision of tree health services. (2) Resolving industry bottlenecks, such as successful development of broodstock management and seed production of cold-tolerant grouper varieties (e.g. the longtooth grouper). (3) Increasing production efficiency, including development of an automatic gauge and blending system for tea. (4) Creating innovative value, including breeding of a new white mini-pig breed—the Binlang— for biomedical research, use of large-leaf China-fir inoculation with Antrodia cinnamomea to produce sporocarps, and employment of silkworm (Bombyx mori) to produce Cordyceps militaris. (5) Raising competitive advantage by breeding of new varieties of paddy rice, Chinese kale, melon, vegetable soybeans, pigeon peas, and Oncidium and Doritaenopsis orchids.

Industrializing agricultural S&T

The COA has continued the construction and operation of agricultural science parks. One of these, the Pingtung Agricultural Biotechnology Park, has thus far approved investments by 62 firms (totaling NT$5.36 billion), of which 45 firms have started operations. In addition, in January of 2011 construction began on an R&D center for breeding and export of ornamental fish and fish fry for aquaculture.

The COA has also provided subsidies to help the Tainan City government implement the Tainan Orchid Biotechnology Park project. Phases 1 through 4 of the project have been completed, and 59 firms have received approval to move into the park, an occupancy rate of 100% of the available land for these phases of the project. Of these, 44 firms have already begun production. The COA has also provided subsidies to the Changhua County government in implementing the National Flower Park project. The park includes a specific area for producing ornamental seedlings and trees, which enjoys 100% occupancy of the available land and where 26 firms have begun operations.

Under the “Regulations for the Promotion of Agricultural Private Enterprises Engaging in Research and Development,” cumulatively through 2011 (beginning in 2007) 34 industry special technology projects had been undertaken, with private agro-businesses contributing a total of NT$106 million in R&D funding.

Application of information technology to agriculture

The COA has created a database that subscribes to international digital periodicals, and has established an inter national digital information exchange network, providing services to the 16 experimental and research agencies subordinate to the COA, thereby making access to and use of such information more efficient. Data from July through December of 2011 shows that there were 90,317 searches, with services provided to 1140 COA researchers. It is estimated that we have saved over 15% on costs for access to international digital periodicals.

The COA has introduced an RFID information system for selectively bred miniature pig varieties that will have medical research applications. The system offers medical researchers who use such pigs instant and accurate information that allows them to track the entire production process. We have also established a monitoring system for the animal sheds for ensuring that the pigs are being raised in a safe and healthy manner; this system has increased the breeding success rate by 5% and reduced resource a n d manpoweruseby 15%. These measures contribute to raising the overall level of medical technology in Taiwan and to the improvement of human health and well-being.

The COA has also organized and collated digital audio-visual content related to agriculture, providing VOD(video on demand) services that introduce the LOHAS lifestyles of rural areas and encourage rural travel and tourism. We have assisted local residents to produce their own digital AV materials about their hometowns, and to employ mobile-device-accessible tour- guide services and blogs to strengthen marketing.

Upgrading of the farm, fisheries, and animal husbandry industries

The COA oversees a system under which some farmers grow products under contract for specific processing firms. In 2011 this system was used for 60 hectares of premium quality grains, and 250 hectares of crops for medicinal or health uses. Also in 2011 we (a) counseled 385 tea manufacturers, with 1650 hectares of land, on how to improve hygiene and crop safety in their tea plantations; (b) provided advice on improving the management of farms growing special-use grains under the “Small Landlords, Big Tenants” program, at ten sites covering 220 hectares; (c) promoted the establishment of “premium quality orchards” for mangoes and 12 other fruits, covering 4562 hectares of land; (d) completed 62 hectares of growing facilities for vegetables and 39 for flowers.

The COA is working to transform and upgrade the rice industry. In 2011 we worked to integrate interested parties in the rice production supply chain, guide the establishment of specialized rice production-marketing areas, develop diversified rice products, and promote wider consumer recognition of the professionalism and superiority of specialized production-marketing areas.

The COA is also working to consolidate Taiwan’s global position in the grouper industry. In 2011 we organized the “International Symposium on Grouper Aquaculture” and a series of activities and events for the “Grouper Cultural Festival.” The conference was focused on technological progress in, and overall development of, the grouper aquaculture industry, while the festival incorporated the arts and culture to introduce people to the cultural content and traditions of this industry.

To raise the international visibility and competitiveness of Taiwan’s marine pet industry, we held the “2011 Taiwan International Aquarium Expo” and participated in international marine-pet fairs.

We continued in 2011 to provide guidance and information to upgrade the hog-raising and poultry industries. As for hogs, farms that received advice increased efficiency by an average of over 5%. We also completed screening for genetic markers of porcine stress syndrome, meat quality, and lean mass in 3844 blood samples obtained from stocks of pig breeding farms, and discovered in the process that about 87% of duroc breeding swine had the genetic marker for high meat quality. Vis-à-vis the poultry industry, we (a) strengthened the effectiveness of the information network for production and sale of poultry; (b) guided private operators in setting up 58 new-style sealed negative pressure environmentally- controlled poultry barns; and (c) guided private operators in setting up two standardized hatcheries for water fowl and two regional sites for egg cleaning and grading.

Protection and value-added application of intellectual property rights

The COA has continued to operate the Office for Agricultural Technology Industry (AgriTI), market agricultural commodities with commercial potential, strengthen technology assessments, promote technology transfer and licensing, and serve as a facilitator for inter-disciplinary cooperation. In 2011 AgriTI assisted 12 firms in looking for technologies with commercial potential and planning for new commodity production or new businesses. The COA also conducted a training course in agricultural multi-discipline management of technology (AMMOT), and trained 150 persons from the COA, its affiliated agencies, and the private sector. Also, the COA organized the Agriculture Pavilion at the 2011 Taipei International Invention Show and TechnoMart, where we exhibited 51 results of agricultural R&D, of which 28 (55% of the exhibited technologies) have been licensed to firms.

The COA has devoted great effort to the protection of intellectual property rights (IPRs) and the application of the results of agricultural R&D. In 2011, 39 IPR cases, including 21 patents and 18 new plant varieties, obtained approval from the Intellectual Property Office and the COA. The COA also carried out 126 cases of technology transfer and earned NT$69.65 million in income from license fees and royalties, an increase of 10.2% over 2010. Also, amendments have been made to (a) the regulations governing standard operating procedures for the publication of R&D results by research institutions affiliated with the COA, and (b) the regulations governing the establishment and operation of an agricultural IPR committee by the COA.

AGRO-TOURISM AND NICHE PRODUCTS

Development of the recreational farm and fishing industries

A major COA goal is to encourage growth of the rural tourism industry. To this end we have organized information and Internet services related to recreational farms, worked to construct a welcoming and accessible environment for tourism in rural areas, and worked together with private firms in the tourism and transport sectors. We have also devised and marketed a variety of themed activities and itineraries, including “a LOHAS journey on the high-speed rail,” visits to the “sea of flowers” in Xinshe Village, and farm visits in Hualien and Taitung counties. It is estimated that there were 14 million visits to rural communities in 2011, including
166,265 visits by foreign tourists, an increase of 17% over 2010. The rural travel industry produced NT$7.28 billion in value in 2011.

The COA has also worked to draw attention to the cultural traditions and leisure activities specific to those rural communities where fishing and aquaculture are dominant industries, holding 26 related events in 2011. We also produced 45 television episodes introducing the leisure fishing industry, and produced 39,000 hand books and 12,000 DVDs introducing leisure itineraries in the country’s 39 fishermen’s association districts, in an effort to promote the coastal recreational and leisure-fishing industries. In 2011 there were 7.84 million visits involving the seaside recreational and fishing industries, including 790,000 times in which people were passengers on recreational fishing boats (this figure includes 170,000 times for whale-watching). The value of the industry in 2011 was approximately NT$2.286 billion.

Development of forest parks

The COA is utilizing more than 1000 hectares of land in three locations (Danong/Dafu in Hualien County, Dongshi/Aogu in Chiayi County, and Linhou/Silin in Pingtung County) for afforestation. All three areas are classified as nature parks, and will provide recreational space to citizens.

In the Danong/Dafu forest park area, 12 kilometers of walking trails,11.5 kilometers of bicycle trails, three hectares of open meadows for activities, 11 hectares of “seas of flowers,” a new-moon shaped ecological pond, and a “rainbow fishing bridge” have already been completed. In May of 2011 an International Arts Festival was held there to mark the opening of the park, with eight artists from four countries (Taiwan, Japan, Germany, the US) invited to create large works of environmental art; the event attracted nearly 50,000 visits. Meanwhile, the overall plan for the Aogu Wetlands Park received the American Society of Landscape Architects’ 2011 “Award of Excellence” (the highest honor) in the Analysis and Planning category (these awards are considered “the Oscars of the landscaping world”). Already cycling trails, wooden paths, walking trails, and bird-watching hides have been completed, and the park is expected to open in 2012.

Development of forest eco-tourism

In 2011 the COA managed 26 projects related to construction of public facilities and improvement of scenery in 18 forest recreation areas, as well as inspected such areas to make sure that they are “accessible environments” for all, including the handicapped and elderly. We managed 18 forest recreation areas, promoted 16 eco-tourism itineraries, and organized 152 events that included (a) themed eco-tourism activities, (b) environmental education activities, (c) education and training, and (d) promotion and marketing, providing 3.7 million eco-tourism opportunities and providing guide/educational services to 730,000 persons.

Also in 2011, we (a) managed 24 projects for construction or improvement of trails, maintained or repaired 160 kilometers of trails in forest areas, and completed hardware infrastructure, serving approximately 3.6 million visitors engaged in landscape viewing, mountaineering, hiking, and nature exploration; (b) completed five events to teach people better safety and environmental protection during mountain hiking, with 13,917 participants; (c) organized two “trail working holidays” and volunteer training events, recruiting 86 participants to become trail volunteers; and (d) drafted relevant regulations to initiate diversified participation mechanisms for the public and private sectors.

Development of premium agro-products

◆Tea

The COA has been promoting a labeling system for teas that identifies their place of origin and verifies traceability; in 2011 we approved 500,000 labels. We also held the “2011 Tea Production Site Environmental and Hygienic Safety Inspection Competition,” and guided the building of 385 tea processing venues qualifying as safe and hygienic. Finally, we counseled farmers groups in 11 tea growing zones on the design of more aesthetic and creative packaging, working to integrate “tea culture” into branding and marketing, thereby increasing the market value of Taiwan tea products.

◆Farm-brewed wine and liqueurs

Under our program to develop a local wine and liqueur industry, the COA conducts evaluations of “farm wineries” and of specific wines and liqueurs. In 2011, wine producers associated with the Dahu District Farmers Association, the Puli Township Farmers Association, and the Xinyi Township Farmers Association received evaluations of “exceptional quality.” Fourteen wines or liqueurs were awarded gold, silver, or bronze medals. In addition, three brands of strawberry wine, rice wine, and plum wine won gold medals at the 2011 Concours Mondial Bruxelles and the 2011 International Spirits Awards in Germany.

◆High-quality “Classic Rice”

The COA provided guidance to 60 millers who already had CAS certification for their rice and founded a “specialized rice production-marketing area” to select their rice of the highest quality and safety, and to package it as an elegant gift item. We then did promotional activities for these items (including setting up special display areas and display windows at exhibition and sales activities). In 2011 we also worked to develop the market for “gift rice” through (a) integrated marketing and (b) printing and mailing out catalogs for high-quality Classic Rice gifts.

◆Creative bamboo products

The COA is developing a number of bamboo-derived products, including: bamboo-based orchid growth media racks, products incorporating bamboo- charcoal energy-storage parts with LED lighting, bamboo-powder animal feed, a combustion injection system using torrefied bamboo-powder, and two skincare products using bamboo-leaf essential oils. The total value of production in 2011 exceeded NT$3 billion. We have also established a “Made-in-Taiwan Charcoal” collective trademark in an effort to create a common marketing identity for international sale of bamboo charcoal from Taiwan.

◆Choice fisheries products

As part of our efforts to draw attention to premium-quality seafood from Taiwan, in 2011 the COA held the second “Premium Seafood” selection; in a rigorous process, we approved only 21 products out of the 116 submitted for consideration. These are now allowed to use a special label, “Haiyan” (Seafood Banquet), to identify themselves. In 2011, total production value of all products allowed to use this label was about NT$1.6 billion. The products are divided into five major categories: super-low temperature, frozen, refrigerated, dried, and canned.

◆Premium quality livestock products

In 2011 the COA (a) conducted inspections and tests for quality at 431 meat sellers certified under the “Taiwan Fresh Pork” (TFP ) campaign; (b) provided guidance to producers of domestic beef to open six display and sales points; (c) awarded certification to 41 shops selling goat meat under the labeling system for domestic goat meat; (d) provided guidance to the Yufeng Zhenggang Capon brand, which shows significant market potential; and (e) researched and drafted CAS standards for down, and set criteria for differential labeling for domestically produced down, in an effort to promote the sale of premium domestic down.

◆Rice products

The COA has been promoting a national movement encouraging “local production, local consumption” of rice. One aspect has been to make the use of rice flour more convenient for consumers. We have developed various types of rice flour for use in manufacturing of baked goods like cakes, traditional moon- cakes, pineapple cakes, and cookies. The Tainan District Agricultural Research and Extension Station has developed the TN-50 (including 50% rice flour) and TN-80 (80% rice flour) pre-blent flours, that are suitable for use both in home baking and by professional bakers, and transferred the technology to selected farmers’
associations.