International agricultural development trends

　Agricultural trends in the second half of 2008 differed markedly from those of the first half. With continued growth in the global economy and human population, the world has seen increased demand for food, especially in developing nations, such as China and India. In recent years, many nations have actively promoted the use of biofuels as a green alternative to fossil fuels. These realities have come together to increase demand for food and biofuel grains. Major grain exporting countries faced reduced production yields due to global warming and unusual weather events, causing international food prices to rise sharply in the first half of the year.

　During the second half of 2008, the sector was affected by the economic crisis and dropping oil prices. As the global economy slumped, demand for foodstuffs decreased, driving prices sharply lower. For example, American wheat prices reached a high of US$481.5 per metric ton in March, continuing the previous year’s upward trend. Following that high, however, the price dropped to US$235.3 per metric ton by December, representing a fall of over 50% from its high and a 38% year-on-year decrease. Corn prices were on the rise at the beginning of the year and reached a high of US$294.2 per metric ton in June, but also moved lower, dropping to US$158.4 in December, down 46% from the peak and a year-on-year decrease of 13.6%. Rice started the year with large price gains, reaching a new high of US$962.6 per metric ton in May 2008, but trended downward for the rest of the year, dropping 40% from its high to close out the year at US$582, representing a year-on-year increase of 55%. Soybeans followed a similar trend, increasing to a high of US$586.2 per metric ton in July, then sliding to US$343.7 in December, a decrease of 41% from the July high and a yearly decrease of 22%.

　The US Department of Agriculture estimates that the total acreage farmed globally increased in the 2008–2009 growing season. This increase, along with technological innovations, has led to a growth in global food production to a total of 2.216 billion metric tons, an increase of 4.6% over 2007-08’s yield of 2.119 billion metric tons and a 10.5% increase over 2006-07’s 2.005 billion metric tons.

Trends in domestic agricultural development

　The guideline of the agriculture policies is to establish a healthy, efficient, and sustainable agricultural industry. The COA aims to protect and promote the health of consumers in Taiwan and abroad. We have assisted companies to achieve CAS (Certified Agricultural Standards) and GAP (Good Agricultural Practices) certification, established specialized production areas for organic products and promoted traceability systems for selected products. By promoting pesticide-free and organic agriculture, Taiwan aims to become a toxin-free agricultural island. The term “efficient agriculture” refers to the idea of competitiveness in a free global market. By using our technological advantages and the economic and geographic characteristics that Taiwan enjoys, Taiwan has established a world-class Flower Island, Subtropical Fruits Center and Seedling Center for the Asia-Pacific region. Emphasizing the environment, conserving resources, and performing forestation projects will lead Taiwan onto a path of sustainable agricultural operations. At the same time, the COA is actively seeking to reduce carbon emissions and develop ecotourism in Taiwan’s plains areas. To achieve these ultimate goals, the COA has implemented the five pillars policy that includes developing agricultural technology, protecting a healthy and sustainable environment, expanding agricultural exports, implementing the farmland reform program, and increasing farmers’ benefits to fulfill our responsibilities to farmers, consumers, the environment, future generations, and the world as a whole.

　In 2008, overall production was impacted by heavy rains and low temperatures early in the year, which together led to lower domestic production levels for a large number of agricultural products. Fishery yields too were adversely affected by the cold weather, large numbers of typhoons, and rising gas and feed prices. In addition, the number of fishing vessels in operation was down due to the ocean fishing vessel buyback program initiated in 2008. The total estimated value of all agricultural products for 2008 was NT$320 billion, a decrease of 17.6% over 2007. Farmed crops represent 44.41% of the total, with livestock at 28.93%, fishery products at 26.49%, and forestry representing 0.17%.

　The total value of imported agricultural goods was US$12.115 billion in 2008, a year-on-year increase of 15.9%. Major imported products included cereals and lumber and its secondary products. The value of exports reached US$3.849 billion, climbing 12.1% from 2007. Products experiencing large export gains included grains, vegetables, and their secondary products. The wholesale price index across the entire industry spectrum increased by 21.57% over 2007 due to increased importation of raw materials and the aforementioned reduction in domestic production. Crop product prices increased 17.70%, livestock prices by 26.62%, and fishery prices by 25.32%, while forestry product prices decreased by 3.70%.