Unit 1: The International and Domestic Agricultural Situations and Major Policy Goals for 2018

1. The International Agricultural Situation

In recent years agriculture across the globe has faced major challenges such as climate change and food security. Major international organizations and countries worldwide have continued to promote sustainable agriculture, eco-friendly cultivation, the maintenance of food security, and adjustments to cope with climate change.

The World Trade Organization (WTO) is currently actively promoting reform, strongly led by major countries such as the US. In terms of regional economic agreements, the “Comprehensive and Progressive Agreement for Trans-Pacific Partnership,” with 11 signatory countries led by Japan, came into effect on December 30, 2018; the EU and Japan signed an “Economic Partnership Agreement” which will take effect in February of 2019; and the US, Mexico, and Canada signed the “United States-Mexico-Canada Agreement,” an update of the North American Free Trade Agreement, in November of 2018. In addition, negotiations are continuing on the “Transatlantic Trade and Investment Partnership” between the US and Europe as well as on the “Regional Comprehensive Economic Partnership.”

2. The Domestic Agricultural Situation

The total value of agricultural production in 2018 has been initially estimated at NT$549.8 billion, an increase of 0.59% over 2017. Farming, forestry, fishery, and animal husbandry accounted for 52.27%, 0.03%, 17.41%, and 30.29% of this total, respectively. The agricultural production index has been initially estimated as 106.38 (with 2016 as the base year). Because there was good weather over the last two years, production remained stable, with total production quantity increasing by about 1.71% over 2017. Within this figure, farm crops increased by 1.8%, fishery products by 0.75%, and animal husbandry products by 1.83%. In terms of agriproduct prices, in 2018 the wholesale price index for farm, forestry, fishery, and animal husbandry products fell by 3.41%. Breaking this figure down, the price of farm products fell by 7.96%, that of forestry products rose by 5.29%, that of fishery products rose by 2.90%, and that of animal husbandry products fell by 0.04%.

In terms of agricultural trade, in 2018 Taiwan imported US$15.817 billion in agriproducts, an increase of about 4.13% compared to the previous year. The main imported products were bulk grains such as corn and wheat as well as products manufactured from these, soybean oilseeds and soybean powder, frozen meat products (mainly beef), and wood. Meanwhile, Taiwan exported US$5.466 billion in agriproducts, an increase of 9.76% over the previous year. The main export items included fruits (pineapples and sugar apples), vegetables (edamame, also known as green soybean), flowers (Phalaenopsis orchids), a variety of fishery products, and animal skins and down and related manufactured goods.

3. Major Policy Goals for 2018

• Promote direct payments on farmland, incentivize cultivation of (i) crops with competitiveness and (ii) mixed staple crops, expand organic and eco-friendly farming; encourage facilities cultivation; construct an agricultural insurance system, strengthen risk management, and stabilize farmers' incomes.
• Promote traceability systems and a testing and certification system that consumers can rely on, provide safe farm, fisheries, and animal husbandry products; strengthen the safety and management of the use of veterinary drugs on animals; construct a safe production system for agriproducts starting at the source; expand food and agricultural education, promote the use of domestically produced foods in primary and middle school lunches, market the diversified values of agriculture.
• Strengthen the effectiveness of disease prevention and testing in animals and plants, implement measures to defend against major diseases and insect pests among animals and plants; improve the environment for animal husbandry, upgrade to a premium supply and marketing system for animal husbandry products; strengthen animal protection and management, ensure that owners take lifetime responsibility for pets, manage the supply of pets at the source, expand the teaching of respect for animal life.
• Construct a friendly environment for the farming profession, guide young farmers to operate innovative farms, increase value-added of agriproducts, actively train young farmers, use diverse measures to increase the supply of agricultural labor; make measures for the well-being of farmers more complete, build an economic safety net for farmers.

• Accelerate transformation of the industrial structure, help small farms to thrive while supporting agribusinesses, build multiple sales channels for agriproducts, construct a comprehensive production and marketing information system; maximize the quality of agro-tourism services and develop themed itineraries for year-round agro-tourism, expand the market for domestic and foreign tourists.
• In conformity with the Spatial Plan, construct management mechanisms for each type of agricultural development zone, implement “agricultural uses for arable land”; refine and improve the Rural Regeneration program, develop an advanced guidance mechanism for rural entrepreneurship to build model rural communities; promote the use of green energy facilities in combination with agriculture, create a win-win situation for agriculture and power generation.