II. Overview of Agriculture in 2003

While the absence of major natural disasters throughout the year facilitated agricultural production, rainfall was scanty, irrigation water was insufficient, and the area left fallow increased. Of the four sectors of agriculture, forestry, fishery, and livestock, only fisheries output rose, and the output of the other three decreased. The agricultural production index for 2003 thus fell by 0.83% relative to 2002. Due to the competitiveness of imported agricultural products entering the country following accession to the WTO and the increasing yield of fruit trees, the farm prices of agricultural products generally fell, and rose only in a few cases. The gradual dismantling of trade barriers stimulated an increase in agricultural trade, and the value of imports and exports rose by 9.92% and 2.83% respectively.

1. Indices of Agricultural Production
      The agricultural production index was 104.24 in 2003 (taking the 2001 value as 100), and increase 0.15% over 2002, an increase that was mainly due to a significant rise in the fish catch (the fisheries production index rose by 7.08%). The dry weather during the first half of the year, which followed a bumper harvest in 2002, starved rice of water and forced cessation of irrigation and an increase in the area of land left fallow. The total area planted in crops fell, causing the crop production index to fall by 2.59%. In addition, the livestock and forestry production indices likewise fell by 2.00% and 7.87% respectively (Table 1 download Word file(23.50KB) / download pdf file(28.90KB) ).
 
2. Agricultural Production Structure
      Aggregate agricultural sector output was valued at NT$357.9 billion in 2003, and this figure represented an increase of 2.13% over 2002. Crop was the largest category with an output value of NT$147.3 billion; this accounted for a 41.15% share of the aggregate output, and represented a fall of 3.02% over 2002. Within the crop categories, fruit category accounted for 37.50% of output value, vegetables accounted for 23.52%, and rice accounted for 19.24% (Table 2 download Word file(23.50KB) / download pdf file(28.90KB) ). Livestock had an output value of NT$112.6 billion, which accounted for 31.45% of the aggregate output and represented an increase of 7.03% over 2002. Within this category, hog production accounted for 51.06% of output value, followed by poultry with 26.74% and eggs with 11.05% (Table 3 download Word file(23.50KB) / download pdf file(28.90KB) ). Fisheries had an output value of NT$97.4 billion, which accounted for 27.22% of the aggregate output and represented an increase of 5.27% over 2002. Within this category, far-sea fisheries accounted for 48.44% of output value, followed by inland water aquaculture with 28.02% and offshore fisheries with 12.96% (Table 4 download Word file(23.50KB) / download pdf file(28.90KB) ).
 
3. Food Consumption
      The average per capita food supply for residents of the Taiwan area in 2003 consisted of 89.75 kg of cereals, 121.89 kg of vegetables, 146.56 kg of fruits, 77.23 kg of meat, 18.49 kg of eggs, 36.08 kg of fish and sea food, 55.88 kg of dairy products, and 25.04 kg of fats and oils. The daily per capita intake of principal nutrients by residents of the Taiwan area in 2002 was as follows: Energy intake was 2,869 kcal, protein intake was 95.29 g, and fat intake was 124.53 g. In comparison with 2001, energy, protein, and fat intake increased by 2.27%, 3.08%, and 6.29% respectively. The amount of fats in people's diets is still excessive, while carbohydrate intake is significantly low (Table 5 download Word file(23.50KB) / download pdf file(28.90KB) ).
 
4. Agricultural Product Prices
      The farm prices of agricultural products largely fell in 2003, and rose in only a few cases. Since fruit harvests were large and the number of relatively inexpensive imported fruit types increased, often displacing domestic fruits, some fruit prices fell. The prices of vegetables and flowers *alternately rose and fell. The authorization of rice imports insured an ample supply of Japonica rice. Rice prices remained low from the beginning of the year, and although government purchases of excess rice somewhat boosted prices, the average price for the year remained below the figure for 2002. As for livestock and poultry, while the price of broilers slipped, the price of hogs rose due to production cuts. Among fishery products, producing wholesale prices of fishing rose and prices of aquaculture fell (Table 6 download Word file(23.50KB) / download pdf file(28.90KB) ).
 
5. Agricultural Trade
      Agricultural product import/export trade has increased steadily since the ROC became a member of the WTO. Total agricultural import/export trade was US$11.0 billion in 2003, a decrease of US$790 million, or 7.74%, over the previous year. Agricultural imports totaled US$7.78 billion, an increase of US$700 million, or 9.92%, over the previous year. The main reason for this significant increase was the authorization of the free import of the major products such as rice, chicken, flank pork. Agricultural exports totaled US$3.24 billion in 2003, an increase of US$90 million, or 2.83%, over the previous year. This rise in exports could largely be attributed to the close to 40% growth in the export of distinctive domestic fruit such as bananas, mangoes, and litchees, and the greater export of cut flowers, seedlings, and tea. The agricultural trade deficit of US$4.54 billion grew by 15.60% over the previous year (Table 7 download Word file(23.50KB) / download pdf file(28.90KB) ).
 
6. Use of Farmland
      The area of cultivated land has shrunk steadily. Reasons for this include agriculture's relatively low rate of return in comparison with many non-agricultural activities, the aging farm population, the increasingly extensive use of cultivated land, and the implementation of The Paddy and Upland Utilization Adjustment Program. There were 844,097 hectares of cultivated land in 2003, and the multiple cropping index was 94.4. Cultivated area of rice, coarse grains, special crops, fruit trees, vegetables and flower were 272,124 hectares, 68,208 hectares, 53,592 hectares, 220,368 hectares, 165,822 hectares, 12,010 hectares respectively.
 
7. The Farming Population
      There were 724,949 farm households in 2002, which accounted for 10.50% of all households. There were a total of approximately 3.67 million people, or 16.32% of Taiwan's population, in these farming households. Farming employed 696,000 persons in 2003, which was 7.27% of the working population and a drop of 13,000 persons or 1.83% from 2002. Due to international trade deregulation and market opening, the global economic downturn, and the decline of some industries, employment was harder to find in 2002, and the number of part-time farmers and livestock raisers fell slightly to 78% of the total. Approximately 22% of farm households are specialized farm households. The average age of farming labors rose slightly to 50.2 years, and one-fourth of all farmers were over 60 years of age, showing a gradually aging trend.
 
8. Farming Income
      The average total annual income of farm households was NT$861 thousand in 2002, which was 75.5% of average non-farm household income and represented a drop of 2.33% from 2001. Of farm household income, agricultural income accounted for NT$176 thousand (or 20.49%), which represented an increase of NT$13 thousand or 8.11% over 2001, and non-agricultural income accounted for NT$684 thousand (or 79.51%). The average income per farm household was NT$217 thousand in 2002, a drop of 3.31% from 2001.(Table 8 download Word file(23.50KB) / download pdf file(28.90KB) )