Outlined Analysis

The goal of agricultural production is to maintain balance between production and sales, ensure food supplies, upgrade production quality and seek equilibrium between human activities and ecology. Although the climate in the first half of 2002 was dryer, the dry weather was beneficial to flowering of fruits. Plentiful rainfall arrived in May, which solved the problem of drought just in time and agricultural production returned to normal. After which, mild weather stayed for the rest of the year without major natural disasters. In this year, good harvest of agricultural and fishery products were in positive terms. Although reduced in the scale of production of animal products due to entry into WTO, the index of agricultural production over the year still went up by 4.08%. Affected by good harvest and open import upon entry into WTO, prices of agricultural products at places of production had more downfall than growth; in contrary, the total value of trade grew by 3.52%. In which, the total import and export value grew by 3.91% and 3.34% respectively. Due to economic slowdown and shifting in industrial structure after entry into WTO, unemployed population flowed back to the agriculture industry, bringing a growth in agricultural population. Farmers’ income from agricultural sources also grew by 0.95 percentage points, which is highly beneficial to the stability of farm economy and the society.

I. Agricultural Production Index

　　 The Agricultural Production Index of 2002 was recorded as 104.08 (setting year 2001 as 100), which shows 4.08% of growth as compared to the index of last year (2001). Analyzing the index by industrial category, the agricultural category had a notable growth by 5.46%. The forestry product category had a growth of 11.56% due to an increase in sub-product production such as wood, bamboo, and tree-fruits. Fishery production increased by 8.14% due to increased production in offshore and inshore fishery as well as aquaculture. Production of most products in the animal product category fell and the category index was recorded with a negative growth by 1.87%.

II. Structure of Agricultural Production

　　 The overall production value of agricultural products in 2002 fell by 0.63% at NT$ 350.5 billion as compared to the value of last year. This is mainly caused by a fall in the production value of agricultural products brought about by a good harvest of fruits and open import of agricultural products. The production value of Agricultural Products has the highest weight with a value of NT$ 151.9 billion, taking up 43.33%; however, this value still registered a negative growth by 5.54%. In the structure of production value of agricultural products, fruits sharing the largest portion yielding 35.50% and vegetables second taking up 23.26%. The rest include rice, sharing 21.09%, crops for specific uses, taking up 5.60%, and miscellaneous stable foods and other crops, sharing 5 to 9%. Compared to the structure of last year, crops for specific uses declined by 0.92 percentage points, fruits went down by 1.17 percentage points, miscellaneous stable foods went up by 0.74 percentage points, and rice went up by 0.66 percentage points. The Animal Production Value of this year grew by 3.95% as compared to the value of last year, yielding a total value of NT$ 105.2 billion or 30.02%. In the structure of animal production value, hogs took the lead with 46.79% and poultry second with 26.31%. The rest shared16.49%. Compared to last year, this year has a large decline in poultry production by 2.67 percentage points and other animal products second by 5.32 percentage points. The Fishery Production Value of this year grew by 2.70% as compared to the value of last year, registering a total value of NT$ 92.6 billion or 26.41% of the total agricultural production value. In the structure of fishery production value, offshore fishery took the lead with 49.42% and inland aquaculture second with 28.35%, inshore fishery sharing 13.38%, costal fishery taking up 4.92%, seawater aquaculture sharing 3.90% and a minor share of inland fishery. Compared to last year, this year has a larger growth in inland aquaculture by 2.18 percentage points and a decline in offshore fishery by 2.35 percentage points.

III. Overview of Agricultural Production

　　 With stable weather and sufficient sunlight, most agricultural products yielded good production in this year. Among which, good growth of rice crops yielded a production of 1.8 million tons, registering a growth of 4.60% as compared to year 2001. Although the planting area of miscellaneous stable foods was downsized, good weather nurtured most crops back to normal production and yielded growth. In which, production of red-bean, peanut, and food corn grew 20 to 70%, but sorghum was still on a continuous decline by 17% this year. Affected by imports, production of most crops for specific uses followed the trend of decline. Raw-material sugarcane, tobacco, and sesame had reduced productions by 10 to 20%. With healthy fruiting, production of fruits in this year has had more growth than decline. In which, production of persimmon, sweetsop, apple, dates, pear, and peach grew 20 to 30%; however, production of plum shrank by 20%. Brought by stable weather, production of most vegetables grew in this year. In which, production of onion, leaf mustard, celery cabbage, melon, tomato, watermelon, and water spinach grew by 25% to 1.1 times. Attracted by the forestation encouragement scheme, forestation on leased land has reached maturity and become available for logging. Production of forest woods was 31 thousand square meters, which grew by 17.70% as compared to year 2001. Production of sub-products such as bamboo shoots and tree fruits grew by 0.31% at a volume of 41 thousand tons. The total volume of fishery production this year was recorded at approximately 1.41 million tons with a growth of 6.70%. In which, offshore fishery grew by 3.51% and inshore fishery and aquaculture grew by 7 to 16%. Production of various animal products showed more positive than negative growth. In which, production of hogs fell by 3.45% and production of goats and goat-milk fell by nearly 10% respectively.

IV. Food Consumption

　　 The average per person food supply in year 2001 in the Taiwan Area is calculated as the following: grains 89.44Kg (among which rice shares 50.10 Kg and flour 33.18 Kg), potatoes 21.60 Kg, sugar and honey (mainly sugar) 25.68 Kg, nuts and oilseeds 24.69 Kg, vegetables, 109.88 Kg, fruits 134.38 Kg, meats 76.57 Kg, eggs 19.19 Kg, aqua products 35.45 Kg, dairy products 54.37 Kg, and fats 23.27 Kg. Compared to year 2000, other than eggs, supplies of the rest of the food groups fell in this year.

Compared to the figures taken ten years ago (1990), supply of nuts and oilseeds, aqua products, grains, fruits, sugar and honey, and fats fell, but supply of the eggs, meats, vegetables, dairy products, and potatoes went up. Among which, supply of eggs went up by as high as 43.71%.

　　 The average per person per day nutrition intake in year 2001 in the Taiwan Area is calculated based on the level of each category of foods supplied – they are energy 2,805 Kcal, protein 92.42g (including vegetable protein 44.60g and animal protein 47.83g), and fats 117.14g. Compared to the data recorded last year, intake of calories, protein, and fats decreased by 4.87%, 4.43% and 5.27% respectively. Compared to the data taken ten years ago, other than calorie intake (which went down by 1.90%), intake of protein, and fats increased by 0.77 and 2.44% respectively.

　　 PFC ratio refers to the percentage composition of Protein (P), Fat (F) and Carbohydrate (C). This ratio can be used to observe the dietary structure of residents in the country. The ideal PFC ratio is approximately 12:30:58. Calculated based on the main nutritional intake in the Taiwan area in 2001, the PFC ratio is 13:38:49. This ratio indicates that diet of residents in the country has been changing over the years and is inclining to over-intake of fats and insufficient intake of carbohydrates.

V. Prices of Agricultural Products

　　 Affected by good harvest and open market brought by entry into WTO, prices of agricultural products at place of production in 2002 went down more and up. In which, fruits flowered and fruited well due to the dry weather in the beginning of this year; therefore, most fruits had good harvest. Adding the increased quantity of imported replacement fruits, prices of melons, oranges, guava, Wendan Pomelo, papaya, and mandarin orange went down by 20 to 50%. Under stable weather, prices of vegetables did not show large scale fluctuation. Other than garlic and ginger (which went up by 60 and 10%), average prices of other vegetable products at place of production fell by 10 to 40%. Due a reduction in production for nearly 10% and clearance of imported rice was not effective until April, rice grain supply in the first half of this year was tight; therefore, the price of Japonica Paddy remained high. Although the price of rice slide down in a notable scale after harvest of the second season, the yearly average price still registered a growth compared to year 2001. Due to contracted supply of meats caused by reduced production of hogs, prices of hogs and meat chickens (place of production) went up for nearly 10%. Prices of aqua products remained stable.

VI. Trading of Agricultural Products

　　 Based on custom data, the total import/export value of 2002 registered a growth of US$ 13 billion or 5.66% at a total value of US$ 243.1 billion as compared to the value of last year. Due to the nation’s entry into WTO, Trading of Agricultural Products was on a steady growth. The total import/export value was recorded at US$ 7.08 billion with a growth of US$ .23 billion or 3.34% as compared to last year. This was mainly brought about by a notable expansion of import volume; for which, the originally capped import items, such as rice, coconut, chicken meet, pork, internals, oriental pear, garlic, and longgan became open for import on a limited-quantity, tariff quota, or free-market import basis. The total export value was recorded as US$ 3.15 billion, registering a growth of US$ 0.12 billion or 3.91% compared to year 2001. This was mainly brought about by active overseas promotion for fruits, teas, flowers, and seedlings. Trade deficit expanded by US$ 0.11 billion or 2.88% at a total value of US$ 3.93 billion as compared to last year.

VII. Farming Households and Farming Population

　　 Based on the Year 2001 Taiwan Area Farming Household Survey conducted by the Central Region Office of Council of Agriculture, there were a total of 726,575 farming households in year 2001 in the Taiwan Area, which shared 10.71% of the total households in the Taiwan Area. There was approximately 3.69 million of population in the farming households, which took up 16.50% of the total population. Due to economic slowdown and shifting in industrial structure due to the nation’s entry into WTO, part of the employed population flowed back to the agricultural industry. In year 2002, an average of 0.709 million of farming population was registered, which indicated a growth by 7.50%. Compared to the figure of 2001, farming population overturned the downward movement to a growth by 3 thousand persons or 0.42% by year end.

VIII. Income of Farming Households

　　 According to the Taiwan Area Family Income/Expenditure Survey conducted by Directorate General of Budget, Accounting, and Statistics, income of farming households in year 2001 fell by 3.96% as compared to year 2000. Each farming household earned an average income of NT$ 881 thousand, which was 77.65% of non-farming households. In which, income from farming fell by NT$ 2000 or 1.26%, averaged at NT$ 163 thousand sharing 18.51%, and income from sources other than farming was averaged at NT$ 718 thousand, taking up 81.49%. Eliminating the factor of per household population, each person in farming household earned an average of NT$ 224 thousand, which denoted a decrease of 0.78% as compared to the figure of year 2000.