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Promoting Agricultural Strategic Alliances, Achieving the Benefits of Economic Scale

  1. Promoting Agricultural Strategic Alliances
  2. Encouraging Agricultural Product Processing Enterprises
  3. The COA organized small farmers as larger agricultural groups through strategic alliances in order to achieve the benefits of economy of scale and overcome operating bottlenecks. The COA provided assistance to mango, Wentan pomelo, guava, Asian pear, grape, sugar apple, starfruit, staple vegetable, and fish product alliances in 2003. While adhering to the principles of industry autonomy and a unitary production-sales process, the COA expanded integration of production, logistics, processing, and trade resources, established supply chain systems, and enhanced its ability to regulate production and supply. Taking mangoes and fresh vegetables as examples, the COA helped alliances export mangoes, and succeeded in increasing mango exports by a factor of 3.6, to approximately 6,000 tons. This effectively eased the mango glut in Taiwan. In addition, the COA also successfully expanded the fresh vegetable export market, and fresh vegetable exports to Canada, Japan, Malaysia, Korea, and Singapore, etc., increased by a factor of 3.5, to approximately 1,123 tons. With regard to recreational farming alliances, the COA continued to expand and update the "Recreational Farming Information and Service Network"; more than 10,000 pieces of information concerning domestic recreational farming were added to the website. The COA also developed a "recreational farm lodging reservation and management system" to help citizens take part in recreational farm tourism.

    In order to increase the added value of domestic agricultural products, the COA continued to help farmers’ associations, cooperatives, and production-marketing teams to establish rural food processing enterprises and develop promising processed agricultural products embodying distinctive local characteristics. For instance, the COA helped farmers' groups establish nine village wineries dovetailing with local recreational industries. By bringing together industry resources, local culture, and recreational activities, the COA is promoting the development of local winemaking. In addition, to strengthen the sanitation and safety of processed agricultural products, the COA continued to promote the CAS Superior Food certification system, which emphasizes "sanitation, safety, and high quality." The 12 food categories of meat products, frozen foods, fruit and vegetable juices, Quality Rice, pickles and sauces, prepared rice foods, refrigerated prepared foods, fresh mushrooms, fermented foods, snack foods, fresh eggs, and fresh-cut vegetables and fruits are currently eligible for CAS certification. A total of 215 firms have received CAS certification to date, and the 4,378 CAS products on the market have generated more than NT$37 billion in value.