ByCouncil of Agriculture

Republic of China (Taiwan)May 7, 2009

Quality Agriculture Development Program

Outline

1.1. A Diversified AgricultureA Diversified Agriculture2. Program Themes and Visions2. Program Themes and Visions

Healthful AgricultureHealthful Agriculture Excellent AgricultureExcellent Agriculture LOHAS AgricultureLOHAS Agriculture

3. Budget Estimate3. Budget Estimate4. Projected Benefit4. Projected Benefit

A Diversified Agriculture Covering both local

farmers’ markets and world-class orchid export industry.

Covering both products for the general public and high-value trendy products.

Covering both traditional culture and agrotourism.

Though low in production value, the new agriculture can have the strong effect of:

－ fighting business cycles.

－ adding value domestically.

The new agriculture is not just a primary industry, but also a green and service industry.

1

Themes and Visions of Quality AgricultureThemes and Visions of Quality Agriculture

Three ThemesThree Themes Three VisionsThree Visions

Rejuvenating rural life Rejuvenating rural life to make Taiwan a to make Taiwan a

LOHAS islandLOHAS island

Advancing R&D to Advancing R&D to make Taiwan an island make Taiwan an island

of excellent of excellent agricultural agricultural technologytechnology

Strengthening quality Strengthening quality certification to make certification to make Taiwan a toxic-free Taiwan a toxic-free

islandisland

Pushing a chainPushing a chainreaction of improvementreaction of improvement

Developing Developing quality products quality products and upgrading and upgrading

servicesservices

Developing Developing new marketsnew markets

Rejuvenating Rejuvenating rural rural

communitiescommunities

Healthful Healthful AgricultureAgriculture

Excellent Excellent AgricultureAgriculture

LOHAS LOHAS AgricultureAgriculture

2

Enhancing qualityEnhancing qualityof lifeof life

Enlarging farming scale through the small landlord-turned large tenant program Using creative culture and tourism to develop agrotourism Promoting agricultural upgrading with the aid of branding Integrating all R&D resources Establishing a system whereby orders are placed in Taiwan and products delivered in mainland China Promoting distance marketing and service by using information technology

Quality AgricultureSupport

Measures

High Quality of R&D Human High Quality of R&D Human ResourcesResources

Information Technology and Information Technology and Favorable EnvironmentFavorable Environment

Rural RenewalRural RenewalRural RenewalRural Renewal

New agricultural technology

New agricultural management New markets

strategies of implementation

Diversified Ecology and CultureDiversified Ecology and Culture

Coastal RevivalCoastal Revival60,000 ha. Afforestation 60,000 ha. Afforestation

ProgramProgram

Molecular marker-assisted selection

High-performance and high bio-safety bioreactors

Direct-fed microbials and probiotics

Development of bio-pesticides and bio-fertilizers

Development of vaccines and disease screening technology

Healthful products for senior citizens

Products for weddings and high-income people

Products for festivals and as gifts

Products for high-income districts in mainland China and foreign targeted markets.

3

Theme I --- Healthful Agriculture

GAP CAS products

Organic farming

Product traceability system

Establishing specialized production areas to

benefit from the clustering effect

Establishing specialized production areas to

benefit from the clustering effect

Strengthening product certification

and quality inspection

Strengthening product certification

and quality inspection

Promoting marketing channels

for safe products

Promoting marketing channels

for safe products

Toxic-free agriculture island

4

Healthful Agriculture

In 2008 Taiwan had about 820,000 ha. in arable land, of

which 25,000 ha. or 3% of the total produced GAP,

organic, and traceable products.

By 2012 such products will come from 50,000 ha., or 6% of

the total farm land.

Theme I

5

8.40%1,067,102

5.08%759,000

4.74%807,406

3.20%807,569 2.68%

11800,0002.41%

3,099,427

0.50%1,620,351

0.41%2,300,000

0.32%842,000

0.29%2,356

0.16%8,109

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

ItalyUruguay

Germany SpainAustralia

ArgentinaU.S.A.

China Brazil

Taiwan (2008)Japan

Nat i on

％

Areas for organic products and percentages of the total arable land in main countries in 2007

In 2007 the world had 30,550,000 ha. planted in organic products, which was a 289% increase over 2000. Nearby countries, such as Japan and South Korea, also strive to develop organic farming.

0.61% 2012

Theme I

6

Healthful Agriculture

The objective is for Taiwan to achieve toxic-free status. By 2012 organic products acreage will be doubled to 5,000 ha. with a total value of NT$ 3 billion.

The objective is for Taiwan to achieve toxic-free status. By 2012 organic products acreage will be doubled to 5,000 ha. with a total value of NT$ 3 billion.

Organic farming Organic farming

This labeling system ensures the safety of processed products. By 2012 the CAS-marked products will reach a value of NT$ 53 billion.

This labeling system ensures the safety of processed products. By 2012 the CAS-marked products will reach a value of NT$ 53 billion.

Good products with CAS label Good products with CAS label

TAP traceability systemTAP traceability system

GAP is the basis of toxic-freeagriculture. By 2012 the acreage for GAP fruit and vegetables willreach 30,000 ha. with a production value of NT$ 12.6 billion.

GAP is the basis of toxic-freeagriculture. By 2012 the acreage for GAP fruit and vegetables willreach 30,000 ha. with a production value of NT$ 12.6 billion.

GAP (Good Agricultural Practice) GAP (Good Agricultural Practice)

This system is to ensurecompliance with international safety standards. By 2012 the value of products certified under this system will reach NT$ 5.4 billion.

Theme I

7

Healthful Agriculture—Important Measures

8

Assist the development of local farmers’ markets, corporate purchases and e-commerce Develop outlets for fresh food at convenience stores and markets for family meals Assist religious and volunteer groups to produce organic products Select a day for promoting organic products to strengthen consumer awareness

Assist the development of local farmers’ markets, corporate purchases and e-commerce Develop outlets for fresh food at convenience stores and markets for family meals Assist religious and volunteer groups to produce organic products Select a day for promoting organic products to strengthen consumer awareness

Establish diversified marketing channels

Develop markets catering to special groups of people

Establish diversified marketing channels

Develop markets catering to special groups of people

New market developmentNew market development

Set up specialized production areas on farms owned by Taiwan Sugar Company or Veteran Affairs Council or large areas of fallow land Distribution centers will integrate processing, distribution and related operations to improve efficiency and branding

Set up specialized production areas on farms owned by Taiwan Sugar Company or Veteran Affairs Council or large areas of fallow land Distribution centers will integrate processing, distribution and related operations to improve efficiency and branding

Establish specialized production areas for organic products Establish farm products distribution centers

Establish specialized production areas for organic products Establish farm products distribution centers

New management model

New management model

Develop non-chemical disease prevention and control technology, materials, and fertilizers

Develop environmentally controlled green-energy and highly efficient production systems combined with remote sensing, energy-efficient and automation

technology

Develop non-chemical disease prevention and control technology, materials, and fertilizers

Develop environmentally controlled green-energy and highly efficient production systems combined with remote sensing, energy-efficient and automation

technology

Develop non-chemical production requisites

Develop environmentally controlled and highly efficient production systems

Develop non-chemical production requisites

Develop environmentally controlled and highly efficient production systems

New technology development

New technology development

Geographical location Taiwan leads the world in tissue

culture technology for propagating ex-vitro orchid plantlets Taiwan has developed technology for

artificially propagating six out of seven grouper varieties that can be thus propagated

The easing of tensions between

mainland China and Taiwan will

help the sale of quality

agricultural products in

mainland China

IPRs for plant varieties have been established

The EU, Japan, the U.S.A. and Australia have recognized Taiwan’s right to apply for plant variety rights protection The EU and Taiwan have agreed to mutually accept DUS test reports

Taiwan ranks 12th in agricultural technology development in the

world Taiwan owns the most orchid varieties in the world Taiwan has won many awards for developing new ornamental fish varieties

Comparative advantages of Taiwan’s agricultural technology development

Comparative advantages of Taiwan’s agricultural technology development

Theme II --- Excellent Agriculture

9

Excellent AgricultureTaiwan’s agricultural technology has achieved remarkable

advances over the years. Biotechnology, orchids, groupers,

ornamental fish, seeds and seedlings, and breeding animals

posted a combined production value of NT$ 21 billion in 2008.

The value will reach NT$ 34.3 billon in 2012.

The production value of biotechnology, orchids, groupers,

and ornamental fish will double

by 2012.

Taiwan orchids are highly competitive in the world market because of their seemingly endless new varieties.

Theme II

10

Excellent Agriculture

The production value of agricultural biotechnology in the world reached USD 41.1 billion in 2008, which is expected to rise to USD 63 billion in 2013.

In 2007 Taiwan’s agricultural biotechnology had a production value of NT$ 3.5 billion, which amounted to 15.4% of the total value of new technologies.

Ping-tung Agricultural Biotechnology Park now has given approval to 67 companies for operation in the Park and twenty have set up shop there, with a total

investment of NT$ 3.67 billion.

Agricultural biotechnology

Taiwan’s florescent ornamental fish were selected by Time magazine as one of the 40 best inventions in 2003.

Theme II

11

Excellent AgricultureTheme II

The total orchid acreage was 579 ha. in 2008, with a total production value of NT$ 2.65 billion. Over 70% of the products are exported.

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Orchids

Taiwan leads the world in artificial propagation for groupers

Every year Taiwan produces 17,234 MT of groupers by artificial propagation. The production is 25% of the world total; its value reaches NT$ 3.8 billion, or 58% of the world value.

Every year Taiwan produces 17,234 MT of groupers by artificial propagation. The production is 25% of the world total; its value reaches NT$ 3.8 billion, or 58% of the world value.

13

Excellent Agriculture

Seedlings and breeding animals Such industries look promising if Taiwan can possess the key

technology. In 2008 seedlings had a production value of NT$ 8.1 billion, of which NT$ 1.1 billon was exported. Breeding livestock and poultry were valued at NT$ 2.4 billion.

Ornamental fish Taiwan enjoys the advantages of quality and technology. Currently, the

world trade in ornamental fish is valued at USD 5.8 billion (the total value would be USD 14 billion if the peripheral products were included). In 2008 Taiwan produced NT$ 2 billion in such fish. The favorable climate and superior technology have made southern Taiwan an ideal area for breeding ornamental fish. Taiwan has won first prizes for bee shrimp and angel fish.

Theme II

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Excellent Agriculture:important

measures I

Using insects and animals as bioreactors

Using artificial propagation to shorten the time for breeding new animal breeds

Establishing Taiwan as a seedling research and distribution center for the Asia-Pacific region

Using molecular marker and breeding technology to build a national genetic selection system for native chickens

Using molecular biology to understand animal life

New technology research and development

15

Strengthen the management of R&D results and build a favorable climate for cooperation between industry and academe, coupled with requisite measures.

Establish a special office of agricultural technology industry to promote agricultural IPRs and make the best of them.

Hold training in IPR protection and conduct analyses and inventories of R&D benefits and patents deployment.

Maximizing Benefit from

Agricultural IPRs

Maximizing Benefit from

Agricultural IPRs

Excellent Agriculture:important

measures II

16

New Management

Model

Establish a research institute for agricultural science and technology The new institution will be in Chung-hsing New Village, which is being developed as a science and research park. It will integrate all research resources.

Establish three new incubation centers at the following institutes: Llivestock Research Institute Agricultural Research Institute Fishery Research Institute

Establish five commercialization platforms for: Crops Fish fry Breeding animals Safe agriculture Molecular farming

Establish six GM and safety evaluation facilities. GM crops, GM animals, vaccines

Excellent Agriculture:important measures III

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Establish the first integrated matching

platform for agricultural technology transfer

website

Expand exports to Singapore,

mainland China and other emerging

markets

Develop markets for

cosmetic, anti-aging and health-nourishing

agricultural biotechnology

products

Grant overseas franchises for new

varieties to promote branding in the

world market

Sponsor or participate in

international shows and schedule trade

consultations to secure business

opportunities

New Market Development

Excellent Agriculture:important measures IV

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Theme III --- LOHAS Agriculture

Develop in-depth agrotourism

Exquisite agricultural products

- Finest tea- Farm-brewed wine- High-quality rice- Fine bamboo products- Choice fishery products- Safe and quality livestock products

- Forest recreation- Sport fishing and whale viewing- Recreation in rural areas

Goals for 2012: More than 30 million visitors Market value will be doubled to

about NT$ 19.9 billion Accumulated employment will

reach 24,000 persons

Goals for 2012: Production value: NT$ 12.3 billion Increased employment: 4,500

persons

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LOHAS Agriculture --- Status of in-depth agrotourism

Totally there are 63 agrotourism areas and 177 certified agrotourism farms. In 2008 the market value created by agrotourism was 7.4 billion, and the total of visitors was 9.59 million, of which 63,739 were from abroad.

There are 18 forest recreational areas and 8 nature education centers and hiking systems. In 2008 the market value was NT$ 3.3 billion, and the number of visitors 4.8 million in total.

Fishing ports total 77, accommodating a total of 266 recreational or sport fishing boats, which carry a total of 1.2 million visitors a year for whale watching or sport fishing. The Fishermen’s Wharf in Damshui has over one million visitors annually.

Theme III

20

Establish a dynamic and user-friendly global information platformusing modern information technology

New Management Model of In-depth

Agrotourism

Establish 3 flatland forest recreational areas of over 1,000

ha. eachThey will serve as energy-saving, carbon-reducing eco-educational centers

Promoting 4 demonstrational

agrotourism areas

Establishing agrotourism certification and service certification

LOHAS Agriculture:important measures I

21

Revitalize and beautify 310

rural communities

Establish 4 yacht berthing areas and 2 recreational fishing

harbors

主軸 3LOHAS Agriculture:

important measures I

Tashan Hiking Trail

22New view of Chisong agrotourism area

LOHAS Agriculture:important measures II

Number of foreign visitors will double by 2012

Develop theme itineraries catering to different groups of travelersDevelop theme itineraries catering to different groups of travelers

Promote airport to farm travel plans

Attract group visitors from Japan, South Korea, Malaysia and mainland China and backpack travelers from Singapore, Hong Kong , U.S.A. and Europe

Develop new markets for in-depth agrotourism

23

For parents and children

Cuisine trips

Learning and experiencing

Relaxation and healing

Trips for promoting health, inside forest, on bike

DIY farming, whale viewing and ecosystem experiencing

2 meals and one night stay to enjoy delicious meals and culture

Off-school teaching, agri-business experiencing, and farm stays

Herbal and flower healing

For health

Building house with straw and

bamboo at Neimen, Kaohsiung

24

Before the flower festival starts, people in Hwa-Tung Valley set to work painting Before the flower festival starts, people in Hwa-Tung Valley set to work painting a tinplate-and-steel housea tinplate-and-steel house

25

The most beautiful tinplate-and-steel building by the highway in Hwa-Tung Valley

Art students from National Taitung University lend a helping hand

Each rural community needs its peculiar features and beauties

26

LOHAS Agriculture --- Exquisite agricultural products

Finest tea: The yearly production is 17,000 M.T., of which 900 M.T. carries origin and traceability certificates with a total value of NT$900 million. Farm-brewed wine: 23 wineries produce 200 thousand liters, worth NT$ 100 million.

High-quality rice: Taiwan's annual brown rice production is 1,170 M.T., of which 962,000 M.T. is good quality rice. The best quality rice is about 2,500 M.T. valued at NT$400 million. Fine bamboo products: The traditional bamboo industry has an annual production value of about NT$ 10 million. New bamboo commodities including bamboo charcoal products, bamboo art articles and other fine products fetch over NT$ 2 billion a year. Choice fishery products: The total value of 11 fishery products including tuna frozen at ultra-low temperature, clam essence, mullet roe, and cobia reaches NT$ 880 million a year. Safe and quality livestock products: High-quality products such as chicken essence, black-boned chicken gelatin, ham and gelatinized eggs post a production value of about NT$2.9 billion annually.

27

New technology developmentNew technology development New management modelNew management model

LOHAS Agriculture --- Major measures for promoting exquisite agricultural products

Develop preservation at room temperature and freezing technology to prolong shelf life Integrate traditional, wine- making method with biotechnology to manufacture fine wine commercially Develop core technology for producing fine bamboo products for use in industries such as semi-conductor, medicine or energy

Expand labeling products with origin and traceability certificates to diversify marketing channels Assist producers and manufacturers to build common brands as well as help farmers’ organizations, food processors and marketers to form strategical alliances Promote food quality accreditation in order to link up with ISO For the convenience of mainland China tourists, promote an “order in Taiwan and take delivery in China” scheme

28

LOHAS Agriculture--- New Market Development

Integrate local industrial culture, rural beauty,

agrotourism and e-commerce to promote exquisite agricultural products

The plum factory of Hsin-yi farmers’ association sells beautifully packaged plum products. Plums are purchased from farmers, processed by the association, and sold to consumers at reasonable prices.

To meet the needs of agrotourism and consumers,

develop gift products with local characteristics

29

Tea-drinking art includes tea-making, teaware, tea literature as well as tea

manufacturing. It is part of Taiwan culture.

30

Develop fine products for such occasions as

weddings, birthday parties and baby showers in

addition to being used as gifts for various purposes.

31

Combined with local legend and other

associations, wines can become local symbols and

instant successes.

The millet wine produced by Hsinyi farmers’ association gets highly popular with the launch of a very successful movie called “Cape No. 7”. 32

2009 2010 2011 2012 Total

Healthful agriculture* 6.47 8.33 9.76 9.86 34.41

Excellent agriculture 7.16 14.47 23.67 17.11 62.40

LOHAS agriculture 20.20 33.51 48.53 43.26 145.49

Total 33.82 56.31 81.95 70.22 242.30

Industry

Year

Budget EstimateHundreds of million NT$

*The budget for healthful agriculture mainly used in building rural infrastructure and regulating production and marketing operations. 33

Projected Benefit

By 2012 the quality agricultural program is projected to

have a total production value of NT$ 140.5 billion.

The industries which will have their values doubled by 2012 include: Organic farming, Farm products with traceability labels, Agricultural biotechnology products, Orchids, Groupers, GAP products, Ornamental fish, Agrotourism, Exquisite farm products.

By 2012 the accumulated employment under this program

will be 53,000 persons.

34

Agriculture is not just an economic industry; it also creates such noneconomic external effects as contribution to both physical and mental health, help in social stability, and increase in green national income. Such effects have a value far beyond the GDP calculated traditionally. Tree planting, reborn coastal areas, and rural renewal all help revive the agricultural sector and promote agrotourism.Most important of all, this program will leave future generations with ecological beauties and pleasant living space.Besides economic benefit, the quality agriculture program will contribute to:

The Quality Agriculture Program Will Create a High Quality of Life

35

More creative technology. Less pollution. Better quality of life.

Safer food products. A greener environment. A more attractive local culture.

The quality agriculture program will make Taiwan agriculture:

A healthful industry in the interests of all the people.

An excellent industry with cutting-edge science and

technology.

A LOHAS agriculture that provides a comfortable and

happy life.

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–The End–