Premier Jiang Yi-huah today affirmed the Council of Agriculture (COA) for promoting the commercialization of agricultural technology, saying efforts to bring the technologies to industries, create business investment opportunities and market products internationally have helped 11 agricultural sectors to take off.
After being briefed by the COA on the topic, the premier said such a transformation of the agricultural industry, combined with the establishment of free economic pilot zones (FEPZ), will hopefully add higher value and create new business opportunities to bring more profits back to farmers.
Jiang said the objectives for the commercialization of agricultural technologies include taking the industry to global markets; setting up a cross-sector integration platform; promoting the second-phase expansion of the Pingtung Agricultural Biotechnology Park (PABP); and establishing an agribusiness venture matching platform.
In particular, the PABP is the ideal place among FEPZs for agricultural processing businesses as it offers a clustering effect and preferential tax treatments. After the park is expanded and all land rented out, the park is expected to house 165 companies with aggregate output of NT$90 billion (US$3 billion) and some 8,000 employees.
Premier Jiang requested Minister without Portfolio Chiang Been-huang and the COA to consider incorporating agricultural biotechnology into the national biotechnology development action plan or into the quality agriculture part of the six emerging industries plan. As for the COA's proposal to set up an agricultural venture fund, Jiang indicated that agencies like the National Development Council (NDC) have set up similar funds and that he will instruct the NDC and other units to look into possibilities. He also asked related agencies to raise their budgets for funding agricultural technology research.
The COA cited two success cases of agricultural commercialization. In 2013, chicken-essence maker Yuan Jin Chuang Enterprise Co. tapped into oversea markets and earned NT$30 million (US$1 million) revenues, bringing more profits to farmers back home. Another company receiving COA guidance is Fwusow Industry Co., which significantly expanded its land for contract sesame farming from 0.35 hectare in 2013 to 140 hectares in 2014.
According to the COA, the sectors being targeted for technological commercialization are new plant varieties and seedlings; grouper nursery ponds; mushrooms; vaccines for animal use; biological pesticide and fertilizer; testing and inspection; feed additives; agricultural machinery; ornamental fish and peripheral technologies and facilities; food and medicine for companion animals; and facility agriculture. After the establishment of FEPZs is approved by the Legislature, related industries will benefit even more from tariff reduction.