While Taiwan's agricultural industry as a whole is going through a rocky stretch, especially in light of the country's predicted admittance to the World Trade Organization (WTO), the island's floriculture industry is thriving. The government has targeted the industry as one of
seven agricultural sectors to be strategically developed in the coming years.
With its excellent topography and climate, Taiwan has an outstanding environment for growing flowers. The Department of Agriculture and Forestry has budgeted NT$30 million (US$1.09 million) to promote the floriculture industry over four years. It also intends to establish a databank of export flowers, strengthen flower marketing and sales systems, and develop new overseas markets.
The size of the land utilized in floral production is indicative of the importance of the industry in Taiwan and its growth over the last 15 years. According to statistics provided by the Council of Agriculture (COA), 9,314 hectares of land, mainly in Changhua and Nantou counties in central Taiwan, was used for floral production in 1994, compared to only 1,672 hectares in 1981. The number of farmers devoted to the production of flowers, potted plants, seeds and sprouts, and cut-flowers has also increased considerably in recent years. More than 20,000 farmers currently engage in floriculture. Collectively, they churned out some US$282 million worth of floral products in 1994.
Prosperity Indicator
"Selling flowers is now a big business around the world, and flower consumption can illustrate how far a region or a nation has progressed, both culturally and economically," says Huang Li-chuan (¶ÀÄR®S), secretary general of the Taiwan Floriculture Exports Association (TFEA).
The idea is that as countries become more industrially developed, their citizens are more likely to spend a greater portion of their disposable income on inessential goods such as flowers.
Certainly that has been the case in Taiwan. As per capita income and standard of living have risen, the demand for flowers has likewise increased. In 1994, a total of NT$7.4 billion (US$228.6 million) worth of locally grown flowers was purchased on the domestic market. Taipei and Kaohsiung were the two largest domestic outlets, consuming 60 percent and 25 percent, respectively.
Cut-flowers are the vanguard of Taiwan's floral exports. Of the approximately NT$1.2 billion flowers grown last year, chrysanthemum and gladiolus claimed the lion's share with 30 million and eight million flowers each being shipped overseas, says Wu Ching-fu (§d¼yºÖ), general manager of the Taipei-based Taiwan Floriculture Development Association (TFDA). Other major exports include Anthurium, Oncidium, Golden Spider, lily, calla, tuberose, and butterfly orchid.
Wu believes that due to convenient transportation between Taiwan and Japan, which not only reduces costs and delivery time but also guarantees the quality of flowers, Japan has become the island's largest cut-flower export market, followed by South Korea and the United States. In 1994, Taiwan exported a total of US$27.2 million worth of floral products, while importing US$13.4 million worth.
Early Frost?
In spite of the expansion of the industry, cut-flower exports, including chrysanthemums, calamus, and roses, have noticeably fallen over the last five years. The amount of cut-flowers being exported dropped from 50 million flowers in 1991 to 27 million in 1993. This
was generally attributed to the fact that local farmers are more interested in marketing their flowers domestically instead of overseas.
"Local farmers are discouraged by high transportation costs. Since they are primarily oriented toward the domestic market, flowers are usually shipped abroad only when the domestic market demand is saturated," Huang says. Some surplus flowers intended for export, however, are of inferior quality and are unable to secure good prices. This further discourages farmers from attempting to market them abroad. Anthuriums grown in Puli, Nantou county, are a possible exception. Farmers in Puli have adopted more efficient production processes and automated facilities, and they are able to export quality Anthuriums to the U.S. and Japan at prices much higher than in the domestic market. With technology transfer and improved nurturing techniques, Taiwan's flower exports have attracted substantial interest abroad. Responses from the U.S., France, Holland, and Japan to locally grown flowers are very encouraging, explains Huang.
But the very nature of Taiwan's floriculture industry means that a number of changes will be necessary in order to remain competitive. The industry is largely composed of individual farmers operating on a relatively small scale. Rapid price changes and complicated laws regarding land use and ownership are viewed as barriers to further increases in exports. Possible solutions to the present bottleneck are the establishment of special flower growing zones for export purposes, and the establishment of an information system capable of providing information to local growers about access to foreign markets. Huang adds that the government can help by acting to lower transportation costs, providing low-interest loans, and freeing up public land for use in floriculture.
The successful production and marketing of butterfly orchids by the state-owned Taiwan Sugar Corporation (TSC) is an example of a successful government enterprise. Bolstered by cheap land costs, rich human resources, and abundant financial support, the TSC moved into floriculture in 1987 and later it initiated the mass propagation of butterfly orchids. These orchids--sold primarily to Japan, the U.S., and European countries--have won worldwide acclaim.