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Friday, 8 February, 2002, 11:29 GMT
Taiwan's farming fears
Squash, beans and bamboo shoots are just some of the crops she grows with her husband on a smallholding
Mrs Chen in a storeroom on her farm
By Michael Bristow in Taipei

Chen Yu-mei runs a small organic vegetable farm on the lush, green slopes of Yang Ming Mountain, a beautiful natural area on the outskirts of Taiwan's capital city Taipei.

Squash, beans and bamboo shoots are just some of the crops she grows with her husband on a smallholding that could become more typical across the island now it has entered the World Trade Organisation (WTO).

Entry into the WTO last month was welcomed by government and business leaders, who hope it will boost the island's faltering economy by opening up new markets for Taiwan's high-tech products.


In the end, they might just quit their farming jobs

Cheng Cheng-mount, Taiwan Institute of Economic Research

But there is a downside. WTO regulations will force Taiwan to open up its heavily-protected agricultural sector.

At the moment, Taiwan limits imports for certain key products, such as rice and chickens, and imposes tariffs of up to 20% on other farm goods.

But over the coming years, the island will have to reduce these restrictions, a move that will allow cheap farm products from across the world into Taiwan.

That will cause a problem for Taiwanese farmers, whose products are more expensive because of a lack of cheap labour and a shortage of land on the island.

For example, rice costs up to three times as much to grow in Taiwan as it does in countries such as Thailand and the US.

It is a development which could lead to thousands of farmers losing their jobs, and will change farming on the island forever.

Organic growth

In the future, in order to compete, Taiwanese farmers might have to specialise, as Mrs Chen has done.

Her experience is certainly encouraging.

"Organic vegetables are very popular now, our customers are increasing. This is the trend of our time," she said.

"Nowadays people really care about their health and they're willing to spend a little bit more money on good food."

flowers on sale at a Taipei market.
Taiwanese farmers encouraged to grow more high-value products

The Taiwan government is spending around $10bn to help as many farmers as possible adapt to the changing times.

In order to do that, a year ago it set up the Taiwan Agricultural Strategy Coalition (TASC).

This organisation is helping farmers cut costs, specialise in high-value crops such as flowers and organic produce, and is encouraging them to branch out into non-farming areas.

TASC director Leo Liu said, "I think the whole of agriculture will be changed. It will be transformed and become more economical and profitable."

He said TASC would provide training courses to teach farmers about such things as opening up their farms to tourists, a venture which can be more lucrative than farming itself.

In addition to government help, some farmers are already taking things into their own hands by setting up production bases in other East Asian countries, such as China, where costs are lower.

Leaving the field

But, according to academic Cheng Cheng-mount, of the Taiwan Institute of Economic Research, not every farmer will be able to adapt.

Estimates vary, but he believes 20,000 farmers will eventually lose their jobs because of Taiwan's entry into the WTO on 1 January.

"There are some farmers who are too old to adapt. Most of them are located in the south of Taiwan, and they are, maybe, low-educated people," said Mr Cheng.

"Once the situation in the market for farming products becomes difficult, I think, in the end, they might just quit their farming jobs."

Despite government help, entry into the WTO will squeeze Taiwan's already small agricultural sector even further.

Mrs Chen's smallholding on Yang Ming Mountain might be secure, but not all farmers in Taiwan are facing a rosy future.

See also:

01 Jan 02 | Business
Taiwan enters WTO
05 Feb 02 | Asia-Pacific
Taiwan admits first Chinese tourists
24 Jan 02 | Country profiles
Country profile: Taiwan
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