Taiwan Agricultural Development Corporation leases over a thousand hectares of land from Taiwan Sugar Corporation to grow bananas for export, becoming either a reform leader or the strongest competitor

Taiwan Agricultural Development Company chairman Chen Yujan confirmed that it plans to find 1,200 hectares of Taiwan Sugar farmland, of which eight or nine tenths will be devoted to planting bananas, with a target area set at 1,000 hectares. It hopes to find suitable farmland as quickly as possible, recruit workers to work on the farms, but does not rule out the possibility of cooperating with existing farmers.

The Pingtung Banana Research Institute estimates that export bananas yield about 35-40 metric tons per hectare, and 1,000 hectares would produce at least 35,000 metric tons of bananas. Currently, total domestic banana production is about 290,000 metric tons. If Taiwan Agricultural Development Company successfully rents land and begins planting, it will instantly become a major domestic banana player, producing 12% of the nation's banana output.

In response, Zhong Qinghui, director-general of the Meinong Farmers' Association in Kaohsiung, said, "I am optimistic about it, but I have doubts." If export demand is not that large, will the bananas grown by Taiwan Agricultural Development Company flow into the domestic market? Will that shock domestic banana prices?

Chen Yujan said that Taiwan Agricultural Development Company is of course mainly focused on export, but if domestic banana production is insufficient and the Agriculture and Food Agency requests the release of bananas to regulate the domestic market, Taiwan Agricultural Development Company will also fully cooperate with the Agriculture and Food Agency's directives. Chen Jizhong, deputy minister of the Council of Agriculture, said that Taiwan Agricultural Development Company's lease of Taiwan Sugar land to grow bananas is absolutely only for export use, and will not hurt the domestic banana market.

Export is troublesome and prices are not necessarily high, so farmers' willingness is low

Over the past five years, Taiwan's banana production has fluctuated around 290,000 metric tons, dropping only to 270,000 metric tons in ROC year 104, but export volume has retreated step by step, falling all the way from 1,2840 metric tons in ROC year 100 to 3,283 metric tons in ROC year 104; export volume has indeed declined year by year, but does this really mean farmers' willingness to export is low?

"Taiwan's banana exports are indeed mainly 'one-off exports.'" Zhong Qinghui admitted that bananas are exported only when production is sufficient, and if production is insufficient they are not exported. "From a trade perspective, this kind of one-off export really does not work." Trade must be stable and sustained before export channels can possibly be expanded.

Zhao Zhiping, director of the Banana Research Institute, also said that domestic banana exports are currently mainly stuck on price, yield, and specifications; banana farmers consider that domestic selling prices are higher than international selling prices, and in addition exports emphasize quality, so some bananas with slight black spots, or with specifications that do not meet requirements, may be judged as defective goods. Added together, these factors have meant that banana farmers' willingness to contract for export has always been low, and they instead focus mainly on the domestic market.

Banana Research Institute: Glad to see a heavyweight operator enter

"Export is a very good direction, and having a heavyweight operator like Taiwan Agricultural Development Company counts as a start." Zhao Zhiping also said that exports need long-term planning. At present, banana farmers have many prejudices about export and are unwilling to invest. Perhaps starting with Taiwan Agricultural Development Company, establishing a good operating model, and raising export visibility can let banana farmers see export opportunities, set aside their prejudices, further adjust planting and harvesting models, and join together in pursuing exports.

"It is not the point that Taiwan Agricultural Development Company wants to rent those several hundred hectares or 1,000 hectares of Taiwan Sugar farmland to grow bananas! The point is how to use these several hundred hectares of demonstration production land as a starting point to attract the vast number of domestic banana farmers to join in cooperation and produce bananas that meet export-standard specifications." Chen Jizhong said that only when Taiwan Agricultural Development Company cooperates with banana farmers to produce bananas that meet export demand can it truly boost the banana production available for export and raise farmers' incomes.