Study on WTO and Rice Competitiveness: Research on Chishang Rice of Chishang village, Taitung

• Main Authors: Lai Nong Sen, 賴榮盛
• Other Authors: 李玉芬
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/2ewpnd

碩士 === 國立臺東大學 === 區域政策與發展研究所 === 95 === Abstract On January 1st, 2002, after years of negotiation Taiwan finally acceded to the World Trade Organization (WTO) and became the 144th member state. To perform WTO regulations and deliver the promises, Taiwan phases in lower custom duty and more foreign agricultural items, including rice. Rice industry is fundamental in Taiwanese agriculture and takes monumental important role on food supplying, rural economics, and environmental protection. However, due to marginal resources of paddy fields, high labor cost and far small-scale operation, Taiwanese rice is in relative inferior position when it’s compared with international competition. Rice industry is Taiwanese staple, so farmers who live on the rice industry are the largest in the agricultural industry. For a long time, rice, from production to sale, has been under the government’s policy protection and control. Faced with WTO, Taiwanese rice industry has competitiveness that makes the public felt distressing about the future of rice. This study probes into the aspect from marketing to the cause of some cases in “WTO and the competitiveness of the rice industry” and “Chishang rice in Chishang Village of Taitung County”. First of all, the study collects and organizes rice policies and development situation occurred since the Japan-occupied era, and then analyzes production and marketing problems in Taiwanese rice industry, which are: 1) the government’s long-term policy on “Secured Food” had made Taiwanese rice industry have no way out of the governmental control and protection. 2) To increase the yields, the government executed policies like the sale of public farmland, the 37.5% rent reduction act, and land to the tiller. The goal of higher yields is reached, but it also decreases the average acres of a farmer’s land and increases the production costs of rice. 3) Taiwanese diet is being affected by globalization and every year each one consumes more little rice, which results in smaller rice market in Taiwan. 4) The existing policies of guaranteed-price purchasing and fallow subsidy contradict each other. The former policy is to increase yields, whereas the latter is to decrease volumes. 5) The existing policy of guaranteed-price purchasing cannot solve problems to Taiwanese industry. When time goes by for years and more rice is stocked in warehouses, its quality degrades and inventory pressure increases. 6) From rice farmers, husking factories, rice dealers, to outlets, the entire rice industry produces and sells rice to the government’s tune. As a result, the chain of production and marketing is in passive position, so it’s unable to respond to change and competition of the free market. 7) A rice farmer basically only has knowledge of production, not marketing, and most farmers think they are working for the government, instead of consumers. 8) The government’s way to respond to the change of rice market is usually to reduce yields, which may be a good try in a way. Yet, “production and marketing” means output and sales. Besides, either the government or people of the rice industry do not propose better marketing methods enthusiastically. 9) Both government and people of the rice industry still stand by the idea of policy-promoted market, not by consumer-promoted one because they do not realize it is consumers’ needs that they must analyze and understand first and persistent supply doesn’t go anywhere. Actually, both should plant crops for consumers’ needs not merely for the idea of supply. Next, the study reviews the reason why Chishang rice in Chishang Village of Taitung County can come off. Look from marketing angle: 1) In view of production, Chishang Village has a suitable natural environment conductive to rice production, without industrial pollutants flying. Plus, the elites on rice in this village continue to upgrade the quality and this helps Chishang rice earn the market’s extensive acceptance. 2) As to purchasing rice, several farmers’ associations and rice dealers set up and execute the first classification of rice purchasing in Taiwan, which encourages farmers to yield high-grade rice to be priced by quality. 3) In outlets, Chishang Village breaks tradition and set up a sales network with post offices, gas stations and door-to-door service and even with department stores- the first time in history that Taiwanese rice appears in such kind of sites. 4) In packaging, Chishang Village conforms to the market situation and prepares 0.5kg-12 kg packs and packs for domestic use as well as gifts. 5) Last but not least, Chishang Village successfully acquires and promotes the first geographical mark in Taiwan- “Chishang Rice®” with which the real Chishang rice now is a limited-quantity product. For WTO Taiwanese agriculture is facing, this study presents: 1) suggestion on Taiwanese rice industry 2) suggestion on Taitung agricultural development 3) suggestion on the rice industry of Chishang Village, Taitung County. The study hopes that Taiwanese agriculture can turn crisis into opportunities and WTO impact into a big thrust, so as to find vitality from current Taiwanese agriculture.