Institutional Barriers and Limitations of Developing Plant Factories with Artificial Lighting in Taiwan

• Main Authors: Noah Benjamin Miller, 鑫龘聞
• Other Authors: YEH CHIA-TSUNG
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/6fzx86

碩士 === 國立臺北大學 === 城市治理英語碩士學位學程 === 105 === In the recent years, there has been much research on plant factories with artificial lighting (PFAL) in Taiwan. However, most were one of three types’ technical papers, scientific/ technological papers or consumer perspective papers. This qualitative research paper explores how institutions in Taiwan affect the PFAL industry using tools from different fields to interpret, analyze and explain phenomenon in the industry. The aims and goals of this research are to determine the situation of the PFAL industry in Taiwan and examine the perceived or real limitations and gaps in its use. Ten semi-structured interviews were conducted with different participants having or were believed to be being involved in the PFAL industry. Acquired from these interviews were some of the coercive institutions as well as some of the internal institutions creating limitations and barriers for PFAL industry in Taiwan. The real barriers and limitations in Taiwan are production costs, market demand; legal standards to maintain certification and insurance, investors risk adversity, business registration, comparative advantage, land cost, no government regulation, and potentially the inefficiency in the production processes and technology. Equally as problematic, the perceived limitations were fears about the safety of the food, because of how it was grown and the fact that the government did not require any kind of regulation or certification for the company, unjustified beliefs about PFAL produce being overall inferior to that of natural outdoor techniques; lastly, numerous interviewees stated that PFAL were destructive to the environment. The PFAL agricultural techniques if implemented correctly are far superior to that of traditional agriculture. However, at this point in its development in Taiwan it could never be considered as a replacement for traditional farming techniques; rather, it should be thought to compliment traditional farming techniques. Current owners or investors believe the industry has a lot of potential. However, many private investors in Taiwan are not willing to invest enough into this industry in Taiwan because they perceive the industry too risky and the profits are too nominal. Investors in Taiwan think similarly to the Taiwanese government. Obviously, this is not every investor, but it is true for many investors here in Taiwan. Expanding on this, as it stands Taiwan is second in the world in the number of PFAL, rivaled only by Japan; the above question, is being asked in relation to the final question about the role of PFAL in future. Although, the industry is quite significant in size in Taiwan understanding the potential investors’ perceptions will help to understand whether the industry can continue to grow, stagnant or shrink. PFAL can potentially play a larger role in Taiwan’s food production, but first it must become profitable. As for the future of PFAL in Taiwan the government should consider allowing for a market self-correction weeding out the nonprofitable companies. After which, government intervention should include the development of industrial codes at the Ministry of Economic Affairs Industrial Development Bureau, the subsidizing of the ISO certification, increased food safety protocols, and the creation of PFAL education programs.