To give farmers more autonomy in product pricing, the Ministry of Agriculture is instituting a system to promote contract farming and bring produce directly to hypermarkets, Minister of Agriculture Chen Junne-jih (陳駿季) said yesterday.
Currently, agricultural prices are mainly set by intermediaries who sell at wholesale markets, the ministry said.
Dealers purchasing produce is the main reason for wildly fluctuating prices and excess production of crops as growers race to plant the previous season’s cash crops, it said.
Photo: Chang Chia-juei, Taipei Times
In an interview with the Liberty Times (sister paper of the Taipei Times), Chen said that production should determine price.
There must be a way for growers to assess the live price of agricultural goods and the amount already planted to decide whether to continue a crop, he said.
The ministry has relied on local township officials to report farming information, but that data might be inaccurate, he said.
The ministry is to hire investigators to analyze statistics and other information to better understand what is planted on arable land nationwide, he said.
The work would be assisted by satellite imagery and aerial drone photography so the ministry would have the most accurate information, which growers could use to help them make decisions, he said.
Most growers in Taiwan are single entities and do not consider sales when planting, Chen said, adding that the ministry is attempting to change that by encouraging group cultivation, with groups selecting the most beneficial crop according to the ministry’s real-time information.
Other benefits of group cultivation include more people shouldering the costs, a general decrease in operational overhead and more thorough pest prevention, he said.
Produce from group farms would be sold directly to supermarkets or convenience stores, removing intermediaries so growers would get a bigger cut, Chen said.
As supermarkets and convenience stores pay via check, the ministry is offering assistance for growers’ associations or cooperatives to forward payments to growers immediately and receive payment from stores later, the ministry said.
The Agricultural Bank would ensure that all such platforms have good credit and ample cash flow, the ministry said.
Group cultivation and contract farming would bring many benefits, including the revitalization of farming communities with an influx of sales and accounting talent and other workers, Chen said.
This gives young people a role in farming even if they are not working the land themselves, he said.
The ministry would also keep data on unused land and consider establishing elderly care centers on it so young people would not have to worry about their elderly family members at home, he added.
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