The Right RiceAnswering the Foreign Challenge

It was August in Yuanli, "the granary of Miaoli County," and the seedlings for the year's second rice crop had already been in the paddy fields for some ten days, creating a seemingly endless sea of green.

In the afternoon, Chung Hsu-liang, who has more than 20 years of farming experience, led a flock of ducks out into the paddy fields in accordance with the traditional Japanese farming method of "raising ducks and rice together." "The advantages are fourfold," said Chung. "The ducks eat both the insect larvae and the apple snails. Their droppings also work as fertilizer. And finally the meat of the grown ducks is especially firm and tasty."

Apart from bringing out the ducks, Chung, in accordance with ecologically correct principles of sustainable agriculture, doesn't apply any fertilizer. What he's planting in these paddy fields is Yi-chuan aromatic rice, which is very close in quality to imported Koshihikari rice from Japan.

Yi-chuan aromatic rice was in the news after the university entrance exam asked students to compose an essay about Kuo Yi-chuan. The late Council of Agriculture researcher had spent nine years developing a new wetland rice variety, which ROC president Chen Shui-bian subsequently named Yi-chuan aromatic rice in his honor.

The Taiwan Agricultural Research Institute compared Yi-chuan rice from Wufeng Township and Taichung County to Koshihikari rice from Nigata, and found that they were equivalent in terms of their transparency and succulence. Yi-chuan has a pearly consistency and excellent suppleness. It also carries the aroma of yams, creating a pleasantly sweet smell when cooking. It has thus come to be regarded as worthy of fending off the challenge of imported Koshihikari rice.

(above and opposite page) Miaoli's Chyuan Shun Foods is the first domestic producer to earn CAS certification for its top quality Shanshui brand of rice. After drying, storing and packaging, it is packaged with the "Top Quality Taiwanese Rice" label before passing into consumers' hands.

The rice bowl war

In the year since Taiwan has been open to imports, foreign rice, in fact, hasn't made major inroads into the domestic market, both because both import costs are high and because locals are generally not accustomed to the taste of foreign rice.

In order to protect local rice farmers, in Taiwan's first year in the WTO, the government bought up 65% of the nation's import quota of foreign rice. But in the second year, under pressure from other WTO members to open up the market farther, Taiwan agreed that imports of rice could exceed the 140,000 metric ton limit but that there would be a tariff of NT$45 per kilogram on the excess, thus protecting the market from a flood of low-cost foreign rice. And the consensus is that these high tariffs will continue to be imposed for some time.

"Imported rice has had almost no impact on us," says Yeh Su-hui, the general manager of Chyuan Shun Foods, which mostly produces high quality Shanshui rice. "We've spared no effort in maintaining quality, and our production has continued to rise steadily." Yeh estimates that production this year has already reached NT$1 billion, which represents NT$200 million more than last year. Last year, Chyuan Shun also imported rice from the United States and Thailand, but Yeh says that consumers didn't take to it. After harvesting, packaging and shipping, by the time foreign rice to reaches Taiwan it's already at least six months old. Although the rice may not look much different, it's noticeably harder after cooking. When you eat Taiwanese rice, you can taste the "freshness."

Chou Chun-hu, manager of special sales for Chunghsing Rice, explains that annual demand for rice in Taiwan stands at 1.5 million metric tons. Since 1.52 million tons are produced domestically, this means that domestic supply and demand are nearly balanced. Currently, because the government is imposing high tariffs on foreign rice, he estimates that over the next five years foreign rice will enjoy no price advantage, but beyond that it's hard to say.

"In the rice market, flavor and texture are key," says Chou. Jasmin rice from Thailand is much like Taiwan's long grain rice varieties, but it can only be stored for two months in a hot climate, so it doesn't pose much of a competitive threat. Mass plantings give American rice a cost advantage. As for Japanese Koshihikari rice, 4000 1-kilo bags were selling a month at the beginning of the year, rising to 6000 bags a month at the end of the year. In Taiwan, it represents a top-quality product for a select group.

"Most people will opt first for domestic rice," Chou says. "Domestic rice won't totally lose out, but in the future it will definitely have to go the road of higher quality." Chou argues that Taiwanese farmers need to maintain a crisis mentality and realize that they will only be able to defeat these foreign challengers by raising quality.

Because imports of rice have caused supply to exceed demand, Taiwan's rice industry is being forced to change. Apart from imposing rules about crop rotation and leaving acreage fallow to reduce production, and also stepping in to buy rice when supply is high and to sell when supply is low, the government is calling for farmers to plant high-quality rice that looks and tastes good.

Sharp weapon against imports

Government agricultural agencies regard high-quality varieties of rice such as Yi-chuan as the best weapon against foreign imports. Nevertheless, when most people buy white rice they focus on the brand and don't pay much attention to the variety. But if consumers want good tasting rice, then they've got to start paying attention to the varieties and planting locations. There are many factors that affect the quality of rice, including the rice variety, the locale, the climate, the picking method, the method of handling after harvesting, and the drying process. But among them all, the variety of rice is most important.

In recent years, agricultural units within the government have spared no effort to promote a change of attitude about planting rice that can be neatly summed up by the phrase: "Quality is more important than quantity." It is a campaign spurred by increased consciousness about health wherein "eating one's fill" has advanced to "eating well."

Since the Taiwanese economy took off in the 1970s, food sources have become much more diverse, with the result being that per capita consumption of rice has gradually declined-from 83 kilograms in 1986, to 60 kilograms in 1993, to 50 kilograms in 2001.

Although people are eating less rice, the crop is still Taiwan's largest, with more than 300,000 hectares in production (representing 40% of Taiwan's agricultural land) and 290,000 rice farming families (or half of Taiwan's farming population). Because Taiwan's farms have largely been cut up into small parcels, the average rice growing family has little more than a hectare in production. Consequently, there are high unit costs of production, averaging two or three times those of foreign rice farmers. This poses the greatest challenge to Taiwan's rice competitiveness in the modern marketplace.

In order to raise the competitiveness of Taiwan's rice, the Council of Agriculture in 1985 started to push the cultivation of high-quality rice, hoping that the crop could become something of high economic value.

Currently there are more than 20 varieties of rice in Taiwan's rice paddies, and 13 of these are regarded as high-quality varieties. These include Tainung 71 (the formal name of Yi-chuan aromatic rice); Taikeng 8, a high-yielding variety that is the most widely planted in Taiwan; and Kaohsiung 139, an early maturer.

Only good varieties yield tasty rice. Taikeng 8 (above) is widely planted in Taiwan. Yichuan aromatic rice (below) has narrower light green leaves.

Looking for the best rice

For these 13 varieties, if the marketed rice is to be certified as high quality, the planting, harvesting, and processing of the rice must all meet certain standards. First of all, during production, Council of Agriculture specialists, who are located throughout the island, must check the water, soil, and rice quality for four rice crops over two years. Then, after the trader-wholesaler buys the rice, it must dry, store, grind, and package the rice in accordance with the official Chinese Agriculture Standards. Currently there are 14 firms that have met these standards.

In order to spread the word about high-quality rice, the Council of Agriculture, after promoting the recognition of high-quality rice, in 2000 came up with a collective mark for "Top Quality Taiwanese Rice." This mark certifies that the rice was grown in a pristine, unpolluted environment and that after being harvested went through modern methods of milling and packaging, so that these healthy grains of rice are translucent, shiny, and very tasty.

Currently there are more than ten different varieties of rice that bear this mark, including the Shanshui rice of Miaoli's Chyuanshun Food, Takuang's Yi-chuan aromatic rice of Taichung's Wufeng Township, the Lanyang 5 grown in Ilan's Wuchieh Township, and Chihshang rice produced in Chihshang, Taitung.

In the year-plus since Taiwan joined the WTO, imported rice has been battling domestic rice for a share of Taiwan's collective appetite.

The "grind" of good rice

Improving the quality of rice has been a goal of the government for many years now, but although government departments involved with agriculture have been providing guidance about growing high-quality rice for more than 10 years, it has proven hard to make a break through in acreage, with only about 60,000 hectares now under cultivation. The problem is that the processing of high-quality rice requires much more "TLC."

Chung Hsu-liang, a Yuanli farmer, has planted his 1.4 acres with both Tainung 71 (i.e. Yi-chuan aromatic rice) and Taikeng 8. Upon close inspection, you can distinguish between the two: Tainung 71 has leaves that are narrower and a lighter green color.

Chung, who started planting Tainung 71 four years ago, says that he is the only one of more than ten farmers in his rice production class to have ended up planting Tainung 71. "Tainung 71 has flimsier stalks and falls over easily," he says. "Two years ago Typhoon Toraji damaged the crop and greatly reduced the harvest, and many farmers were scared off from planting it."

But with more than four years of experience, Chung has already got the knack of planting Tainung 71. He has learned that you can't plant the sprouts too close together, and that you've got to plant the spouts very near the surface for the roots to grow further down. There's got to be enough sunlight, and you should use less fertilizer than with other varieties. In particular you've got to cut back on the nitrogenous fertilizers applied late in the growing cycle if you want the stalks to grow strong.

What's more, after you harvest, you've got to proceed immediately to drying in order to prevent the growth of mold. Some farmers use dryers, whereas Chung doesn't mind the hassles of sun drying. "The quality of rice dried at low temperatures is better," he says.

Chang Su-chen, who has long been assisting rice farmers as head of crop improvement at the Miaoli Agricultural Improvement Farm, says that in the face of foreign competition Taiwan must make adjustments to how it both produces and markets rice. "For instance, farmers are accustomed to using fertilizers," she says. "Because the amount of nitrogen in the fertilizer was high, it resulted in lower quality food." Chang says that farmers have got to adjust fertilization to soil conditions.

Chen Chih-kuan, a researcher at the Taiwan Agricultural Research Institute, says that Tainung 71 is a relatively new variety, and that only in the past two years have there been test plantings. It will require more time before they expand the acreage planted with it. Because most farmers stress production yields, he frequently tells farmers to grab hold of "the highest production with the highest quality." AGRI has calculated that with the proper planting techniques, Tainung 71 can average yields of 6000 kilos per hectare.

Among the verdant paddy fields of Taiwan, the culture of rice is in the midst of a renaissance.

Good rice needs a good price

You can't change farmers' conceptions overnight. The truth is that a major reason that there isn't much interest among farmers for planting high-quality rice is that they don't get that much more for it.

For instance, a 1.5 kilo package of "Top Quality Taiwanese Shanshui Rice" costs NT$99 and a three-kilo package of "Top Quality Taiwanese Chihshang Rice" fetches NT$200. This shows that "Top Quality Taiwan Rice" averages about NT$65 a kilo, which isn't much more than the NT$50 for typical rice.

Secondly, because it's hard for farmers' associations and trader-wholesalers to raise the money necessary to sign advanced purchasing contracts for farmers' high-quality rice, it severely limits the potential growth in planted acreage. As a result some wholesalers have sold top-quality rice mixed with regular rice, which has affected the reputation of the top-quality stuff.

In May of this year the Consumers' Foundation randomly tested the quality of imported and domestically produced rice. It found that 24% of the rice bearing the top-quality mark was not up to snuff. There was even third-grade mixed rice being marketed as "top quality."

All told, there are about 3000 firms in Taiwan that deal in rice, and there are about 150 different brands of rice that you can buy retail. Among these, 19 have received the "high quality" label from CAS, 15 of which bear the mark "Top Quality Taiwanese Rice."

Because there are so many brands of rice and much confusion about the grades, many people are still unfamiliar with these marks.

Take, for instance, "Chihsang rice" from Chihshang, Taitung County, which is famous far and wide. There are at least 50 brands labeling themselves as Chihshang rice, but the township's farmers' association estimates that 70% of the rice so marketed doesn't actually come from the township. Having long suffered with dealers passing off other rice under their name, the Chihshang Rural Township at the beginning of this year applied to the Ministry of Economic Affairs to register "Chihshang Rice" as a trademark, but the ROC Rice Growers Association has protested, arguing that "Chihshang," as a place name, couldn't be so registered. The matter has yet to be settled.

Hope for the paddy fields

"It's not that Taiwan can't produce good rice; it's just that Taiwanese consumers buy cheap, poorer quality rice," says Yeh Shu-hui, general manager of Chyuan Shun Foods. In order to meet the demands of different major retailers, the company makes more than 20 brands of rice. Because rice is a staple, the profit margins are thin, and there is intense competition. Moreover, the only demands that many consumers place on rice is that it be "cheap and plentiful."

The major earthquake of September 21, 1999, caused Chyuan Shun to suffer great losses. Several five-story-tall, low-temperature silos that were near the gate of the factory fell during the quake. But the company has experienced a rebirth since the disaster, and Yeh is most proud that Taiwan's McDonalds and 7-Elevens both choose Chyuan Shun's Shanshui rice for their new product lines using rice.

Yeh is determined to create a rebirth of Taiwan's rice culture and improve the ecology of Taiwan's rice paddies. Yeh says that in the past farmers were driven by the notion that yield was paramount, and as a result they made ample use of chemical fertilizers. The overuse of fertilizers, coupled with industrial development, left Taiwan's rivers very polluted. In order to revive the fertility of the land, she has headed a production and marketing team for Yuanli in order to promote the natural farming method of "raising rice and ducks together." "If there is even a little bit of chemical fertilizer in the rice paddy," she says, "then the ducks will die for sure." In addition to supporting "good Taiwanese rice," she also supports organic rice.

Yeh Shu-hui says that early on, when Yuanli farmers were first cultivating the soil and building irrigation channels, the Ta-an River basin would regularly flood, so that the well-nourished paddy fields there would naturally produce high yields. In order to maintain the Ta-an River as a clean source of water, five years ago the farmers signed a contract to grow organic rice for the Shanshui Rice label. Now they don't use any kind of chemical pesticides or fertilizers. And after both the first and second harvests, they plant rape so as to loosen up the soil, increase the organic components of the soil, and provide better resistance to the rice blast fungus. After five years, organic rice is still a money-losing product, but she firmly states that protecting the ecology is the most important achievement.

In truth, organic rice, apart from being healthier, can also bring good yields. Yeh Su-hui points out that one of the farmers in the production and marketing team started out producing 6000 kilos of organic rice per hectare and has gradually increased the yield to 8000.

With greater consciousness about health in recent years, people in Taiwan have changed their attitude about food from "eating one's fill" to "eating well."

Good rice, good health

Both top-quality Taiwanese rice and organic rice must be planted in suitable areas where the soil and water are not polluted. In order to provide information about organic rice to the public, the Council of Agriculture has already created an "Organic Rice Production, Marketing and Management Information" website that introduces organic rice brands, purchasing methods and certification symbols. It assures consumers that they are buying safe and healthy rice.

"If consumers were willing to spend NT$10 or NT$20 more to buy top-quality rice, and would only eat top-quality rice, then the trader-wholesalers would pay farmers to plant it," says Chen Chih-kuan of the Taiwan Agricultural Research Institute. "Once farmers see the demand, they will naturally want to come and learn how to plant it. This is how to affect the production and marketing structure."

Taiwan, which is renowned for its food, produces rice that is not a whit inferior to the best imported rice. Furthermore, the population certainly has the economic wherewithal to consume rice of the highest quality. When a kilo of rice can on average produce 15 bowls of rice, the cost of top-quality rice only works out to about NT$1.5 per bowl. But if top quality Taiwanese rice is to garner a chunk of Taiwan's market, then members of the public cannot merely concern themselves with the cost of rice, but must show even more concern with the process of rice production, because only then will there be a triple win for Taiwan's farmers, traders, and consumers.