1. 2012 Workshop on Value Chain Management in Agribusiness 29 October-3 November, 2012 Aquaculture Fresh Water Clam (Corbicula fluminea) Value Chain ： A Case Study On Li Chuan Aquafarm in Taiwan (R.O.C) Speaker: Hsiao-Yu Chen Fisheries Agency, Council of Agriculture, Executive Yuan

2. General description of the fishery Introduction of fresh water clam industry Case study Summary Outline

3. General description of the fishery Taiwan Fishery Basic Information The total fisheries production in 2011 reached 1.22 million M.T The total fisheries value in 2011 reached US $3.5 billion The fishermen’s households as numbered 132,212 There were 328,740 fishermen On the effort among government, academic, and industry, the development of Taiwan’s fishery is rapid increasing. The total output reached rank 21 in the world.

4. General description of the fishery Far seas fishery Far seas fishery refers to the fishery operated outside 200-mile exclusive economic zone of Taiwan. The major fishing methods include tuna longline fishing, tuna purse seine fishing, trawling, squid jigging and torch light saury fishing Our offshore fishing vessels operating around the world, the number of working boats about 2,000 vessels, the annual output value of about US $ 1.4 billion, ranking among the world's top three.

5. General description of the fishery Offshore fishery and Coastal fishery Refers to those fishing activities performed within Taiwan’s exclusive economic zone from 12 to 200 miles from the baselines. The total production of offshore fishery in 2011 was 173 thousand MT, accounting for about 14 % of the total fisheries production.

6. General description of the fishery Aquaculture There are three major types of aquaculture in Taiwan, such as namely fresh water pond aquaculture, brackish water pond aquaculture and marine culture. The area in culture including marine culture, freshwater ponds, brackish water ponds, ornamental fish culture and others totaled 55 thousand hectares in 2011.

7. General description of the fishery Taiwan aquaculture trend  In Taiwan, the aquaculture farms are in the small scale, and are hard to compare with the big scale farms. Nevertheless, recently, the government helps the small scale aquaculture farmers to develop and sell upscale products by creating regulatory mechanisms, providing loans and subsidies, conducting research and removing trade impediments.  protection of environment, and promoting eco-friendly aquaculture and ecotourism to maintain the health of natural resources

8. Introduction of fresh water clam (corbicula)industry The fresh water clam is the third major productions of shellfish culture in Taiwan. Accordingly, in the recent 3 years, the annual production of freshwater clam is approximately 12 thousand MT. and valued at US $18 million. ProductionValue

9. Introduction of fresh water clam (corbicula)industry The freshwater clam was mainly cultivated in Changhua, Yunline and Hualien county. However, Hualien county due to the unique geographic environment, clean water resource, which is the best for freshwater clam farming Yunline Changhua Hualien LI-Chuan

10. Introduction of fresh water clam (corbicula)industry 飼料場 Hatchery Feed Factory CollectorsFish Auction Dealer Traditional Market SupermarketRestaurant Retailers Breeding Marketing Consumers Processors Clam Farm The freshwater clam channel is comparatively simple, as follow : the dealers buy production from farmers, and sell to retailer. So, in the consumer concept, the fresh water clam is still a kind of fishery product, a food.

11. Case study- introduce Original, Li-Chuan aquafarm was a individual aquafarmer, but by a government program- culture area establishment, he organized a local clam production and marketing group to improve production, to have economy size and the ability of marketing negotiation.

12. Case study- introduce In the beginning, the aquafarm focus on aquaculture, and produce the “Gloden Clam” spice by unique geographic environment, and clean water resource. For the increasing the product price, the aquafarm cooperate with fishery research institution to study new clam product sucessfully, calls “clam tablet” and “essence of clam”.

13. Case study- introduce Recently, the leisure is more and more popular. Bsaed on this, the aquafarm is attracting consumers by local resources and leisure experience fishery.

14. Case study- agribusiness Small farmer LI-Chuan aquafarm Small farmer Process factory (clam tablet and essence) Fishery product Leisure 80% 10%

15. Case study- Value added After becoming the agribusiness, the aquafarm had several Benefic (Value added) : 1.Food transformed into health product, and the price from US $1.8/per kg raise into US $33.3/per kg. 2.The product reached the scale of mass production, and expand the industry scale from primery degree to third degree.

16. Case study- Value added Benefic (Value added): 3. Attracting the young people come back to the village, and make the fresh water clam industry blooming. 4.Make the clam aquaculture develop into recreation and experience trip, change into a service and leisure industry. All of above, the agribusiness makes the clam product marketing diversity to fit various market.

17. Case study The difficulties ever meet: 1.Limitation of culture area and the supply of product is unable to meet the consumer demand. 2.Aging population 3. Outside the main consumer market. 4. Other competitions These were haapened before, but now, they were be overcome.

18. Key success factor analysis  Government: Assisting farmer to be a agribusiness, such as culture area establishment, product and marketing group arrangement, low rate loan and leisure fishery.  Characteristic Products: The aquafarm cultivates the clams with great water quality and environment and applying good processing technology.  Agribussiness operation: The aquafarmer not only focuses on product and marketing but also cooperate with processing factory. Otherwise, they pay more attendtion to develope new products to meet consumer demend.  Local resources: Attracting consumers with local resources and leisure experience fishery.

19. Key success factor analysis FarmersProcess MarketingServiceLeisure GovernmentAgribussinessLocal resource 1.Infrastructure 2.Progarm (Technical guidance) 3.Regular 4.Finance (low interest loan) 1. Quality Management 2. Breeding research 3. New product 4. Product Identification 5. Safety 6. Customer 7. Joint Produce/ Marketing 1.Nature 2.Leisure 3.Ecological exp.

20. Summary The Chinese old saying that goes ” 一兼兩顧，摸蜆兼洗褲 ” it means “one move two gains.” N(1)+ 壹 =1 SIX DEGREE INDUSTRY

21. Thanks for your attention.