The government seeks to expand the export market of Taiwan-grown orchids to Brazil, India and Vietnam to soften the impact of US tariffs, the Agriculture and Food Agency said yesterday.
About 40 percent of orchids produced in Taiwan are exported to the US, but the industry faces an additional 20 percent tariff under new US levies on Taiwan’s agricultural exports, the agency said.
The cost of implementing the additional tariff would be shared by Taiwanese orchid suppliers and US buyers, agency Director-General Yao Shih-yuan (姚士源) said.
Photo: Yang Yuan-ting, Taipei Times
Taiwan exported 2,742 tonnes of Phalaenopsis orchids, or moth orchids, to the US between April and October, compared with 2,846 tonnes during the same period last year, the agency said.
Meanwhile, output value generated by moth orchids fell to about NT$1 billion (US$32.03 million) from NT$1.2 billion last year, Yao said.
“We would continue our exports to the US and Japan and explore business opportunities in Brazil, India and Vietnam,” Yao said, adding that quite a few orchid suppliers have visited these new markets.
The US tariffs led to the temporary suspension of orders from buyers, but suppliers continue to follow the terms of the contracts they signed with buyers, Taiwan Orchid Breeders Society member Woody Chou (周伯倚) said.
Most US buyers placed orders in July for the Christmas and New Year holidays, Chou said.
“Taiwan’s strength is its capabilities to breed quality Phalaenopsis orchids and customize orders for clients. The Agriculture and Food Agency also helped orchid suppliers secure certifications from international organizations, which help increase the value of Taiwanese orchids. With the newly developed orchid varieties, we are confident we can expand our businesses to other countries,” he said.
Some orchid suppliers expressed hope that the government would turn part of Taiwan Sugar Corp’s production base in California into an intermediate production facility for moth orchids.
Yao said that Taiwan Sugar’s property in the US is about 5 hectares, adding that the facilities on the property need to be completely revamped.
“A business entity must be established first to build greenhouses and shade-net facilities abroad, which must cater to the specific needs of orchid suppliers. Additionally, many suppliers have had intermediate production bases,” Yao said, adding that the agency is still carefully evaluating the proposal.
To expand orchid sales in the domestic market, the agency said that it has planned nine floral exhibitions in Taipei, Taichung and Kaohsiung.
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