Taiwan Today

Aquaculture companies at the Pingtung Agricultural Biotechnology Park are capitalizing on abundant support services to forge a world-class industry cluster.

In 2007, New Taipei City-headquartered Taikong Corp., an ornamental fish and shrimp supplier, became the first aquaculture company to open a facility at the Pingtung Agricultural Biotechnology Park (PABP). Over the decade since, a further 17 such enterprises have established operations at the site in southern Taiwan’s Pingtung County, turning out goods ranging from aquatic plants and fluorescent aquarium fish to processed seafood.

The emergence of this industry cluster has vindicated Taikong’s trailblazing decision to construct a plant at PABP. “We set up shop at the park to take advantage of its wide-ranging services for tenants, like dedicated customs, inspection and quarantine stations,” said Barbara Kong (龔韻璇‬), a business and marketing manager with the company. Owing to these support mechanisms, the firm’s export sales have increased by 45 percent from 10 years ago.

Taikong’s premises in Pingtung include 512 tanks for cultivating and stocking aquatic plants as well as freshwater and marine fish and shrimp. The company works with some 100 Taiwan aquaculture farms to deliver ornamental fish and shrimp to clients in 30 countries and territories. It also sells a broad range of aquarium supplies under its Azoo brand, such as feed, heaters, lighting fixtures and tanks.

Since about 80 percent of Taikong’s suppliers are located in southern Taiwan, the facility at PABP has significantly shortened product delivery times, a crucial advantage when transporting live creatures, Kong said. She also highlighted the benefits of expedited customs clearance. Typically, companies must wait seven to 10 days when applying to the Cabinet-level Council of Agriculture (COA) for a standard veterinary certificate, which is required by some countries for live animal shipments. In contrast, the normal wait time at the park is three days.

“We provide resident companies with one-stop service centers to promote their export activities,” said Chang Su-san (張淑賢), director-general of PABP. “Our aim is to foster supply chain integration and the creation of industry clusters to enable domestic companies to collectively tap international markets.”

Biotech Hub

Established in December 2006, PABP is operated by the council. As of May, the park had 105 tenants, with accumulated investment exceeding NT$10.2 billion (US$337.7 million). Products manufactured by resident companies span such areas as animal feed and vaccines, beauty and health care products, biofertilizers and Chinese herbal medicines.

“PABP was launched as part of broader efforts to guide Taiwan’s agricultural sector toward value-added, low-pollution and technology-intensive production,” Chang said. “To this end, we offer subsidies aimed at boosting academia-industry collaboration on the development of new products, processes and technologies.”

Another key selling point of PABP is its convenient location. The park is situated roughly 40 minutes from Kaohsiung International Airport, the high-speed rail terminal in Kaohsiung City’s Zuoying District, and the Port of Kaohsiung, one of the leading cargo shipment hubs in East Asia. Southern Taiwan is also home to large numbers of established agriculture and aquaculture suppliers as well as prominent research organizations in these fields.

Citing the ornamental fish sector as an example, Chang said that most of Taiwan’s some 250 producers are based in Kaohsiung and Pingtung. She added that aquaculture tenants can source research and technical support from nearby institutions like National Kaohsiung Marine University (NKMU), National Pingtung University of Science and Technology (NPUST) and Pingtung-based Tungkang Biotechnology Research Center under the COA’s Fisheries Research Institute.

PABP also plays a direct role in strengthening industry growth through its Yai-Tai Aquaculture Center. Inaugurated in late 2014, it houses a variety of beautiful and curious creatures, such as fluorescent pink angelfish and King Kong shrimp in colors including green and black. The center helps local aquaculture firms create and market these animals through dedicated facilities for breeding, logistics, product displays and R&D.

According to Chang, market demand in the technically complex field of ornamental fish and shrimp cultivation is driven by innovation and originality. As local firms are typically small and medium enterprises, industry cooperation is essential in fulfilling international orders, promoting research and encouraging the adoption of new production methods.

The director-general said that the emergence of the aquaculture industry cluster in Pingtung has significantly strengthened Taiwan’s position in international markets, with domestic firms exporting over 500 of the roughly 2,000 ornamental fish species traded globally. She expressed optimism for future sector growth on the back of increasing research activity and the regular release of new products by local companies.

Eying Expansion

Boasting an occupancy rate of about 90 percent, PABP is in the midst of an expansion slated for completion in 2019. The additional land will accommodate up to 60 new enterprises and host an experimental fish farm and talent cultivation center. Following completion of these development projects, annual production value at the park is projected to triple to about NT$18 billion (US$596 million), Chang said.

The expansion plans are music to the ears of aquaculture tenants such as Taiwan Fu Shrimp Enterprise Co. Like Taikong, the company has seen impressive sales growth since opening a facility at PABP, registering year-on-year increases of about 30 percent after moving to the park in 2012.

“We strive to regularly bring new products to market and keep lead times as short as possible to ensure the best possible quality of our livestock exports,” said Frank Liao (廖年靖), the company’s general manager. “The convenient services provided at PABP, including on-the-spot health inspections and rapid customs clearance, have played an important role in bolstering these efforts.”

Liao and his business partners previously ran a shrimp hatchery in Xiamen city of mainland China’s Fujian province, but decided to shift operations to Taiwan after learning about the facilities and support services on offer at PABP. Taiwan Fu Shrimp specializes in using refined cross-breeding techniques to cultivate nearly 30 varieties of rare shrimp, including black King Kongs, crystal reds and blacks, pandas, pintos and wine reds. The company’s high-grade black King Kongs and crystal reds are among the most sought-after shrimp for aquarium hobbyists, retailing for up to US$2,000 each.

Noting that his company often needs to work with four or five local counterparts to fill international orders, Liao said Taiwan Fu Shrimp has established cooperative ties with about 20 domestic aquaculture farms, including eight based at the park. “By partnering with other ornamental fish and shrimp producers, we can offer customers one-stop services.”

The firm has also taken advantage of the park’s R&D subsidies, conducting projects on the development and commercialization of new shrimp varieties with institutions including National Chiayi University (NCYU), NKMU and NPUST. These efforts have delivered significant results. Through collaboration with NCYU, for instance, Taiwan Fu Shrimp has achieved large-scale captive breeding of Amano shrimp, a popular aquarium product due to the creature’s voracious appetite for all kinds of freshwater algae. The company commenced commercial sales of the shrimp last October.

Liao said that he is upbeat about the firm’s growth prospects due to rising global demand for aquaculture products. “Aquarium-based fishkeeping is gaining in popularity, particularly in American, European and Japanese households, while more hobbyists are collecting shrimp due to the greater availability of new and colorful varieties.”

Product Diversification

Taikong, founded in 1977 as an importer and exporter of ornamental fish, similarly focuses considerable effort on creating new offerings. To advance its prowess in genetic engineering technologies, the company set up a biotech center in 1996 and unveiled the world’s first fluorescent green medaka, or Japanese rice fish, five years later. It has also established a fish gene bank to catalog genetic materials and promote scientific research on potential applications.

“Our company is committed to preserving biodiversity and promoting sustainability in the ornamental fish industry,” Kong said. “Technological breakthroughs in areas like captive breeding, for example, can prevent the extinction of at-risk species.”

Last year, Taikong gained approval to export captive-bred Hippocampus reidi, a variety of seahorse, under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, a multilateral agreement seeking to ensure that cross-border trade in animals and plants does not threaten their survival. It has since sold the creatures, which are coming under threat in the wild due to habitat loss, to customers in Asia, Europe and the U.S.

“We’re constantly working to develop cutting-edge aquaculture techniques, launch new products and expand our global presence,” Kong said. “The comprehensive range of export services and networking opportunities provided by PABP will continue to bolster our commercial and research activities going forward.” 

Write to Kelly Her at kher@mofa.gov.tw