While seldom in the spotlight except when the annual Taiwan International Ornamental Fish Exposition is held in the capital city of Taipei, Taiwan’s aquarium fish sector is in fact a perfect example of the country’s agricultural leadership and biotechnological innovation, and accordingly was targeted for strategic development by the ROC government in 2009.
“Given its relatively modest input cost, lower resource consumption and high output value, the sector is an ideal candidate for high-end agriculture, one of Taiwan’s six designated emerging industries,” said Chu Tah-wei, chairman of the Department and Graduate Institute of Aquaculture at National Kaohsiung Marine University, during an interview with Taiwan Today Nov. 7.
According to Council of Agriculture statistics, Chu said, Taiwan’s aquarium fish sector has been growing at an annual rate of 10 percent since 2001, with output amounting to NT$316 million (US$10.5 million) in 2010. Exports of fish stock reached NT$113 million in the same year, or roughly 1 percent of the global share estimated at US$317 million.
There are over 220 aquaculture farms in the nation dedicated to breeding such fish, with most of them located in southern Taiwan’s Tainan City and Pingtung County. African cichlids are the leading breed, accounting for 33 percent of total production, followed by blood parrot cichlids at 25 percent and other South American cichlids at 20 percent.
“Despite its limited global share, Taiwan is recognized as a top-notch supplier of premium fish in the world,” Chu pointed out. While most stocks raised in Taiwan are foreign species, the country is able to cultivate more than 400 different kinds of fish on a regular basis, thanks to the advanced breeding skills of local farmers. Taiwan’s agreeable climate is also a natural advantage, the expert said. “Fish raised in Taiwan easily stand out among their peers from Southeast Asian nations or even their homelands.”
Orders for aquarium fish often come with a diverse mix in low volume, and as a result, the ability to supply an assortment of species and make prompt delivery is a crucial requirement in the business, Chu said. “In this regard, Taiwan is widely considered one of the best one-stop-shopping locations,” he noted, adding that local exporters’ advanced packaging technologies also ensure that the damage rate is kept under 5 percent during transportation.
Given its long history in aquaculture, Taiwan has developed a well-established supply chain second to none in the world. “The efficient intra-sector division of labor and the ability to quickly adapt to market developments have combined to make Taiwan a respected contender in this increasingly popular industry,” he said.
There have been several major breakthroughs in the sector’s development over the years, the scholar said. The year 1986 represents a milestone with the successful breeding of blood parrot cichlids, a cross-species hybrid of Amphilophus citrinellus and Cichlasoma synspilum. “This creature not only established Taiwan as a leader in breeding technology, it also inspired fish growers in other nations to engage in similar efforts,” Chu explained.
Another achievement came in 2001 when New Taipei City-based Taikong Group successfully produced the world’s first genetically modified fluorescent fish. The glowing animal was selected by Time magazine as one of the 40 coolest inventions of 2003, further strengthening Taiwan’s leadership when it comes to breeding innovative ornamental fish.
The sector has also been greatly boosted by Taiwan breeders’ outstanding performance in international fish competitions, according to Chang Ya-shan, who won this year’s Taiwan International Ornamental Fish Competition with his champion discus.
“Taiwan was the overall winner of the first International Discus Championship held in 1996 in Duisburg, Germany, the most important event of its kind in the world, and continued to dominate the biennial competition in 2004, 2006 and 2008,” he said. Chang himself was a winner of the 2008 event.
“These titles not only represent personal achievements, they also help reinforce the impression that Taiwan is a production center of ornamental fish of the highest quality in the world,” the champion breeder said.
“Fish grown in Taiwan usually sell for twice the global average prices given their overall superior quality,” said Wang Sen-chung, secretary-general of the Taiwan Ornamental Fish Association. “Anyone with a little experience can appreciate the brighter colors and much more beautiful body shapes of Taiwan’s aquarium fish,” he said. “It is fair to compare the local breed to designer clothing in the fashion industry.”
According to Wang, Taiwan is also a top producer of various peripherals such as aquarium tanks, aquatic plants, fish feed, health supplements and life support systems. “The country’s output of these items is even higher than that of fish stock, and local suppliers are often the spotlight at international fish shows,” he said.
“The problem is that most local firms operate as contract manufacturers for foreign brands and can only secure a small share of the profit margins,” Wang pointed out. “It is not easy to create a brand name, but this is definitely the path local firms should choose for long-term development.”
Despite these obvious advantages, a number of hurdles are hampering the sector’s expansion, according to the three experts. “The lack of additional freight capacity to transport fish stock is one of the major culprits,” Wang pointed out. While Taiwan is ideally located closer than its Southeast Asian rivals to major markets such as Japan, mainland China and the U.S., fish exporters often find it difficult to secure enough freight services during the holiday seasons.
The problem is even more serious for shipments to Europe, Wang added. Unlike the situation in Singapore, the exporting hub for shipments from Southeast Asian nations, only a few airline companies offer direct flight services between major European cities and Taiwan, and this constraint has put Taiwan at a great disadvantage in efforts to promote business in Europe.
Farming ornamental fish requires a lot more know-how than growing other agricultural products, and the higher technological barriers are keeping newcomers from joining the race, according to Chu. “Many aquarium operators have been unable to expand their business because there is simply no additional land available to build more farms,” he added. Higher production costs are also undermining Taiwan’s competitiveness in the lower-end market, Chang said.
Other than organizing major trade shows and helping promote overseas markets, the government can do more to assist the local sector, Chu said. “For example, the COA should help fish farms and exporters conform to international standards and pass the required quality assurance standards.”
Chu also sees further regulatory easing on introducing new species to the country as an important part of the sector’s development strategy. “This will allow farmers to create more species that can really showcase Taiwan’s pedigree in breeding ornamental fish,” he said. “This will help differentiate Taiwan from its rivals and help ensure the country’s leadership in the long run.” (HZW)
Write to Meg Chang at meg.chang@mail.gio.gov.tw