Artificial Light-Type Plant Factory in Taiwan -An Application of Input-Output Analysis
Date Issued
2015
Date
2015
Author(s)
Huang, Yu-Ci
Abstract
With the rapid growing population and food insecurity problems induced by climate change and weather-related disasters, plant factory has become one of the potential solutions in many industrialzed countries, It is a closed artificial plant growing system which is isolated from outside environment, providing high yield by growing multiple varieties and enables farmers to achieve constant production of vegetables all year round. Plants are facilitated by controlling of light, temperature, humidity, nutrition and carbon dioxide concentration. From industrial development standpoint, it has the capacity to generate production activities related to agriculture, industry and services. The main purpose of this study is to analyze the network effect of the plant factory production system and to mearsure the economic values of promoting the plant fatory industry by applying the input-output model. Two new activities, “plant-factory vegetable production” and “plant factory equipment production” are added into the 2011 input-otuput table. Interviews with the operators of the existing plants are used to collect the cost and revenue information and to identify the strength and weakness of plant factories in Taiwan. Several scenarios were developed under the assumptions that plant factory production can substitute up to 50% or 100% of the imported lettuce, the prices of lettuce are 0.5 and 0.8 NT dollars per gram, and the plant factory equipments can be exported and take up 25% and 50% of the world market shares. Using Leotief inverse matric, we find that the plant factor industry can increase annual gross output by around 151.4 to 311.1 billion NT dollars, and the resultant value-added careation effect can reach 40.6 to 84.2 billion NT dollars per annum, as well as creating nearly 3,000 to 6,500 job opportunities. This study also uses the survey data to conduct a SWOT analysis on the strengths, weaknesses, opportunities and threats facing the industry. The results show that Taiwan has technological advantages in research and development in plant-related equipment, engineering and biological science. A number of interdisciplinary experts cooperate to investigate and train students to develop professional skills. However, consumers in Taiwan not ready to accept the vegetables from plant factories. Institutioanl support and proper coordicnation among different agencies to promote the development of the industry are also very weak. In the future, as consumers in Taiwan are willing to pay more attention and higher prices to ensure food safety and sustainable development, the opportunities for plant factories to grow will be much greater. However, price competition from the rapid expansion in Japan, China and Korea will become a challenge for the long-term development.
Subjects
Plant Factory
Input-Output Model
SWOT Analysis
Supply Chain
Type
thesis