The Taiwan Banker

The Tamsui District Agricultural Association was awarded the Best Agricultural Finance Special Award in the ESG Grassroots Finance Group of the 11th Elite Awards in 2022. This rare honor sets a good example for other organizations. For a long time, due to their special positioning, agricultural associations have not only taken care of grassroots financial operations, but also invested to cultivate agricultural talent. The Tamsui District Agricultural Association has achieved remarkable results in this regard. In addition to promoting the success of the “happy countryside” plan, it has also worked hard to create rural areas suitable for employment and migration, and advocated the concept of local production and sales, receiving recognized from all parties. Gao Chang, Director of the Agricultural Association, who has worked there for more than ten years, recognizes the identity of the Association not only as a spokesperson for the local farmers, but also as an important medium for communication with the government, and a support group for farmers’ rights. The scope of its work is broad. It not only solves farmers’ problems, big and small, but also provides basic financial services, and contributes to Taiwan’s 2050 net zero target. Gao said, “When I was young, I worked in all almost all departments, handling fertilizers, serving the public, and being in charge of marketing in the farmer’s supermarket.” Gao said that he inherited his sense of mission and responsibility from his father, as village chief. He shoulders great responsibilities for the financial affairs of Tamsui District, from farmers to the public, also helps implement the national carbon reduction policy and promotes financial support for green industries. From ESG to green sustainable finance With the hard work and concerted efforts of the Agricultural Association, ESG concepts have taken root over the years, step by step, moving towards the 17 Sustainable Development Goals of the United Nations. Considering that agricultural associations are grassroots units, they face more formidable limitations and challenges than big banks and financial institutions. In addition to management and personnel training, the association also plays an important role in the difficult process of communicating with farmers. In the recent years during the pandemic, the Association has promoted green sustainable finance, installed solar panels in Zhongzhouzi Warehouse and Dingtianliao, and established a smart agricultural product sales model. In addition to promoting business strategies, it has also fulfilled its social responsibility by setting up green care stations, rural projects, and service bases. The Association provides localized care and nursing services to help improve their quality of life for the disadvantaged and elderly. Regarding talent cultivation, it provides guidance to young small farmers through lectures on direct sales stations, and facilitates technical consultations. Moreover, it conducts lectures on crops to help small farmers build safe agriculture and achieve local virtuous cycles in pursuit of sustainable development. Local production and sales to reduce carbon Through a local production and sales supply system, the Agricultural Association assists small farmers to expand their sales channels, reducing intermediate distribution costs, shortening food miles, and echoing the carbon reduction policy to a certain extent. Gao emphasized that adding value for farmers while reducing emissions is not easy. “This is an especially urgent problem due to aging of the agricultural workforce,” he noted. Agricultural aging is a global trend. In order to solve this dilemma, the Association has cooperated with elementary schools in Tamsui District to organize food and agriculture education and farming activities. Their work gives children exposure to the natural environment from an early age, and influences parents to value and support domestic agricultural products and rural culture. The purpose is to let the “big and small matters of farming” take root from an early age, dispelling past stereotypes so that the young generation can engage in farming in an optimized way. The concept of “food miles” for local agricultural and fishery products not only promotes sustainable development, but also supports farmers’ livelihoods and creates employment opportunities, activating the economy, allowing consumers to buy fresh and nutritious food, and adding value for farmers. Considering the impact of rural population aging and declining births, a substantial shortage of agricultural manpower exists, and agricultural productivity has been greatly impacted. Intelligent management is being used to reduce the burden on farm operations, reduce labor demand, provide farmers with a more efficient management model, and produce safe, secure and traceable agricultural products that meet consumer needs. Data streams such as temperature and humidity re converted into operational information through integration and analysis, improving overall productivity. The Internet of Things combined with big data helps provide farmers plan production, sales, and customer service to meet consumer demand, create a safe and convenient business environment, attract more young investors, helping move Taiwan’s agriculture move towards a younger, more dynamic and highly competitive environment. Research to maintain soil production Gao has worked in the Association all his life, and speaks endlessly about farming, especially the high-density farming methods used in Taiwan. It is generally known that organic matter in the soil will be consumed rapidly, and because poverty reduces agricultural productivity, profit from farming will inevitably decrease. This vicious circle will eventually cause exhaustion. The most effective way to sustain soil productivity is to increase application of organic fertilizers. Future plans in line with the national net zero policy will emphasize cooperation with colleges, universities and technology companies. Soil diagnosis services and analysis can help farmers understand their soil fertility and pH, as well as the impact on crop nutrition, to suggest further improvement measures. If the soil is too acidic, lime can be added; if the organic content is too low, organic fertilizer can be added; and if the content of a single fertilizer is too high, it should be reduced. Only by using clear data to effectively apply fertilizers can the efficiency of cultivation be improved and proper use of fertilizers achieved, thereby reducing emissions. The world faces a food security crisis. The inability to store agricultural products with the original taste has always been a problem. In view of this, the Agricultural Association has studied technologies to prolong storage and increase freshness and taste without losing nutrition. Over the years, the Tamshui District Farmers Association Supermarket has received good feedback for promoting the hometown of pumpkins. However, further technology is needed to enter the next stage. Combinations of diverse agricultural products will allow the elderly, middle-aged, and young to accept pumpkin products. For example, since 2014, the supermarket has continuously developed its pumpkin series through cross-industry cooperation, for example by holding late-night pop-up pumpkin canteens at the Fisherman’s Wharf on Halloween. It contracted out a chestnut pumpkin cheese tart cake on Father’s Day, and also launched a pumpkin six-gift wedding box to replace traditional gift cakes. It has also cooperated with other agricultural associations for Zhongyuan Pudu tributes, and put pumpkin products on the shelves of other agricultural association supermarkets, all to assist farmers to sell pumpkins. In the future, it plans to turn pumpkin pulp into health products after extracting nutrients, such as functional drinks, powder packs, and tablets. Pumpkins help with weight loss, control blood sugar, enhance immunity, protect the eyes, maintain skin health, and prevent prostate cancer, among other benefits. The Association hopes to leverage its strength to market pumpkins all over the world. Over the past few years, the Association has identified eight targets from the Sustainable Development Goals: zero hunger, good health and well-being, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, sustainable cities and communities, and responsible consumption and production. In the future, it will continue to improve on the basis of the existing spirit of ISO, promote sustainable consumption, improve production models, and ensure food security. Gao brought up Article 1 of the Agricultural Association Law: “The purpose of agricultural associations is to protect the rights and interests of farmers, improve their knowledge and skills, promote agricultural modernization, increase production income, improve their lives, and develop the rural economy.” Their primary goals are to improve agricultural productivity and farmers’ income, allow farmers to acquire production resources, knowledge, financial services, and experience in the non-agricultural employment market, improve rural infrastructure, research agriculture, and promote services and urban, suburban, and rural areas to connect the economy, society and environment.