To capture Japan’s pineapple market, and with guidance from the Council of Agriculture, the Damao Fruit and Vegetable Production Cooperative in Chiayi partnered with Farmind Co., Ltd., Ourmart Marketing, and Roundday Logistics to establish an innovative international fresh fruit distribution system. By integrating crown removal, reusable logistics baskets, and cold chain delivery, they created a one-stop export model that ships Taiwanese pineapples directly to processing facilities in Japan. This approach reduces packaging costs by 15% and increases container capacity. Minister of the Council of Agriculture Chen Chi-Chung emphasized that once Taiwan’s pineapple exports to Japan reach 30,000 tons, Taiwan will be able to reduce its previous reliance on a single export market.

After mainland China suspended imports of Taiwanese pineapples in March last year, the Council of Agriculture actively shifted focus to the Japanese market—successfully exporting 18,000 tons, with a target of 30,000 tons this year. However, due to the COVID-19 pandemic, rising raw material costs and tighter supply of cardboard led to increased packaging expenses. To address this, Taiwanese and Japanese partners collaborated to develop an international fresh fruit distribution system, replacing traditional cartons with reusable logistics baskets for pineapple shipments.

Chen Ying-Yen (陳映延), Chairman of the Chiayi Da-Mhau Fruit and Vegetable Production Cooperative in Chiayi, explained that pineapples are first de-crowned at the origin collection site before being packed into containers and transported through a full cold chain. Upon arrival in Japan, they are delivered directly to local fresh-cut processing facilities. Meanwhile, a logistics basket leasing company provides services including local collection, cleaning, and return delivery of reusable baskets to Taiwan’s packing sites.

Chen highlighted that both the use of reusable logistics baskets and the export of de-crowned pineapples for fresh-cut processing are industry-first practices. Traditionally, each carton held about 10 kg, but with logistics baskets, capacity has increased to 17 kg. By eliminating carton costs and reducing certain tariffs, overall costs have decreased. In Japan, fresh-cut pineapple accounts for 80% of the market, while whole pineapples make up only 20%. With this new model, the goal is to actively capture this emerging blue ocean market. Orders from Japan this year have already increased by 30% compared to last year.

Minister of the Council of Agriculture Chen Chi-Chung pointed out that four years ago, farm-gate pineapple prices once fell as low as NT$1, NT$3, and NT$5 per jin (600 grams) under a graded purchase system. Since then, the Council has taken comprehensive action—mobilizing exports, processing, domestic sales, and cold chain logistics—to stabilize not only pineapple prices but also those of agricultural products overall at levels acceptable to farmers. He emphasized that exporting pineapples is particularly challenging. With the newly established system—covering production, grading and packaging, and delivery to Japan through Roundday Logistics—every step must be seamlessly executed to sustain Taiwan’s presence in the Japanese market.

Chen Chi-Chung noted that four years ago, farm-gate prices for pineapples once fell as low as NT$1, NT$3, and NT$5 per catty under a graded purchase system. Since then, the Council has taken comprehensive action—mobilizing exports, processing, domestic sales, and cold chain logistics—to stabilize not only pineapple prices but also those of agricultural products overall at levels acceptable to farmers. He emphasized that exporting pineapples is particularly challenging. With the newly established system—covering production, grading and packaging, and delivery to Japan through Roundday Logistics—every step must be seamlessly executed to sustain Taiwan’s presence in the Japanese market.

The Council of Agriculture noted that de-crowned pineapples are processed immediately upon arrival in Japan, ensuring quality and aligning with local consumer preferences. This approach also reduces packaging materials and the cost of disposing of pineapple crowns. Under the traditional carton method, a 40-foot container with pallets can carry about 1,365 cartons, equivalent to around 14 tons of pineapples (with crowns). By switching to reusable logistics baskets, each container can hold approximately 1,000 baskets, increasing capacity to about 17 tons (with crowns).

Minister of the Council of Agriculture Chen Chi-Chung, Chiayi County Magistrate Weng Chang-Liang, Legislator Chen Ming-Wen, and others also attended the container sealing and departure ceremony today. However, a minor incident occurred during the event. A pineapple farmer surnamed Chen appeared on-site to voice concerns, criticizing the government for placing excessive emphasis on export markets. He pointed out that Taiwan produces around 500,000 tons of pineapples from 10,000 hectares of farmland, while exports account for only 20,000 to 30,000 tons. Yet, he argued, 95% of government resources are directed toward supporting just 4% of the export market. He added that current farm-gate purchase prices—NT$2, NT$4, and NT$7 per jin—are insufficient to cover production costs of about NT$500,000 per hectare, and called on the government to better support farmers, urging that “professionals should be entrusted to handle the work.”

Reprinted from Liberty Times