Strategic Approach Planning Management
China Productivity Center Agricultural Innovation Department
Faced with the challenges to agriculture like the aging workforce and the business decline of the credit department in the farmers’ association, Meinong joined the trend of forming agricultural operation zones. The size of the zone in Meinong has kept increasing since 2002 and reached 1,405 hectares by 2007. When the size of the area exceeded 1,000 hectares, the operation mode of the smallholder agriculture was not capable of meeting the demand for development. Farmers in Meinong area, with the support by Council of Agriculture, started receiving diagnosis and consultancy services from CPC in 2016. The leadership philosophy of strategic planning was developed and scientific statistical analysis methods were adopted to achieve high quality products and services. Constant improvement of all processes within the organization was pursued with the focus on the customers so that all members of the organization can pursue continuous progress and sustainable management, thereby creating the best competitiveness.
Scientific Statistics and Management by Fact: The best production model developed based on analysis of the operational structure
Meinong Farmers’ Association is like a diligent student seriously following the examples set by forerunners of agricultural zones. Members of the association took inventory of the regional crops and their production value for reference in making adjustment. The consultants, through an analysis of the overall operation of Meinong Farmers’ Association from 2011 to 2016 and the revenue ratios of various categories, found that, despite the continued growth of the overall revenue, the business amount of its credit department, the core operating unit of the association, was declining at an average annual rate of 6.2%. Therefore, suggestions were made to transform the structure of two-phase rice crops plus tobacco leaves in autumn and winter into that of red beans, supplemented by white-jade radishes and other products of continuous harvest. The farmers’ association also found the best land utilization rate and encouraged farmers to plant the most cost-effective crops in various seasons. Green bean plantation is the most successful example. Green beans grow in temperatures of 15 to 25 Celsius degrees. It used to be produced in summer only. However, Meinong is to the south of the Tropic of Cancer with an average temperature of 23 degrees, making it the only area in Taiwan that can grow green beans in winter, thus generating higher revenues for the farmers.
Market Orientation and Resource Integration: Core values of brand established by adjustment of the production and sales model
After a thorough review of the production chain, the Meinong Farmer’ Association re-integrated the resources and continuously adjusted its structures in pursuit of sustainable management. Following the successful experience of the forerunners, they attempted to provide direct supply to large distributors with the hope to integrate the local value chains. In order to cope with the marketing schemes of the distributors, the farmers in the operation zone adjusted the product items and the area size for contract farming. Now the main crops in Mainong are rice, soybean or edamame from February to May, green manure, asparagus beans, cucumis sativus from June to September, and red beans, green beans, soybeans, black beans, eggplants and tomatoes from October to December, forming a good balance of supply and demand in the market. The positioning of the brand and the market segmentation were also taken into account to enhance the core value of the products through the mechanism of contract farming and friendly farming. The integration of the processes of production, inspection and acquisition has protected farmers from deficits. This has not only effectively raised the farmers' revenue, but also helped to overcome the food safety crisis.
Quality Assurance and Full Participation: Cooperation with identity and confidence
The consultants, based on the business data of the operation zone of the past five years, proposed the directions of follow-up development, including the closer connection between the credit loans service and the supply and marketing department so that the farmers and the farmers' associations work closely together, the establishment of green materials center to ensure good harvest and higher revenue, the establishment of the integrated production and marketing center, and the effective control of crop quality. The implementation of the contract farming system, the traceability certification of production and sales, and the organization of mutual learning and growth among the producers are all indispensable conditions in the management of the operation zone. With the development of the positive operation cycle, members of the Meinong Operation Zone now expect a bright future of the zone as the whole area develops into an even more livable land.