Smart Cultivation for the Future: Deep Roots and Fruitful Harvest in Taiwan Ready to Pioneer Smart Agriculture in Thailand
TSAI,PI-CHENG（China Productivity Center Agricultural Innovation Department I）
1. What Is a Smart Agriculture Ecosystem?
The development of smart agriculture is a megatrend for the transformation of modern agriculture. The Ministry of Agriculture has been driving smart agriculture initiatives since 2017 and has achieved substantial results. However, a review of this journey of developments identifies duplicate resource investments between public and private sectors in the R&D for smart agriculture and hence highlights the need for better integration and coordination.
More importantly, R&D results and innovations have often struggled to continue further due to the lack of well-developed business models. In response, the Ministry of Agriculture is planning and promoting the Smart Agriculture Ecosystem initiative to establish a new collaborative paradigm through close cooperation among industry, government, academia, and research institutions.
The concept of a smart agriculture ecosystem stems from the management philosophy of modern business ecosystems. Its core framework consists of three key roles: Cornerstone, Facilitator, and Niche Player.
The Cornerstone is typically a leading enterprise possessing essential technologies or resources and responsible for providing the infrastructure of the ecosystem. The Facilitator serves as a vital bridge that connects resources and requirements among stakeholders. The Niche Player comprises specialist providers of professional services or solutions in specific domains. The three roles work closely together to create a comprehensive smart agriculture service chain.
All participants in this ecosystem adhere to the principles of mutual support, symbiosis, and resource sharing. Total solutions are developed to meet the real-world needs of the industry through the integration of existing smart agriculture technologies and services. This innovative collaboration model not only reduces redundant investments but also optimizes resource allocation and accelerates the practical application and dissemination of smart agriculture technologies.
Through the operation of such an ecosystem, we hope to move beyond the traditional mode of working-in-silos and establish a sustainable business framework. Furthermore, the development of a smart agriculture ecosystem will create new opportunities for the advancement of Taiwan’s agricultural sector.
2. Success Story and Case Study: Ecosystem Team of Kiao Farming Co., Ltd.
- Team Composition and Services
Kiao Farming Co., Ltd. centers its business on IoT-based sensing and control systems and utilizes block-based programming to implement smart irrigation models such as soil moisture management and accumulated solar radiation irrigation. In addition, the company has built a production and operational model on the cloud by working on Joint Farm Platform developed by Link Join Technology Co., Ltd. and integrating the critical materials and technologies offered by TCSA Biotechnology Co., Ltd. (饗樂纖農生技).
The team has formed an ecosystem alliance and launched “Liquid Manure Usage Management and Remote Monitoring Service” and “Smart Liquid Manure and Consulting Service” to help farmers monitor farm conditions in real time, precisely administer and control the volume of liquid manures, and comprehensively record relevant data throughout the agricultural production and distribution process.
To meet the needs of farms of different sizes, the team adopts a phased and modular implementation approach, offering customized hardware modules for sale and annual subscription-based systems and services.
- Business Model
The business model is for the system integration team to organize bundle sales. Members who develop clients are entitled to a priority commission of 10% of revenue. Subsequently, profits are shared among team members based on individual contributions to site planning, construction, programming services, platform usage fees, data analytics, and recommendations for precision fertilization. In addition, a Line BOT has been established as a real-time service interface to assist farmers in troubleshooting of technical issues.
- Project Achievements and Outcomes
Through the Ecosystem Development Program for the Smart Agriculture Industry, the team achieved significant milestones from 2023 to 2024. It successfully established 5 demonstration sites and 15 expansion sites and extended its service coverage to 172 greenhouses. Advanced IoT technologies and sensing equipment were deployed at the demonstration sites.
This has enabled intelligent management of greenhouse environments, including precise control of key parameters such as temperature, humidity, and illuminance. These smart facilities have delivered tangible benefits to farmers, including labor savings of up to 40,000 hours and additional revenue of NT$250,000 per hectare.
On the international front, Kiao Farming’s team embarked on cooperation in 2024 with the International Cooperation and Development Fund (“Taiwan ICDF”) and the Royal Project Foundation of Thailand. The company has established five experimental workstations, ten greenhouse buildings and one open-field farm in Chiang Mai. These workstations are equipped with a range of innovative technologies, including smart irrigation, liquid manure monitoring, and data analysis.
This collaboration not only showcases Taiwan’s strength in agricultural technology but also opens a new chapter in cross-border technological exchange, helping to extend Taiwan’s successful experience to Southeast Asia.
Looking ahead, Kiao Farming’s ecosystem team will continue to expand the application scope of smart agriculture and set a benchmark for the transformation of Taiwan’s agricultural sector by adopting the dual-track strategy of local implementation and international collaboration. This highlights the importance of digital technology in the development of modern agriculture and provides directions for industrial upgrading.
3. Conclusion
- Domestic Industry Demand and Development Trends
In recent years, extreme climate events have occurred with increasing frequency, posing numerous challenges to domestic agriculture. In response to these changes, traditional agriculture is gradually transitioning toward facility-based cultivation. This approach not only effectively reduces climate-related risks but also helps stabilize the supply quantity and quality of agricultural products. In particular, the demand from farmers for precision production continues to grow for high-value crops such as flowers, fruits, and vegetables. This backdrop provides an excellent opportunity for the development of a smart agriculture ecosystem.
Amid the various challenges brought about by climate change, water resource management has become an imperative issue in modern agriculture, and the introduction of smart irrigation technologies is an important solution. Kiao Farming’s ecosystem team integrates IoT technologies with expert advisory systems to provide farmers with total solutions for smart liquid manure. This does not only help conserve valuable water resources but also enhances crop yield and quality through precision management, thereby generating tangible and economic benefits for farmers.
- International Market Potential and Expansion Strategy
Among the international markets, Southeast Asian countries are proactively promoting agricultural modernization as smart agriculture is deemed a key strategy to enhance agricultural competitiveness. Taking Thailand as an example, the government has been advocating its “Thailand 4.0” initiative in recent years, prioritizing agricultural technology as an area of development and investing resources for digital transformation of agriculture. Other countries such as Vietnam and Malaysia have likewise introduced relevant policies to promote the development of smart agriculture.
The success of Kiao Farming’s ecosystem team in Chiang Mai, Thailand, represents an important milestone in entering international markets. By tailoring smart agriculture solutions to local climatic conditions and crop characteristics in subtropical regions, the team has not only helped local farmers improve production efficiency but also established a strong reputation for Taiwan’s smart agriculture technologies.
Going forward, the team plans to gradually expand into other Southeast Asian countries, develop a wider range of use cases by working with local agricultural institutions and open up broader international markets for Taiwan’s smart agriculture sector.