Taisugar to lease California site to Taiwanese orchid growers: Minister

Taipei, Aug. 19 (CNA) Taiwan Sugar Corp. (Taisugar) has agreed to provide Taiwanese orchid businesses access to its production base in California, the United States, Agriculture Minister Chen Junne-jih (陳駿季) said Monday.

The offer from the state-run enterprise came after a new U.S. baseline tariff of 20 percent on Taiwanese goods, which affects Taiwan's orchid industry, took effect on Aug. 7.

Chen said that the Ministry of Agriculture (MOA) will assess whether Taisugar's equipment needs upgrading and how much rent will be charged.

The minister made the remarks at a Forestry and Nature Conservation Agency (FANCA) press conference.

Tseng Chun-pi (曾俊弼), secretary general of the Taiwan Orchid Growers Association (TOGA), told CNA that unstable shipping schedules since the COVID-19 pandemic raised defect rates for large seedlings sent to the United States.

He said growers had long hoped to establish a production base there and described Taisugar's California orchid garden as a suitable site.

"Although large seedlings exported to the United States are still subject to a 20 percent tariff, if we can continue production in the U.S. and, through forcing flowering, cultivate the seedlings to the near-blooming stage, at least the defect rate will be under our own control," Tseng said.

"Customers will not complain, yields will improve because the turnover rate is reduced, and customers will be willing to pay higher prices," he added.

According to Tseng, Taiwan exports about 23 million orchid seedlings to the U.S. annually, over 90 percent of which are phalaenopsis orchids (moth orchids).

He said the California orchid base can accommodate about 5 million seedlings.

The MOA said 40 percent of Taiwan's flower exports go to the U.S., which is also the largest export market for phalaenopsis orchids.

TOGA reported that the U.S. tariff on Taiwanese goods rose from zero to 10 percent in April, with orchid orders dropping 15 percent from April to June.

Further declines in orders are expected after the 20 percent tariff took effect on Aug. 7.