Contribution of Active Controlled Atmosphere (CA) Technology to the Value-Chain of Perishable Fruits and to Rural Development: Case of Atemoya in Taiwan

Chun-Ta Wu, Wen-Hung Huang, Kenneth Bicol Dy (), Ching-Cheng Chang and Shih-Hsun Hsu
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Chun-Ta Wu: Department of Horticulture & Landscape Architecture, National Taiwan University, Taipei City 10617, Taiwan
Wen-Hung Huang: Department of Agricultural Economics, National Taiwan University, Taipei City 10617, Taiwan
Kenneth Bicol Dy: Institute of Economics, Academia Sinica, Taipei City 11529, Taiwan
Ching-Cheng Chang: Institute of Economics, Academia Sinica, Taipei City 11529, Taiwan
Shih-Hsun Hsu: Taiwan Association of Input-Output Studies, Taipei City 10617, Taiwan

Sustainability, 2022, vol. 14, issue 23, 1-11

Abstract: Atemoya is an important tropical fruit export for Taiwan, mainly produced in Taitung, a rural area of South-Eastern Taiwan. However, it was sold to virtually a single market—China—and when that market suddenly announced an import ban on the fruit in 2021, the rural farmers and the local economy were adversely affected. They had to quickly explore new overseas markets. Unfortunately, its short postharvest life makes it infeasible for long-distance transport. This study measured the impacts of the ban on the local economy using an input-output (IO) analysis. It also tested the technical feasibility of using a controlled atmosphere (CA) preservation technology, which was necessary for long-distance exports. The benefits of this strategy for the rural economy were also assessed using IO techniques. Results reveal that the atemoya value chain accounted for 2.12% of the production value, 2.75% of the value-added, and 3.62% of the employment in Taitung. Furthermore, the CA technology successfully doubled its postharvest life; thereby allowing exports to countries as far as Canada, and easing the impacts of the earlier ban. This development, together with facilitating domestic sales, boosted the local economy’s output value by NTD 491 million and its value-added by NTD 237 million. In addition, it can also increase rural employment by 2235 people. Using a smart agriculture technology in this case protected a perishable fruit industry that has a thin domestic market, from the risk of relying only on a single export destination. Consequently, this has supported the sustainability of rural communities and helped them to remain resilient.

Keywords: active controlled atmosphere; atemoya; input-output analysis; Taiwan (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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