The “TSMC” of the Taiwanese orchid industry Hsu Neng-Shun works to strengthen Taiwan’s reputation as the “Orchid Kingdom” 蘭花的台積電 許能舜扛起「蘭花王國」美譽

Taiwan has been described as the “Orchid Kingdom”; Taiwan leads the world in the cultivation of Butterfly Orchid seedlings, and its growers are able to bring seedlings to maturity faster than those of any other country in the world. Currently, Taiwan’s annual Butterfly Orchid exports total around NT$2.3 – 3 billion. Hsu Neng-Shun, CEO of Taiwan Orchid Professionals Co., Ltd., has developed a new value chain blueprint for the orchid industry, aiming to raise the industry’s annual production value at least 10-fold within three years, and to turn Taiwan Orchid Professionals into the “TSMC” (one of Taiwan’s, and the world’s, leading IC foundry service providers) of the Taiwanese orchid industry. Taiwan Orchid Professionals is scheduled to achieve OTC listing by the end of 2010, making it Taiwan’s first publicly traded agricultural sector stock.

At the Chelsea Flower Show in the U.K. in May this year, the new Taiwan orchid variety Phal. Fortune Salzman was praised by Queen Elizabeth II. However, most agricultural producers in Taiwan export their products independently, making it difficult for them to secure really large orders from overseas. The current situation is that trading companies in other countries import seedlings from Taiwanese orchid growers at around US$7 per seedling; once the plants have grown to maturity, they are then re-sold for retail prices of up to US$39.9, so that most of the profits go to foreign vendors that know how to make effective use of branding. Despite all the hard work they have put into improving their orchid varieties and technology, the Taiwanese orchid farmers make only slim profits. Hsu Neng-Shun believes that the main problem is Taiwan’s lack of strong brands.
今年5月在英國切爾西花展(Chelsea Flower Show)中,台灣最新培育的品種「幸運蘭」深獲英國女王伊莉莎白二世讚賞。但台灣蘭農多採各自外銷,無法承接國外大量訂單。目前各國貿易商以每株7美元價格向台灣蘭農進口種苗,在當地催花成熟後出售,每株售價達39.9美元,大享品牌利潤;台灣蘭農辛苦提升品種技術,只得小利,許能舜認為,主因是缺乏自有品牌口碑。

Taiwan Orchid Professionals has built approximately 118,800 square meters of greenhouses in the Taiwan Orchid Plantation (TOP) which it rents out to orchid farmers. Taiwan Orchid Professionals purchases seedlings from the farmers at different growth stages (small, medium and large seedlings), and provides farmers with a guarantee that it will purchase the seedlings they are preparing to cultivate, thereby overcoming the challenges posed by long cultivation times and the resulting cash-flow problems, which have plagued the industry in the past. This new strategy will boost annual production volume by around 500,000 plants. The greenhouses at TOP also make effective use of information and communications technology (ICT), to achieve precise control over the seedling cultivation environment, and ensure stability in terms of both output and quality. In March 2010, Taiwan Orchid Professionals signed an MOU with the Malaysian government to collaborate on the establishment of a 20-acre “International Muslim Orchid Exploration World” in East Malaysia.