Opportunity or clash?
In response to these criticisms, Fang has an attitude of "to each his own."
"The nutrients that plants take in are just nitrogen, phosphorus, potassium, calcium, magnesium and sulfur, and a few trace elements," he says. "That can be detailed with scientific evidence. But many people just won't believe it. They think that as long as it isn't grown with soil and sunlight, it isn't 'natural.'"
Fang asserts that a plant factory is just another way of producing food. It can't produce the amounts that farming in fields or greenhouses does, so it can't and won't replace traditional agriculture.
Japan is an example. It currently has 50 facilities nationwide, most of them producing lettuce. They only fulfill 0.5% of consumer demand, and present no threat at all to traditional agriculture. Additionally, many Japanese restaurants have begun to grow their own vegetables-restaurant chains Subway and Ootoya both provide their own through plant factories, but are still far from being self-sufficient.
Fang says that for Japanese restaurants, the biggest advantage to plant factories is that the supply and the price are stable. They are not influenced by market fluctuations.
Because of this, he believes plant factories should aim for agricultural enterprises with established sales channels, rather than small farming operations. Factory farmed produce could replace imports, but not everyday vegetables that cost only NT$10 anyway.
He stresses, "Factory farming is only one part of the agricultural industry, and it isn't a competitor with traditional agriculture. Even if it were, it would be in the areas of product cleanliness and quality."
Selling factories, not vegetables
The cost of installing a plant factory depends on its level of automation. NTU's facility was set up with research in mind, so it has to maintain a higher level of sterilization. Its installation alone cost NT$30 million, which is no small amount for small and medium-sized businesses. That's not to mention operating costs.
The Vegetable Plant, based in Hsinchu County, was set up on a smaller scale without interfering with the growth of the produce. Its cost was NT$80 million. "We don't aim to be 'completely sterile' here, but it's certainly cleanly produced," says founder Michael Lin. "The produce all fully meets inspection standards."
In the Vegetables Plant's cultivation area, visitors must also wear coveralls, but there are no further steps like the anti-dust air blast or the sterilization with electrolyzed water. Vegetables on the production line are not given extra carbon dioxide. Control over the acidity of the plant food is maintained manually.
Despite this, the facility only needs three to five workers, most of whom just replant and transplant the plants. "Minimal manpower" is the keyword of the operation. It only needs one trained engineer and a handful of workers. The work is so simple and light that even farmers in their sixties or seventies can manage it.
The Vegetable Plant has its own marketing channels, its prices are slightly higher than those for organic vegetables (250 grams go for around NT$50), and it has a stable customer base. However, Lin says, selling the entire business model (including hardware and software) is the industry's niche. He reveals that overseas customers have already expressed interest in working in cooperation with them.
Taiwanese optoelectronics companies have already sensed opportunity in the industrial agriculture market. For example, Everlight Electronics has not only joined the Taiwan Plant Factory Industry Development Association, formed in June, 2011. It is also reaching across the strait. In late 2010, it entered into an agreement with Philips's lighting division and Mitsubishi Chemical Corporation to target the LED lighting needs of mainland China's plant factories.
Fang reveals that one business in New Taipei City has already spent more than NT$100 million to set up a plant factory, and will aim to produce 1,000 vegetables per day. It seems to be looking toward the potential to export to the whole world.
There are some who say that if it weren't for the global financial crisis, manufacturers never would have taken an interest in agriculture. They suspect that it's the manufacturers who benefit rather than the agriculture sector.
But what is sure is that this is not about agriculture or about manufacturing. Rather, it's an intermediary industry that will allow Taiwan to form alliances across sectors and to consider new directions.