Liu Tien-ho represented Penghu in the 2015 Shennong Awards for farming excellence, and was hailed as a “god of technological agriculture” for his creation of a food production blueprint that runs the gamut from fish, pigs, chickens and ducks to vegetables, and of an app that provides consumers with access to production histories, SGS inspection reports, nutritional information and even detailed recipes for his company’s foods.
A tech-savvy farmer
There’s no question that Liu deserves his “god of technological agriculture” title. He threw himself into the murky waters of the aquaculture industry as a complete outsider, relying on his courage and passion to see him through. But Liu is a problem solver by nature. When issues crop up, he tries everything he can think of until he finds a solution that works. In so doing, he has developed a host of new processes.
One of his innovations has been keeping production records for each of his fish.
Liu’s background is in the tech industry. Having carried its habits with him into aquaculture, he tracks every step of his production process, from the sourcing of the fish fry and their rearing to processing and shipping the final product. In so doing, he established a new standard for fish farming: creating traceable production records for every fish raised. Liu spent two years raising his first batch of “Tan Hou Cobia,” the first farmed fish in Taiwan to have verified production records.
He also became a proponent of “fish bathing,” one of aquaculture’s more unusual techniques.
Liu has always been adamant that his fish farm not employ antibiotics. As a result of that choice, fewer than 20% of his fish survived to maturity during the early years of his operation. Seeking a solution, he read everything he could find on keeping fish parasite-free without pharmaceuticals. His tireless quest was ultimately rewarded when he discovered a parasite removal technique that leaves fish unharmed: relocating ocean-raised fish to plastic-lined freshwater pools for a short time. The resulting change in osmotic pressure kills the parasites in just a few minutes.
His company achieved another breakthrough in conjunction with Harvard University: it developed an organic animal feed made from fish scraps, fish blood, and seaweed. The creation of the feed, which is rich in omega-3 fatty acids, encouraged Liu to establish animal husbandry and agricultural operations to utilize it.
Tan Hou’s collaboration with Harvard was serendipitous: a customer in Vancouver happened to introduce Liu to Dr. Jing X. Kang, a professor of lipid medicine at Harvard Medical School, in 2007. Liu followed up on the connection by initiating talks with Harvard Medical School about arranging a collaboration. With help from Kang and several trips to the US to hammer out the details of the arrangement, he completed a technology transfer that enabled Tan Hou to combine fish scraps, fish blood (both previously waste materials), and brown seaweed into an organic feed packed with omega-3 fatty acids. Tan Hou serves the feed to its pigs and chickens, which it sells under its “seaweed pig” and “seaweed chicken” labels.
Earning renown, but losing money
As Liu’s signature grin spread through the media, he began making an impression. But few people recognized the pressure and disappointment hidden beneath his sunny smile.
“The pain is inside,” says a surprisingly candid Liu. “We’ll work very hard this year, and see if we can keep our losses to just NT$30 million.”
How is it that, in spite of Liu’s innumerable awards and accolades, his vision for sustainability has so far failed to stem Tan Hou’s losses?
The company’s 25-hectare net-pen aquaculture operation floats in an ideal location off the coast of Penghu’s Xiyu Township, a spot chosen by Liu himself.
Although the seas off Penghu are free of heavy metals and industrial pollution, the area’s summer typhoons and the winter monsoon leave fish farmers in an almost constant state of high anxiety.
In April 2007, an unexpected waterspout wiped out everything Liu had put together, forcing him to start again from scratch. The following February, the most severe cold in a century killed tens of thousands of his cobia. Liu was once again left with virtually nothing, having saved just two of his fish.
A sense of mission
But two severe cold snaps and a waterspout have failed to chase Liu out of the toxin-free-food business or dim his passion for producing healthy food.
“My sense of mission and personal need for these products make it impossible for me to just walk away.” Liu says that when his physicians resected a portion of his colon and reattached the remainder to his small intestine, they advised him to eat easily digestible fish. Although he followed their advice, finding safe fish products turned out to be very difficult. The challenge of doing so inspired him to raise fish that people could eat with confidence.
“When the cancer didn’t kill me, I felt I ought to do something worthwhile with my time.” He’s held fast to that ideal ever since.
Aquaculture aside, Liu has been providing support to students at Taichung’s Tucheng Elementary School for years. When they heard about his difficulties, more than 2,000 teachers and students at the school sent him letters wishing him well and encouraging him to keep on fighting.
“The more I learned, the more reluctant I became to eat anything not prepared at home.” Liu worried that the additives in commercial foods were dulling people’s taste buds, and began recommending that everyone eat only “real” foods prepared in ways that highlight their natural flavors.
Tina Lin, Tan Hou’s deputy manager of sales and marketing, describes Liu’s approach to promoting toxin-free organic foods as one of “patient persuasion.” Liu always participates in Tan Hou’s bimonthly lectures, no matter how busy he is, making time to share his thoughts on healthy eating with consumers. “He’ll fly all the way from Penghu just to be there.”
Farm to fork
Looking to spread his risks, Liu diversified the company’s operations into animal husbandry and farming. Tan Hou’s ranch raises “seaweed pigs” and “seaweed chickens” on the feed made from fish byproducts and seaweed, while its farm uses an organic fertilizer made using manure from the ranch to produce organic vegetables.
Tan Hou also opened its flagship store, a 1,300-square-meter retail operation near the Taipei Railway Station, in September 2008. The location includes a grocery store that sells Tan Hou’s own fish, meats, and organic produce, as well as a shabu-shabu bar, juice bar, full restaurant and bakery, all utilizing Tan Hou’s own toxin-free ingredients, and all exemplifying Liu’s “farm to fork” philosophy.
“Market differentiation” has become Liu’s watchword. He notes that 70% of the organic foods passing through Taiwan’s distribution channels are dried, and that less than 30% are fresh. Tan Hou has flipped this model on its head, with fresh products accounting for 70% of its offerings. The company currently distributes these products through eight supermarkets of its own across Taiwan, and via counters it operates in another 200–300 locations, including SOGO department stores.
Tan Hou has also deployed an exciting interactive information system in its restaurant that is similar to one currently being showcased in the Future Foods District at Expo Milano 2015.
The restaurant utilizes interactive AR-Code technology to provide information on all 50 menu items. Patrons who download the app to their cellphones can read about the main ingredients in every dish the restaurant serves. Take the Shennong Meal, for example. It contains fish, pork, chicken, shellfish and vegetables. Patrons can access the production records, inspection reports, nutritional information, and related recipes for any one of those ingredients just by tapping on it. It’s all right there at their fingertips.
Transparency
“Having a public and transparent production process is one of our core values,” says Liu.
Where does your food come from? How is it produced? How is it prepared? Tan Hou makes it very clear to consumers.
Take the company’s popular baked goods, for example. A sign on one wall of the bakery lists the brand, production location, and supplier of all the major ingredients, including the flour, yeast, and nuts. Nothing is hidden; it’s all right there in front of the consumer.
To give consumers even greater confidence in Tan Hou’s products, Liu offers tours of the company’s Penghu production facility during the summer season. The tours, which coincide with the oyster harvest, give consumers the opportunity to see Tan Hou’s feeding and production processes for themselves.
After his brush with cancer, the 65-year-old Liu began putting his life in order. He now goes to bed a bit after eight o’clock every evening, but gets up again at two or three in the morning. On weekday mornings, he lies in bed with his eyes fixed on the ceiling thinking up new business strategies. On the weekends, he leaves home just after 3 a.m. to hike through Taipei’s Four Beasts Mountains.
“I’m thinking about how to lose less money!” He adds: “We’re going to adjust our business strategy this year in an effort to keep our losses under NT$30 million.”
Part of that adjustment is a “fresh food bar” that Tan Hou introduced in June. The idea is to provide office workers and seniors with convenient, nutritionally balanced meals.
Lin says that all the foods on the bar are organic, and are steamed, roasted, or grilled rather than fried, to ensure that they are balanced and healthy.
Looking back, Liu says he has no regrets. He explains that no one forced him to do what he does. He has chosen his path himself, and will reap what he sows. That said, he finds managing human resources even more frustrating than the vagaries of Nature.
“Manufacturing workers need to be detail oriented; in the service sector, enthusiasm is key.” Liu says that Tan Hou has a very high turnover rate among its service personnel because so few of today’s young people are proactive and dedicated to their work. Bold and persevering though Liu may be, he continues to struggle with the question of how to shore up his front-line staff.
The Shennong Meal includes fish, chicken, pork, shellfish and salad.
As part of its effort to implement a farm-to-fork system, Tan Ho Ocean Development has launched a fresh food bar that provides working people and seniors with freshly prepared meals that are nutritionally balanced, toxin-free, and served in appropriately sized portions.
Tan Hou’s popular bakery is transparent about the brands, production sites, and suppliers of all its ingredients, enabling consumers to eat with confidence.
Tan Hou distinguishes itself from most distributors of organic products by carrying more fresh foods than dried: the company’s own fresh, organic fish, pork, chicken, fruits, and vegetables make up more than 70% of its product line.
Tan Hou regularly immerses its farmed fish in fresh water. The change in osmotic pressure kills parasites, enabling the company to keep its fish healthy without pharmaceuticals. (courtesy of Tan Hou Ocean Development)
Liu Tien-ho has been hailed as a “god of technological agriculture.” The photo shows him holding one of his company’s “seaweed pigs,” which are raised on an organic feed made from fish byproducts and seaweed.