ABSTRACT
This comparative study explores the advancements and sustainability of agricultural manufacturing and logistics in Taiwan and several Southeast Asian countries, including Indonesia, Thailand, and Vietnam. It aims to identify the key drivers, policies, and technological innovations that have contributed to sustainable agricultural practices in these regions. The study employs a mixed-methods approach, combining quantitative data analysis with qualitative case studies to provide a comprehensive overview of the current state of sustainable agriculture. Key findings reveal that Taiwan has leveraged advanced technologies and robust policy frameworks to enhance its agricultural sustainability, while Southeast Asian countries have made significant strides through community-driven initiatives and international collaborations. Despite varying levels of technological adoption and policy support, all regions demonstrate a commitment to improving agricultural sustainability through innovative practices and efficient logistics. The study underscores the importance of tailored policy measures and cross-border cooperation in fostering sustainable agricultural development. Implications for policymakers, stakeholders, and researchers are discussed, highlighting the need for continued investment in technology and infrastructure to support sustainable agricultural growth.
Keywords: Sustainable agriculture, Advanced manufacturing, Agricultural logistics, Taiwan, Southeast Asia, Technological innovation, Policy frameworks, Cross-border cooperation
INTRODUCTION
The requirement for sustainable agricultural practices has indeed grown progressively across the globe because of unsustainable food production systems that cannot support the growing population while at the same time preserving the environment (United Nations, 2023). Besides, it has been predicted that food production should increase by 70 to 80% to meet this rising demand in food by a population expected to exceed 9 billion by 2050. The increased quantity of food demanded must be produced using innovative techniques such as the application of artificial intelligence and machine learning technology in agriculture to improve yields, disease prediction, safety, and traceability (Chauhan, et al., 2022). Sustainable business management practices in agribusiness will not only benefit the businesses but also, from many angles, respond to urgent needs of the societal developments in line with sustainable development goals (Dentoni et al., 2020). The above changes indeed are sustainable agronomical practices such as crop rotation, organic farming, and conservation tillage in interpreting the benefits for soil health, water quality, and biodiversity, which differ from conventional methods of productivity yield and environmental impact (Rajput, et al., 2023). Organic farming plays a great role in providing contamination-free and toxin-free nourishment for the body while also maintaining soil health and enhancing the productivity of crops (Bhat, et al., 2021).
The dynamic change in sustainable agriculture has compelled countries around the globe to consider natural or organic farming; and utilizing microbial species as biofertilizers and biocontrol agents (Bhat et al., 2021). The concept of sustainability also relates to manufacturing and logistics, in that companies in Taiwan are gearing towards having a lot more solar photovoltaic power stations and those in North American countries are moving towards green electricity production from its use, improving their environmental, social and governance (ESG) profiles and aligning with the long-term goals of sustainability (Wang et al., 2023). Moreover, sustainable supply chain management (SSCM) practices, among others, are trying to be highlighted in Southeast Asian countries like Taiwan, with parameters, such as collaboration, distribution and logistics services, and customer relations identified to be critical for achieving sustainability in the fresh-fruit sector (Manh-Hoang, et al., 2022). Thus, these strategies should be adopted to deal with an increasing demand for food production with as little negative environmental consequence as possible and with long-term sustainable agricultural developments.
The goal of sustainable agricultural manufacturing and logistics in Taiwan and Southeast Asia is to improve the environmental, social, and economic dimensions of the sector. In Taiwan, the development of renewable energy technologies, in particular solar photovoltaic power stations (SPPSs), is directed towards reducing greenhouse gas emissions and improving energy efficiency (Wang, et al., 2023; Lin, et al., 2017). In addition, the logistics sector is essential for economic development in Southeast Asian countries, including the indicators of economic growth, CO2 emissions, health spending and also assessing the quality of logistics services such as the Logistics Performance Index (Zhovnirchyk, et al., 2023; Nguyen, et al., 2021). Another trend is the transformation of container ports into hinterland hubs and the integration of intermodal transport systems into them, where real-world business decisions are evaluated and ranked using AHP (Analytic Hierarchy Process) as a strategy for improving sustainability (Juang et al., 2016). All these have a lot more in tandem with the trend in the world towards sustainable agricultural practices and logistics spheres, especially with the emphasis on short food supply chains and alternative agro-food networks to enhance re-localization and resolve the problems of agricultural resource distribution and human health (Wann, 2013).
The objective of the paper is to compare and analyze the sustainable agricultural manufacturing and logistics strategies in Taiwan and Southeast Asian countries. The scope of this research is the emphasis on technological integration, policies, strategies, and their effectiveness.
SUSTAINABLE AGRICULTURAL MANUFACTURING IN TAIWAN
In Taiwan, sustainable agricultural manufacturing trends and innovations include the adoption of smart agricultural technology for pest and disease prevention, labor shortage mitigation, and healthy fruit tree growth (Chen, et al., 2022). Additionally, the implementation of a product traceability system ensures food safety by tracking agricultural products from production to sales, promoting sustainable agriculture practices (Jiang, et al., 2017). The focus on local cuisine, culture inheritance, and sustainable innovation development through indicators like education and training contributes to rural food production revitalization and economic growth (Chen et al., 2022). Furthermore, the incorporation of innovation into traditional manufacturing industries, emphasizing design and innovation, enhances added-value and international competitiveness, leading to sustainable development (Lee, et al., 2018). Taiwan's commitment to reducing greenhouse gas emissions through energy-saving technologies and renewable energy sources also plays a crucial role in sustainable performance in manufacturing industries (Lin, et al., 2017).
Figure 1 illustrates the comparison of agricultural manufacturing and resource management techniques between Taiwan and Southeast Asian countries.
Key policies supporting sustainable agriculture manufacturing in Taiwan include regulatory measures promoting the valorization of mandatory recyclable food waste from industrial sources, such as animal/plant production farms and food-processing plants, as outlined in (Tsai, et al., 2021). Additionally, focusing on design and innovation in traditional manufacturing industries can enhance added-value and international competitiveness, ultimately leading to sustainable development (Lee, 2018). Moreover, the agricultural policy in Taiwan aims to reduce pesticide consumption by half in the next 10 years, emphasizing the importance of sustainable agricultural practices (Lu, et al., 2018). Furthermore, the success factors for sustainable traditional manufacturing include knowledge management, teamwork, and employee engagement, which are crucial for enhancing organizational sustainability (Tseng, et al., 2022). By implementing these policies and strategies, Taiwan can promote sustainable agricultural manufacturing practices and contribute to the circular bioeconomy and sustainable development goals.
One notable success story is the establishment of Eco-Industrial Parks (EIPs) like the Linhai Industrial Park, which have successfully transitioned towards industrial symbiosis and resource sharing, resulting in reduced carbon emissions, fuel savings, and waste recycling (Maynard. et al., 2020). Additionally, Taiwan has been focusing on mitigating greenhouse gas emissions through energy-saving technologies and promoting renewable energy sources, leading to a slight rise in sustainable performance in manufacturing industries over the past decade (Lin, et al., 2017). Furthermore, the government has been actively promoting the construction of Alternative Agro-Food Networks (AAFNs) and Short Food Supply Chains (SFSCs) to re-localize agriculture and enhance the local food supply system, aligning with the global trend towards sustainable agriculture (Wann, 2013). These initiatives highlight the significant impact of government support in driving sustainability in Taiwan's agricultural sector.
Integrating sustainable agricultural manufacturing into Taiwan's government initiatives and policies can have significant implications for the country's economic development. Research suggests that organic farming can lead to profit growth for rice farms, especially when considering spatial agglomeration and farm characteristics (Chang, et al., 2023). Additionally, a shift towards a value chain perspective in agricultural policy planning, including the distribution sector and food services, can significantly increase the agricultural sector's contribution to GDP, promoting economic growth (Huang, et al., 2022). Furthermore, enhancing rural industrial integration, as seen in China, can positively impact sustainable agricultural production, offering valuable insights for Taiwan's development strategies (Ye, et al., 2023). Implementing a farm production traceability system based on the Internet of Things technology can improve food safety, aligning with sustainable agriculture goals and potentially boosting consumer trust and market competitiveness (Jiang, et al., 2017).
SUSTAINABLE AGRICULTURAL MANUFACTURING IN SOUTHEAST ASIAN COUNTRIES
The comparison of technological adoption in sustainable agricultural manufacturing in Southeast Asian countries reveals a focus on modernizing farming practices and enhancing sustainability. Studies highlight the importance of factors influencing Asian farmers' adoption of modern technology in agriculture (Syarif et al., 2022), the challenges faced by farmers due to climate change and the need for renewable energy solutions in livestock farming (Das, et al., 2023), and the push towards sustainable manufacturing practices in ASEAN member countries, emphasizing the need for holistic solutions and industrial integration for environmental protection and economic efficiency (Qureshi, et al., 2020; Nohman Khan, et al., 2020). Additionally, research in Malaysia underscores the significant impact of perceived benefits, particularly cost-effectiveness and communication effectiveness, on the adoption of sustainable digital technologies in small and medium-sized manufacturing enterprises, with leaders' attitudes playing a crucial mediating role (Yakob, et al., 2022). These findings collectively highlight the ongoing efforts and challenges in adopting technology for sustainable agricultural manufacturing in Southeast Asia.
The comparison of technological adoption in sustainable agricultural manufacturing in Southeast Asian countries reveals key factors influencing the adoption behaviors of modern technology among farmers. Factors such as human capital, farm size, social capital, extension services, and market access play crucial roles in the adoption of sustainable agricultural technologies in regions like the Mekong Delta, Vietnam (Luu, et al., 2018). Additionally, the need for modern technology and farming practices and their adaptation is highlighted, emphasizing the importance of factors like demographic indicators, perception and belief indicators, technology acceptance indicators, and internal and external factor indicators in influencing Asian farmer communities toward adopting modern agricultural practices (Shariff, et al., 2022). These findings underscore the significance of integrating sustainable agricultural technologies to enhance productivity, income, and ecological sustainability in Southeast Asian agricultural practices.
The sustainable agricultural manufacturing in Southeast Asian countries reveals a focus on factors influencing adoption behavior, such as human capital, farm size, social capital, extension services, and market access (Shariff, et al., 2022). Additionally, the application of appropriate technology in the agricultural sector has been crucial for increasing food production, improving product quality, and minimizing environmental damage in the Asian region (Setyawan, et al., 2023). Studies emphasize the importance of sustainable agricultural technologies in increasing farmers' income, providing quality agricultural products, and preserving ecological balance (Luu, Tien, Dung., et al., 2018). Furthermore, the literature highlights the need for holistic industrial engineering solutions and hybrid processes to establish sustainable manufacturing practices in ASEAN countries, focusing on sustainable product development, manufacturing performance, and environmental assessment and monitoring (Qureshi, et al., 2020). These findings underscore the significance of technology adoption and sustainable practices in enhancing agricultural productivity and environmental sustainability in Southeast Asia.
One successful project of technological adoption in Sustainable Agricultural Manufacturing in Southeast Asian countries is the Agroecology-based System of Rice Intensification (SRI) implemented in the Lower Mekong River basin countries. The project, known as "SRI-LMB," involved over 15 institutions and utilized a farmers' participatory action research (FPAR) approach, leading to a more than 50% increase in average yield and factor productivity, while reducing cultivation costs, energy use, and greenhouse gas emissions (Misra, et al., 2022). Additionally, the adoption of sustainable agricultural technologies among rice farmers in the Mekong Delta, Vietnam, was influenced by factors such as human capital, farm size, social capital, extension services, and access to the market, highlighting the importance of these elements in promoting sustainable production practices (Luu, Tien, Dung, 2018). These initiatives showcase the positive impact of technology adoption in enhancing agricultural sustainability and productivity in Southeast Asia.
Key success stories in technological adoption in Sustainable Agricultural Manufacturing in Southeast Asian countries include the Scaling Suitable Sustainable Technologies Project (S3-Cambodia) focusing on vegetable grafting and post-rice secondary cropping (Pekarcik, et al., 2022), the Asian Centre of Innovation for Sustainable Agriculture Intensification (ACISAI) promoting the System of Rice Intensification (SRI) in the Lower Mekong River basin countries, and JIRCAS's projects in Asia enhancing agricultural sustainability through multidisciplinary research, such as in Northeast Thailand and the Mekong Delta (Kokubun, 2019). Factors influencing the adoption of sustainable agricultural technologies among rice farmers in the Mekong Delta, Vietnam include human capital, farm size, social capital, extension services, and market access (Luu, Tien, Dung, 2018). These initiatives showcase successful pathways for scaling sustainable intensification technologies, enhancing productivity, reducing costs, and promoting resilience in agricultural systems across Southeast Asia.
THE LOGISTICS IN SUSTAINABLE AGRICULTURE IN TAIWAN
AND SOUTHEAST ASIAN COUNTRIES
Taiwan's logistics system plays a crucial role in supporting the country's agricultural sector through effective supply chain management. The country's reliance on agricultural imports and limited food stocks, except for rice, highlights the importance of a robust logistics system to ensure food security in the event of disruptions (Gustavo, et al., 2023). Utilizing blockchain technology, specifically smart contracts and Ethereum blockchain, Taiwan can efficiently trace and track crops within its supply chain, enhancing transparency and traceability while eliminating the need for intermediaries and centralized authorities (Hedge, et al., 2023). By prioritizing key food products based on nutritional needs and domestic production, Taiwan's logistics system can strategically plan resupply operations and allocate necessary resources to maintain food sufficiency during potential conflicts or trade disruptions. This underscores the urgency for long-term logistical solutions to address this critical strategic issue and ensure the country's food security (Gustavo, et al., 2023).
The key success factors of Southeast Asia's agricultural logistics systems lie in the modernization and diversification of the agricultural sector, the movement of labor into non-farm sectors, and the adoption of modern production technologies and inputs (Hiroyuki, et al., 2019). The region has experienced a significant shift of labor from agriculture into industries like trade and hospitality, leading to higher labor productivity growth than land productivity growth. Despite this shift, agriculture remains a crucial source of food and nutrition within the region. The public sector's role in agricultural research and development and the increasing private-sector participation in providing inputs and services has contributed to the sector's advancement. However, challenges such as natural resource degradation and certain types of malnutrition persist, highlighting the need for sustainable practices and interventions to ensure the balanced development of supply chains (Hiroyuki, et al., 2019; Wong, 2007).
Southeast Asia's agricultural logistics systems play a crucial role in the region's economy, with countries like Thailand heavily relying on agricultural exports for GDP growth (Pitakaso, et al., 2022). The Greater Mekong Subregion (GMS) nations, including Thailand, Laos, and Cambodia, have been focusing on optimizing transportation models for agricultural products to international markets, utilizing mathematical models like GA, DE, and VaNSAS to maximize profits and minimize arrival times (Natthapong, et al., 2022). The region's fertile land and warm climate support the production of various economically significant crops like rice, oil palm, rubber, and more, making Southeast Asia one of the top global producers of these commodities (Lim, et al., 2023). However, challenges such as the dominance of commodity crops and the spread of plant diseases threaten the sustainability of agricultural systems, highlighting the need for effective management strategies and responsible agricultural investments in the region (Cole, 2022).
Key performance indicators (KPIs) for measuring the success of agricultural logistics systems in Southeast Asia include trade barriers such as tariffs, customs procedures, and nontariff measures, as highlighted in the evaluation of agricultural trade integration in the region (Antoine, Bouët; 2022). Additionally, indicators like aggregate logistical costs, quality of logistics service, overall business system performance, total duration of logistic processes, and quality of logistics operations play a crucial role in assessing the effectiveness of logistics systems (Polina, et al., 2020). Furthermore, the Logistics Performance Index (LPI) metrics, focusing on timeliness, tracking and tracing, and ease of arranging international shipments, are essential KPIs for evaluating logistics performance and its impact on trade flows in ASEAN countries (Barton, et al., 2020). These indicators collectively provide a comprehensive framework for evaluating and enhancing the efficiency and success of agricultural logistics systems in Southeast Asia.
In Taiwan and Southeast Asian countries, logistical challenges and innovative solutions have been identified through various studies. Taiwan's logistics industry has evolved into a high-technology sector, heavily relying on RFID technology for reliable shipment and tracking information (Wang, et al, 2011). Meanwhile, Southeast Asian firms have shown advancements in technological capabilities, particularly in key sectors like electronics and automotive, through collaborations with transnational corporations and universities (Intarakumnerd, 2021). However, challenges persist in the machinery industry, where technological upgrading remains limited. To address these challenges, regional firms are encouraged to pursue independent technological learning paths to achieve more sophisticated levels of innovation, potentially through collaborations with Taiwanese firms known for their design and engineering capabilities (Intarakumnerd, 2021).
THE POLICY IMPACT OF MANUFACTURING AND LOGISTICS ON AGRICULTURAL SUSTAINABILITY
Taiwan's policies significantly impact agricultural sustainability, particularly in manufacturing and logistics. By shifting from a production-based agriculture perspective to a value chain perspective, Taiwan's agricultural sector's value-added contribution to GDP has increased substantially, emphasizing the importance of considering the entire value chain (Huang, et al., 2022). Additionally, the competitiveness evaluation in organizations like Taiwan’s farmers' associations highlights the importance of effective business policies in resource management, which significantly influences business execution, asset allocation, and marketing activities (Chi, et al., 2023). Furthermore, Taiwan's ability to feed its population during trade disruptions is crucial, focusing on prioritizing key food products and developing long-term logistical solutions to address vulnerabilities in food imports and production (Rich, 2023). Taiwan's proactive environmental policies also play a vital role in protecting the environment and ensuring sustainable practices in agriculture and manufacturing industries (Ertan, D., 2021).
Taiwan's success in balancing manufacturing and agricultural sustainability can be attributed to key policy interventions such as the promotion of circular bioeconomy and sustainable development goals through valorization of food waste from industrial sources (Tsai, et al., 2021). Additionally, the government's support for eco-industrial parks (EIPs) has played a crucial role in enhancing environmental and economic performance in manufacturing businesses, particularly through industrial symbiosis and resource-sharing initiatives (Maynard, et al., 2020). Furthermore, the emphasis on knowledge management, teamwork, and employee engagement has been highlighted as essential factors for sustainable development in traditional industries, indicating the significance of human capital in driving sustainability efforts (Tseng, et al., 2022). These policy interventions and strategic initiatives underscore Taiwan's commitment to sustainable practices and serve as a benchmark for other countries striving to achieve similar goals.
The policy impacts on manufacturing and logistics for agricultural sustainability across Southeast Asia reveal the region's relative openness to the world, highlighting the potential for strengthened regional integration, particularly in the agriculture and food sectors (Bouët, et al., 2022). Trade liberalization and the adoption of climate-smart agricultural practices can lead to increased agricultural productivity, reduced greenhouse gas emissions, and improved economic growth (Zhang, et al., 2022). Furthermore, the logistics industry plays a significant role in sustainable economic development, with logistics performance positively impacting GDP growth, CO2 emissions, and health expenditure in Southeast Asian countries (Nguyen, 2021). However, challenges such as disruptions in the food supply chain due to events like the COVID-19 pandemic underscore the importance of encouraging self-sufficiency in food production, smart farming methods, and regional cooperation for a more sustainable food system in the future (Musa, et al., 2021). Additionally, the region's climate policy emphasizes the need to reduce greenhouse gas emissions through energy efficiency improvements and the transition to renewable energy sources, highlighting the importance of international cooperation for successful low-carbon development (Rogozhina, 2022).
Policy interventions such as the ASEANization of industrial policies, the development of industrial clusters attracting foreign direct investment, and the enhancement of logistics performance have significantly contributed to Southeast Asia's manufacturing and logistics growth. The ASEAN region has utilized localization measures and subsidies to promote domestic industries, although these are disciplined by the World Trade Organization (Shadikhodjaev, S., 2023). Additionally, the establishment of industrial clusters and the construction of global supply chains have attracted foreign companies, leading to economic spillover effects like increased employment and enhanced connectivity within the region (Saisho, 2022). Participation in global value chains, driven by factors like trade openness and good governance, has also boosted productivity and diversified exports, emphasizing the importance of further trade and investment openness for sustained growth (Gonzalez., et al., 2017). Moreover, initiatives like the National Logistics Ecosystem program in Indonesia aim to improve logistics performance, investment, and national competitiveness, showcasing efforts to enhance the region's overall economic landscape (Arimbhi, et al., 2021).
Agricultural sustainability initiatives in Southeast Asia play a crucial role in impacting the region's food security and economic development. The region's agricultural sector, which includes significant crops like rice, oil palm, and rubber (Lim, et al., 2023), is vital for feeding the growing population and boosting the economy through exports. However, challenges such as plant diseases threaten crop production, leading to the exploration of sustainable solutions like the application of beneficial microorganisms for disease control (Lim, et al., 2023). Additionally, trade openness, tariffs, and globalization have varying effects on different pillars of food security in Southeast Asia, emphasizing the need for integrative policy trade-offs to address these complexities and ensure stability and utilization of food resources (Huda, 2024). By focusing on agricultural development through initiatives like the Belt and Road Initiative, Southeast Asia can enhance food security, support economic growth, and pave the way for sustainable development in the region (Hung., 2022)
CONCLUSION
The comparative analysis between Taiwan and Southeast Asian countries in the context of manufacturing and logistics for sustainable agriculture reveals several key differences and similarities. These insights provide a comprehensive understanding of the strengths and areas for improvement in both regions, offering a pathway for future enhancements and collaborations.
Taiwan showcases a well-developed and modern logistics infrastructure, including advanced roads, cold storage facilities, and distribution centres. In contrast, the infrastructure quality in Southeast Asian countries varies significantly, with some nations still developing basic logistics facilities. Taiwan also has efficient transportation networks and advanced cold chain logistics that ensure product quality and minimize waste, while Southeast Asian countries exhibit varied efficiency, with some facing challenges due to less advanced systems.
Both regions share a commitment to incorporating sustainability into their agricultural logistics systems, including efforts to reduce carbon footprints and promote eco-friendly practices. Both engage in government-led initiatives and academic collaborations to advance agricultural research and education, which are crucial for knowledge exchange and capacity building. International partnerships are used by both regions to enhance market access and trade, helping to expand markets for agricultural products and improve trade relations. Recognizing the importance of training logistics personnel, both regions invest in capacity-building programs essential for developing local expertise and ensuring the effective implementation of sustainable practices.
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An Overview of Sustainable Agricultural Manufacturing and Logistics Strategies in Taiwan and Southeast Asian Countries : Comparative Study
ABSTRACT
This comparative study explores the advancements and sustainability of agricultural manufacturing and logistics in Taiwan and several Southeast Asian countries, including Indonesia, Thailand, and Vietnam. It aims to identify the key drivers, policies, and technological innovations that have contributed to sustainable agricultural practices in these regions. The study employs a mixed-methods approach, combining quantitative data analysis with qualitative case studies to provide a comprehensive overview of the current state of sustainable agriculture. Key findings reveal that Taiwan has leveraged advanced technologies and robust policy frameworks to enhance its agricultural sustainability, while Southeast Asian countries have made significant strides through community-driven initiatives and international collaborations. Despite varying levels of technological adoption and policy support, all regions demonstrate a commitment to improving agricultural sustainability through innovative practices and efficient logistics. The study underscores the importance of tailored policy measures and cross-border cooperation in fostering sustainable agricultural development. Implications for policymakers, stakeholders, and researchers are discussed, highlighting the need for continued investment in technology and infrastructure to support sustainable agricultural growth.
Keywords: Sustainable agriculture, Advanced manufacturing, Agricultural logistics, Taiwan, Southeast Asia, Technological innovation, Policy frameworks, Cross-border cooperation
INTRODUCTION
The requirement for sustainable agricultural practices has indeed grown progressively across the globe because of unsustainable food production systems that cannot support the growing population while at the same time preserving the environment (United Nations, 2023). Besides, it has been predicted that food production should increase by 70 to 80% to meet this rising demand in food by a population expected to exceed 9 billion by 2050. The increased quantity of food demanded must be produced using innovative techniques such as the application of artificial intelligence and machine learning technology in agriculture to improve yields, disease prediction, safety, and traceability (Chauhan, et al., 2022). Sustainable business management practices in agribusiness will not only benefit the businesses but also, from many angles, respond to urgent needs of the societal developments in line with sustainable development goals (Dentoni et al., 2020). The above changes indeed are sustainable agronomical practices such as crop rotation, organic farming, and conservation tillage in interpreting the benefits for soil health, water quality, and biodiversity, which differ from conventional methods of productivity yield and environmental impact (Rajput, et al., 2023). Organic farming plays a great role in providing contamination-free and toxin-free nourishment for the body while also maintaining soil health and enhancing the productivity of crops (Bhat, et al., 2021).
The dynamic change in sustainable agriculture has compelled countries around the globe to consider natural or organic farming; and utilizing microbial species as biofertilizers and biocontrol agents (Bhat et al., 2021). The concept of sustainability also relates to manufacturing and logistics, in that companies in Taiwan are gearing towards having a lot more solar photovoltaic power stations and those in North American countries are moving towards green electricity production from its use, improving their environmental, social and governance (ESG) profiles and aligning with the long-term goals of sustainability (Wang et al., 2023). Moreover, sustainable supply chain management (SSCM) practices, among others, are trying to be highlighted in Southeast Asian countries like Taiwan, with parameters, such as collaboration, distribution and logistics services, and customer relations identified to be critical for achieving sustainability in the fresh-fruit sector (Manh-Hoang, et al., 2022). Thus, these strategies should be adopted to deal with an increasing demand for food production with as little negative environmental consequence as possible and with long-term sustainable agricultural developments.
The goal of sustainable agricultural manufacturing and logistics in Taiwan and Southeast Asia is to improve the environmental, social, and economic dimensions of the sector. In Taiwan, the development of renewable energy technologies, in particular solar photovoltaic power stations (SPPSs), is directed towards reducing greenhouse gas emissions and improving energy efficiency (Wang, et al., 2023; Lin, et al., 2017). In addition, the logistics sector is essential for economic development in Southeast Asian countries, including the indicators of economic growth, CO2 emissions, health spending and also assessing the quality of logistics services such as the Logistics Performance Index (Zhovnirchyk, et al., 2023; Nguyen, et al., 2021). Another trend is the transformation of container ports into hinterland hubs and the integration of intermodal transport systems into them, where real-world business decisions are evaluated and ranked using AHP (Analytic Hierarchy Process) as a strategy for improving sustainability (Juang et al., 2016). All these have a lot more in tandem with the trend in the world towards sustainable agricultural practices and logistics spheres, especially with the emphasis on short food supply chains and alternative agro-food networks to enhance re-localization and resolve the problems of agricultural resource distribution and human health (Wann, 2013).
The objective of the paper is to compare and analyze the sustainable agricultural manufacturing and logistics strategies in Taiwan and Southeast Asian countries. The scope of this research is the emphasis on technological integration, policies, strategies, and their effectiveness.
SUSTAINABLE AGRICULTURAL MANUFACTURING IN TAIWAN
In Taiwan, sustainable agricultural manufacturing trends and innovations include the adoption of smart agricultural technology for pest and disease prevention, labor shortage mitigation, and healthy fruit tree growth (Chen, et al., 2022). Additionally, the implementation of a product traceability system ensures food safety by tracking agricultural products from production to sales, promoting sustainable agriculture practices (Jiang, et al., 2017). The focus on local cuisine, culture inheritance, and sustainable innovation development through indicators like education and training contributes to rural food production revitalization and economic growth (Chen et al., 2022). Furthermore, the incorporation of innovation into traditional manufacturing industries, emphasizing design and innovation, enhances added-value and international competitiveness, leading to sustainable development (Lee, et al., 2018). Taiwan's commitment to reducing greenhouse gas emissions through energy-saving technologies and renewable energy sources also plays a crucial role in sustainable performance in manufacturing industries (Lin, et al., 2017).
Figure 1 illustrates the comparison of agricultural manufacturing and resource management techniques between Taiwan and Southeast Asian countries.
Key policies supporting sustainable agriculture manufacturing in Taiwan include regulatory measures promoting the valorization of mandatory recyclable food waste from industrial sources, such as animal/plant production farms and food-processing plants, as outlined in (Tsai, et al., 2021). Additionally, focusing on design and innovation in traditional manufacturing industries can enhance added-value and international competitiveness, ultimately leading to sustainable development (Lee, 2018). Moreover, the agricultural policy in Taiwan aims to reduce pesticide consumption by half in the next 10 years, emphasizing the importance of sustainable agricultural practices (Lu, et al., 2018). Furthermore, the success factors for sustainable traditional manufacturing include knowledge management, teamwork, and employee engagement, which are crucial for enhancing organizational sustainability (Tseng, et al., 2022). By implementing these policies and strategies, Taiwan can promote sustainable agricultural manufacturing practices and contribute to the circular bioeconomy and sustainable development goals.
One notable success story is the establishment of Eco-Industrial Parks (EIPs) like the Linhai Industrial Park, which have successfully transitioned towards industrial symbiosis and resource sharing, resulting in reduced carbon emissions, fuel savings, and waste recycling (Maynard. et al., 2020). Additionally, Taiwan has been focusing on mitigating greenhouse gas emissions through energy-saving technologies and promoting renewable energy sources, leading to a slight rise in sustainable performance in manufacturing industries over the past decade (Lin, et al., 2017). Furthermore, the government has been actively promoting the construction of Alternative Agro-Food Networks (AAFNs) and Short Food Supply Chains (SFSCs) to re-localize agriculture and enhance the local food supply system, aligning with the global trend towards sustainable agriculture (Wann, 2013). These initiatives highlight the significant impact of government support in driving sustainability in Taiwan's agricultural sector.
Integrating sustainable agricultural manufacturing into Taiwan's government initiatives and policies can have significant implications for the country's economic development. Research suggests that organic farming can lead to profit growth for rice farms, especially when considering spatial agglomeration and farm characteristics (Chang, et al., 2023). Additionally, a shift towards a value chain perspective in agricultural policy planning, including the distribution sector and food services, can significantly increase the agricultural sector's contribution to GDP, promoting economic growth (Huang, et al., 2022). Furthermore, enhancing rural industrial integration, as seen in China, can positively impact sustainable agricultural production, offering valuable insights for Taiwan's development strategies (Ye, et al., 2023). Implementing a farm production traceability system based on the Internet of Things technology can improve food safety, aligning with sustainable agriculture goals and potentially boosting consumer trust and market competitiveness (Jiang, et al., 2017).
SUSTAINABLE AGRICULTURAL MANUFACTURING IN SOUTHEAST ASIAN COUNTRIES
The comparison of technological adoption in sustainable agricultural manufacturing in Southeast Asian countries reveals a focus on modernizing farming practices and enhancing sustainability. Studies highlight the importance of factors influencing Asian farmers' adoption of modern technology in agriculture (Syarif et al., 2022), the challenges faced by farmers due to climate change and the need for renewable energy solutions in livestock farming (Das, et al., 2023), and the push towards sustainable manufacturing practices in ASEAN member countries, emphasizing the need for holistic solutions and industrial integration for environmental protection and economic efficiency (Qureshi, et al., 2020; Nohman Khan, et al., 2020). Additionally, research in Malaysia underscores the significant impact of perceived benefits, particularly cost-effectiveness and communication effectiveness, on the adoption of sustainable digital technologies in small and medium-sized manufacturing enterprises, with leaders' attitudes playing a crucial mediating role (Yakob, et al., 2022). These findings collectively highlight the ongoing efforts and challenges in adopting technology for sustainable agricultural manufacturing in Southeast Asia.
The comparison of technological adoption in sustainable agricultural manufacturing in Southeast Asian countries reveals key factors influencing the adoption behaviors of modern technology among farmers. Factors such as human capital, farm size, social capital, extension services, and market access play crucial roles in the adoption of sustainable agricultural technologies in regions like the Mekong Delta, Vietnam (Luu, et al., 2018). Additionally, the need for modern technology and farming practices and their adaptation is highlighted, emphasizing the importance of factors like demographic indicators, perception and belief indicators, technology acceptance indicators, and internal and external factor indicators in influencing Asian farmer communities toward adopting modern agricultural practices (Shariff, et al., 2022). These findings underscore the significance of integrating sustainable agricultural technologies to enhance productivity, income, and ecological sustainability in Southeast Asian agricultural practices.
The sustainable agricultural manufacturing in Southeast Asian countries reveals a focus on factors influencing adoption behavior, such as human capital, farm size, social capital, extension services, and market access (Shariff, et al., 2022). Additionally, the application of appropriate technology in the agricultural sector has been crucial for increasing food production, improving product quality, and minimizing environmental damage in the Asian region (Setyawan, et al., 2023). Studies emphasize the importance of sustainable agricultural technologies in increasing farmers' income, providing quality agricultural products, and preserving ecological balance (Luu, Tien, Dung., et al., 2018). Furthermore, the literature highlights the need for holistic industrial engineering solutions and hybrid processes to establish sustainable manufacturing practices in ASEAN countries, focusing on sustainable product development, manufacturing performance, and environmental assessment and monitoring (Qureshi, et al., 2020). These findings underscore the significance of technology adoption and sustainable practices in enhancing agricultural productivity and environmental sustainability in Southeast Asia.
One successful project of technological adoption in Sustainable Agricultural Manufacturing in Southeast Asian countries is the Agroecology-based System of Rice Intensification (SRI) implemented in the Lower Mekong River basin countries. The project, known as "SRI-LMB," involved over 15 institutions and utilized a farmers' participatory action research (FPAR) approach, leading to a more than 50% increase in average yield and factor productivity, while reducing cultivation costs, energy use, and greenhouse gas emissions (Misra, et al., 2022). Additionally, the adoption of sustainable agricultural technologies among rice farmers in the Mekong Delta, Vietnam, was influenced by factors such as human capital, farm size, social capital, extension services, and access to the market, highlighting the importance of these elements in promoting sustainable production practices (Luu, Tien, Dung, 2018). These initiatives showcase the positive impact of technology adoption in enhancing agricultural sustainability and productivity in Southeast Asia.
Key success stories in technological adoption in Sustainable Agricultural Manufacturing in Southeast Asian countries include the Scaling Suitable Sustainable Technologies Project (S3-Cambodia) focusing on vegetable grafting and post-rice secondary cropping (Pekarcik, et al., 2022), the Asian Centre of Innovation for Sustainable Agriculture Intensification (ACISAI) promoting the System of Rice Intensification (SRI) in the Lower Mekong River basin countries, and JIRCAS's projects in Asia enhancing agricultural sustainability through multidisciplinary research, such as in Northeast Thailand and the Mekong Delta (Kokubun, 2019). Factors influencing the adoption of sustainable agricultural technologies among rice farmers in the Mekong Delta, Vietnam include human capital, farm size, social capital, extension services, and market access (Luu, Tien, Dung, 2018). These initiatives showcase successful pathways for scaling sustainable intensification technologies, enhancing productivity, reducing costs, and promoting resilience in agricultural systems across Southeast Asia.
THE LOGISTICS IN SUSTAINABLE AGRICULTURE IN TAIWAN
AND SOUTHEAST ASIAN COUNTRIES
Taiwan's logistics system plays a crucial role in supporting the country's agricultural sector through effective supply chain management. The country's reliance on agricultural imports and limited food stocks, except for rice, highlights the importance of a robust logistics system to ensure food security in the event of disruptions (Gustavo, et al., 2023). Utilizing blockchain technology, specifically smart contracts and Ethereum blockchain, Taiwan can efficiently trace and track crops within its supply chain, enhancing transparency and traceability while eliminating the need for intermediaries and centralized authorities (Hedge, et al., 2023). By prioritizing key food products based on nutritional needs and domestic production, Taiwan's logistics system can strategically plan resupply operations and allocate necessary resources to maintain food sufficiency during potential conflicts or trade disruptions. This underscores the urgency for long-term logistical solutions to address this critical strategic issue and ensure the country's food security (Gustavo, et al., 2023).
The key success factors of Southeast Asia's agricultural logistics systems lie in the modernization and diversification of the agricultural sector, the movement of labor into non-farm sectors, and the adoption of modern production technologies and inputs (Hiroyuki, et al., 2019). The region has experienced a significant shift of labor from agriculture into industries like trade and hospitality, leading to higher labor productivity growth than land productivity growth. Despite this shift, agriculture remains a crucial source of food and nutrition within the region. The public sector's role in agricultural research and development and the increasing private-sector participation in providing inputs and services has contributed to the sector's advancement. However, challenges such as natural resource degradation and certain types of malnutrition persist, highlighting the need for sustainable practices and interventions to ensure the balanced development of supply chains (Hiroyuki, et al., 2019; Wong, 2007).
Southeast Asia's agricultural logistics systems play a crucial role in the region's economy, with countries like Thailand heavily relying on agricultural exports for GDP growth (Pitakaso, et al., 2022). The Greater Mekong Subregion (GMS) nations, including Thailand, Laos, and Cambodia, have been focusing on optimizing transportation models for agricultural products to international markets, utilizing mathematical models like GA, DE, and VaNSAS to maximize profits and minimize arrival times (Natthapong, et al., 2022). The region's fertile land and warm climate support the production of various economically significant crops like rice, oil palm, rubber, and more, making Southeast Asia one of the top global producers of these commodities (Lim, et al., 2023). However, challenges such as the dominance of commodity crops and the spread of plant diseases threaten the sustainability of agricultural systems, highlighting the need for effective management strategies and responsible agricultural investments in the region (Cole, 2022).
Key performance indicators (KPIs) for measuring the success of agricultural logistics systems in Southeast Asia include trade barriers such as tariffs, customs procedures, and nontariff measures, as highlighted in the evaluation of agricultural trade integration in the region (Antoine, Bouët; 2022). Additionally, indicators like aggregate logistical costs, quality of logistics service, overall business system performance, total duration of logistic processes, and quality of logistics operations play a crucial role in assessing the effectiveness of logistics systems (Polina, et al., 2020). Furthermore, the Logistics Performance Index (LPI) metrics, focusing on timeliness, tracking and tracing, and ease of arranging international shipments, are essential KPIs for evaluating logistics performance and its impact on trade flows in ASEAN countries (Barton, et al., 2020). These indicators collectively provide a comprehensive framework for evaluating and enhancing the efficiency and success of agricultural logistics systems in Southeast Asia.
In Taiwan and Southeast Asian countries, logistical challenges and innovative solutions have been identified through various studies. Taiwan's logistics industry has evolved into a high-technology sector, heavily relying on RFID technology for reliable shipment and tracking information (Wang, et al, 2011). Meanwhile, Southeast Asian firms have shown advancements in technological capabilities, particularly in key sectors like electronics and automotive, through collaborations with transnational corporations and universities (Intarakumnerd, 2021). However, challenges persist in the machinery industry, where technological upgrading remains limited. To address these challenges, regional firms are encouraged to pursue independent technological learning paths to achieve more sophisticated levels of innovation, potentially through collaborations with Taiwanese firms known for their design and engineering capabilities (Intarakumnerd, 2021).
THE POLICY IMPACT OF MANUFACTURING AND LOGISTICS ON AGRICULTURAL SUSTAINABILITY
Taiwan's policies significantly impact agricultural sustainability, particularly in manufacturing and logistics. By shifting from a production-based agriculture perspective to a value chain perspective, Taiwan's agricultural sector's value-added contribution to GDP has increased substantially, emphasizing the importance of considering the entire value chain (Huang, et al., 2022). Additionally, the competitiveness evaluation in organizations like Taiwan’s farmers' associations highlights the importance of effective business policies in resource management, which significantly influences business execution, asset allocation, and marketing activities (Chi, et al., 2023). Furthermore, Taiwan's ability to feed its population during trade disruptions is crucial, focusing on prioritizing key food products and developing long-term logistical solutions to address vulnerabilities in food imports and production (Rich, 2023). Taiwan's proactive environmental policies also play a vital role in protecting the environment and ensuring sustainable practices in agriculture and manufacturing industries (Ertan, D., 2021).
Taiwan's success in balancing manufacturing and agricultural sustainability can be attributed to key policy interventions such as the promotion of circular bioeconomy and sustainable development goals through valorization of food waste from industrial sources (Tsai, et al., 2021). Additionally, the government's support for eco-industrial parks (EIPs) has played a crucial role in enhancing environmental and economic performance in manufacturing businesses, particularly through industrial symbiosis and resource-sharing initiatives (Maynard, et al., 2020). Furthermore, the emphasis on knowledge management, teamwork, and employee engagement has been highlighted as essential factors for sustainable development in traditional industries, indicating the significance of human capital in driving sustainability efforts (Tseng, et al., 2022). These policy interventions and strategic initiatives underscore Taiwan's commitment to sustainable practices and serve as a benchmark for other countries striving to achieve similar goals.
The policy impacts on manufacturing and logistics for agricultural sustainability across Southeast Asia reveal the region's relative openness to the world, highlighting the potential for strengthened regional integration, particularly in the agriculture and food sectors (Bouët, et al., 2022). Trade liberalization and the adoption of climate-smart agricultural practices can lead to increased agricultural productivity, reduced greenhouse gas emissions, and improved economic growth (Zhang, et al., 2022). Furthermore, the logistics industry plays a significant role in sustainable economic development, with logistics performance positively impacting GDP growth, CO2 emissions, and health expenditure in Southeast Asian countries (Nguyen, 2021). However, challenges such as disruptions in the food supply chain due to events like the COVID-19 pandemic underscore the importance of encouraging self-sufficiency in food production, smart farming methods, and regional cooperation for a more sustainable food system in the future (Musa, et al., 2021). Additionally, the region's climate policy emphasizes the need to reduce greenhouse gas emissions through energy efficiency improvements and the transition to renewable energy sources, highlighting the importance of international cooperation for successful low-carbon development (Rogozhina, 2022).
Policy interventions such as the ASEANization of industrial policies, the development of industrial clusters attracting foreign direct investment, and the enhancement of logistics performance have significantly contributed to Southeast Asia's manufacturing and logistics growth. The ASEAN region has utilized localization measures and subsidies to promote domestic industries, although these are disciplined by the World Trade Organization (Shadikhodjaev, S., 2023). Additionally, the establishment of industrial clusters and the construction of global supply chains have attracted foreign companies, leading to economic spillover effects like increased employment and enhanced connectivity within the region (Saisho, 2022). Participation in global value chains, driven by factors like trade openness and good governance, has also boosted productivity and diversified exports, emphasizing the importance of further trade and investment openness for sustained growth (Gonzalez., et al., 2017). Moreover, initiatives like the National Logistics Ecosystem program in Indonesia aim to improve logistics performance, investment, and national competitiveness, showcasing efforts to enhance the region's overall economic landscape (Arimbhi, et al., 2021).
Agricultural sustainability initiatives in Southeast Asia play a crucial role in impacting the region's food security and economic development. The region's agricultural sector, which includes significant crops like rice, oil palm, and rubber (Lim, et al., 2023), is vital for feeding the growing population and boosting the economy through exports. However, challenges such as plant diseases threaten crop production, leading to the exploration of sustainable solutions like the application of beneficial microorganisms for disease control (Lim, et al., 2023). Additionally, trade openness, tariffs, and globalization have varying effects on different pillars of food security in Southeast Asia, emphasizing the need for integrative policy trade-offs to address these complexities and ensure stability and utilization of food resources (Huda, 2024). By focusing on agricultural development through initiatives like the Belt and Road Initiative, Southeast Asia can enhance food security, support economic growth, and pave the way for sustainable development in the region (Hung., 2022)
CONCLUSION
The comparative analysis between Taiwan and Southeast Asian countries in the context of manufacturing and logistics for sustainable agriculture reveals several key differences and similarities. These insights provide a comprehensive understanding of the strengths and areas for improvement in both regions, offering a pathway for future enhancements and collaborations.
Taiwan showcases a well-developed and modern logistics infrastructure, including advanced roads, cold storage facilities, and distribution centres. In contrast, the infrastructure quality in Southeast Asian countries varies significantly, with some nations still developing basic logistics facilities. Taiwan also has efficient transportation networks and advanced cold chain logistics that ensure product quality and minimize waste, while Southeast Asian countries exhibit varied efficiency, with some facing challenges due to less advanced systems.
Both regions share a commitment to incorporating sustainability into their agricultural logistics systems, including efforts to reduce carbon footprints and promote eco-friendly practices. Both engage in government-led initiatives and academic collaborations to advance agricultural research and education, which are crucial for knowledge exchange and capacity building. International partnerships are used by both regions to enhance market access and trade, helping to expand markets for agricultural products and improve trade relations. Recognizing the importance of training logistics personnel, both regions invest in capacity-building programs essential for developing local expertise and ensuring the effective implementation of sustainable practices.
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