PurposeThis study deals with attenuating the risk of relying on a single export market, which was heightened by the outbreak of the COVID-19 pandemic. It focuses on Taiwanese atemoya (a fruit with short storage life) and the adoption of active controlled atmosphere (CA) containers, a new technology which lengthens storage time for other export markets. This study looks at the financial feasibility of the technology's first ever use in atemoya exports.Design/methodology/approachApart from the standard financial assessment tools—like net present value (NPV), internal rate of return (IRR), benefit-cost ratio (BCR) and payback period (PBP)—this study calibrated five different scenarios based on data gathered from relevant market agents including suppliers, exporters, customs brokers and technology developer.FindingsDue to the high profit margin and low investment cost, the use of active CA containers for long-haul exports of this highly perishable fruit is found both technically and financially feasible, despite the generally higher operational cost during the pandemic.Research limitations/implicationsThis study looked at three specific export markets: Malaysia, Dubai and Canada. Results here may lack generalizability in other markets, although it is believed that slight deviations would not invalidate the conclusions of this research because short, medium and long distances were all covered therein.Originality/valueThis paper studies the first time that active CA is used for export of atemoyas to expand existing markets.
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.
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