Rice paddies stretching as far as the eye can see cover the plains of Erlin Township (二林) in Chunghua like a bright green blanket. In mid-August, the peripheral circulation of a passing typhoon brings on a sudden afternoon shower. But the second crop of rice in Daqiao’s special rice production and marketing area (大橋稻米產銷專業區) stands straight and strong, unfazed by the raging storm.

After the rain, a patrolling farmer stops by a ridge in the field and opens an app on his smart phone. Instantly available to him are figures about the current temperature, humidity, light intensity, wind speed and direction, and precipitation of the immediate surroundings. He has all the data he needs to effectively manage the paddy fields. The source of all this information is the remote weather station installed in the middle of the lush green paddies.

This is Rice House’s special rice production and marketing area in Daqiao, Chunghua. A remote weather station is installed in the paddy field. Farmers can easily gain access to meteorological data by opening an app on their smart phones. (Source: The National Development Commission)

An invisible stream of data flows above these vibrant rice fields. Twenty-four seven, no matter what the weather is like, information is uploaded to cloud servers and stored in a management platform called the cloud-based smart agricultural solution (智耕雲). The solution’s artificial intelligence compares the data with the rice farmers’ production history; then it uses an algorithm to draft a strategy for managing rice cultivation.

Chen Zhao-Hao (陳肇浩), the General Manager of the rice brand Rice House (壽米屋), is in charge of managing Daqiao’s special rice production and marketing area. He opens the smart agricultural management platform on his office computer. With a click, he can not only see the environmental monitoring data from all the paddy fields, but also access operational recommendations for next year’s market. These recommendations are provided by the decision support system (DSS) developed independently by Rice House.

Chen Zhao-Hao, General Manager of Rice House, says innovative technology must be injected into the traditional rice industry for it to reap the benefits of precision agriculture.

Decision Support System Paves the Way for Smart Farming

Chen explains, “We feed variables such as government policies, industry policies, international trends, and market forecasts into the platform. The AI analyzes the data and makes calculations. It then gives us a report on the most suitable operational recommendations so we can plan the supply and demand of next year’s rice market.”

In the digital age, agriculture in Taiwan has benefited from innovations such as the Internet of Things (IoT), big data, cloud computing, and artificial intelligence. Traditional farming is transforming into modern, intelligent agriculture. In recent years, government agencies have proactively promoted smart farming. Interdisciplinary applications of smart technology are being researched in hopes of improving agricultural operational effectiveness and stabilizing the production and marketing capabilities of the farming industry.

Chen feels smart farming is undoubtedly useful to the agricultural sector; however, from a forward-looking perspective, he also thinks the top priority should be the creation of a decision support system. Such a system would help farmers make informed, intelligent plans. He’s had this thought in his head for two years; recently, he found a technology company to help him build the DSS he wanted, in the form of the aforementioned smart agricultural management platform.

Rice House’s platform is utilized at three points of the supply chain: production, processing, and sales. It runs calculations on the figures and variables entered into the system and produces optimal operational strategies based on the current situation.

Rice House invested in the construction of an intelligent storage system so computers can help regulate temperature and detect the presence of harmful pests.

Building a Smart Model to Ensure Future Prosperity

To use production as an example, the system assists with planned production. The accumulated temperature (a scientific unit of measurement used to manage rice cultivation) suitable for producing rice, as recommended by agricultural extension research institutes, is studied to find the temperature most suited for cultivation in Erlin. The temperature is then extensively tested until an accumulated temperature model can be created based on the results. Ultimately, a precise and eco-friendly method of producing rice is developed for the region.

Chen expands on the usefulness of the system. In the future, if younger farmers take over the business and want to plant a new crop, all they need to do is consult the model to discover which type of rice to choose, how much space is needed, when to plant, water, apply fertilizer, etc. The DSS can also draft a cultivation schedule based on the established model and send notifications to farmers that educate them on how to cultivate rice. Seedling nurseries that work with Rice House will also receive reminders from the system informing them the best time to cultivate seedlings and the optimal quantity to cultivate.

The entire production process can be adjusted to invest just the right amount of resources, based on the quantity of rice that’s cultivated and the forecast for market demand. This will reduce waste and minimize environmental impact while improving efficacy. This is the very concept of “precision agriculture” brought to life in Chen’s smart agricultural management platform.

As for processing, the system is connected to the company’s original enterprise resource planning (ERP) processing system, but that’s just the beginning. Rice House’s own rice mills are outfitted with the latest in remote process control technology: smart low temperature rice drying equipment, smart low temperature pest-proof storage, digital management of processing history, etc. These inventions improve the efficacy of preserving rice and processing rice in the modern rice mills.

As for sales, the sales and marketing data cloud was integrated to create a dashboard for production planning. Market intelligence is fed into the dashboard; based on the sales goal of the target market, the system can provide an estimate of ordering quantity and output volume, so packaging and shipment can be arranged ahead of time.

When all three major points of the supply chain—production, processing, and sales—are being controlled by the DSS, and when the planned business objective has been reached, Chen finds he has more time to devote to other tasks. For instance, he is directing Rice House to help the little town of Erlin build its local brand. They promote education on food and agriculture, and they support charitable events such as Erlin’s Buckwheat Culture Season (二林蕎麥文化季) and charity marathons. They hope the kind and friendly folks here can regain their feeling of pride and sense of belonging in their own hometown; and they hope to attract young people to settle and work in Erlin.

Throughout its history, Rice House has kept abreast of new technology and new ways of managing businesses. For instance, they were the first to create a business model that combined production, education, and sales. They introduced cultivation management based on the contract farming system, and they adopted the latest automated milling technology from Japan. Even if growth has slowed in the rice market as a whole, Rice House has still been able to achieve positive annual growth year after year.

“This is what I want to achieve: prosperous farming communities, rich farmers, and a strong agricultural industry!” Chen has found a practical way to apply smart technology to the daily operation of Taiwan’s traditional farming sector. What does the future have in store for him? The sky is literally the limit. He wants to rally a team of bright young minds to assemble a fleet of drones. These aerial machines will coordinate with crop protection equipment on the ground to offer complete coverage of the farmlands, effectively alleviating the problem of labor shortage in farming communities.

Modus Operandi

The introduction of any new technology requires a hefty investment of capital. For rice mills, this kind of expenditure cannot be for naught—there needs to be tangible results. Due to this, rice farmers must review and evaluate what they lack and whether the technology purchased can solve their problems. They also need to dissect and understand the scope and capabilities of these new technological applications. Otherwise, if they were to erroneously introduce unsuitable or inadequate techniques or products into their supply chain, they might accidentally bring down a technological disaster on their own heads.

Company Bio

• Rice House
• Founded: 2006
• Technological applications: Utilizes IoT and information technologies to create the cloud-based smart agricultural solution. Equipped with remote process control technologies, including smart low temperature rice drying equipment, smart low temperature pest-proof storage, and the digital management of processing history. Integrated sales and marketing data cloud to create a dashboard for production planning.
• Business results: Owns the special rice production and marketing area (稻米產銷專業區) and works with over 700 contract farmers. Aspires to create Taiwan’s most refined and sophisticated top-quality rice through brands such as Daqiao (大橋牌®) and Rice House (米屋®).
• Supports charitable events such as Erlin’s Buckwheat Culture Season and charity marathons in recent years. Aims to help Erlin Township build its local brand, instill a sense of pride in the locals, and attract young people to settle in Erlin.

Translated by Jack C.
Edited by Sharon Tseng
Content sponsored by The National Development Commission