1、The reason for the rise of the eel aquaculture

    (1). Abundant Elver Supply

    Lukang is near the sea so it’s easy to catch the sight of the transparent elvers between mid November and March  40 years ago. Japan’s water pollution caused it to look for other elver supply source than its own.  Taiwan’s abundant elver supply matched Japan’s need and became the lucrative side business for locals around the lunar Chinese New Year holiday.

    (2). The Success of the Eel Aquaculture at Lukang Fisheries Research Institute:

    After the Lukang Fisheries Research Institute made a successful eel aquaculture attempt in 1956, they began to provide advisory service as needed.  Coupled with the eel aquaculture ponds developed by the Vocational Advisory Committee for Retired Veterans, eel aquaculture has become one of the important industries of Lukang.

    (3). Suitable Waters for Eel Aquaculture

    The territorial waters of Lukang are very suitable for eel aquaculture because of the right  temperature and the rich salinity in the coastal soil.

2、The history of eels

    (1). The Burgeoning Stage

    The rise of Lukang’s eel industry started in 1956 when Lukang Fisheries Research Institute conducted a successful eel aquaculture attempt.  Fishery grounds were set up one after another after 1958, of which Mr. Tsai Nung’s was the largest in scale.

    (2). The Heyday

    With the increase of eel farmers, the land to culture eels also increased along with the rapid development of the local eel aquaculture industry in the 1970s.  The average monthly eel production reached a high between 400,000 and 70,000 kilograms, about one half of the total production of the island.  Therefore, Lukang has won its name of “the country of eels”.

    (3).  From Rise to Fall and towards Stable Growth

    Later on, many small-scale local eel farmers faced a phase-out situation due to the management and funding problems, coupled with the unstable elver supply and cut-throat competition.  On the other hand, the rise of the environmental awareness aggravated the problems.   After the trials, the local eel farmers switched to exports while developing the local market to stabilize the trend of sales.

3、The present day of the eel aquaculture

    For the past century, Japan was the largest eel market due to its unique eel dietetic culture, so local eel farmers could make a profit by exporting eel food products to Japan.

    Today, Mainland China and South Korea joined in eel production and consumption thus overshadowing Taiwan’s importance in Japan as the leading eel products supplier.  However, with the Mainland China’s declining eel products exports, Taiwan has the chance to reclaim what it lost due to the competition.

    At present, Lukang’s eel aquaculture includes elver catching and eel aquaculture.  In elver catching, around the time of winter solstice, it’s easy to see local residents position the set nets along the shore to catch elvers but this is not the case with eel aquaculture.  However, those who remain in the eel aquaculture business are the elites of the professionals.  The eels they cultured are of high quality and for live exports.

    The Fisheries Agency and related institutes are doing what they can to heed the warnings in elver supply, efficient use of the natural resources, mechanical management of the eel aquaculture equipment and the balance of eel production and sales.  They will also provide low-interest rate funding to help eel aquaculturalists to get over with the recession.

4、Advantages and Bottlenecks

    Advantages:

    During the research, the eel aquaculturalists mentioned the advantages of the family-run style: 1. cost effective, 2. diligent, and 3. efficient.

    Bottlenecks:

    (1).  The aging of the eel aquaculturalists and the continued eel price recession, the reasons why younger generations quit relying on this business for a living.

    (2).  Limited land for eel aquaculture and high land price in Lukang cause eel aquaculturalists to choose to sell or rent the land for the income.

    (3). No harbor and airport in the vicinity of Lukang so the cultured eels have to be transported to south or north for exports, which increases costs.

    (4). Unstable elver supply due to the fact that the artificial cultured elver propagation is not yet successful, which leads to elver price fluctuation and make up a big proportion of the costs.

    (5).  Local market of adult eels needs to be developed.

    (6).  The impact of Taiwan's joining WTO (World Trade Organization) is minor on live eel sales, because the eel aquaculture is an international industry.  However, prepared eel market faces competition from other countries.

Sources of Data:

    (1). Wang Liang-hsing (1999). Lukang Town Journal. Lukang Town Administration Office

    (2). Taiwan Eel Publication, Issue 222 (December 10, 2002), by Taiwan Eel Farming industry Development Foundation.

    (3). Interview with Mr. Lai Zong-i with the Fisheries Research Institute.

    (4). Interview with Mr. Huang Cheng-long, Lukang Town Mayor.

    (5). Interview with Mr. Huang Jing-yuei.

    (6). Cheng Bo-ji (1999). The life of Mr. Tsai Nung, the King of Eels – The Rise and Fall of Taiwan Eel Industry.  Investment in China Monthly, Issue 62.

    http://www.chinabiz.org.tw/maz/InvCina/199904-062/199904-000.htm