A risk management strategy of a Taiwanese frozen-vegetable export company: Corporate development after the pesticide residue problem
2006
Neshi, A.(Tokyo Univ. of Agriculture (Japan)) | Oshima, K.
While export of frozen vegetables from China to Japan had increased from the latter half of 1990's, the pesticide residue problem of 2002 reduced this amount. Although Chinese enterprises improved their production systems, the risk associated with Chinese produce could not be completely eliminated by these actions. This paper shows the case of a Taiwanese company which adopted a successful risk management strategy by maintaining production footholds of frozen green soybeans in China and Taiwan. The company adopted production systems matching the situation in each area and was able to maintain two production footholds by expanding planted acreage, reducing labor costs through mechanization and identifying a different customer base for each production foothold.
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