Shiitake Mushroom Industry in Taichung’s Xinshe District


Xinshe District (新社區) in Taichung City is a mountain town with a population of over 25,000 people. Xinshe’s abundant natural and water resources have attracted different groups to settle the land successively, the first to do so being indigenous people. Later on Hakka people moved in and these days Xinshe is the second-largest Hakka settlement in Taichung after Dongshi District (東勢區). 

Enviable natural conditions have created Xinshe’s diverse geographic landscape, ecology, abundance of produce and tourism resources. In addition to a profusion of flowers, all around can be seen ponkan oranges, grapes, star fruit, grafted pears, loquats, shiitake mushrooms and potted plants. Because it still retains its original mountain forest appearance, the district uses its agriculture and countryside resources to provide visitors with opportunities for agricultural, ecological, sightseeing and special cultural experiences that bring in crowds from all over, all the year round.

On the way to Xinshe’s scenic spots you will also see many black sheds used to grow all kinds of fresh shiitake, king trumpet and oyster mushrooms. Stores by the roadside sell and fry delicious mushrooms on the spot. Mushrooms are an abundant local produce, especially along Xiezhong Street -- also known as Xinshe Mushroom Street -- where both sides of the street are lined with mushroom traders and specialty restaurants that showcase this unique local feature.
 
Shiitake Mushroom Industry in Taichung’s Xinshe District
(Photo: CNA)

The local environment in terms of temperature and humidity is well suited to cultivating mushrooms. Because of this, according to figures from the Taiwan Agricultural Research Institute, mushroom cultivation in Xinshe covers 200 hectares, the largest area in Taiwan, supplying 50-60% of the whole country’s shiitake mushrooms (both dried and fresh). Xinshe also focuses on producing dried mushrooms with a high unit price. Dried shiitake mushrooms fetch NT$800-$1,200 per kilo on average, which is ten times the price of fresh. Shiitake mushrooms bring in NT$1.85 billion annually for Xinshe, representing 43.3% of total local agriculture output value and also creating countless employment opportunities.

Shiitake mushroom growing in Taiwan is currently concentrated in the mountainous areas of Xinshe as well as Puli and Yuchi in Nantou County. The reason is that shiitake is a fungus that needs low temperatures to grow, ideally between 15-20℃, and the growing environment also needs to be kept cool and ventilated. Because of this, the mild climate and temperature difference of 10℃ between night and day of these central low-elevation mountain areas makes them the first choice for cultivation.
 
Shiitake mushroom
(Photo: CNA)

Xinshe’s shiitake mushroom industry has not always seen smooth sailing, however. Taiwan joined the WTO in 2002 and in theory this should not have had too great an impact on mushroom farmers, as shiitake mushrooms were listed as a protected agricultural product, the annual import quota was only 200 tonnes and imports from mainland China were not permitted. Yet in reality, because the price of Chinese dried shiitake mushroom was just one third of Taiwan’s, some merchants took advantage of legal loopholes to import excess amounts (in one year up to 1,000 tonnes) of Chinese dried shiitake mushrooms, and even forged certificates of origin to re-export Chinese mushrooms to Taiwan from Japan and South Korea. The result was a drop in domestic mushroom prices at that time.

The dumping of Chinese shiitake mushrooms through smuggling channels nearly crushed Taiwan’s shiitake industry altogether. But just at that time mushroom farmers set up the Taiwan Mushroom Development Association. Apart from resolving the problems they encountered, the association also deepened a sense of solidarity among small mushroom producers. To tackle the problem of fake goods, the association at the same time made representations to the Council of Agriculture, the Ministry of Finance and Customs Administration to amend laws to deter merchants from illegally importing Chinese dried shiitake mushrooms. In addition, the association heavily promoted the Taiwan shiitake mushrooms logo certification domestically. After many years of effort, this greatly reduced the amount of Chinese mushrooms transshipped to Taiwan via a third country and also made Taiwanese shiitake mushrooms into a premium brand.

Shiitake mushrooms are Xinshe’s important agricultural product, and the district produces mushrooms of excellent quality. Apart from being able to buy all kinds of fresh or dried mushroom products locally, some farms are also open for picking mushrooms and guided tours that allow visitors to learn more about mushrooms while experiencing the pleasure of mushroom picking.