TSC shoulders the mission of stabilizing domestic sugar prices. In addition to purchasing sugar from contracted sugarcane farmers at guaranteed sugar prices, there are also various measures to assist contracted sugarcane farmers with production. To align with the government's policy of "stabilizing the balance between domestic agricultural production and marketing", Taiwan Sugar Corporation handles the leasing of farmland for planting controlled crops in accordance with the "Coordination between Executive Yuan's Council of Agriculture and the Ministry of Economic Affairs on TSC's land leasing affairs", and the target area of control in line with the production and marketing balance policy is 5,036 hectares. No land resource rights-related protests occurred in 2025.

The company has taken the initiative to establish partnerships with farmland lessees, providing information such as production technology, marketing, and channel characteristics to strengthen interactive cooperation with young farmers. In addition to land lessees, TSC also expands its service objects to the entire eastern Hualien area to expand its influence on agriculture. It is hoped to market agricultural products produced by local young farmers through the development of multiple young farmer businesses, assist in regional agricultural development, and encourage or promote young people to return home.

There is no labor contract or employment relationship between our company and the contracted sugarcane farmers, and they are also the land owners. Considering the distance between the farmland and the sugar factory, as well as factors such as harvesting and transportation, we select suitable farmers to sign contracts as contracted sugarcane farmers. The content of the standard contract includes basic information of the sugarcane farmers, the location of the land, the land number, the planting area, the planting date, the sugarcane variety and other information. 55% of the sugar made from the sugarcane farmers is "sugar shared by the farmers", which is purchased by Taiwan Sugar Corporation at a guaranteed price of NTD24,878 per metric tonne. We also bear the transportation fees for the raw sugarcane farmers, the fire insurance premiums for the sugarcane plantations, the rodent bait fees and other subsidies. In addition, low-interest loans for production is also provided, calculated at a monthly interest rate of 0.25% simple interest, to help sugarcane farmers raise funds needed for the production process.

The Sugar Business Division's Shanhua and Huwei Sugar Factories have introduced Taiwan Agriculture and Food Traceability System for sugarcane since 2020 and 2021, respectively. The types and amounts of pesticides used are in compliance with the relevant regulations of the Agriculture and Food Traceability System. The pesticide currently used is "10% Terbufos" granules (dosage less than 30kg/hectare) for the prevention and control of underground pests, and the total amount used in 2025 was 55,040 kg. In addition, the Department of Agribusiness Management's self-operated crop pesticide management plan is handled in accordance with current regulations. For example, it is prohibited to apply Paraquat to non-GM soybeans. In addition to the prohibition of being used in the production process, it cannot be detected in the final product. Carry out annual and regular testing for non-GMO, aflatoxin, and 411 pesticide residues, and processing, packaging, and sales only commence after the standards are confirmed to be met.

Note: According to Taiwan's Pesticide Labeling Management Measures, the acute toxicity of pesticides is classified into extremely toxic, highly toxic, moderately toxic, slightly toxic, and low toxic based on the oral LD50 and skin LD50. The 10% Terbufos used by Taiwan Sugar Corporation is classified as highly toxic.

Organic farming is an environmentally friendly and sustainable model for agricultural production. Starting from 2000, TSC has strictly selected high-quality farms as organic rice cultivation bases. In addition to actively develop our own organic crop cultivation zones, we also continue the trial planting and mass production of economic crops. In 2025, partial harvesting rights covered 51.58 hectares, and partial contract farming cooperative management covered 36.96 hectares,the self-operated organic rice certification area reached 88.54 hectares. The main market includes schools & group meals, convenience stores and chain channels.

In recent years, to assist the government in promoting organic farming under new agricultural policies, TSC has been leasing out some of its self-operated organic farms and organic farming areas since 2020. As of the end of December 2025, the Company leased 985.17 hectares of land for organic crop cultivation and provided 313.13 hectares of land to the government for the establishment of organic agriculture zones, creating agricultural entrepreneurship opportunities and enhancing the overall land use efficiency.

Currently, the mainstream of agriculture in Taiwan still adopts conventional farming methods. To reduce the negative impact of the use of chemical fertilizers and pesticides in conventional agriculture on soil and water resources, our Sugar Business Division has joined hands with the Taiwan Sugar Research Institute (TSRI) to conduct research and testing on the carbon sequestration benefits of green manure crops and the biological prevention and control of pests and diseases. We will continue to improve and verify, aiming at finding a recycling model that is easy to implement and has economic benefits to promote the sustainable development of agriculture.