TAIPEI (Taiwan News) — Amid golden rice fields in Yunlin County’s Erlun Township, Dong Yuan Rice Husking Factory is blending tradition and technology to help sustain Taiwan’s rice industry.

Known as the “perennial champion of rice,” Dong Yuan has supported local farmers for more than 50 years, CNA reported. Once a small mill, it now supplies major foodservice and retail chains, handling 50,000 metric tons of rice annually—20% of Yunlin’s total capacity.

The company’s growth stems not only from the fertile Zhuoshui River basin but also from a digital transformation aimed at combating extreme weather, pests, and rural labor shortages. By integrating AI into its operations, Dong Yuan has gained better control of production data to ensure long-term resilience.

CEO Li Shang-chien (李尚謙) began the modernization effort more than a decade ago. Though not trained in agriculture, Li has mastered every stage of the process and insists on rigorous hygiene standards and odor-free electric milling.

Mechanized cooling systems now regulate rice storage to maintain freshness and quality. “Every bit of waste weakens our competitiveness,” Li said, describing how he and his father imported smart equipment and rebuilt their production model around real-time data.

To better monitor crop health, Dong Yuan installed microclimate stations across 50 rice paddies. The factory also introduced smart stacking systems, cutting packaging labor by 75% and reducing each line’s staffing from four workers to one.

Li said the biggest challenge in implementing AI has not been cost or technology, but human calibration. Operators must continuously fine-tune systems to maintain peak performance.

To support Taiwan’s net-zero goals, the company adopted ESG and circular economy principles. It installed 1,200 pings (approximately 3,970 square meters) of rooftop solar panels and repurposes husks and straw into reusable materials, striving for zero waste.