In support of food manufacturers, food ingredient industry plays an upstream role in the value chain of food industry; thus, the development of whole food industry highly influents the food ingredient industry. Regional economy, globalization as well as the fast moving consumer tendency force domestic food ingredient industry to confront with significant challenges. This study provides observation of current development of food ingredient industry in Taiwan and probes into the interaction of environment, resource, and the formation of cooperate competition strategy. The study reveals that among food ingredient industries in Taiwan: (1) A generally sharing cognitions of environment: 1. Mature market; intensified competition between food material enterprises. 2. Small domestic economic scale is detrimental to expansion of the industry. 3. China (East Asia) market strikes Taiwan enterprise strategy. 4. Long term partnership within supply chain is the highest precedent among the cooperate strategy. 5. Treaty of commerce and navigation between Taiwan and China has greatest impact among all environmental factors to food ingredient industries. (2) Resource utilization in enterprises: 1. Stable partnership within supply chain is the essential enterprise resource. 2. Human resource is an important company asset. 3. Diversity of customer structure affects resource allocation of an enterprise. 4. Taiwanese customer¡¦s demand emphasizes on speed, quality and service. 5. Strategic alliances are not common to be applied for food ingredient industry in Taiwan, nor are patent and intellectual property rights. (3)Adopting strategy 1. From the standpoint of Porter's generic strategies, a majority of enterprises adopt the differentiation strategy under the influence of mature, small-sized markets, and the fierce variation of customer demands. 2. Based on Aaker¡¦s opinions, the enterprise with higher degree of resource tend toward the market exploitation as well as multilevel and vertical integrated tactics. In another sense, the companies with less enterprise resource incline to the approaches concerning about production exploitation and market infiltration.