Singapore eyes huge China farm project

Temasek unit studying feasibility of jointly developing food zone
Lee Yen Nee, Straits Times 22 May 10;

SINGAPORE could gain access to a major new source of meat, fruit and vegetables if a massive new farming project in north-eastern China takes off.
At 1,450 sq km, the China Jilin (Singapore) Modern Agricultural Food Zone will be more than twice the size of Singapore and will produce everything from pork, beef and dairy products to rice, strawberries and ginseng.

The ambitious multibillion-dollar project is a collaboration between the Jilin city municipal government and various Singapore agencies.

Chief among them is Singbridge International Singapore, a wholly-owned subsidiary of Temasek Holdings, which yesterday signed an agreement with the Jilin Municipal Government to study the commercial feasibility of jointly developing the food zone.

The study is expected to take nine months to complete and if the project is given the green light, Singbridge and the Jilin municipal government will jointly invest in the food zone, which will take 15 years to build in three phases.

Singapore has yet to reveal the potential size of its investment in the project, but Jilin officials said yesterday that the Chinese expect to sink in a total of 110 billion yuan (S$22.7 billion).

Speaking at the signing ceremony yesterday, National Development Minister Mah Bow Tan said that the project was a 'win-win' for both countries.

'Singapore imports food from all over the world and has a stringent food safety regime. China wants to strengthen its food safety regime and produce food for both domestic and export markets,' he explained.

The idea of this food zone was first mooted in October 2008, said Mr Wang Zhihou, vice-mayor of the Jilin City municipal government.

Dutch bank Rabobank performed a study and found that conditions in Jilin province are conducive for growing crops like corn, soybeans and rice, as well as producing beef, pork and poultry.

Aside from having fertile soil, the area has plenty of access to water and boasts long sunlight hours, boosting agricultural productivity in the summer months.

As for finding a ready market for its produce, Jilin is close to some of Asia's most densely populated cities, including Shanghai, Beijing, Seoul, Tokyo, Dalian and Tianjin.

But the food zone will not just be a giant farm. It will comprise a core area of 30 sq km which will house high-tech industries like food processing, bio-technology and logistics.

An eco-city is also slated for development here that will house finance and insurance companies and even leisure and tourist facilities.

The larger 'control area' that is surrounded by rivers, mountains, swamps and wetlands will be used for farming.

Here, Singapore's Agri-Food & Veterinary Authority (AVA) will contribute its expertise to ensure that this becomes a Disease Free Zone (DFZ), free of diseases like foot and mouth disease.

The food zone will also rely on a larger hinterland area that includes Liaoning, Heilongjiang and Inner Mongolia. These provinces can be relied on to provide high-quality raw materials to the food zone for sustainable development.

AVA's chief executive Tan Poh Hong said yesterday that the collaboration will benefit Singapore by strengthening the resilience of its food supply.

Singapore Food Industries (SFI), for example, has already inked two agreements to set up and develop an integrated pig farm in the food zone over six years. Starting with an annual production of 100,000 pigs, production is expected to be ramped up to one million pigs per year.

'It represents an important and strategic step towards securing a safe, reliable and sustainable supply of pork for our country in the long term,' said Ms Tan.

As part of the multi-party deal, another Singapore entity, Fullerton Financial Holdings, will also chip in.

The Temasek-owned unit agreed yesterday to set up three to five village banks in Jilin city to serve small and medium-sized enterprises, consumers and farmers there.