How can Singapore strengthen its food supply chain?

Government-industry partnerships and an emphasis on innovation are key, says National Development Minister Lawrence Wong. For example, 20 farms have benefitted so far from the AVA's S$63 million Agriculture Productivity Fund launched last year.
Liyana Othman Channel NewsAsia 30 Oct 15;

SINGAPORE: An average Singaporean consumes more than 300 eggs, 300 bowls of rice, 70 packs of leafy vegetables, 30 whole fish and 20 whole chickens each year. With more than 90 per cent of Singapore's food imported from 160 countries, the nation is reliant on overseas food sources, increasing its vulnerability to potential disruptions in the global food supply chain.

To safeguard against this, National Development Minister Lawrence Wong said on Thursday (Oct 29) that Singapore's food supply chain can be strengthened "through Government-industry partnership and continuous innovation".

For example, the Government is supporting farmers in purchasing technology to boost local production. So far, 20 farms from 17 companies have benefitted from the S$63 million Agriculture Productivity Fund that was launched by the Agri-Food and Veterinary Authority of Singapore (AVA) in August last year.

Besides that, the Government is helping to pilot other industry solutions and perform R&D. AVA, too, is collaborating with food companies to test-bed cold chain systems like advanced freezing systems to reduce food wastage, and exploring how the industry can recycle by-products as value-added food and animal feed.

Food importers should also continue to diversify their overseas food sources, instead of just concentrating on countries within the region to lower cost and simplify logistics, said Mr Wong. This is currently being practiced in the vegetable, fish and egg industries.

"By forging and maintaining close business links with new markets, importers will be better able to rebalance their different sources of supply, should there be any disruptions", said Mr Wong.

"If we continue to ramp up our local production in cost-effective ways, we can become more self-reliant over time. At present, local farmers are producing around 10% of our demand for leafy vegetables. And we can certainly increase this percentage. Because there are technologies that can enable us to raise our local vegetable production greatly," he said.

He cited Sky Greens' vertical rack method which produces at least five times more vegetables per hectare than conventional vegetable farming methods. "Imagine if this happens across all our vegetable farms in Singapore. Then certainly our local produce, which is currently at 10 percent, can increase significantly, and that will go some way in terms of enhancing our resilience and our supply self-sufficiency," Mr Wong added.

The minister encouraged industry players to join food sourcing missions that are currently being conducted by AVA and International Enterprise Singapore (IE Singapore). Said Mr Wong: "These missions have yielded some results - we now enjoy a greater variety of food, including apples from Poland, frozen chicken from Denmark, vegetables from Yunnan in China, as well as pomegranates and persimmons from South Africa."

He also called for the industry to invest in overseas farming, distribution and processing, as well as increase its bargaining power in the region through tapping on third-party logistics service providers.

Mr Wong was speaking at the second Food Industry Convention organised by AVA. Attended by close to 300 industry players, the event acts as a platform for them to discuss how to manage risks and challenges faced by Singapore's food supply chain, as well as improving overall efficiencies.

- CNA/av


Farms tap S$63m fund to boost yields
Melissa Lin, Straits Times AsiaOne 30 Oct 15;

They should press on to invest in automation to further strengthen food security: Minister

They used to pick out the bad eggs by hand, but this was not easy as the defects were like hairline cracks.

But from next month, workers at Seng Choon Farm can leave it to a machine that can go through 120,000 eggs an hour, sorting out bad ones more accurately and efficiently.

The machine of more than $2 million was co-funded by the Agri-Food and Veterinary Authority (AVA) through a $63 million fund launched last August to help farms here boost yields and increase productivity.

Some 20 local farms from 17 companies have tapped the fund, said Minister for National Development Lawrence Wong yesterday. "If we continue to ramp up our local production in cost-effective ways, we can become more self-reliant over time," he told some 300 food industry players gathered at Orchard Hotel for an AVA convention.

Seng Choon now produces 400,000 eggs per day, and hopes to increase this to 600,000. Its managing director Koh Yeow Koon said a lot of the technology for farming was developed in Western countries with large farms.

"Here, the farms are generally small to medium-scale. It's a steep investment (for us). To use these technologies, we need a helping hand from the Government," he added.

Metropolitan Fishery Group, which is opening a fifth fish farm next year, used the fund to buy movable aerators, machines that increase oxygen in the water. Previously, its farmers went around in speedboats, using the engine to churn the waters.

Its chief executive Malcolm Ong said: "Doing it manually takes up time. With the aerator, we can dedicate more manpower and time to taking care of the fishes."

Yesterday, Mr Wong said Singapore can do a lot more to further strengthen its food security.

Every year, each person here consumes more than 300 eggs, 300 bowls of rice, 70 packs of leafy vegetables, 30 whole fish and 20 whole chickens. Singapore imports more than 90 per cent of its food from 160 countries worldwide.

Mr Wong said food importers should continue to diversify their food sources and invest in overseas farming, distribution and processing. Firms can also pool purchases for more bargaining power.

He said local farms and manufacturers should invest in automation through technology and streamline operations to be more competitive.

This year, Singapore was ranked the second-most food secure country, behind the United States, in the Economist Intelligence Unit's Global Food Security Index. Last year, it was fifth.

Mr Wong said: "This is a significant result, considering our high dependency on food imports. It's a testament to the success of our collective efforts, and an encouragement for us to press on for a food-secure future."