The Asia Food Challenge Report: $800 billion Investment Opportunity In Asia’s Agri-Food Sector
Monday, November 25th, 2019 | 1544 Views
PwC, Rabobank and Temasek has released The Asia Food Challenge Report: Harvesting the Future, which delves into Asia’s food and agricultural landscape. The report was launched in conjunction with this year’s Asia-Pacific Agri-Food Innovation Week in Singapore.
It estimates that cumulative investment of US$800 billion above existing levels over the next 10 years will be needed to grow Asia’s food and agriculture industry to a sustainable size, in order for Asia to feed itself. The majority of these investments – around US$550 billion – will enable key requirements around sustainability, safety, health and convenience. The remaining US$250 billion will drive increased quantities of food to feed Asia’s growing population. Richard Skinner, Asia Pacific Deals Strategy & Operations Leader, PwC Singapore, said, “Asia faces a crossroads. On the one hand, current lack of investment, and the slow development and use of technology across the food & agriculture supply chain has held us back and left us dependent on others. On the other, we can reverse that by being at the forefront of technological innovation, disruption and use, transforming the industry and bringing benefits to the consumer, returns to corporates & investors and value adding jobs across Asia.”
Together, the investments will unlock market growth of around seven percent per year, with the region more than doubling its total spend on food to over US$8 trillion by 2030. This presents a huge opportunity for corporations and investors to invest in Asia’s Agri-Food industry by placing a stronger focus on promising high-impact innovations.
As countries around the world grapple with food shortage and the effects of climate change, the report addresses the challenges and opportunities that Asia’s Agri-Food industry face. The region is urbanising rapidly and by 2030, it will be home to approximately 250 million more people who have a growing appetite for healthy food that is sustainably and ethically sourced.
Ping Chew, Asia Head of RaboResearch Food & Agribusiness, Rabobank, said, “Asia needs innovation and technology to transform its Agri-Food system into one that is ecologically and economically sustainable. Only through working together with shared responsibility and acting now can Asia feed itself while preserving the planet for future generations. Innovating for sustainability can also bring about value creation, and there are huge opportunities shifting into a more sustainable model that can tackle waste and supply chain inefficiency, produce higher yields, create platforms to connect, and introduce new products and processes.”
The report identifies technology as a critical enabler in meeting these shifting demands, which will require significant investments across the industry. With the advent of the Fourth Industrial Revolution, technologies such as big data, robotics, blockchain and the Internet of Things will revolutionise traditional farming practices for the better, introducing new food and agricultural solutions. From the development of alternative meat-based proteins, to high-tech plant factories that deliver a 400-fold increase over traditional methods, to modern aquaculture that will significantly reduce fish mortality and pollution levels to improve output especially for small scale farmers, there is great potential to explore these technologically-driven innovations.
Several Asian cities, such as Beijing, Hong Kong, Mumbai, Singapore and Tokyo, also have the potential to become Agri-Food innovation hubs. Key criteria for success, including positive regulatory environments for startups and investment, technical expertise, talent, and a strong pool of investors, can be found in these cities. Take Singapore for example: it has already set in motion a range of government policies and initiatives to tackle food insecurity and develop itself into an Agri-Food innovation hub. Its Singapore Food Agency has also set a goal to produce 30 percent of the country’s nutritional needs by 2030 by adopting new solutions and technologies to grow more with less.
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