Singapore International Agri-Food Week (SIAW) Gala Dinner Welcome Speech by Mr. Lim Boon Heng
Temasek Chairman, Lim Boon Heng, speaking at the Singapore International Agri-Food Week Gala Dinner on 1 November 2023.
Deputy Prime Minister of Singapore, Mr Heng Swee Keat,
Your Excellencies,
Distinguished guests,
Ladies and Gentlemen,
Good evening.
Welcome to the third edition of the Singapore International Agri-Food Week, or SIAW. This year, we are pleased to host this event in partnership with the Singapore Food Agency.
SIAW has grown year by year, establishing Singapore as a vibrant agri-food hub in the region. This event brings together global leaders, investors, and innovators in the agri-food industry. I am glad that Temasek is able to contribute to the collaboration and sharing of knowledge to collectively address the challenges facing the industry today.
Our Agri-Food Portfolio
The global agri-food system is a key focus for Temasek. It sustains life and nourishes communities. Here in Asia, food takes on an additional role as a marker of identity, and a channel for building vibrant communities and meaningful connections, and some say in Singapore, given the heat, food is very important for Singaporeans.
However, our agri-food system is under incredible strain. Currently, the global population of 8 billion people consumes 5 billion metric tonnes of food a year. And this amount of food consumed is expected to increase by 50% in 2050 when the global population reaches 10 billion.
Upstream, agri-food yields are being impacted as major weather events like El Niño are increasing in intensity due to the effects of climate change. India, as the world’s largest rice exporter, banned all non-basmati rice exports in July1 due to a delayed monsoon and heavy rainfall damaging crops. While that ban has since relaxed, we are likely to see El Niño’s negative impact on crop yields across Asia2 and affecting food supplies.
At the same time, the agri-food industry has a sprawling carbon footprint – the industry contributes to one third of global greenhouse gas emissions. This is especially so in Asia, where emissions per kilogramme of food produced is higher than in many other regions.
The global agri-food system is also the single greatest cause of biodiversity loss. Due to agriculture, 86% of all animal species are at risk of extinction.3
The solution to this problem will not be an easy one. The global food supply chain is complex and fragmented, and each segment of the supply chain faces its own unique challenges. In particular, the Inputs and Production stages are the most carbon intensive and contribute to 80% of all agri-food emissions produced. For example, for each kilogramme of beef produced, 23 kilogrammes of carbon dioxide equivalent are emitted due to land use, and a further 56 kilogrammes of carbon dioxide equivalent are produced at the farm stage – all for one kilogramme of beef.4
Further downstream, between harvest and consumption, one of the main problems is food waste; 33% of all food produced is lost before it even reaches the consumer.5
Governments, corporations, and investors must act to decarbonise global agri-food systems. Agri-food has immense potential to be part of the climate change solution rather than the problem.
As a long-term investor, Temasek is guided by our Purpose, "So Every Generation Prospers." We invest not just for today, but for future generations.
This means putting our capital in solutions that will catalyse change and enable positive outcomes that will outlive all of us. What we can do in the agri-food sector aligns perfectly with our purpose.
At this crucial juncture, there are sustainability-aligned as well as innovative agri-food solutions that can transform traditional agriculture and feed our world. At Temasek, we seek to identify these solutions and provide them with the capital to scale and generate tangible, positive impact.
To date, we have invested over US$8 billion in the farm-to-fork value chain, in companies that can reduce the environmental footprint of the agri-food system, create more with less, and make healthier food available for all.
We also recognise the importance of the consumer in the agri-food industry. With demographic shifts and changing consumer tastes, there is a growing demand for food that is healthier, fresher, tastier, and more readily accessible. ‘Conscious eating’ has also become a trend in recent years – according to McKinsey, one-third of consumers cite sustainable eating as a top priority.6 More people are also trying plant-based alternatives, signaling that consumers also care for the environment in their food choices.7
In addition to investing in healthier food, it is also critical that we ensure equal access to food. Global inequality remains a pressing issue, with a significant percentage of the global population still lacking sufficient food. Even this year, approximately 238 million people across 48 countries are facing acute food and nutrition insecurity.8 We need to make sure that even as the global agri-food system forges ahead, no one is left behind.
Our Agri-Food Ecosystem
We cannot revolutionise the agri-food system on our own. That’s why we aim to scale our capital with like-minded partners and bring solutions to a global stage.
For example, we have been supporting research and innovation in agri-food. Our Temasek Life Sciences Laboratory has been developing capabilities in animal feed, and conducting research in animal health, food safety, and aquaculture biotechnology. Temasek's yearly Ecosperity event also champions impact, bringing together ecosystem partners to test-bed agri-food innovations and connect companies with funding and commercialisation support.
Conclusion
In closing, I would like to thank all of you for attending this gala dinner. SIAW provides an invaluable platform for collaboration and partnerships. I encourage all of you to seize this opportunity to form meaningful partnerships tonight. Together, we can ensure that future generations can prosper in a sustainable and better world, and also, be profitable for each of you. Thank you.
___________________
2 https://www.weforum.org/agenda/2023/06/el-nino-weather-impact-food-production/
4 https://ourworldindata.org/grapher/food-emissions-supply-chain
5 https://unece.org/sites/default/files/2021-04/FoodLossMeasuringMethodology.pdf
8 https://www.worldbank.org/en/topic/agriculture/brief/food-security-update