New report reveals US$800 billion investment needed in Asia's Agri-Food sector

The new Asia Food Challenge Report: Harvesting the Future, which delves into Asia's food and agricultural landscape said billions will be needed to further grow Asia's agriculture industry.
Launched in conjunction with Asia-Pacific Agri-Food Innovation Week held Singapore this month, the new research was put together by PwC, a network of firms in 157 countries providing quality assurance, advisory and tax services; Rabobank, a Dutch cooperative and global player in the food and agriculture banking; and Temasek, a Singapore investment company with a net portfolio value of S$313 billion (US$231 billion).
The report 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 $550 billion – will enable key requirements around sustainability, safety, health and convenience. The remaining $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, the 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."
The report said the combined investments will unlock market growth of around 7% per year, with the region more than doubling its total spend on food to over $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, head of RaboResearch, Food & Agribusiness, Asia, 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 also identifies technology as a critical enabler in meeting these shifting demands, which will require significant investments across the industry.
"A fundamental change is required across the entire food supply chain in Asia to enable and sustain the region's food security,” said Anuj Maheshwari, managing director, Agribusiness, at Temasek. “We see immense opportunities for start-ups, businesses and governments to work together in creating innovative solutions that can transform our global food systems."

Photo caption: The report points to investment opportunities in Asia's Agriculture sector. (Image from Pixabay)