June 2004 - Association of Dutch Businessmen

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➤ BUSINESS 4.17 million hungry mouths to feed By Han van der Broek If you think the Netherlands is “full”, come to Singapore. Whereas the Netherlands has a population density of 388 per sq. km., Singapore is host to a staggering 6,055 per sq. km. (www.sedb.com). That is almost a 16 times higher density. No wonder that people have to live ‘on top of each other’ and there is hardly any place left for agriculture. In 1999, only 1.6% of its total land area was arable and permanent cropland (Netherlands: 23%). This percentage has more than likely come down since then, judging the ongoing development in construction. Pigs Indonesia Fruits Malaysia USA China Australia Thailand ➤ ➤ Frozen Pork China Netherlands Denmark France United Kingdom Map of Food Supply Lamb Australia New Zealand ➤ ➤ Chilled Pork Australia New Zealand So, with 4.17 million hungry mouths to feed and little room for agriculture, where does Singapore get its food items? It starts with the Agri-Food and Veterinary Authority (AVA). AVA monitors Singapore’s food supply. AVA strives to provide Singapore with an adequate supply of safe primary food. They achieve this through the import of food items from diversified sources as well as through increased self-sufficiency by employing intensive farming systems (www.ava.gov.sg). Import Singapore imports 90% of its food requirements and is constantly looking for new sources of food Fish Thailand Malaysia Indonesia ➤ ➤ Beef New Zealand Australia Brazil Poultry USA Denmark Thailand Brazil China ➤ ➤ ➤ Hen Eggs Malaysia Poultry Malaysia for Singapore consumers. Import of food items comes from various countries, as can be seen on the enclosed map (source: AVA). A deliberate food diversification programme allows Singapore to have resilience in supply, giving increased flexibility and adaptability when supply from a particular source falls short. This has helped to maintain stability in the prices of primary produce. Intensive farming In 1986, AVA embarked on its Agrotechnology Programme, which included the development of Agrotechnology parks to house modern intensive farms. There are currently six Agrotechnology parks in Singapore. They are located at Lim Chu Kang, Murai, Sungei Tengah, Mandai, Nee Soon, and Loyang. These parks occupy a total land area of 1,465 ha and nearly 800 ha have been allocated to over 200 farms for the production of livestock, eggs, milk, aquarium and food fish, vegetables, fruits, orchids, ornamental and aquatic plants, as well as for the breeding of birds and dogs. ‘Veggies’ There are 66 vegetable farms in the Agrotechnology Parks, which produce mainly leafy vegetables and bean sprouts. More than 80% of the leafy vegetables produced are derived from soil cultivation under protective netting which protects the vegetables underneath from sunlight and birds. A substantial amount of fruits and vegetables are imported. Singapore, aside from importing most of its water from Malaysia, obtains most of its vegetables from its nearest neighbour. Tomatoes and potatoes are grown in the cooler climates of the Cameron Highlands for example. In another effort to diversify its vegetable supply, Singapore and the Indonesian island Riau established a vegetable project in Pekan Baru in 2002. This Riau Vegetable Project has created employment and generates income for Indonesian farmers in Riau and of course provides an additional source of food supply for Singapore. Eggs There are currently five layer farms in Singapore with a total daily production of 1.1 million eggs, catering to about 30% of the daily consumption of three million eggs. The other 70% comes from Malaysia. Singaporeans consume a total of 1,023 million eggs with an estimated value of $102.3 million annually. Egg consumption has increased by at least 50% in the past decade. The five layer farms use improved breeds and modern feed technology to ensure balanced and wholesome rations for the chickens. They also apply latest zoo-sanitary measures so as to reduce dependence on drugs to control diseases. This ensures that the eggs produced are not only fresh and wholesome but also free of drug residues. The two leading egg farms in Singapore are also offering designer eggs that are enriched in vitamins, healthy omega-3 and –6 fatty acids, selenium or lutein. Red meat Singapore’s consumption of beef, pork and chilled processed meats amounts to 17,000 tonnes, 69,000 tonnes and 7,000 tonnes respectively. While all beef and pork is imported, over 85% of chilled processed meat supplies are locally manufactured. Beef has a large niche type market, the development of which has been constrained by concerns over BSE and religious beliefs. Beef consumption is constrained by the fact that half of Singapore’s population are Buddhists or Hindus that do not consume beef for religious reasons. Nevertheless, 50% of the Singaporeans plus a large number of expats, as well as business and tourist visitors are 3 Vol.14 • No. 6 • June 2004
BUSINESS Singaporeans consume around 38 kg of poultry meat per person per year (the highest consumption level in Asia), compared to 22 kg in the Netherlands. potential consumers of beef. Most fresh/chilled and frozen beef comes mainly from Australia, as well as Brazil and New Zealand. Contrary to beef, pork is staple meat for more than 70% of Singapore’s residents. Live pigs are imported from Pulau Bulan, an Indonesian island in the vicinity of Singapore and slaughtered at local processing facilities (e.g. Singapore Food Industries’ abattoir), under very close scrutiny of the Agri-Food & Veterinary Authority. This supply scenario has existed since March 1999, when the Singapore government banned the import of live pigs from Malaysia as a result of the first outbreak of the fatal Nipah virus, which affected both pigs and humans. Frozen pork comes from Denmark, the Netherlands, France, the United Kingdom and China. Chilled pork is flown in from Australia and New Zealand. Poultry There are no local poultry farms in Singapore for poultry meat production. Malaysia is the largest supplier of poultry meat to Singapore. Singaporeans consume around 38 kg of poultry meat per person per year (the highest consumption level in Asia), compared to 22 kg in the Netherlands. Dairy products The European Union, Australia and New Zealand are major suppliers of virtually all the dairy products, which include fresh milk, cream, milk powder, yoghurt and cheese. Locally manufactured ‘milk’ is produced on the basis of water, imported milk powder and other ingredients. About 90 per cent of all cheese consumed in Singapore today is processed cheese. There is one goat farm in Singapore. This two-hectare farm has about 500 goats and produces some 250 litres of milk a day. Fish AVA operates two fishing ports at Jurong and Senoko. Jurong Fishing Port (JFP), at Fishery Port Road, is an international port for foreign fishing vessels to land their fish catch. It serves not only as a docking and bunkering base for foreign fishing vessels operating in the Indian and Pacific Ocean, but also as a marketing and distribution centre for fresh fish. JFP operates 24 hours a day, all year round. Senoko Fishing Port (SFP), at Attap Valley Road, serves as a home base for the local fishing fleet of 20 off-shore and 49 in-shore fishing vessels. There are 25 AVA-licensed fish merchants based at SFP, handling about 15000 tonnes of fish per annum. Nevertheless, more than 90% of all fish and fish products consumed in Singapore are imported, mainly from Malaysia, Thailand, Indonesia, Myanmar (Burma) and Vietnam. Economies of scale Oftentimes, people wonder whether more local food production is economically attractive and possible in Singapore. Especially when it comes to livestock production for meat, milk and eggs, this question is not easily answered; production necessities and economies of scale are aspects to consider. Animal feed generally equals about 80% of total production cost. If a local livestock farmer were to rely on locally grown grains and oilseeds (soybean, rapeseed) as raw materials for his chicken feed, he would need land to grow his crops on. Obviously, land is scarce in Singapore, hence costly. If a local farmer would import all his grains and oilseeds or complete feeds, proper manure disposal, which requires land, would be a problem. As pigs and cattle produce more manure per kilogram meat or milk (respectively), these forms of livestock production are even less economically attractive than poultry. Another concern is the relatively small size of the local consumer market. Singaporean farmers are only able to consume relatively small amounts of feed and feed ingredients, hence won’t be able to demand very attractive prices. If Danish farmers can grow pigs in such a cost-effective way that they are cheaper than the Japanese can do it in Japan and the Dutch eat chicken meat produced on farms in Thailand, Singapore for sure has found its most cost effective way of ensuring sufficient and safe food. Talking about safety; the Singapore Food Act regulates sale and import of food products in Singapore. The regulations cover standards, particular labelling requirements, expiry date marking, the use of additives and preservatives, chemical residues, and the microbiological standards for food products. These regulations are strictly enforced, resulting in generally safe food for the 4.17 million mouths to feed. Bon appetite! (References can be obtained from the author) 4 Vol.14 • No. 6 • June 2004
Page 1 and 2: June 2004 MITA 373/03/2001 BUSINESS
Page 3: A monthly publication of the Associ
Page 7 and 8: BUSINESS Incentives are offered in
Page 9 and 10: DUTCH NEWS 2004, Dutch Media/Newspa
Page 11 and 12: Group A Group B Group C Group D Por
Page 13 and 14: EUROPE Of course, this does not mea
Page 15 and 16: INTERVIEW An interview with … Rob
Page 17 and 18: WEB WIZARDS Find Article Would you
Page 19: POP AND DROP A QUESTION nights. All

June 2004 - Association of Dutch Businessmen

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