Still a long way round for Singapore to address food security

But good news is, consumers may expect moderated food prices this year.

In an e-mail to Singapore Business Review, Frost & Sullivan vice president Satish Lele notes that Singapore for 2012 will continue to follow the global trend in moderated food prices even as its own economy shows much weaker growth. Securing food in the long-run though remains a major issue.

Here’s from Mr. Lele:

Singapore’s dependence on imports for its food requirement makes it extremely vulnerable to changes in the global political and economic scenario. The pass through of global commodity prices increases was also felt in Singapore in 2011. Additionally there was an upward pressure due to the higher prices of prepared food. Food prices accounted for almost a fifth of the overall CPI inflation in 2011.

Due to the high per capita income in Singapore, the impact of food prices is not as severe as compared to other countries in the region. However the important issue for Singapore is long term food security. Being an urban center it has a total farming area of approximately 700 hectares, which is just 1% of its land area. This number is unlikely to change significantly in the future, forcing the country to import more than 90% of its food requirement.
 

Singapore has developed a multi pronged approach to food security. This includes diversification of supply sources, increasing stockpiles and developing strategic local agricultural sectors. In the longer term it will have to continue on research and innovation, forging public private partnerships, innovation in urban agriculture and creating Singapore as a regional hub for agribusiness. As spelt out by its policy, Singapore has to transform from being a passive importer of food to becoming an active contributor towards regional food security.

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Tags: inflation, food prices, Singapore inflation, Frost & Sullivan