In order for you extra of what you wish to eat, it’s time to assume and deal with the planet higher.
Consultants add that those that may also help in a extra impactful method, akin to corporations and buyers, can do extra to advance sustainability and resilience throughout the availability chain.
The Fears
In August, the Intergovernmental Panel on Local weather Change (IPCC) issued its starkest warning but: As opposed climate wreaks havoc because of elevated temperatures and carbon emissions, the world’s already-stretched pure assets will come beneath additional pressure.
Oblique local weather stressors — together with inhabitants and revenue progress, in addition to demand for animal-sourced merchandise — additionally proceed to pressure the surroundings.
“Noticed local weather change is already affecting meals safety via growing temperatures, altering precipitation patterns, and larger frequency of some excessive (climate) occasions… Meals safety shall be more and more affected by projected future local weather change,” stated the IPCC.
The local weather disaster calls for speedy consideration, not simply to safe the way forward for our planet, but additionally the resilience of the meals provide programs.
The Paris Settlement — a legally binding worldwide treaty on local weather change — says that the purpose is to restrict world warming to 1.5 deg C, in comparison with pre-industrial ranges. Nonetheless, it’s clear that this could solely be achieved if concerted efforts are made to cut back greenhouse gasoline emissions throughout all industries.
About 30 per cent of worldwide greenhouse gasoline emissions are attributable to meals manufacturing. The IPCC has warned that with out intervention, these are prone to enhance by about 30 to 40 per cent by 2050.
IPCC information additionally exhibits that Asia — particularly nations like India, China, and Indonesia — account for roughly 50 per cent of worldwide emissions from croplands.
Regardless of this looming disaster, 1.3 billion tonnes of meals is wasted every year globally. That’s a few third of the meals produced for consumption.
The Repair
It’s important for the agri-food sector to quickly rework by bolstering local weather resiliency and sustainable meals manufacturing, and in flip contribute to world efforts to attain net-zero targets by 2050. Internet zero refers back to the state by which the overall quantity of artificial emissions equals the quantity eliminated.
“Agriculture and the meals system are key to world local weather change responses,” stated the IPCC. It famous {that a} mixture of supply-side actions (akin to environment friendly meals manufacturing and transport) and demand-side interventions (together with the discount of meals loss and waste) will cut back greenhouse gasoline emissions and improve meals system resilience.
There’s hope. Main improvements are already happening via agri-tech corporations like Apeel Sciences. The US-based start-up develops edible coating merchandise that may lengthen the shelf-life of recent produce.
Utilizing supplies that exist within the peels, seeds and pulp of all vegetables and fruit, Apeel Sciences creates a pure protecting layer that seals in moisture and retains oxygen out. The result’s produce that stays recent twice as lengthy, which suggests much less meals goes to waste all through the meals provide chain.
One other innovator is Israel-based Rivulis, an organization offering water-saving know-how options to farmers worldwide. Within the face of rising uncertainty from local weather change and growing stress on scarce water assets, Rivulis helps farmers obtain greater yields, high quality, and profitability via sensible micro and drip irrigation options.
Temasek, which invests globally in trend-aligned alternatives, is an investor in each Apeel Sciences and Rivulis.
During the last decade, it has invested over US$8 billion (S$10 billion) within the world farm-to-fork worth chain. Certainly, a proportion of Temasek’s whole investments has been in startups and extremely revolutionary, technology-focused corporations — particularly these driving resilience and larger effectivity in provide chains.
The Future
Meals manufacturing and provide chains apart, there’s additionally the urgent want to remodel the agri-food sector to advance sustainability and resilience throughout the worldwide meals system.
In line with the 2021 version of the Asia Meals Problem report, revealed collectively by PwC, Rabobank and Temasek, Asian shoppers have shifted their priorities on the subject of meals.
As an alternative of spending their rising disposable revenue solely on tastier meals, their behaviours have gotten extra subtle, with a transfer in direction of value-seeking via more healthy, sustainable, and handy meals choices. Shoppers are additionally turning into extra conscious of wastage.
The shifting preferences of Asian shoppers will account for US$2.4 trillion (S$3.2 trillion) in incremental meals spending over the subsequent decade, says the Asia Meals Problem report. This results in new alternatives for entrepreneurs, companies and buyers within the agri-food house.
Already, the report discovered that corporations that targeted on health-based merchandise have achieved common valuation premiums of 12 per cent between 2015 and 2020, in comparison with non-adopters.
To trip the wave of shifting shopper patterns and demand in Asia, corporations akin to plant-based protein maker Unimaginable Meals, and Eat Simply, which develops plant and cell-based options to traditional animal proteins, have established a presence in Singapore to drive Asia-Pacific progress plans.
Temasek, which goals to ship constructive social and environmental influence alongside monetary returns, invests in each companies.
Temasek and its companions additionally launched the inaugural Singapore Worldwide Agri-Meals Week (SIAW) final month, to encourage a renewed concentrate on revolutionary options that may bolster meals safety and strengthen provide chains.
The SIAW is a collection of occasions that collect world stakeholders from the agri-food business to share finest practices, showcase newest applied sciences, and pioneer revolutionary options for sustainable meals manufacturing in Asia.
Mentioned Mr Yeoh Keat Chuan, Temasek’s Deputy Head, Enterprise Growth Group: “Local weather change, environmental degradation, and rising urbanisation all pose challenges to Asia’s meals and agricultural business.”
He added that Asia will want round US$1.55 trillion (S$2.12 trillion) of funding over the subsequent decade to fulfill rising shopper calls for for more healthy and extra sustainable meals choices.
“We have to evolve our present capabilities to bolster meals safety and strengthen provide chains. Past funding, the sector requires regulators, companies, and the broader business to work intently collectively to develop revolutionary options,” Mr Yeoh stated.
“Temasek’s involvement within the SIAW is our method of taking part in a job within the transformation and bringing necessary stakeholders collectively to share views.”
The funding firm helps to deal with world challenges within the agri-food house by being a supplier of catalytic capital — totally different types of capital that may energy up revolutionary options to right now’s issues.
It fosters progress throughout the whole meals ecosystem by offering:
- Monetary capital to stimulate innovation and progress;
- Human capital to uplift capabilities and improve potential throughout the world meals system;
- Pure capital to search out sustainable agri-food options; and
- Social capital to encourage and rework lives.
Via its use of catalytic capital, Temasek goals to ship constructive social and environmental influence on prime of monetary returns, thereby serving to world efforts to attain net-zero targets by 2050.
All of those come collectively for a greater planet, more healthy individuals, and extra sustainable prosperity.
A platform for start-ups to scale up
Temasek not too long ago established the Asia Sustainable Meals Platform to assist scale up the manufacturing of other proteins, and speed up the commercialisation of sustainable meals in Asia.
The platform will present bespoke options, as an enabler, operator and investor, to food-tech corporations as they undergo their life cycle from product improvement to commercialisation.
Meals-tech start-ups shifting to industrial scale manufacturing typically face challenges as these amenities may be very capital-intensive, says Temasek. The platform is exploring two joint ventures with world business specialists in plant-based and microbial proteins to assist clear up these challenges.
Its partnership with CREMER, a German agri-food multinational firm, will increase the platform’s manufacturing capabilities for plant-based protein merchandise. The partnership is anchored on excessive moisture extrusion (HME), a know-how for producing texturised proteins that extra intently resemble actual meat.
The platform additionally has an settlement with agri-business agency ADM for a three way partnership. It should allow contract improvement and manufacturing providers for microbial proteins produced through precision fermentation.
That is the second of a four-part collection delivered to you by Temasek.
