A spike in global energy prices is likely to impact the agri-food sector, especially farms that have controlled indoor environments, said the Singapore Food Agency (SFA) on March 19. Farms here told The Straits Times they are bracing themselves for a rise in operational costs caused by higher electricity prices and more expensive fertilisers or feed in the light of the ongoing conflict in the Middle East.
Mr Webster Tham, co-founder of local agri-technology company Tomato Town, said his farm relies more on natural sunlight and has minimal use of electrical equipment. Still, he said, installing solar panels is a possible strategy to further reduce electricity costs.
Mr Ray Poh, founder of indoor vertical farm Artisan Green, said he is also expecting costs of fertilisers to go up. The farm is exploring various strategies to reduce costs, including tweaking its crop mix towards varieties with shorter growth cycles.
Founder Malcolm Ong of aquaculture company The Fish Farmer said his farm uses little electricity, but that an increase of around 20 per cent in transport and logistics costs is affecting his operating costs. He also expects the price of fish feed to go up because of higher fuel prices.
All three farms that ST spoke to say they are holding prices steady for now. But Mr Ong noted that he may have to raise prices if the cost differences remain steep. ST had approached other large-scale vertical farms, including Sustenir and the newly launched Greenphyto for input, but they declined to comment. The industry-led Singapore Agro-Food Enterprises Federation, which represents the local agri-food industry, also declined to comment.
Read more at The Straits Times
