Asia faces a food crisis and will need another $800 billion over the next 10 years to solve the problem, according to a CNBC report. This is because the Asian population continues to grow, increasing demand for safer, healthier and more sustainable food.
According to the Asia Food Problem Report released last week, Asia’s spending on food will double from $4 trillion this year to more than $8 trillion in 2030 for nearly a decade.
Tthe joint report released by PwC, Rabobank and Temasek predicted that unless these levels of food expenditure become reality, the quality of food for the large Asian population will fall further. While the industry will not be able to keep up with demand.
As Asia heavily relies on other countries to meet its basic needs, its food self-sufficiency rate is significantly lower, causing this food crisis
Climate change and population growth could increase food price volatility in Asia and add problems to the food supply chain. The report predicted that extreme weather conditions will reduce crop production and make changes in farming methods inevitable.
Cultivatable land for each population in Asia will have 5 percent reduction by 2030. In more than a decade, Asia’s population has grown by about 250 million. Bringing about a new country like Indonesia, which currently has the world’s fourth largest population.
However, it could mean that there will be $800 billion in investment opportunities through technology and innovation in Asian agriculture over the next 10 years, Richard Skinner of PwC stressed.
The biggest opportunity in Asia is also China, said Anuj Maheswari of Temasek. There are already many farmers who use smart automatic technology in China, he explained. For example, DJI based in Shenzhen, China, produces agricultural drones that distribute pesticides and fertilizers. With the company accounting for more than 70 percent of the global private drone market in 2018.
Therefore, Chinese cities such as Shenzhen and Beijing have the potential to become hubs of agricultural innovation. These Chinese cities will lead food innovation and investment in Asia. Because of their rich experience in agriculture, high government support for start-ups and high competitiveness in the workforce.
Chinese have also used e-commerce and video sharing platform to sell its agricultural product online.
