8/2/2022

The potential of digitalisation to build sustainable business models for urban farming in Singapore

In December 2021, Delta Electronics Int’l (Singapore) organised an Agritech workshop for start-ups and existing farmers to encourage them to explore the adoption of digitalisation in their setups. The workshop invited leaders from various industries to be guest speakers, including Ms Cecilia Ku, Managing Director of Delta Electronics Int’l (Singapore), Mr Ching-Yeh Shih, CEO and Founder of Liteleaf Pte. Ltd., and Dr Andrew Keong Ng, Associate Professor from the Singapore Institute of Technology (SIT).

The Agritech workshop was held at Punggol Digital District (PDD) – Singapore’s first smart business district planned by JTC – where Delta is one of the first four corporations to set up base in the district. The event aligned with the goals of PDD, which is to collaborate, innovate, and form a thriving business district.

The role of digitalisation in Singapore’s urban farming scene

With food security an increasing concern in this COVID-19 pandemic, there has been a greater push for the national goal to produce 30% of our food by 2030. With the current production rate at only 10%, there is an urgent need to speed up the growth process of Singapore’s food with automated and advanced farming solutions, and the government has placed emphasis on utilising technology to yield greater quantities.

Just last year, the Singapore Food Agency (SFA) launched a $60 million Agri-Food Cluster Transformation (ACT) Fund to support local farms in leveraging technology to build their production capacities and capabilities. The ACT Fund replaces the Agriculture Productivity Fund (APF), which had a similar objective of promoting smart farming but had expired in 2020. One such company that has benefited from the APF is Seng Choon Farm Pte Ltd., a local poultry farm in Singapore that produces eggs. Through the APF, Seng Choon Farm was able to upgrade the handling capacity of their feed mill and automate their systems to increase production capacity and achieve yearly savings of 18,561 man-hours. We anticipate the ACT Fund, which is available until end 2025, to continue creating growth opportunities for Singapore’s Agritech industry.

 

Agritech participants indicated strong interest in collaborations; speakers reinforced the need to build sustainable models

During the workshop, the speakers received several requests for collaborations as participants shared a variety of innovative ideas. That included a new technology for aquaponics and hydroponics, such as sensors that can detect plant disease early on. Dr Andrew welcomed these prepositions as they align with SIT programmes’ industry-focused nature. From a farmer’s perspective, Mr Shih was pleased to see the strong interest and advised the participants to look at their personal needs, whether it’s to evaluate their proof of concept or plans to measure and monitor plant nutrients. He recommended that the audience start small – to first create a pilot and prove commercial liability before making to large-scale commitments.

From Ms Cecilia’s perspective, a sustainable business model is especially crucial for companies to thrive in the industry. She brought up the example of plant types: she recommended that farmers begin with one production line (one type of vegetable) and monitor using SAP (supply chain management software for the agricultural value chain). With successful implementation and monitoring, it will become easier to scale up. Ms Cecilia also elaborated on Delta’s role in helping companies attain their ROI (return on investment) before scaling up the solution.

Delta supports farmers in their sustainable business models
As part of the workshop session, participants visited Delta’s containerised smart plant factory that integrates technology from automation, thermal management, and power management. One key feature of this system is that it leverages LED lights running on low energy consumption. They can be closely placed to the growing vegetables without damaging them.

However, the containerised smart plant factory is not production-efficient as the output is relatively low. Our experts reinforced that Delta does not offer the containerised factory as a one-size-fits-all solution. We do not work with farmers to replicate this system, but we partner with them to design personalised solutions that befit their needs. For instance, as part of our partnership with Grow Systems & Southern Fresh, we offered them a customised moving fully system (MGS) to boost their fresh product operations. The solution utilises automated gully control to reduce labour, time, water, and energy, which in turn supports greener farming.

Ms Cecilia also shared that farmers in Singapore will reap the most benefits from digitalisation because of the nation’s budding agriculture sector, space limitations and relatively high vendor costs. We hope that the Agritech workshop gave participants the confidence to explore the benefits of technology to start their urban farming journey. Should they require help to identify where and how to start, our physical and virtual doors are always open for them.




Written by Delta Electronics Int’l (Singapore) Pte Ltd in conjunction with ­­­Agritech workshop held in December 2021

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