The state-owned investor aims to tackle food security challenges worldwide.
Global investment company Temasek has earned a reputation as the “best and most aggressive” agritech investor, with a diverse portfolio that includes an Israeli irrigation firm and an Indonesian fish food start-up. According to a recent report, the state-owned investor, valued at over S$400 billion, is playing a critical role in averting a food crisis.
On July 26, Bloomberg reported that as global food supplies face threats from climate change and disruptions like Russia’s invasion of Ukraine, Temasek has intensified its agriculture strategy. This involves ambitious investments and efforts to take control of certain businesses, aiming to generate profits by addressing significant challenges in food production.
One notable investment under CEO Dilhan Pillay, who succeeded Madam Ho Ching, the wife of Prime Minister Lee Hsien Loong, is in eFishery, a company based in Bandung that seeks to revolutionize aquaculture.
Temasek’s holdings in life sciences and agriculture have skyrocketed from US$5.7 billion (SGD 7 billion) in 2015 to US$26.7 billion (SGD 37 billion) earlier this year. The firm has also invested in diverse companies, including Bayer AG and Impossible Foods Inc., known for its plant-based meat products.
Anuj Maheshwari, head of agrifood at Temasek, told Bloomberg that while many peers have avoided the agriculture sector due to government influence, volatility, and capital intensity, the need for a more efficient and climate-resilient food system is crucial for global food security.
Singapore, a small nation, faces vulnerabilities when disruptions like the Ukraine war occur, prompting a need to establish “complex and redundant supply chains” for food security. For example, when Malaysia recently banned chicken exports, Singapore sourced supplies from Brazil, Thailand, and Australia.
Mr. Maheshwari acknowledged the unpredictability of such events, saying, “Who knew the Ukraine war would happen and we would not have any chicken? The reality is it’s not just a long-term thing but also a short-term thing.”
Since initiating agritech investments seven years ago, Temasek has become the fifth-most-active venture capital fund manager in the industry. Gibran Huzaifah, co-founder and CEO of eFishery, called Temasek “the best and most aggressive agri-tech investor in the world right now,” highlighting the high level of support from CEO Pillay, who has a personal call with Mr. Huzaifah every quarter.
Despite its significant investments, Mr. Maheshwari clarified that Temasek is not trying to control the food supply or directly bolster Singapore’s food security. “It just happens to be that we have taken stakes in positions which are pretty important for the food system,” he stated.
The urgent task, he emphasized, is addressing climate change. “We need more and more solutions thrown at the problem. We’re just seeing the trailer of what can happen,” Mr. Maheshwari concluded.
