Southeast Asia, home to over 600 million people, is witnessing a rise in heat waves corresponding to El Niño’s escalating occurrences. In 2023, a grim milestone was reached as the year was identified as the hottest in recorded history. Unfortunately, this trend has continued into 2024, with March data revealing unprecedented global temperatures that surpassed previous decades by 0.73 degrees Celsius.
In Thailand, elevated temperatures and the El Niño phenomenon have led to declining crop yields, contributing to an anticipated 8% increase in farmer debt. In response to these climate-related challenges, food tech startups in Southeast Asia are stepping up to address the region’s critical agricultural and food security issues. They are adopting innovative technologies to build resilient and sustainable food systems to enhance productivity and improve resource efficiency.
Here’s why digital transformation is critical for catalysing Southeast Asia’s green transition
Impact of climate change on agricultural and food production
Some of the negative effects of climate change include increased frequency and intensity of extreme weather events, such as typhoons, floods, and droughts in Southeast Asia. These natural disasters disrupt agricultural supply chains by damaging infrastructure like roads, bridges, and ports, hindering the movement of goods, and causing issues with growing produce.
For example, in early 2024, in Vietnam, water levels reached such low levels that farmers struggled to grow crops. Farmers had to pump water into their fields from elsewhere to address the requirements for agricultural production. Consequently, a significant disparity has also arisen between the road surface at the riverbank and the water level beneath, causing subsidence and landslides.
The region’s reliance on energy for food production is also rising. Higher temperatures and prolonged droughts require more irrigation, increasing the demand for energy to pump water. Indoor farming and other climate-resilient agricultural practices, such as vertical farming and greenhouses, also depended heavily on artificial lighting and climate control systems, raising energy consumption. For countries like the Philippines, the increased frequency of typhoons disrupts electricity supply, making energy access even more challenging.
Sustainable innovations by ASEAN’s food tech startups
Regional food tech startups are adopting several innovative technologies as they work to address challenges posed by climate change. One example is Intelligent Growth Solutions’ adoption of vertical farming technology. This company aims to solve indoor farming inefficiencies, high labour costs, and the adverse effects of harsh weather on crops. Its vertical farming system creates crop growth towers in climate-secure environments, leveraging intelligent technologies like AI and IoT to make the approach scalable and sustainable.
Green Rebel is another promising plant-based startup in the ASEAN region. The Indonesian protein company uses soy, mushrooms, and chickpea to make plant-based meats that consumers can use to adopt a more sustainable diet.
Qarbotech is a Malaysian-based firm revolutionising leafy plant cultivation with its product QarboGrow, which enhances photosynthesis rates by 30%. This breakthrough leads to 25% shorter crop cycles, 20% sweeter fruits, and impressive drought resistance. Its crops have shown resilience to drought and have the potential to benefit agriculture in countries which receive less sunlight.
Collaborative and policy-driven solutions for sustainable food production
Collaboration among food tech startups, government agencies, and research institutions is vital for developing comprehensive solutions to sustainable food production. Streamlined regulatory frameworks that clearly outline the approval processes for new food technologies are essential. Southeast Asian governments are progressively developing frameworks to regulate novel foods like lab-grown meat and insect-based proteins.
Singapore became the first country globally to approve the sale of cultured meat, inspiring other countries in the region to follow suit. For example, Karana, a pioneering company, introduced plant-based pork to Asia by creating plant-based alternatives to popular Chinese foods.
Capacity-building programs and knowledge-sharing platforms can also help startups scale their operations. One notable initiative is Indonesia’s FoodStartup Indonesia, launched in 2016 by Bekraf and Foodlab. Since 2020, the program has been organised by the Ministry of Tourism and Creative Economy and managed by Ultra to connect food and beverage SMEs with funding and market access, fostering accelerated growth in Indonesia’s food and drink industry. Since its inception, the event has registered over 26,000 participants and facilitated the disbursement of USD 16 million.
Sustainable practices and technologies are crucial in mitigating the impact of heat waves on food production and distribution in Southeast Asia. Food tech startups in Southeast Asia are at the forefront of this effort, leveraging innovative solutions like vertical farming, precision agriculture, and alternative proteins to build resilient food systems that enhance resource efficiency and reduce waste. With continued support from governments and investors, these startups can ensure a resilient and sustainable future for the region’s food security.