Singapore best suited to spread cold chain through Asia and beyond

Time:2016-08-29 Browse:86 Author:RISINGSUN
SINGAPORE holds the strongest potential for US reefer exports in a global market ripe for growth, according to the US International Trade Administration`s (ITA) 2016 Cold Chain Top Markets Report.

Not only can efficient global cold chain support cross-border trade in food and pharma, it reduces waste and eases food security concerns, reported IHS Media.

What`s needed, says the ITA, is a sound regulatory environment, a trainable skilled labour force, and demand within the country or region.

Singapore`s well-established infrastructure, business-friendly climate and high per capita income make it a top market for the cold chain, said the ITA report. 

Its proximity to the Association of Southeast Asian Nations (ASEAN) trading bloc make it ideal for cross-docking and distribution networks in the region.

"The population of Singapore is considered high income, with a per capita income of about US$80,270 (purchasing power parity) per year," the report states. 

"Unemployment has held steady around three per cent, and inflation was low, around 0.2 per cent, in 2014," said the ITA report.

"Singapore`s retail food sector is one of the most advanced in the world. Food spending is expected to reach nearly $9 billion by 2020." 

The mature nature of Singapore`s mass grocery retail sector is evidenced by intense competition, which ensures that retailers must be highly innovative to compete.

"There is also strong demand for fresh products in Singapore; even busy professionals who cannot make frequent treks to the market buy fresh produce and freeze it to consume later," it says. 

"Therefore, significant opportunity exists for firms to sell food items that are both fresh and readymade or easy to prepare."

"The development of cold chain systems is a force multiplier that can generate exports and open new markets over multiple sectors over an extended period, rather than a one-off export transaction that can be quantified simply as an export success," said the ITA report.

"The World Economic Forum lists food crises as fourth on its top global risks of highest concern for the next 10 years," it said. 

"Globally, billions of dollars are spent on improving agricultural processes to create higher food yields, but the fact that nearly half of all food never makes it to a consumer`s plate is largely ignored."