August 8, 2024

 

Potential re-evaluation may further delay setup of Singapore's fourth egg farm

 

 

Singapore's fourth egg farm, which was slated to be operational by 2024, may be re-evaluating the viability of setting up in the country.

 

The Straits Times previously reported that the farm, owned by local company ISE Foods Holdings (IFH), had faced delays in construction attributed to rising costs, and challenges linked to its biosecurity measures.

 

In an update to the Singapore Exchange on July 29, Ellipsiz, which has an 80% stake in ISE Capital Management, the main backer of IFH, said: "It is expected that a considerable amount of time and effort will be required to address these issues. Against this background, a re-evaluation of the viability of the egg farm project by the company, in consultation with the relevant authority, may also be required."

 

Ellipsiz noted that the impact of the pandemic, supply chain disruptions, and inflationary pressures due to geopolitical tensions, and the need to enhance the farm's biosecurity measures in the light of increased disease incidents in the region, have caused development costs to "rise significantly" above the initial estimates. This has led to challenges in project execution, further delaying the development of the egg farm.

 

The $100 million farm is designed to have the capacity to produce 360 million eggs a year. Together with the three existing egg farms, it will meet up to 50% cent of Singapore's egg consumption needs. The existing farms fulfilled 31.9% of egg consumption needs as at 2023.

 

IFH is currently in discussion with the Singapore Food Agency (SFA) for more funding support and greater land allocation to accommodate the additional biosecurity measures. It did not elaborate on the additional biosecurity measures.

 

In response to queries from The Straits Times, SFA said that IFH was granted in-principle approval to construct the commercial egg farm in October 2022, after it met the agency's requirements on the farm set-up and biosecurity measures.

 

SFA has not issued new requirements or changed any for biosecurity since 2022, said its spokeswoman.

 

"Following IFH's review of their plans in 2023 to further strengthen the farm's biosecurity measures, SFA has been working closely with IFH to provide them with the necessary support so that they can successfully set up their farm."

 

The agency is in discussion with IFH to seek clarity on its requests and plans. It said IFH made a formal appeal in May "on issues relating to funding support, further land allocation, and to accommodate increased biosecurity measures, extended development timelines, and further lease extensions".

 

The agency has not awarded any grants to the farm to date, said the spokeswoman.

 

This development comes as Singapore's overall food production – except egg production – fell in 2023, owing to inflationary pressures, rising energy prices, and manpower costs. Egg production rose to account for 31.9% of total egg consumption, up from 28.9% in 2022.

 

IFH's farm would be the first to cover the entire ecosystem of egg production in the country. It would house four facilities – an egg-laying facility, a day-old hatchery, a parent pullet farm, and a parent layer farm.

 

The egg-laying facility was supposed to commence operations in 2024, followed by the hatchery.

 

IFH was expected to produce some five million day-old chicks yearly.

- The Straits Times