#22 GKC | 🧑‍🌾 Sustainable Agriculture and Food Security in Southeast Asia

Happy Friday! Just got back from a farm visit at Bandung, impressed by their work!

Continuing our Know Your Investors Series, in collaboration with Turbo Net Zero.

Turbo Net Zero is a pure-play sustainability consultancy company focuses on delivering ESG value-creation solutions for corporates and investors.

We’ll discuss about the evolving field of impact investing across Southeast Asia in three parts.

1. Overview of global impact investing frameworks

2. Sector-specific impact themes within SEA (Today’s Episode)

3. Case studies of successful impact investors and companies in SEA

Let’s get started!

Overview of Financial Inclusion & Empowerment In Southeast Asia

Sustainable agriculture is a holistic approach that integrates practices that support environmental health, economic stability, and social equity, using methods to reduce pollution, enhance soil fertility, and support biodiversity.

Combined with food security—which ensures consistent access to sufficient, safe, and nutritious food—sustainable agriculture forms the foundation of a resilient agricultural system capable of tackling global hunger, mitigating climate change, and supporting rural livelihoods, especially in climate-vulnerable regions like SEA.

Unlocking Financial Inclusion Opportunities in Southeast Asia

i. Sustainable Production

Sustainable production in SEA emphasizes eco-friendly farming practices that reduce chemical use, improve soil health, and support biodiversity, allowing farmers to achieve premium prices in global markets.

For instance, companies like Amru Rice in Cambodia have shifted to organic rice production, training farmers in organic standards to access premium EU and U.S. markets. Thai Wah’s cassava project in Cambodia similarly focuses on organic practices, supporting smallholders through fair pricing and training.

Government support in SEA, especially in Thailand and Malaysia, includes subsidies for organic fertilizers and incentives for eco-friendly practices. However, high certification costs, technical knowledge gaps, and limited rural infrastructure remain barriers. To fully realize SEA’s potential in sustainable production, ongoing investment in training, infrastructure, and market access is essential.

ii. Sustainable Agricultural Technology (AgTech)

Key areas include precision agriculture, controlled environment agriculture (CEA), and digital farm management. Precision agriculture, which uses data and IoT for efficient input management, is gaining traction in SEA, optimizing yields and minimizing waste.

Early-stage investment in SEA’s AgTech is growing, supporting innovations like smart irrigation, nutrient management, and digital tools. Notable developments include Malaysia’s IRGA and Kingoya partnership, focused on automation in plantations, and Enza Zaden’s R&D efforts to create seeds tailored for SEA’s climate.

However, widespread AgTech adoption faces hurdles, including high initial costs, limited rural connectivity, and the need for farmer training. Public-private partnerships are also enabling digital access and marketplace connections for smallholders, helping to build a robust AgTech ecosystem in SEA.

iii. Conservation & Climate Change

SEA faces increasing extreme weather events, such as typhoons, floods, and droughts, which threaten food security and rural livelihoods. Key conservation efforts focus on water management, soil conservation, agroforestry, and climate-resilient crops.

Agroforestry, which combines crops with tree planting, is gaining traction as a climate-smart practice. Thai Wah’s cassava project in Cambodia uses agroforestry to improve soil health, prevent erosion, and promote biodiversity. Additionally, sustainable water practices are critical for regions like the Mekong Delta, where rising sea levels threaten rice production.

Challenges in conservation and adaptation include limited funding, technical knowledge gaps, and underdeveloped water infrastructure. SEA governments are partnering with international organizations, such as the Asian Development Bank (ADB), to support climate resilience through resources for sustainable water and soil management in vulnerable areas.

Investment Landscape in Southeast Asia

The chart illustrates the distribution of current investor and corporate investments across Southeast Asia's sustainable agriculture value chain, covering upstream to downstream activities.

Investment spans production, aggregation, processing, and distribution, with notable concentrations in production (48%), processing (70%), and manufacturing (61%).

Notable Sustainable Agriculture Investors

• responsAbility: Leading impact asset manager specializing in private market investments across emerging markets, focusing on Financial Inclusion, Climate Finance, and Sustainable Food.

• USAID Green Invest Asia: $446M climate fund for sustainable agriculture and forestry in SEA, targeting rubber, rice, coffee, cacao, and forest restoration.

• Grow Asia: Launched the GrowBeyond Fund which targets over 70 million SMEs in the region, promoting climate-smart agriculture, regenerative practices, and innovative technologies to address pressing climate challenges.

Key Takeaways

In the realm of sustainable agriculture, these key themes not only align with global sustainability goals but also present significant impact opportunities for investors aiming to create a positive ecological and social footprint.

Again, thank you Turbo Net Zero for this amazing content collaboration. (Check out our other collab content!)

If you are an impact investor looking to implement ESG strategies OR corporates exploring impact measurement strategies, hit Kenny up!

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Hope this is helpful! 🙂 

Feel free to reach out via LinkedIn or email if you have more questions.

References

• Roland Berger. Agriculture in Southeast Asia: Investment Opportunities

• Grow Asia. Grow Asia Launches its Largest Public-Private Climate Fund to Leverage $1bn of Green Investment

• USAID. USAID Green Invest Asia

• Singapore Economic Development Board. Southeast Asia’s Green Economy: 2022 Report

• OECD Pilot Project on Responsible Agricultural Supply Chains in Southeast Asia: Final Report

• Impact Investing in Sustainable Food and Agriculture across Asset Classes

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