Retailer aims to provide best value for customers but the decision clashes with Singaporean domestic production goals
Singaporean retailer FairPrice Group has decided to reduce its domestic vegetable offering, with produce from three local farms no longer to be stocked.
According to a report from The Straits Times, FairPrice will no longer source from three urban farms, including Artisan Green, SG Veg Farms and Netafarm, the latter of which has decided to significantly scale down following the news.
The decision spotlights the balance retailers face as they mangage consumer expectations and a push by the Singaporean government to support local vegetable production to improve food security.
FairPrice Group told The Straits Times, the move was a result of a regular product review.
“We are committed to ensuring a stable supply of quality, affordable fresh produce for customers across our network. Part of these efforts involves continually refining our assortment to provide customers with a more relevant and value-driven selection of produce,” said its spokesperson.
“At the same time, we remain committed to supporting local production through our longstanding partnerships with local farmers and producers, alongside a range of initiatives to strengthen Singapore’s local food ecosystem.”
SG Veg Farms’ founder Eyleen Goh, who oversees two rooftop farms in Sembawang, and said the decision would have serious effects on the company. She noted local growers had to manage high costs and compete with imports and among themselves.
“We now have to urgently find alternative sales channels, and replacing such a large sales volume within a short timeframe is extremely challenging. Without doing so, the farm’s viability would be at serious risk,” Goh told The Straits Times.
“This comes on top of the many challenges local farms already face, including rising operating costs, higher fuel prices, unpredictable weather and increasing production costs.
“We understand that retailers have to make commercial decisions. This could happen with any retailer. We hope this situation highlights a broader issue facing Singapore’s local farming ecosystem – how do we ensure that market demand, shelf space and consumer support grow alongside local production?”
