October 30, 2024
Singapore's sea-based fish farms face industry transition amid rising costs and environmental challenges
Approximately 25% of Singapore's sea-based fish farms have exited the industry over the past year, with many operators opting for a government-provided financial support package to wind up operations, The Straits Times reported.
According to the Singapore Food Agency (SFA), the number of sea-based fish farms declined from 98 in 2023 to 74 in October 2024, a marked reduction after a period of stability between 2019 and 2022, during which the number held steady at around 110.
The SFA provided a support package of up to SGD 100,000 (US$75,500) for farm operators choosing to exit the industry. At least five operators confirmed they had accepted this offer, aimed at alleviating the financial burden of closing their operations. Farmers were given a one-year period, from July 2023 to June 2024, to reinstate their sea space following closure, including the removal of all infrastructure from the seabed.
The financial support aligns with SFA's introduction of a new sea space management model in 2022, which mandates farms to pay for sea space usage, a cost previously exempted. By 2026, sea-based fish farms will be required to pay SGD 3,600 (US$2,721) annually for half a hectare of sea space, alongside an SGD 145 (US$109.61) yearly farm licence fee. To ease the transition, farmers are currently paying a reduced rate of 20% of the full fee in 2024 and will pay 50% in 2025.
Rising operational costs, changing environmental conditions, and retirement were key reasons cited by farmers for accepting the support package. Joseph Wee, owner of Aquablue farm, said he closed his grouper and lobster farm in the East Johor Strait in June 2024, taking advantage of the SFA's SGD 100,000 (US$75,500) package. Wee allocated around 30% of the package funds to demolish his farm structures, allowing him to retain the remaining amount as retirement savings.
Wee explained that maintaining sea-based structures is costly because of seawater exposure and weather conditions. Despite initially intending to sell his farm, he was informed that the SFA does not permit licence transfers, leaving him with the choice of continuing operations or accepting the exit package.
Farmers have also faced challenges in meeting the SFA's annual minimum productivity requirement of 17 tonnes per half hectare, a condition implemented since the 1990s to address space constraints. To support farmers who continue operations, the SFA provides account managers and financial assistance for adopting new technologies aimed at enhancing productivity.
Current industry operations are concentrated within the Johor Strait, where surrounding industrial activities, port operations, and nutrient accumulation have led to harmful algae blooms, negatively impacting water quality and fish stocks. An SFA study reported in 2020 that the Johor Strait is nearing its maximum production capacity, meaning further expansion could degrade water quality and reduce productivity.
Some operators, however, remain committed to the industry. Alvin Yeo, co-owner of Heng Heng Fish Farm, has decided to continue his family's business, switching from milkfish to tilapia, a species more sustainable for local waters. This decision aligns with an initiative that connects fish farmers with large retailers, such as FairPrice, through the Singapore Agro-Food Enterprises Federation (Safef).
Under the Safef initiative, tilapia from local farms is sold under the brand The Straits Fish. The federation aggregates fish from nine farms and hatcheries, encouraging a reliable market for locally farmed tilapia. This initiative has boosted demand for farms like Century Aquaculture, managed by Joe Ng, who breeds tilapia fingerlings for supply to farms across the Johor Strait. Ng anticipates scaling his monthly fingerling production to meet rising demand.
Daniel Tay of Straits Seafood has opted to stay in the business, adopting more robust aquaculture practices to meet standards required by the Safef initiative. Tay's farm, which previously cultivated Asian sea bass and red snapper, now focuses on tilapia with consistent demand. Tay noted that the Safef initiative provides a sustainable future for fish farming, with guaranteed buyers if quality standards are maintained.
- The Straits Times