Cargill and EDB in 3-year deal to build startups

GLOBAL food company Cargill has struck a 3-year partnership with the Singapore Economic Development Board (EDB) to incubate startups solving issues in Asia-Pacific’s food and agriculture industry. It will invest “millions of dollars” in the venture.

Cargill, the largest privately-owned company in the US by revenue, is launching its first digital business studio in Asia designed to support local founders. It plans to build a portfolio of at least 5 new startups in Singapore, where the government has recently been rolling out initiatives to encourage corporate innovation and venture.

“This is a unique model where entrepreneurs can transform the industry and make lasting change on a regional and even global scale. The opportunity to wake up every day and create solutions that improve lives and nourish the world is game-changing,” said Eric Parkin, Cargill’s global digital business studio leader, in a press statement.

Farmers across Asia face challenges including inconsistent crop yield, low access to credit or financing, and limited visibility to constantly shifting crop prices, Cargill noted.

Small to medium-sized restaurants and retailers in South-east Asia are bogged down by manual processes and a fragmented base of suppliers for ingredients. Digital advancements, such as a unified business-to-business food ordering system, can increase the reliability of the ingredient supply chain, the group added.

Cargill has incubated 4 businesses under its business studio globally so far, including an advisory platform and marketplace for small farmers in India, and a contactless food pickup system targeting businesses in the US.

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Cargill has innovation centres in Singapore, Gurgaon, Beijing and Shanghai where it works on animal protein, refined oils, sweeteners, starches, cocoa, texture solutions and unique flavours.

Last month, the company joined other commodities giants like the Louis Dreyfus Company in backing ProfilePrint, a Singapore-based startup that provides “food fingerprint” solutions to assess the quality of ingredients.