Distinguished Guests,

Members of Parliament,

Ladies and Gentlemen,

Good morning.

1. All of us enjoy our food. We indulge in it passionately, be it at home, in hawker centres or restaurants. However, with food prices rising considerably in the past few months, we are starting to feel the pinch.

2. The recent food price inflation is a global phenomenon. There are many reasons for the increase in food prices, amongst which is the increase in grain prices caused by the diversion of agricultural land to produce bio-fuel crops, adverse climate such as floods and droughts affecting crop production, rising fuel prices, as well as dietary changes and increased consumption in developing countries like China and India.

3. As Singapore imports most of our food, we are not insulated from this trend of higher food prices. Singapore’s food price inflation went up by 2.9% in 2007. To address this problem, the government is working together with importers to further diversify our supply sources.

4. Let’s take meat for example. Countries that are able to comply with Singapore’s food safety requirements, are approved to export their meat or meat products to Singapore. 26 countries have been approved to export these products to Singapore.

5. Over the last two years, this diversification strategy has worked well to keep the price increase in pork and chicken manageable. The average retail price of pork rose by 1.6% from 2006 to 2007 while that of chicken increased by 2.9% for the same period¹ .

6. AVA will continue to work closely with the industry and its counterpart agencies in exporting countries to proactively facilitate the opening of more supply sources. We will not compromise on food safety. But we will make sure that we have an effective risk management approach in line with international standards and best practices, so that our import requirements are not overly stringent. This will keep our market open, and our consumers will benefit by having access to a wide range of food items imported at the most competitive prices.

7. I am also heartened to learn that the industry is actively doing its part in minimizing retail price hikes by offering discounts on food items. Consumers too, can stretch their dollar by adjusting their preferences and choosing cheaper alternatives, such as frozen meat. Frozen chicken and pork is about 15-20% cheaper than chilled meat. In fact, some cuts such as chicken drumstick and wings could be cheaper by about 50%.

8. AVA told me that some people are still resistant to using frozen meat because they think it is less tasty and wholesome. This is not true. Most of us are actually eating cooked or processed food prepared from frozen meat everyday. Today, about 58% of both chicken and pork we consume are of the frozen forms. The food processing industry including many restaurants and hawker stalls are already using frozen meat. It is also ironic that we will sometimes buy the more expensive chilled meat, only to store it in our freezers to keep it fresh as we are not cooking it within the next couple of days.

9 To help raise consumer awareness of the availability of frozen meat, AVA, together with industry partners, has rolled out a public education programme. The theme of the programme - “Eat Well For Less, Choose Frozen Meat” - encapsulates the key message that consumers can still eat quality products at a lower cost. The programme will educate consumers on the buying, handling, storing and cooking of frozen meat, and dispel the misperception that frozen meat is not fresh or tasty.

10. Working in collaboration with the media and the food trade, including all the major retailers and importers, there will be a series of activities over the next few months to promote the use of frozen meat products. These activities will include in-store promotions of frozen meat and food sampling. A roadshow will also be held at the HDB Hub in Toa Payoh on 22 and 23 March to enable us to reach out to a wider group of consumers.

11. I would like to take this opportunity to thank our industry partners who are working closely with us to help consumers manage their grocery costs. They are Angliss Singapore Pte Ltd, Carrefour Singapore Pte Ltd, Cold Storage Singapore Pte Ltd, Giant, NTUC Fairprice Co-operative Ltd, Ong Joo Joo Food Industries Pte Ltd, Prime Supermarket Ltd, Sheng Shiong Supermarket Pte Ltd, Shop N Save and Singapore Food Industries Pte Ltd.

12. While we all like to indulge in our food, we can continue to do so without having to pay more. Using frozen meat is one good way to “Eat Well For Less”. Thank you.

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