Unable to sustain high costs, family farm calls it quits after 6 decades

SINGAPORE — It started out as a coconut plantation in Yio Chu Kang in the 1960s, became a pig farm in the '70s in Punggol, then transformed into a hydroponic vegetable farm in the '90s. 

Come June 30, that is when it all ends.

With its lease ending this December, Oh Chin Huat Hydroponic Farms, located along Bah Soon Pah Road in Yishun, has chosen to cease operations instead of relocating to a new site.

Four generations of the Oh family have seen through the business in its various incarnations but the cost of relocating has become too much to bear.

The 2.4 hectare farm, known as Oh Farms for short, has been at its present location for the last three decades.

However, the land it sits on has been earmarked for residential development. The farm, along with two other farms and nine nurseries in the area, were informed by the Singapore Land Authority (SLA) in 2017 that the land will be redeveloped.

While the other two farms, Pacific Agro Farm and Green Valley Farms, have taken up the authorities’ offer to extend their tenancy and lease respectively until the end of December next year, Oh Farms, which was offered the extension in the middle of last year, declined.

In a joint response to TODAY, SLA and the Singapore Food Agency (SFA) said that the farm’s owner, Mr Ore Yock Keong, had previously informed them that the farm will not continue its operations as he is retiring.

'NOT ECONOMICALLY FEASIBLE' TO MOVE AGAIN

Speaking to TODAY on Saturday (June 13), Madam Tan Lay Tin, one of the 15 family members working on the farm, said in Mandarin that she has mixed feelings about the closure.

“I’m getting older and more tired, but it would be a lie to say I don’t feel sad when I see them taking down the greenhouse sheds,” the 60-year-old said.

The farm has not just been a place for work, but for significant family moments such as her daughters’ weddings and Chinese New Year family reunions.

The business is now managed by three of the late Mr Oh’s grandsons and their nephew.

Ms Ore Huiying, a fourth-generation farmer, said that it was not economically feasible for the farm to move again. She is the daughter of Mdm Tan and Mr Ore Yock Lee, one of the three grandsons managing the farm.

Ms Ore, 38, who also works as a freelance photographer, estimates that it will cost at least S$5 million to set up the farm in a new location.

This, coupled with the cost to reinstate the land before it is returned to the state, made it too expensive to move, she added. 

In their response, the agencies said that they were aware of the farm’s concerns about reinstatement costs and had rendered assistance on Monday.

Ms Ore said that while SLA’s assistance has significantly reduced the original estimate of half a million dollars to reinstate the land, the family will not reconsider its decision to shut.

She cited several reasons: The agriculture industry is not profitable, production cost for vegetables is high, and local farmers have to compete with cheaper imports within a small market.

Older family members also want a break from the mentally and physically demanding work on the farm, while younger ones such as Ms Ore’s cousins are not keen to continue the business.

IS '30 BY 30' ACHIEVABLE?

The reluctance of Oh Farms to continue its operations highlights the difficulties of running a farm in Singapore.

The Government aims to produce 30 per cent of the country’s nutritional needs by 2030, but food security experts said that the closure of one farm is unlikely to have a significant impact on production levels.

Professor Paul Teng, an adjunct senior fellow with the Centre for Non-Traditional Security Studies at the S Rajaratnam School of International Studies, noted that the Government is pushing for farms to improve their productivity through technology.

Addressing the issue of high production cost, Prof Teng said that despite modern technology, the cost of producing food in Singapore will remain higher than imported food in the short to medium term. This is because capital expenditure such as land and labour costs is high.

Prof William Chen, director of Nanyang Technological University's Food Science and Technology programme, said that farms can tap cheaper local innovations to boost production instead of relying on expensive overseas technology.

For example, he has developed a way to create inexpensive fertiliser by fermenting prawn shells with fruit waste.

In response to queries from TODAY, SFA said that it is working towards the “30 by 30” goal despite resource constraints and production levels of less than 10 per cent.

It is providing funding for innovative technologies, and supporting farmers in areas such as capability building and technology transfer, the agency added.

On the issue of space, SFA said it is aware that developing spaces for farming purposes is crucial to expanding food production.

It has awarded five tranches of agricultural land to companies with promising technology since 2017 and will be tendering out more land parcels later this year.

SFA said that it is also looking to open up alternative spaces such as rooftops to grow food, as well as find ways with the community to increase demand for local produce.

LOOKING FORWARD TO A BREAK

As Oh Farms winds down its operations and prepares to return the land, some in the family are looking forward to the break.

Ms Ore will be pursuing her photography projects full time. As for her father, it is time to stop and smell the roses.

“We worked for how many years already, 12 hours every day,” Mr Ore Yock Lee said.

“Our mind is only on work, no other thing. I don’t want to think so much when I retire.”

The family’s legacy could yet live on. Some of Ms Ore’s relatives plan to set up a company to sell hydroponic systems.