Knowledge | Asia Food Challenge Report 2025
Rabobank, in collaboration with Temasek and Oliver Wyman launched the fourth edition of The Asia Food Challenge report in Singapore, highlighting the growing water stress across Asia and its profound economic, environmental and social implications. Launched in 2019, the Asia Food Challenge reports are published biennially by Temasek, Rabobank, and now Oliver Wyman, focusing on Asia’s agri-food challenges and catalysing strategic investments across the region’s agri-food system.
“Water is not just a resource - it’s a shared foundation for food, nature and society - Rabobank's vision on water”
Scaling innovation to tackle Asia’s agricultural water stress
Asia’s food security is at a critical point as a fastworsening water crisis threatens the region’s future. The report finds that that, without urgent action, up to one billion more people could face water stress by 2035, deepening food insecurity, disrupting supply chains, and amplifying economic and social risks across Asia.
Agriculture consumes more than 80% of Asia’s freshwater, even though the region produces over half of the world’s crops and is home to roughly 60% of the global population, where food systems and rural communities remain highly exposed.
The analysis finds water stress across Asia has risen recently and could escalate sharply over the next decade. If action is delayed, as many as one billion additional people could be pushed into water stress, which would in turn deepen food insecurity, disrupt supply chains and increase economic and social risks across multiple countries.
However, the report also identifies a clear, practical pathway to avert that outcome by scaling proven, cost-effective solutions. By adopting efficient water irrigation, precision farming, soil regeneration, improved water networks and modest dietary shifts, policymakers and investors can reduce farm water use by about 10% and save roughly 214 billion cubic meters of water by 2035.
Importantly, the case for action is economic as well as environmental. Implementing these solutions would require an estimated US$136 billion investment and would deliver approximately US$141 billion in annual combined benefits; in particular, more efficient water and input use can boost crop yields by up to 40% and cut fertilizer use by around 30%, producing roughly US$98 billion in added value from higher productivity and lower costs.
Beyond productivity gains, these measures strengthen resilience and reduce harm. Drought related yield losses in Asia range from 6% to 50% and by implementing improved practices and tools, c.US$15 billion can be avoided on average, while also lowering greenhouse gas emissions from paddy systems and reducing agricultural runoff that degrades freshwater resources. Despite this potential, agri-water technology currently receives only about 2% of climate technology funding.
Rabobank’s Asia Head of RaboResearch Food & Agribusiness, Dirk Jan Kennes, commented: “Water is not just a resource - it’s a shared foundation for food, nature and society. Rising water stress is threatening crop yields, livestock health and food security across the region. The good news is that proven technologies and practices already exist to improve water efficiency and reduce agricultural water usage. By investing in water distribution infrastructure and sustainable farming practices such as precision irrigation and soil management, stakeholders can collectively address the challenge of water stress while enhancing resilience across the entire food system.”
