POSCO INTERNATIONAL CORPORATION POSCO INTERNATIONAL Collaborates
- Signed a partnership agreement with Nonghyup Feed for securing imported feed ingredients and developing collaborative projects on the 27th
- Continues to strengthen the business foundation through constant partnership efforts continued from November 2022
- Expects the stable procurement of imported feed ingredients to contribute to domestic price stability and food security in Korea
POSCO INTERNATIONAL (Vice-chairman Jeong Tak) has renewed its partnership with Nonghyup Feed (CEO Kim Gyeong-Su), the largest feed company in Korea, to stabilize the domestic feed market and address supply chain challenges.
Following the initial agreement made in November 2022, this collaboration marks the second phase of business cooperation between the two companies, focusing on ensuring 'a stable supply of imported feed.'
On the 27th, Lee Kye-In, Chief Officer of Global Business Unit at POSCO INTERNATIONAL, and Kim Gyeong-Soo, CEO of Nonghyup Feed, signed a memorandum of understanding (MOU) for cooperation for stable procurement and development of joint projects for importing feed ingredients at the POSCO Center in Seoul.
Under the new agreement, POSCO INTERNATIONAL and Nonghyup Feed have decided to work on ▲grain imports via POSCO INTERNATIONAL's overseas grain terminals, ▲long-term supply contracts for feed ingredients such as palm kernel meal, ▲joint development and investment in overseas food business, and ▲information exchange through POSCO INTERNATIONAL's global network.
*Palm kernel meal: The by-product of oil palm extracted from the fruit kernel, which is used as feed ingredient.
Furthermore, the companies have agreed to collaboratively explore ways to boost imports of Ukrainian grain in light of the difficulties faced in obtaining these supplies since Russia's suspension of the Black Sea grain deal in August.
This agreement marks an important step in building a consensus and a sustained collaborative framework between two of South Korea's major food business companies, whose joint efforts are aimed at establishing a robust supply chain for feed ingredients within Korea.
In its ongoing commitment to bolster food security, POSCO INTERNATIONAL has expanded its range of global investments with the recent advancements into the U.S. market for investments in soybean oil extraction facilities and procurement assets, alongside its existing ventures in Ukrainian grain terminals, Indonesian palm farms, and a Myanmar rice milling plant, thus making significant progress towards securing stable domestic supplies of key feed ingredients, including soybean meal and palm kernel meal. These strategic initiatives mark a considerable step forward in establishing reliable sales outlets and enhancing food security in Korea.
Furthermore, the collaboration with Nonghyup Feed is expected to strengthen their bargaining position in price negotiations with major global food corporations, likely leading to positive outcomes for national price stability and food security.
Nonghyup Feed, which dominates 31% of South Korea's feed market and stands as the country's largest feed company, imports and processes primary grains like corn and wheat from regions including the U.S., South America, and Ukraine. These imported grains are then supplied to local livestock farms, contributing significantly to the agricultural sector.
Aiming to be among the 'top 10 global eco-friendly agricultural corporations' by 2030, POSCO INTERNATIONAL is strategically expanding its ambitious operations by cultivating 860,000 hectares (about 15 times the size of Seoul), handling 7.1 million tons of production, and processing 2.34 million tons to reinforce its role as a pivotal player in Korea's food security.
"Following last year's achievements, it is meaningful to extend our strategic partnership with Nonghyup Feed into this year as well," said Lee Kye-In, Chief Officer of Global Business Unit at POSCO INTERNATIONAL, at the signing ceremony. "We are dedicated to contributing to the stability of the domestic feed market by continuously expanding our business and increasing the volume of food imports."
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Posco International Corporation published this content on 28 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2023 02:14:41 UTC.
