Key Highlights :
POSCO International, a Korean multinational grain and livestock feed producer, has announced its aim to become one of the world's top 10 grain producers by 2030. To achieve this goal, the company plans to invest heavily in three strategies: securing a global raw material procurement system, establishing a stable food value chain, and fostering new Ag-Tech businesses.
POSCO International plans to secure 860,000 hectares of farmland, 7.1 million tons of production, and 2.34 million tons of processed products through joint ventures (JV) with farming companies in major producing countries such as Australia, North America, and South America. This would amount to an area which is about 15 times the size of Seoul. To this end, the company has already established a partnership with Hancock Prospecting in Australia to secure a 250,000-hectare wheat cultivation site and is planning to secure an additional 500,000 hectares of farming assets through acquisitions of superior farming companies in the Black Sea region.
In the U.S., the world's largest grain producer, POSCO International plans to establish a local procurement system with leading companies to secure an annual supply of 3 million tons. In addition, POSCO International plans to expand into the processing sector and handle 2.34 million tons of products annually to enhance profitability. To this end, the company signed a business agreement with Daesang, the largest starch and syrup company in Korea, in February to enter the Vietnamese starch and syrup market.
"We will continue to focus on the quantitative and qualitative growth of our food business and lead the global food industry by maximizing synergies with our existing businesses," a POSCO International official said.
POSCO International's ambitious plans to become one of the world's top 10 grain producers by 2030 will be a major boost for the Korean economy. With its global procurement system, stable value chain, and new Ag-Tech businesses, the company is well-positioned to achieve its goal.