Global networks crucial for 'Foodpolis'
Andrew Grant, on the rostrum, general manager of McKinsey & Company’s global public sector practice, speaks about the latest trends in the food industry during an international conference at the Grand Hyatt Hotel in Seoul, Wednesday. Courtesy of the Korea National Food Cluster Team
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Innovation happens through networks, not in big laboratories’
By Park Si-soo
The success of the country’s first state-funded food cluster hinges on connections and collaborations with similar clusters in other countries, said a renowned food business consultant from the Netherlands, Wednesday.
“Innovation happens through networks, not in big laboratories,” said Ad Juriaanse, managing director of NIZO Food Research, during an international conference at the Grand Hyatt Hotel in Seoul, referring to the envisioned Korea National Food Cluster, also known as “Foodpolis.”
He called on officials in charge of the complex, which will be completed in Iksan, North Jeolla Province for operation starting in 2015, to become “flexible and international,” describing them as core recipes for success that had been applied to several flourishing industrial towns such as Food Valley in the Netherlands, Napa Valley in the United States and Oresund in Denmark.
The conference took place to promote the cluster to potential investors. More than 100 people from food companies at home and abroad, journalists of foreign media outlets and officials from the Ministry of Agriculture, Food and Rural Affairs (MAFRA) and Iksan City were invited to the event.
An artist's concept of the Korea National Food Cluster that will open in Iksan, North Jeolla the Korea National Food Cluster at Grand Hyatt Hotel in Seoul, Wednesday. Province, in 2015. More than 160 food companies and research centers at home and abroad are expected to invest in the industrial complex specializing in food products. / Courtesy of Ministry of Agriculture, Food and Rural Affairs
The government is making a last-ditch effort to host a groundbreaking ceremony for the cluster during the second half of the year at the latest.
“It will be my mission to raise the profile of the food industry and help Korea’s agriculture sector become more competitive,” said MAFRA Minister Lee Dong-phil in a written message. “Located close to China, Foodpolis is poised to become the new center for food for Northeast Asia, which caters to a population of 1.5 billion.”
The cluster, which costs 553.5 billion won ($499.5 million) in state funding, will transform 2.32-million-square-meters of land in Iksan into what officials claim to be an “Asian hub” of food companies and research centers by 2015.
It will feature a sizable residential zone in which the employees of tenant companies will enjoy various residential, educational and cultural services. In addition, tenant companies will be given, without exception, an extensive incentive package that includes tax exemption, state funding support and consulting services among others.
“The cluster will generate a strong synergic effect by bringing together companies and research and development (R&D) centers on a site,” said Kim Kyung-mee, director in charge of the project at the ministry. “We expect close collaboration between companies in the cluster and national agriculture and food R&D institutes. These partnerships will lead to advances in food processing technology, allowing exports of commodities produced within the cluster efficiently through seaports and airports nearby.”
More than 60 companies and food-related research centers have already promised to have their presence in the cluster. They include CJ Cheiljedang, and Dongwon F&B of Korea, NIZO Food Research of the Netherlands, Jalux of Japan, SunOpta of Canada and InstantLabs of the United States.
The latest entrant to the cluster is Italian food company Forno d’ Asolo, which signed a memorandum of understanding on business cooperation with the cluster on Wednesday.
The government is aggressively promoting the project at home and abroad to meet its target of attracting 160 corporate investors, including 30 from overseas.
The country’s largest food maker CJ Cheiljedang gave a presentation on its global food business and related strategies during the conference. “Certainly, it’s a matter of time before we reach the target,” Kim said.
Shin Hyun-soo, director of the CJ’s global business division, said that the company aims to generate 3 trillion won in annual sales in overseas markets by 2020, up from this year’s goal of 550 billion won. To that end, he said, the company will become more aggressive in mergers and acquisitions, building overseas manufacturing bases for production of commodities in the local area.
“Understanding our target markets and customers is the first thing to do,” Shin underscored. “Precise understanding is possible only with talented workers and a corporate culture that maximizes their capability.”
Leadership specialist Michael Conforme, country manager of PI Korea, said the most valuable assets to any company are its employees.