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| Posco International's palm oil plantation in Indonesia / Courtesy of POSCO International |
By Kim Hyun-bin
POSCO International will become one of the world's top 10 grain producers by 2030 by securing more farmland and building more grain processing facilities abroad, the company said Wednesday.
To become the Korean version of multinational grain and livestock feed producer, Cargill, POSCO International plans to invest heavily in three strategies by 2030: securing a global raw material procurement system, establishing a stable food value chain and fostering new Ag-Tech businesses, according to the company, Thursday.
The goal is 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. All of which, will amount to an area which is about 15 times the size of Seoul.
POSCO International has already established a partnership with Hancock Prospecting in Australia to secure a 250,000-hectare wheat cultivation site and plans to secure an additional 500,000 hectares of farming assets through acquisitions of superior farming companies in the Black Sea region.
According to POSCO International, establishing an annual production capacity of 7.1 million tons is a necessary strategy for achieving food security. The company plans to secure an annual production of 5 million tons through farming assets in the Black Sea region, 1 million tons each from North America and Australia, and 600,000 tons from other regions such as Central Asia and Southeast Asia.
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.
POSCO International plans to expand into the processing sector and handle 2.34 million tons of products annually to enhance profitability. The company also 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.
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