January 21, 2010

Korean investors eye beef plant in US

Executives from South Korean FK Beef and a group of Korean investors are meeting with government business officials and looking at facilities in North Dakota to produce beef for export.

According to FK Beef executive vice president Hank Imm, the company hopes to build a new plant within two years, adding that their goal is to process 750 cattle per day at their new facility by 2012.
 

The company received a US$101,000 grant from the Agriculture Products Utilisation Commission (APUC) for a feasibility study.

Imm said the company's research shows that North Dakota raises enough cattle to meet the plant's goals. It might have to bring in some cattle from other states, but it wants to use only North Dakota beef, if possible.

North Dakota Stockmen's Association executive vice president Julie Ellingson said that due to fears of mad cow disease in US livestock, South Korea banned imports of American beef until 2008.

Ellingson noted that inroads into a large export market and the increased demand generated by a new processing operation will provide a boost to the state's cattle industry.

She added that North Dakota ranchers had the capacity to meet FK Beef's goal and that cattle feeding businesses would likely grow to meet the demand.

Meanwhile, a delegation of ranchers and government officials from Kazakhstan are also interested in North Dakota cattle. The delegation arrived in Bismarck last week to study cattle operations and to source livestock equipment.

The Kazakh government plans to spend US$80 million this year to improve the country's livestock industry, according to Jeff Zent, communications director with the North Dakota Trade Office.