January 21, 2011

South Korea to acquire grain elevator at US production site

South Korea plans to buy a grain elevator at a US production site, and acquire a stake in an elevator for their 2011 grain exports, the government said Thursday (Jan 20).

The agriculture ministry said that state-run Korea Agro-Fisheries Trade Corp (aT) was preparing detailed plans on an international grain trading house, while setting up a task force team between private and public companies.

Asia's fourth-largest economy said earlier this month that it was planning to establish its own grain trading company in Chicago in the first half of 2011 as it seeks to mitigate the impact of global food price volatility.

"Through a consortium with private companies, an international grain house will be set up this year with one elevator in a US production site to be bought and a stake in one export elevator to be bought," the ministry said.

"Based upon the results of this year's business, we will expand as this is a long-term business to establish a national grain procurement system," it added.

Last month South Korea said it would import four million tonnes of grains, or 30% of total imports, directly in 2020 through a new supply system to reduce dependency on global majors and increase food security.

aT formed a consortium with local food maker, trading and shipping companies-CJ CheilJedang Corp , Samsung C&T , STX Corp and Hanjin Transportation Co Ltd-for direct grain imports.