June 3, 2008

South Korea to produce more grain on escalating prices

South Korea plans to boost grain output which it either produces domestically or controls overseas to secure domestic stock.

The Korean government plans to lift the grain self-sufficiency ratio to 50 percent by 2030 from 26.5 percent, the Ministry for Food, Agriculture, Forestry and Fisheries said.

Half the target, which includes food and feed use, would be met locally, while the rest may come from South Korean-run overseas farms.

The government expressed needs to farm grains overseas in the longer term to secure sources for stable food supplies.

South Korean president Lee Myung Bak said in April the country may farm grain overseas, possibly signing 50-year leases for agricultural land in Russia's Far East.

Corn prices, which hit a record last month, have risen 56 percent in the past year due to robust demand from livestock and ethanol sectors.

Wheat has gained 47 percent, while soy have climbed 66 percent over the same period.