June 10, 2009

South Korea's KOGID Cambodia plans to invest US$150 million to grow and process corn for export, according to the Ministry of Agriculture, Forestry and Fisheries.

The corn will be grown and processed for animal feeds as part of a long-term investment, the company said.

KOGID plans to set up four corn drying plants, mainly in the northwestern province of Battambang, where 70 percent of Cambodia's corn is harvested, said KOGID country manager Kyung Sung-kye.

Kyung said Cambodia has great potential to double or triple corn production so KOGID can export more to South Korea.

The company aims to harvest 180,000 tonnes of Cambodian corn per year for export to South Korea, which imports seven million tonnes per year mostly from the US, Kyung said.

Tong Savuth, manager of KOGID Cambodia Co Ltd, said the company would invest only US$38 million from 2009 to 2012 as part of the first phase, and a multi-million dollar storehouse would be constructed to facilitate exports.

Savuth added they will encourage the government to give them land concessions after 2012.

Cambodia produces 611,000 tonnes of corn per year, most of which are exported to neighbours Thailand and Vietnam, according to deputy agriculture minister Chan Tong Yves.

Chan said KOGID plans to purchase 70,000 to 150,000 tonnes of corn this year from the provinces of Battambang, Pailin, Kampong Cham and Kandal, and will build corn-drying machines.