South Korea firm leases Philippine land to grow corn for feed

Jeonnam Feedstock Ltd., a firm set up by the South Korean province of South Jeolla, has leased 94,000 hectares of farmland in Mindoro, Philippines, to grow 10,000 tonnes of corn per year for animal feed.

The lease is for 25 years, and the firm plans to buy more land in its effort to cut costs, according to provincial government official Lim Yong-muk.

Lim said the company will grow low-cost grain for feed production.

When feedstock prices surged last year, livestock breeders suffered from high costs and three farmers in South Jeolla committed suicide, Lim said. 

The government plans to start sowing in September.

South Korea, the world's third largest buyer of corn, is one of several nations that are seeking overseas farmland after last year's food price inflation highlighted the need for more food security.