July 22, 2008

South Korea feed company eyes northern Philippines as corn source

Korean feed company KC Feed Co is sourcing for feed corn in Tabuk City, Kalinga province in the northern Philippines.

Company representatives, in meetings with the city government, said they were ready to purchase 20,000 tonnes of corn initially. The purchases may be expanded into an annual deal. 

Local officials say the city would be able to handle the extra demand as it is currently utilizing a total of 3,000 hectares for yellow corn production. Yellow corn is commonly used for animal feed.

As farmers are harvesting twice a year, 2,000 hectares could already produce around 26,000 tonnes and that production could still be increased if empty land plots could be developed for corn production, Cawis said.

Company representatives have conducted soil tests in the region and sourced for exporters in the city. 

K C Feed Co., Ltd. produces both swine and chicken feed.

During the year ended December 31, 2007, the company had a production capacity of 240,000 tonnes of feed with actual output of 200,768 tonnes, with feed for chickens accounting for 59 percent and feed for pigs accounting for 30 percent of total revenue.

High US corn prices has forced South Korea to look for non-traditional suppliers of corn as traditional suppliers such as China and India closed off exports to contain rising prices at home.