S. Korean farm co-op to open U.S. feed factory

By Lee Joon-seung
SEOUL, Sept. 19 (Yonhap) -- South Korea's agricultural cooperative said Friday that it will open a feed factory in the western United States next month that can ensure a cheap and steady supply to local livestock farmers.
The factory in Albany, Oregon, was bought from ACX Pacific Northwest Inc. with
preparations underway to produce feed for shipment to South Korea, Nonghyup Feed
Co. said. The factory is expected to ship its first feed shipment in late
October.
The company, a subsidiary of the National Agricultural Cooperative Federation
(Nonghyup), said opening the plant is significant since the feed that is to be
sent can be priced US$5 to $10 cheaper per ton compared to other U.S. suppliers.
"This can help limit moves by other companies to raise prices, while at the same
time ensuring a steady supply of good quality feed can be brought in from the
United States," said a Nonghyup spokesperson.
In 2007, South Korea produced 3.61 million tons of various feed and imported
999,000 tons to meet domestic demand. International feed prices have risen
sharply in recent months, giving the recent deal added economic importance.
In addition to the U.S. plant, Nonghyup said it is pushing to develop a
large-scale corn farm in Indonesia that can be used for animal feed.