POSCO Inter, First Domestic Supply of Ukrainian Terminal Imported Grains

[Asia Economy Reporter Su-yeon Woo] POSCO International has started the full-scale supply of feed wheat imported through a Ukrainian grain terminal to the domestic market. This is seen as the beginning of the results of "national food security," emphasized by POSCO Chairman Chey Jong-woo, as a stable grain supply system has been secured.

POSCO International (hereinafter POSCO Inter) announced on the 22nd that it imported 68,000 tons of feed wheat from Ukraine together with Nonghyup Feed, the largest feed grain importer in Korea. Of this, 41,000 tons were imported through the Ukrainian grain terminal invested in by POSCO Inter.

This food import is significant as it is the first case of a domestic company stably supplying high-quality feed grains to Korea from an overseas grain export terminal in which it has invested.

Loading feed wheat at Posco International's grain export terminal in Ukraine / Photo by Posco Inter

It also draws attention for securing fixed trading opportunities in the feed market through collaboration with Nonghyup Feed and the Ministry of Agriculture, Food and Rural Affairs amid the recent unstable grain supply market. Recently, due to COVID-19, major food-exporting countries have focused on stockpiling their own food supplies, and major overseas grain companies have dominated the international grain market, intensifying the imbalance in the global food market supply and demand.

Last year, Korea's wheat demand was 3.43 million tons, of which domestic production was only about 20,000 tons. The remaining quantity is entirely dependent on imports. Of this, 2.55 million tons are for food use, and feed wheat is being substituted with other grains such as corn depending on grain price fluctuations.

POSCO Inter expects that by expanding imports centered on wheat and corn, using the initial supply of feed wheat as a stepping stone, the establishment of a stable national grain procurement system utilizing the export terminal owned by the company will gain further momentum.

In 2018, Chairman Chey selected the development of the food business as one of the 100 major reform tasks, and POSCO Inter completed a grain export terminal capable of shipping 2.5 million tons annually on the Black Sea coast of Ukraine last September.

Through this, by selling grains such as corn and wheat to the European Union (EU), Middle East and North Africa (MENA), and Asia regions, POSCO Inter is strengthening its position in the global market and plans to develop Ukraine as a key hub for grain trading.

Joo Si-bo, President of POSCO Inter, emphasized, "By growing the food business selected as a future core business and establishing a system to stably procure overseas agricultural resources domestically, we will contribute to the government's food security policy. Through this, we plan to participate in solving social problems related to the food crisis and practice POSCO Group's 'Corporate Citizenship' management philosophy."

Meanwhile, key officials including Koo Kyung-ryong, Head of POSCO International Food Materials Division, Jo In-cheon, Executive Director of Nonghyup Feed, and Kim Jeong-han, Vice Chairman of the Overseas Agricultural Resources Development Association, attended the observation ceremony held in conjunction with the unloading of imported grains on the same day.

This content was produced with the assistance of AI translation services.