POSCO Inter, First Domestic Supply of Edible Corn to Ukraine Grain Terminal

POSCO International supplied edible corn to the domestic market for the first time through its own grain terminal in Ukraine (photo).

Photo by POSCO International

[Asia Economy Reporter Ki-min Lee] POSCO International has supplied edible corn to the domestic market for the first time through its own grain terminal in Ukraine. POSCO International plans to focus on developing its food business to secure profitability while contributing to national food security.

On the 1st, POSCO International announced that it supplied 50,000 tons of edible corn to Daesang, Samyangsa, and CJ, the largest edible grain importers in Korea, through Gunsan and Incheon ports. Of this amount, 23,000 tons were supplied through the grain terminal in Ukraine owned by the company. The imported corn will be processed and sold as starch syrup products.

Ukraine is a major grain exporting country, with exports increasing more than fourfold from 12 million tons in 2010 to 55 million tons in 2020. It accounts for 10% of the global wheat export market and 18% of the corn market, making it one of the world's key grain-producing regions.

Given the rising concerns over agflation, the continuous increase in agricultural product prices, such grain imports are expected to contribute to future food security.

POSCO International plans to focus on strengthening the profitability and growth potential of its food business, one of its three core businesses alongside steel and energy. In September 2019, the company completed a grain export terminal with an annual capacity of 2.5 million tons on the Black Sea coast of Ukraine, through which it sells grains such as corn and wheat to the European Union (EU), Middle East and North Africa (MENA), and Asian regions.

A POSCO International official said, "To achieve our vision of becoming a global Top 10 comprehensive food business company, we are continuously expanding our business with a target of 9 million tons this year, a 13% increase from last year, and 10 million tons in 2022."

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