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Korea Captures Efficiencies of Large-Scale Production

by 5m Editor
29 March 2010, at 9:18am

US - Korea’s swine sector is the largest consumer of feed grains in the country, consuming more than 3 million metric tons in 2009.

According to US Grains Council Director in Korea Byong Ryol Min, Korean production only met 79 per cent of the nation’s total demand for pork in 2009, forcing importation of the remaining demand. Mr Min said imported pork will continue to grow unless Korea can maintain its current level of swine production. Korea imports 97 per cent of its feed grains supply with the United States holding a 58 per cent market share.

“Korea’s swine industry is hindered over its inability to supply quality products at competitive costs. This is mostly due to limitations in available land, causing small and independent hog farmers to dominate the market,“ said Mr Min. “The Council is working with the industry on their business models and management techniques to help them capture efficiencies of larger-scale production.“

This week, a team of Korean swine integrators traveled to Minnesota, Iowa and Missouri to learn US swine business and management practices. This programme provided the team the opportunity to thoroughly study coordinated business models, swine production systems and large-scale sow farm management.

“In 2009, Korea imported 5.8 million tons of US feed grains. We don’t want to lose this market. Team members now have the knowledge needed to maximise their business practices. The Council will follow up with the groups to ensure successful application of the production and business model recommended by the Council,“ said Mr Min.

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