Posco International unveils growth strategy for food business

Posco Tower in Songdo, Incheon (Posco International)

Posco International said Thursday it has set a detailed growth strategy for further developing its food business and accelerating its transition into an eco-friendly comprehensive company.

Posco International first entered the food business in 2015, where it rapidly grew into one of the largest food companies in Korea. Its latest plan aims even higher – becoming one of the top 10 food companies in the world.

“We will tackle the challenge of becoming a major global food company by progressively developing our food value chain, which is one of our seven core business areas,” the company said.

The company aims to successfully operate a system with 860,000 hectares of farmland, 7.1 million metric tons of annual grain production output, and 2.34 million tons of processed goods a year by 2030.

To achieve this, a three-point strategy will be implemented, which includes securing a global grain procurement system, establishing a stable food value chain and fostering businesses specializing in agricultural technology.

Posco International plans to secure grain assets for 860,000 hectares of farmland through cooperation with agricultural companies from key grain-producing regions such as Australia and the Americas.

On the other hand, it will use both direct and indirect farming production methods in global areas including Central Asia and South America, which it expects will result in 7.1 million tons of grain produced a year. This is necessary for supporting food security, the company explained.

The company also aims to boost its profitability by entering the processed foods business and producing 2.34 million tons of processed goods a year.

Last year, Posco International recorded 100 billion won in profits for its palm oil business. This time around, the company will use this experience to expand its palm oil value chain through its refining plant in Indonesia while complying with international environmental standards.

“We will do our best to contribute to national food security along with the quantitative and qualitative growth of our food business,” the company said.