In April, POSCO International announced its growth strategy, which included a detailed plan for entering the food business and becoming one of the world's top 10 major food companies.
The company aims to achieve this goal by 2030 through three strategic directions: securing a global raw grain procurement system, establishing a stable food value chain, and fostering new Ag-Tech businesses.
To secure a global raw grain procurement system, POSCO International plans to secure 860,000 hectares of arable land by 2030. This is about 15 times the size of Seoul. The company plans to achieve this by forming joint ventures with agricultural companies in major producing countries such as Australia, North America, and South America.
Last December, POSCO International formed a partnership with Australia's Hancock to secure 250,000 hectares of wheat plantation. The company also plans to acquire excellent agricultural companies in the Black Sea region to secure an additional 500,000 hectares of agricultural assets.
Establishing an annual production capacity of 7.1 million tons is also a crucial strategy for food security in South Korea.
POSCO International plans to achieve this by securing an annual production of 5 million tons through agricultural assets in the Black Sea region, 1 million tons in South America, 500,000 tons in Australia, and 60 million tons in Central Asia and Southeast Asia. The company aims to directly or indirectly produce 10,000 tons of grain.
In addition to grains, POSCO International's food business portfolio includes palm oil and cotton. The company plans to expand its successful palm farm in Indonesia and comply with environmental standards required by the international community.
The company also plans to expand its cotton spinning business by increasing the cultivation area to 50,000 hectares and replacing cotton spinning facilities. Last year, POSCO International allocated 5.2,000 hectares of cotton cluster plantation in Uzbekistan, which is 18 times the size of Yeouido, and laid the foundation for vertical integration from cotton cultivation to product production.
POSCO International's food business plan aims to establish a strong global presence in the food industry. Through strategic partnerships and investments, the company plans to secure a stable food value chain and become a major player in the industry by 2030.
