The Korean government plans to set up a U.S.-based grain trading company to secure supplies and stabilize food prices. The government hopes that the company, which would be established with the private sector, will help Korea reduce its grain procurement from international commodity trading giants such as Cargill and Archer Daniels Midland.
“Relying on major multinational companies has made the country vulnerable to international speculation and has caused volatility in local grain prices,” a government official said. “We intend to establish a grain company in Chicago this year and make direct purchases from the international market.”
The grain company is expected to be a consortium of private and public companies, including trading firms and shipping companies, led by the state-run Korea Agro-Fisheries Trade Corp.