| 27/02/08  Increasing grain prices and a shortage of corn due to a
                        surge in bioethanol production are significantly impacting
                        on the South Korean feed industry.
 According to agriculture to aquaculture specialists Kiotechagil,
                      which manufactures a range of products for the animal feed,
                      grain and aquaculture industries, corn supplies are dwindling
                      and some mills are expecting to run out of wheat in the
                      next few months.
 Murray Hyden, chief technical officer at Kiotechagil explained, “South
                      Korea has a strong and growing animal feed industry but
                      this situation has lead to a change in the feed formulations
                      used in Korea. Feed mills are now buying any starch materials
                      that they can, and imports of manioc starch are increasing
                      to make up the deficit.”
 
 South Korea is one of the most important grain-importing
                      nations. In a typical year, the country buys more than
                      12.5 million tonnes of maize, wheat and other grains. Average
                      annual maize imports of 8.5 million tonnes for feed and
                      industrial use place South Korea in a close race with Mexico
                      for second place worldwide.
 
 “Manioc starch lost popularity in Europe due to slow
                      gelatinisation through pelleting operations,” explained
                      Kiotechagil’s Murray Hyden.  “Conditioning
                      times in Korea are very short at 10 – 15 seconds
                      rather than the 60 seconds normally used in the UK. Short
                      conditioning times do not pregelatinise the manioc and
                      as a result pellet quality is falling.”
 
 Murray Hyden suggests the use of a low inclusion binder
                      like Kiotechagil’s MASTERCUBE which will compensate
                      for the slow gelatinisation of manioc starches. It will
                      also reduce the need for double conditioning and double
                      pelleting and can therefore replace expensive and increasing
                      energy costs with an easy to use formulation change.
 
 South Korea has a population of about 48 million with a
                      landmass of 100,000 square kilometres, yet only 20% of
                      this is arable. The country depends on imports for 60-70%
                      its food and feed needs. This has increased from about
                      50% in 1990 and 40% in 1980.
 
 The feed industry in the country is growing with consumption
                      of corn for livestock feed averaging 6.7 million tonnes
                      over the past 5 years, an increase from under 2 million
                      tonnes in the late 1970s.
 
 Likewise, the production of layer and broiler chickens
                      is expected to increase due to strong demand for poultry
                      products. South Korea currently uses imported chicken meat
                      at restaurants and fast food chains but with the demand
                      for poultry products on the rise, this will lead to a production
                      increase in domestic production of both layer and broiler
                      chickens, which will require efficiency improvements in
                      feedmill operations especially with regards to energy usage.
                      Low inclusion binders like Kiotechagil MASTERCUBE can economically
                      maintain pellet quality when using lower grade starches
            without increasing energy costs.
 
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