Raising the Quality of Korean Forage Reduces Feed Costs and Import Dependence [FTA That Changed Agriculture] ②

Field Transformation Driven by FTA Support Measures
Reducing Forage Quality Variation and Establishing a Stable Supply System
Easing Feed Cost Burdens and Strengthening Domestic Production Infrastructure

One of the government's domestic support measures to reduce the burden on livestock farms and strengthen their competitiveness following the signing of Free Trade Agreements (FTAs) with 59 countries is the "Forage Production Infrastructure Expansion Project." Forage refers to roughage feed such as rice straw and pasture. Through this project, the establishment of region-based processing and distribution centers equipped with production, distribution, and processing infrastructure for domestic forage has led to a noticeable improvement in the quality and market credibility of domestic forage. The Jeonju-Gimje-Wanju Livestock Cooperative’s Kimje Textile Feed Factory, located in Gimje, North Jeolla Province, is considered a representative example.

The Kimje Textile Feed Factory was selected in 2012 as a beneficiary of the "Forage Distribution Center Support Project," and has since been equipped with storage facilities, small packaging equipment, and foreign matter removal devices, thereby establishing a systematic framework. A total of 3 billion won was invested in building the distribution center, including 900 million won from the national government, 900 million won from local governments, and 1.2 billion won in self-funding. The facility was completed in 2014. The purpose of the project at the time went beyond simply expanding drying and storage functions; it aimed to raise the uneven quality of domestic forage to a certain standard. Forage harvested by farms varied significantly in quality due to variables such as climate and soil conditions, which led to unstable supply and increased feed costs for livestock farms. With the establishment of the distribution center, these structural issues have gradually been addressed.

On the 9th, a pile of domestic forage (wrapped silage) stored at the Kimje Textile Feed Factory yard. The forage, which arrives in an uneven state immediately after harvest, undergoes primary processing here, including foreign matter removal and moisture adjustment, to standardize quality before being supplied to farms. Photo by Kang Nahum

Officials at the Kimje Textile Feed Factory, whom we met on December 9, explained that the recent operation rate has risen to 80%, and sales have grown to nearly 1 billion won. The government has analyzed that such region-based distribution centers have made a significant contribution to increasing the self-sufficiency rate of domestic forage from 81.2% in 2021 to 82.4% in 2023.

The most significant change has been the "standardization of quality." Factory manager Lee Kanghun emphasized, "Domestic forage is highly affected by climate, resulting in large quality variations, but after processing, we can maintain a consistent grade, and farmers' trust has improved noticeably." When it rains heavily during harvest, the moisture content increases, and it is common for soil and foreign matter to mix in. Forage dried directly in the field by farmers is difficult to distinguish in terms of quality and marketability by appearance alone, and since it is wrapped, it cannot be judged by its exterior, which has long fueled distrust in domestic forage.

This factory has addressed such issues through "primary processing." By going through moisture adjustment, impurity removal, and grading processes before shipping the final product, farms are now supplied with forage of more stable quality than before. The factory manager stated, "Ultimately, the ability to refine and sell the quality once is what has led to increased operation rates and sales."

The difference between domestic and imported forage is clear. Imported forage, produced through large-scale mechanized operations in vast plains, is highly uniform and well-dried, but it is expensive. In contrast, domestic forage is produced on fragmented plots and is subject to greater climate variability, resulting in larger quality variations, but it is more price-competitive. During the interview, the factory explained, "In the early days, farms did not prefer domestic forage, saying its quality was inferior, but the situation has changed significantly in recent years. With the introduction of grading systems and expansion of processing facilities, the quality has improved dramatically compared to the past, and farmers' responses have become much more positive."

Inside the Kimje Textile Feed Factory, domestic forage is processed. The harvested forage undergoes foreign matter removal, mixing, and cutting processes to be standardized into consistent quality. This is a key process that uniformizes the uneven quality of domestic forage and enhances farmers' trust. Photo by Kang Nahum

Quality improvement has also had a positive impact on the scale of farming and production efficiency. In the past, there was high volatility, with farmers sometimes able to buy good quality forage and sometimes not, but now the cooperative supplies a stable quantity, reducing supply instability. The factory manager said, "If the supply chain for domestic forage stabilizes, it helps reduce production costs and expand the scale of livestock farming. In particular, by supplying nationwide, including to farms in Gyeonggi and Gyeongsang Provinces where forage production is insufficient, the utilization of domestic forage has greatly increased."

In addition to Gimje, there are about three other forage distribution centers nationwide. However, Gimje serves as a collection hub for the North Jeolla region, absorbing surplus production from Jeolla provinces and supplying it to areas with forage shortages, thereby functioning as a logistics hub. This is evaluated not just as a strengthening of production infrastructure, but as a structure that directly contributes to nationwide supply stability.

However, there are also clear areas for improvement. Factory officials pointed out, "The labor costs paid to management entities responsible for forage cultivation and harvesting have not changed much compared to ten years ago. While fuel and labor costs continue to rise, support for labor costs is limited, making it difficult to further increase production." They added, "In order for management entities to continuously expand the forage production base, it is essential to bring labor costs in line with reality."

In the long term, responding to climate risks is a major challenge. Recently, frequent rainfall and high temperatures have directly led to a decline in forage quality, and if harvest is not timed properly, the moisture and drying conditions can vary greatly. Section chief Lee Changjun said, "With current technology, there are limits to preventing quality variation due to climate. The only viable solution is to continuously reinforce processing and storage facilities to maintain a certain level of quality."

The advancement of domestic forage is considered a key task for strengthening the competitiveness of the livestock industry. Given that the price, quality, and supply of forage determine the management of livestock farms, the role of region-based processing and distribution centers is expected to become even more important in the future. The factory manager said, "Although trust in domestic forage has increased compared to the past, there is still a long way to go. Expanding stable production infrastructure and support for management entities is essential to further strengthen the competitiveness of domestic forage."

The changes in Gimje, which began as a supplementary measure for FTAs, are seen as pointing the way forward for the domestic forage industry. The small change of "quality standardization" is leading to structural improvements such as restoring farmers' trust, stabilizing supply, and reducing feed costs. The case at the Gimje site is expected to play an important role in shaping future policies for the livestock industry as a whole.

Production support: Ministry of Agriculture, Food and Rural Affairs · Korea Rural Economic Institute