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 farmers and enhance their competitiveness after signing Free Trade Agreements (FTAs) with 59 countries is the "Forage Production Infrastructure Expansion Project." Forage, which consists mainly of roughage such as rice straw and pasture, has seen significant improvements in both quality and market trust through this project, as local-level processing and distribution centers equipped with production, distribution, and processing infrastructure for domestic forage have been expanded. The Jeonju-Kimje-Wanju Livestock Cooperative's Kimje Textile Feed Factory in North Jeolla Province is considered a leading example of this initiative.

The Kimje Textile Feed Factory was selected as a beneficiary of the "Forage Distribution Center Support Project" in 2012 and has since established a systematic operation by installing storage facilities, small packaging equipment, and foreign matter removal devices. A total of 3 billion won was invested in building the distribution center, including 900 million won in national funds, 900 million won in local funds, and 1.2 billion won in self-financing, and the center was completed in 2014. The project's goal at the time was not only to expand simple drying and storage functions but also to raise the uneven quality of domestic forage to a consistent level. Forage harvested by farms showed significant quality disparities due to variables such as climate and soil conditions, which led to unstable forage supply and increased feed costs for livestock farmers. 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 factory’s operating rate has recently risen to 80%, and sales have grown to nearly 1 billion won. The government has analyzed that the role of these local distribution centers has made a significant contribution to raising the self-sufficiency rate of domestic forage from 81.2% in 2021 to 82.4% in 2023.

The most notable change has been the "standardization of quality." Factory manager Lee Kanghun emphasized, "Domestic forage is subject to significant quality variation due to climate, but after processing, it can maintain a consistent grade, which has noticeably improved farmers’ trust." When it rains heavily at harvest, moisture content rises and soil or foreign matter often gets mixed in. Forage dried directly in the field by farmers is difficult to distinguish in terms of marketability and quality by appearance alone, and since it is wrapped, it is impossible to judge just by looking at it. This has long been a factor fueling distrust in domestic forage.

The factory has addressed these issues through "primary processing." By adjusting moisture, removing impurities, and grading, the factory supplies farmers with forage of more stable quality than before. The factory manager stated, "Ultimately, being able to refine the quality once before selling has led to higher operating rates and increased sales."

The difference between domestic and imported forage is clear. Imported forage, produced through large-scale mechanized operations in vast plains, is more uniform and better dried, but it is more expensive. In contrast, domestic forage is produced on smaller, scattered plots and is subject to greater climate variability, resulting in more pronounced quality differences, but it is more price-competitive. During the interview, factory officials explained, "In the early days, farmers did not prefer domestic forage, saying its quality was inferior, but the situation has changed significantly in recent years. The introduction of a grading system and expansion of processing facilities have dramatically improved quality, and farmer response has been very 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 livestock farming and production efficiency. In the past, there was significant volatility, with farmers sometimes buying when quality was good and not buying when it was poor, but now the cooperative stably supplies a certain quantity, reducing supply instability. The factory manager said, "Stabilizing the domestic forage supply chain helps reduce production costs and expand the scale of livestock farming. In particular, by supplying nationwide to farms in Gyeonggi and Gyeongsang provinces, where forage production is insufficient, the utilization of domestic forage has greatly increased."

In addition to Kimje, there are about three other forage distribution centers nationwide. However, Kimje serves as a collection hub for the North Jeolla region, absorbing surplus production from South Jeolla and North Jeolla provinces and supplying it to areas where forage is lacking, thus functioning as a logistics hub. This is evaluated as a structure that directly contributes to nationwide supply stability, rather than simply strengthening production capacity.

However, there are still clear areas for improvement. Factory officials pointed out, "The work fees for management entities responsible for forage cultivation and harvesting have not changed much in the past 10 years. While fuel and labor costs continue to rise, support for work fees is limited, making it difficult to increase production." They added, "In order for management entities to continuously expand the forage production base, it is essential to adjust work fees to reflect actual costs."

In the long term, responding to climate risks is also a major challenge. Recently, frequent rainfall and high temperatures have directly led to declines in forage quality, and if harvest timing is missed, moisture and drying conditions can vary greatly. Section chief Lee Changjun said, "There are limits to addressing quality variation due to climate with current technology. The only viable solution is to continuously reinforce processing and storage facilities to maintain a certain level of quality."

Advancing the quality of domestic forage is considered a key task for strengthening the competitiveness of the domestic livestock industry. Given that forage price, quality, and supply determine the management of livestock operations, the role of local processing and distribution centers is expected to become even more important in the future. The factory manager said, "Trust in domestic forage has improved compared to the past, but there is still a long way to go. Expanding a stable production base and supporting management entities are essential to further enhance the competitiveness of domestic forage."

The changes in Kimje, which began as a supplementary measure to 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 example of Kimje is expected to provide important insights for future policy design in the livestock industry as a whole.

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