Invest KOREA

A Local Approach to Livestock

Thanks to collaboration with SNU, Cargill Agri Purina has a new research facility and new trial possibilities on the way

Scientists at Cargill have wrestled for more than a decade with the question, “Are animals in different parts of the world, the same?”

The old view was that yes, the body mechanisms of pigs and cattle in Korea, for example, are the same as the mechanisms of pigs and cattle in the United States. But the more recent view is that genetics vary within a species and that environmental differences, including differences between people, can significantly affect animals.

This acknowledgement is changing the way Cargill, an international producer/marketer of food, agricultural, financial and industrial products and services, does research. Until last year, the company, located in 65 countries, only had research facilities at its Minnesota headquarters. Today it is investing in local research centers in Korea and around the world.

“Considering much of the growth of this industry is coming from more developing countries, it makes sense to build research facilities in those countries,” said Tae Gyu Kim, Regional Technology Director of Asia Pacific for Cargill Animal Nutrition.

Last March, Cargill invested $3 million to build a research center for its Korea subsidiary, Cargill Agri Purina, Inc., at a green bio research complex being built by Seoul National University (SNU) in Pyeongchang, Korea. About 70 percent of the company’s earnings come from Asia, with Korea being a leading country in animal nutrition technology.

Once the complex is completed next April, researchers from Cargill Agri Purina and SNU plan to collaborate on public trials as well as conduct private research with local animals of different genetic makeup and with local feed ingredients. They will also work with animals and ingredients from nearby countries including India, China and Vietnam.

“Since there are so many research requests in many different locations, the research capability is very limited,” Kim said. “When we wanted to do some more customer-focused, innovation-type trials, it was very difficult to do, but now we will be able to do that.”

An example of a trial that would have important implications in Korea, and not necessarily in other countries, would involve fat deposition in beef. While Americans tend to prefer lean beef, Koreans prefer more marbling (fat in muscle) in beef. And Korean cattle farmers would make more money if they raised animals with more marbling. At the new Cargill Agri Purina Technology Application Center, which will include labs, animal facilities and a training center, Kim and his staff could conduct trials on fat deposition in beef to meet local needs.

“We need to be able to demonstrate our technology to our customers... And when the research center is located in the U.S., it’s very difficult to show it,” Kim said. “So it’s better to have our research facility in Korea.”

Cargill Agri Purina’s roots date back to 1967, when the now-defunct Agribrands Purina Korea, formerly a leader in the livestock feed industry, was established in the beginning stages of this industry in Korea. Cargill Korea, founded in 1987, merged with Agribrands Purina Korea in 2007 to become Cargill Agri Purina, which now supplies the world’s leading feed nutrition technology and services.

Headquartered in Seongnam, Gyeonggi Province, Cargill Agri Purina has 450 employees, five plants nationwide and four business units, one of which is animal nutrition, Kim’s area of expertise. The new research facility, and the opportunities to come with Cargill Agri Purina’s future collaborations with SNU, signals continued growth for the company.

“This research center is kind of a symbol of Korea’s technological strengths within the company, so it has a very good meaning and also gives confidence to not only our employees, but also our customers,” said Kim.