South Korea to Grow Corn in Madagascar

Nov 24th, 2008 2:13 PM EST
By Beth Adler

Some interesting news from the world of agriculture and development: last week South Korea announced plans to plant corn in Madagascar, reflecting a growing trend in the region to secure cropland abroad to address the duel challenge of recent food price increases and a shortage of cropland at home.

Daewoo Logistics, a South Korean company best known for its automobile production, has secured rights to develop 1.3 million hectares in Madagascar; 1 million will be used to grow corn and 300,000 will be used for palm oil production. This scheme will enable Daewoo to produce 10,000 tons of corn in 2010 and 5 million tons of corn annually – more than half of South Korea’s annual need – once the land is fully developed, which will take about 15 years. Daewoo plans to manage its plantations directly and use labor from South Africa.

The area that Daewoo will be planting in Madagascar is approximately equivalent to 240 large US farms. Currently, South Korea imports corn primarily from the US. In 2007 the US harvested approximately 37 million hectares of corn, and is expected to harvest about 32 million in 2008.

South Korea is one of several countries following the trend of developing agricultural commodities abroad. Companies in Saudi Arabia, Malaysia, and Kuwait have done the same. Especially considering the fear of decreasing Foreign Direct Investment (FDI) to Africa because of the global economic crisis, new investments like South Korea’s are encouraging for Africa’s economic climate. It is unclear, however, why Daewoo intends to staff their farms with South Africans rather than local people from Madagascar.

-Beth Adler

TAGS: Agricultural, Agriculture, Food Aid, Madagascar, Policy News

6 Comments

Debbie Ksays: Nov 25th, 2008 2:28 PM EST

November 25, 2008 at 2:28 pm

Thanks Beth for sharing this info with us in the ONE Blog. It’s very much appreicated.

There is a lot of skepticism and some cynicism amongst those who advocate for fair trade and for the elimination of extreme poverty in our world about this move by South Korea and other governments who are doing the same.

Is this a move that will bring progress to Madagascar or will further impoverish its people by taking away land for their agricultural use?

Definitely food for thought….

ALWAYS FOREVER, ONE – debbie
http://www.mpwn-uganda.org

Daewoo Bonosays: Dec 8th, 2008 1:15 AM EST

December 8, 2008 at 1:15 am

Beth,

Your article fails to mention the benefits to Madagascar through tax revenues (30%), infrastructure and technological development. Land that would otherwise be left unharvested, can now benefit both Madagascar and Korea because of the resources of Daewoo.

It sickens me to hear US and European-based humanity organizations demonize Asian trade and investment in Africa, but turn a blind-eye to the US and European-based activity in the region. Let us not forget that US and European companies make up the majority of such investment activity in the region.

http://www.newser.com/story/36721/biofuel-firms-african-land-grab-has-colonial-echoes.html

I am curious if this well-conceived reply to your post will be allowed to post on the ONE.org website. Or does ONE.org practise the same corporate agenda-seeking censorship that it condemns? Let’s us find out please.

Dunn Egginksays: Jan 19th, 2009 8:18 PM EST

January 19, 2009 at 8:18 pm

Hello fellow ONE member,
I appreciate Bono speaking out on behalf of the worlds poor and sick. Don’t forget that the number one question asked Obama was “Will you legalize marijuana?”. Think about the benefits that medical cannabis can have on the millions of suffering Africans. I am very disturbed when I hear that UN Police are using international aid money to persecute cannabis growers in Africa and destroy such an important beneficial crop. Bono has enormous influence on UN leaders, and some of the world’s most powerful people. Please don’t think for a moment that by removing cannabis the UN is in any way helping the poor people of Africa or any other continent. This is a grave injustice, and I’m sure the sick and dying Africans effected by such laws would agree. The cannabis plant can help to provide food, clothing, shelter, safe medicine, and eco-friendly fuel. If the One Campaign really wants to help the poor, we should let them grow hemp, and if we must get involved, help them succeed in taking advantage of the many benefits of the hemp industry.
I hope Bono keeps up the good work, and helps to stop the bad work.
Thanx. www.nycamp.org