FEED INDUSTRY IN KOREA

1. Status of Korean Feed industry (2009)

                                                                                                  Unit : M/T  

	Number of Mills	Capacity per day (A)	Capacity per month	Capacity per year	2008 Capacity per day (B)	% change (A/B)
K F A   N A C F   Others	63 (42) 22 (14) 11 (11)	20,710    7,480     643	517,750   187,000    16,075	6,213,000   2,244,000      192,900	19,803    7,180     873	104.6   104.2   73.7
Total	96 (67)	28,833	720,825	8,649,900	27,856	103.5

※ 1. (  ) Company Number

    2. Capacity per day   : basis on   8 hours

       Capacity per month : basis on  25 days

       Capacity per year  : basis on 300 days
 

2. Capacity of Feed mills in 2009

	K  F  A		N A C F		Others		Total
	Number of mills	Total capacity per day (M/T)	Number of mills	Total capacity per day (M/T)	Number of mills	Total capacity per day (M/T)	Number of mills	Total capacity per day (M/T)	The component Ratio (%)
not exceeding 100	6	360	1	60	9	303	16	723	2.5
100～199	5	770	3	400	1	100	9	1,270	4.4
200～299	12	3,020	3	620	1	240	16	3,880	13.5
300～399	19	5,960	8	2,480	-	-	27	8,440	29.2
400～499	11	4,610	4	1,820	-	-	15	6,430	22.3
500～599	7	3,650	-	-	-	-	7	3,650	12.7
not less than 600	3	2,340	3	2,100	-	-	6	4,440	15.4
Total	63	20,710	22	7,480	11	643	96	28,833	100.0

3. Location of Feed mills in 2009

Location	Number of Feed Mill	Production Capacity
		Total capacity per day	The component Ratio(%)
Seoul city	-	-	-
Pusan city	2	390	1.4
Taegu city	2	630	2.2
Taejeon city	1	430	1.5
Inchon city	10	4,180	14.5
Kangwon-Do	3	900	3.1
Ulsan city	2	600	2.1
Kyunggi-Do	18	4,987	17.3
Chungbuk-Do	5	1,640	5.7
Chungnam-Do	16	3,621	12.6
Jeonbuk-Do	15	4,950	17.1
Jeonnam-Do	4	1,310	4.5
Kyungbuk-Do	5	2,040	7.1
Kyungnam-Do	11	2,960	10.2
Cheiju-Do	2	195	0.7
Total	96	28,833	100.0

4. Compound Feed Production

                                                                             Unit : 1,000M/T

	2001	2002	2003	2004	2005	2006	2007 (A)	2008 (B)	B/A (%)
K F A	10,267	10,708	10,530	9,886	10,031	10,203	10,790	10,555	97.8
N A C F	3,970	4,269	4,273	4,327	4,406	4,674	5,054	5,386	106.6
Others	536	625	454	538	642	598	304	190	62.5
Total	14,773	15,602	15,257	14,751	15,080	15,475	16,148	16,131	99.9

5. Compound Feed Production by kind

                                                                               Unit : 1,000M/T

		2001	2002	2003	2004	2005	2006	2007 (A)	2008 (B)	B/A (%)
Swine		5,549	5,950	5,663	5,419	5,170	5,175	5,409	5,307	98.1
Poultry	Chick	326	336	293	273	315	302	311	330	106.1
	Broiler	1,512	1,657	2,056	1,758	1,920	1,952	1,946	1,911	98.2
	Layer	2,036	2,060	1,558	1,805	1,968	2,014	2,146	2,045	95.3
	Sub total	3,874	4,053	3,907	3,836	4,203	4,268	4,403	4,286	97.3
Dairy Cattle		1,770	1,765	1,744	1,632	1,587	1,539	1,450	1,370	94.5
Beef Cattle		2,760	2,753	2,927	3,045	3,293	3,574	3,880	4,165	107.3
Others		820	1,081	1,016	819	826	919	1,006	1,003	99.7
Total		14,773	15,602	15,257	14,751	15,080	15,475	16,148	16,131	99.9
Aquaculture		106	104	85	96	86	85	114	109	95.6

※ Aquaculture Production is only KFA's it until 2006, but include
Other Companys since 2007. 

6. Consumption of Feed ingredients in 2008
                                                                                  (Unit : MT, %)

			K F A		N A C F		Others		Total
			Quantity	%	Quantity	%	Quantity	%	Quantity	%
'07	Grains		5,812,889	53.7	2,581,681	50.3	161,634	52.6	8,556,204	52.6
		Yellow corn Feed wheat Others	4,825,310 716,526 271,053	44.5 6.6 2.5	2,058,545 301,354 221,782	40.1 5.9 4.3	133,602 15,553 12,479	43.5 5.1 4.1	7,017,457 1,033,433 505,314	42.6 8.3 3.4
	Brans Animal protein Vegetable protein Inorganic matters Others		990,002 113,453 2,756,113 508,464 651,925	9.1 1.0 25.4 4.7 6.0	773,196 7,340 1,272,888 217,511 275,765	15.1 0.1 24.8 4.2 5.4	12,156 5,976 64,554 15,039 47,996	4.0 1.9 21.0 4.9 15.6	1,775,354 126,769 4,093,555 741,014 975,686	10.6 0.8 23.9 4.7 5.7
	Total		10,832,846	100.0	5,128,381	100.0	307,355	100.0	16,268,582	100.0
'08	Grains		5,485,409	51.9	2,607,549	48.3	95.846	49.5	8,188,804	50.6
		Yellow corn Feed wheat Others	4,616,865 271,852 596,692	43.7 2.6 5.6	2,197,167 73,552 336,830	40.7 1.4 6.2	78,061 2,485 15,300	40.3 1.3 7.9	6,892,093 347,889 948,822	42.6 2.1 5.9
	Brans Animal protein Vegetable protein Inorganic matters Others		1,007,683 129,240 2,848,158 489,969 625,927	9.5 1.2 26.9 4.6 5.9	801,476 9,065 1,453,360 229,682 301,187	14.8 0.2 26.9 4.2 5.6	12,179 2,745 42,341 11,267 29,559	6.3 1.4 21.8 5.8 15.2	1,821,338 141,050 4,343,859 730,918 956,673	11.3 0.9 26.8 4.5 5.9
	Total		10,586,386	100.0	5,402,319	100.0	193,937	100.0	16,182,642	100.0

※ ① Excludes feed ingredient for aquaculture feed and experimental

      animal feed

   ② Other company means independent feed mills of cooperative farms 

USAGE OF RAW FEED INGREDIENT

1. Use of Feed ingredients
                                                                                   (Unit : 1,000M/T)

	96	97	98	99	2001	2002	2003	2004	2005	2006	2007	2008
Imported	12,053	11,985	10,895	11,265	11,077	11,756	11,372	11,027	11,403	11,675	12,179	12,095
Domestic	3,768	3,900	3,293	3,642	3,766	3,894	3,941	3,781	3,730	3,861	4,090	4,087
Total	15,821	15,885	14,188	14,907	14,843	15,650	15,313	14,809	15,133	15,537	16,269	16,182

2. Consumption of Imported Feed Grain

                                                                                   (Unit : 1,000M/T)

	96	97	98	99	2001	2002	2003	2004	2005	2006	2007	2008
Corn	6,713	6,712	5,341	5,946	6,433	6,647	6,653	6,420	6,616	6,597	7,007	6,892
Sorghum	132	118	6	-	1	-	-	19	-	-	1	1
Wheat	782	1,234	2,242	1,923	1,064	1,609	1,388	937	1,221	1,283	1,019	341
Rye	851	169	2	189	30	127	66	51	-	-	-	-
Others	561	784	475	280	388	400	191	681	346	361	302	670
Total	9,039	9,017	8,066	8,338	7,916	8,783	8,298	8,108	8,183	8,241	8,329	7,904

3. Consumption of Imported Brans

                                                                           (Unit : 1,000M/T)

	96	97	98	99	2001	2002	2003	2004	2005	2006	2007	2008
Wheat bran	445	563	401	461	378	309	337	422	333	321	332	340
Defatted    (rice) bran	107	40	11	2	4	1	-	-	-	-	2	-
Others	48	58	48	49	44	62	44	65	95	99	199	310
Total	600	661	460	512	426	372	381	487	428	420	533	650

4. Consumption of Imported Vegetable Protein Sources

                                                          (Unit : 1,000M/T)

	96	97	98	99	2001	2002	2003	2004	2005	2006	2007	2008
Soybean meal	1,054	789	887	1,110	1,423	1,460	1,365	1,307	1,453	1,670	1,777	1,689
Rapeseed meal	480	464	335	251	260	249	268	286	276	251	340	379
Others	689	865	876	718	766	789	768	774	811	837	920	1,278
Total	2,223	2,118	2,098	2,079	2,449	2,498	2,401	2,367	2,540	2,758	3,038	3,346

5. Consumption of Imported Animal Protein Sources

                                                          (Unit : 1,000M/T)

	96	97	98	99	2001	2002	2003	2004	2005	2006	2007	2008
Fish meal	10	14	11	15	17	11	10	10	12	10	7	9
Meat & bone meal	5	5	3	3	2	1	1	-	-	-	-	-
Others	-	-	1	1	1	1	1	1	1	1	2	1
Total	15	19	15	19	20	13	12	11	13	11	9	10