Posco International said Tuesday that it inked a preliminary joint venture agreement with US grain company Bartlett and Co., in a move to enhance its global food supply network.

The agreement was signed in Kansas City, US, on Monday with top executives including Posco International Vice Chairman and CEO Jeong Tak, and Bob Knief, CEO of Bartlett and Co., in attendance.

The US company owns some 15 grain terminals through which it supplies major grains including corn, wheat and soybeans to the domestic market and Mexico. It trades approximately 10 million metric tons annually while operating one of the leading milling facilities in the US.

Under the agreement, the two companies plan to establish a joint venture for grain supply and soybean processing and find new export markets among others.

Posco will also invest in Bartlett's soybean processing unit under construction in the US.

The US is one of the top global grain producers with an annual output of 550 million tons, exporting 140 million tons of it worldwide.

By setting up a food value chain in the US, Posco seeks to build a supply system that can trade 5 million tons of grain a year by 2030 and export US grain.

Posco International currently supplies an annual volume of 8 million tons of grain, about 10 times the volume it had traded in 2015 when the company made a foray into the food business.

According to the United Nations Food and Agriculture Organization's data, Korea's grain self-sufficiency rate logged 19.3 percent in 2020, placing it at the bottom of the 38 member countries of the Organization for Economic Cooperation and Development.

“Currently, South Korea is heavily dependent on imports for major grains excluding rice," an official from Posco International stated.

"By expanding overseas investment and securing our global grain supply chain, we seek to contribute to the national food security and leap forward as a global top 10 food company.”

• ·Gimbap and hanja cramming: Life of Korean Studies students in Paris
• ·'Scent of Ink' to be performed at Kennedy Center in Washington
• ·BTS Jungkook's star
• ·HD Korea Shipbuilding to build world's first ammonia
• ·[Top Envoy] Russian satellite help not likely priority for North Korea: Chun
• ·BTS' V joined by Jimin in solo fan meeting 'Vicnic'
• ·[이번 주 리뷰] 중동 전쟁 우려…국민의힘 보선 참패(9~14일)
• ·Discussions on need for dialogue on N. Korea denuclearization diminish in US: ambassador
• ·Hyundai Motor shows off air mobility, drone tech at Seoul defense fair
• ·Over 90% of fines for illegal short selling imposed on foreign firms
• ·S. Korea entering 'recovery phase' amid geopolitical uncertainties: Choo
• ·BTS Jungkook's star
• ·TvN Sports, CGV to screen Bundesliga’s first ‘Korean derby’
• ·Unwind with Korea food, lifestyle docs on Netflix
• ·BOK expected to stand pat this week over growth risks: experts
• ·Doosan Robotics to supply chicken