South Korea’s NongHyup Agribusiness Group Inc. and confectionery giant Orion Corp. next month will kick off the operation of their joint factory that can produce about 8,000 tons of rice flour processed snacks every year to help solve the glut in rice supplies due to westernized eating habits.

According to sources from the industry on Sunday, a joint-venture between NongHyup Agribusiness Group and Orion is ready to open its new rice flour factory in April. The two companies formed the JV in 2016 where NongHyup invested 51 percent and Orion 49 percent.

The factory, the largest of its kind in Korea, commands a space of 36,000 square meters, five-times larger than a soccer field, in Miryang, South Gyeongsang Province. Once the factory embarks on the production at a full operation rate, it can produce about 8,000 tons of dietary products processed with rice flour per year.

The JV has already begun test operations of a few lines and aims to prepare the entire lines for operation by June. Under the partnership, NongHyup will supply rice flour while Orion will manufacture four types of new products using rice flour including easy-to-cook meals and confectioneries.

NongHyup expects the growing consumption of rice flour products could help reduce a rice oversupply in Korea. About 200,000 to 300,000 tons of the staple crop remains in excess in Korea every year due to changes in Koreans’ eating habits. Rice is no longer Koreans’ main carbohydrate food choice as other westernized dietary choices such as breads and cereals are growing popular.

The rice flour market is, however, estimated to expand to 70 billion won ($65 million) in 2017 from 50 billion won in 2011. Soaring demand for easy-to-cook and ready-to-eat foods is expected to help further boost the rice flour processed food market.

By Lee Duk-joo and Lee Ha-yeon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]