This document provides information about a contract farming business proposal to grow giant king grass (GKG) in the Philippines and sell it as animal feed to the Korean cattle industry. It begins with background on the Korean beef market and cattle industry. There is high demand for beef in Korea and it is very expensive to produce domestically. Imported animal feed is also in high demand but supply is limited. The document then proposes establishing over 2,000 hectares of GKG farms in Ilocos Region, Philippines, which could produce 200,000 tons of feed annually for export to Korea. Projections estimate this could generate $5 million in profits annually from the farms. The proposal has secured interest from several major Korean cattle cooperatives.
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Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
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2. CONTENT
1. Korean Beef
2. Korea Cattle Industry
3. Animal-Feed Market in Korea
4. Philippines Agriculture industry Summary
5. GIANT KING GRASS Introduction
6. GKG Contract-Farming Business in Philippines
3. I. KOREAN BEEF
1. Korean Beef
3
CONFIDENTIAL
In Korea, Beef means just more than meat.
-To the family and Consumer, Beef means special dinner and hospitality for special event.
-To the cattle farmer, Beef means money and Wealth due to it’s high price.
4. I. KOREAN BEEF
1. Korean Beef
4
CONFIDENTIAL
In these days, due to economic blossom and doubt for imported western food, demand for
Korean Beef is continuously increasing.
5. I. KOREAN BEEF
2. Korean Beef Restaurant MENU
5
CONFIDENTIAL
Menu for the Korean Beef Restaurants
6. I. KOREAN BEEF
3. Beef Market in Korea
BEEF
CONSUME
2017 research data from Korea Rural Economic Institute
Annual Beef Consumption in Korea: 570,000t in 2017 (Korean: 230,000t, Imported 340,000t)
Estimated Total Beef market of Korea: 15 billion USD dollars
Domestic beef production and amount of imported beef constantly increases so beef consumption
amount per person will raise up to 12.3kg in 2022
6
CONFIDENTIAL
7. I. KOREAN BEEF
2. Korean Beef Price
BEEF PRICE
Currently Beef market is divided as Korean Beef 43% and Imported Beef 57%
Korean Beef Price is 2~3 times more expensive then Imported Beef
*From National Agricultural Federation Consumer price List
Most of Imported Beef are distributed as frozen. If it has been frozen once, texture and taste
decreases. Also during the importing and distributing process, it goes through multiple freezing
and defrosting. During those process, moisture and juice comes out from meat so it gets worse.
Furthermore, Oleic acid from Beef’s fatty acid is the most important factor to determine the taste
of beef and Korean Beef and Japanese Beef contains higher Oleic acid then other Western Imported
beef. That is why people prefer Korean and Japanese beef in spite of much higher price.
7
CONFIDENTIAL
Rib Eye Sirloin Short Ribs Tenderloin
Korean Beef 39,000원/200g 34,000원/200g 40,000원/200g
American Imported
beef
18,000원/200g 12,000원/200g 20,000원/200g
Oleic Acid
Content
Korean Beef
Japanese
Beef
American
Beef
Australia
Beef
New Zealand
Beef
48.0% 50.2% 42.5% 31.6% 31.0%
8. Ⅰ. Cattle Industry in Korea
1. Number of Beef cattle / dairy cattle in Korea
Beef Cattle Dairy Cattle
Number of cattle
3.06 million
420 thousand
Young cattle
0.9
million
beef
0.79
million
breeding
1.37
million
Market for imported feed 2.27million (young + breeding cattle) 420 thousand
Total domestic cattle: 3.48 million ($17.4 billion US dollar worth)
8
CONFIDENTIAL
- Price for 6 month-old young cattle is average $3,500 USD
- Price for adult beef cattle is average $8,000 USD
9. Cattle industry in Korea
2. Feed consumption by cattle
Feed
Consumption
per day
Therefore In total, in Korea, entire cattle consume 23,400t of Animal-Feed everyday.
9
CONFIDENTIAL
Beef Cattle Dairy Cattle
Average Feed
Intake per Day
6kg for one cattle per day (2t per year) 12kg for one cattle per day (4t per year)
Total 3.06 million cattle intakes 18,360t
per day in Korea
Total 420 thousand cattle intakes 5,040t
per day in Korea
10. I. Animal-Feed Market in Korea
1. Current Situation in Animal-Feed Market
10
CONFIDENTIAL
-According to National Agricultural
Newspaper on Nov, 2017, Currently
Korean Cattle industry is having
shortage of imported-feed for their
cattle.
-There are shortage in both domestic
and imported animal-feed in Korea
-Cattle Union leaders are requesting to
ease Government regulation to import
more superior animal-feed from other
country.
11. Ⅰ. Animal-Feed Market in Korea
2. Stats of Animal-Feed Market
Domestic Animal-feed Imported Animal-feed
Consumption 4 million ton
2 million ton
※ Gov restricts importing quantity allowance to
protect domestic animal feed market(quota)
Characteristics
-cheap feed (silage, straw, cornstalk)
-almost zero nutrition, rumination
purpose
-mostly feed for beef cattle for more
meat
-expensive feed (alfalfa, timothy, oat hay)
-high in nutrition
-feed for young and breeding cattle for
purpose of maintaining their good health
Price range &
Market
-$100~200 dollars/ton(USD)
-400 million dollar market(USD)
-$400~600 dollars/ton(USD)
-1 billion dollar market(USD)
Korea’s average animal feed consumption – 6 million ton per year
11
CONFIDENTIAL
12. Ⅰ. Cattle Industry in Korea
1. Business opportunity
12
CONFIDENTIAL
Production Cost
- Cattle Farmers are extremely sensitive to Animal-feed price since it takes most of production cost
- Unfortunately due to FTA(Free Trade Agreement), there are many cheaper imported beef distributed in
Korea
- Korea cattle farmers need to reduce product cost to compete against imported beef
- Therefore they are looking for lower but better and more nutrition Animal-Feed for the product cost
Well-Being
- Due to economic growth and higher living standard, there are more attention for Well-Being and Well-Eat
- Consumption of Beef compared to any other meat is continuously increasing and on top of that, there are
much more attention for eco-friendly produced food by eco-friendly feed
- Therefore cattle farmers tend to use more imported-feed then domestic feed for better-quality beef
Convenience
-Korea has week production infrastructure for domestic animal feed product
-Animal-feed farming is much lower profitable then farming food-crop like rice
-Because of Korea’s lack of harvesting field limits, it is very difficult to secure the land
13. Ⅰ. Cattle Industry in Korea
1. Business opportunity
13
CONFIDENTIAL
Perfect Timing!!!
-With all above reasons, cattle farmers and National livestock cooperatives Federation are
looking for consistent, stable, superior, secured supply of imported animal-feed
-With Help of Ilocos Sur province and LCS Group, we could be the most consistent
and the largest farm to supply good-quality animal-feed to Korea
-Once it is approved to be consistent, cattle union and National livestock Federation will line
up to sign for long-term supply contract to secure the quantity
-At that time, we might have not enough product for them ^^
14. Philippines Agriculture Industry Summary
1. Philippines in General *Data from Philippine Statistics Authority
14
CONFIDENTIAL
Agricultural Production Performance
-National crop production declined by 1.98 percent
* Currently downtrends were also noted for sugarcane, coffee, tobacco, onion and cabbage
Crop Price
-In general, prices of Agricultural product in 2015 were lower by 5.96% from 2014
-The biggest price reductions were registered by commercial crops at 11.24%
Agricultural Trade
-Profit from agricultural exports decreased by 21.57% in 2015
-Philippines continued to record negative agricultural trade balance
Palay(rice) corn
Production output - 4.31% -3.24%
15. Philippines Agriculture Industry Summary
1. Philippines in General *Data from Philippine Statistics Authority
15
CONFIDENTIAL
Agricultural Employment
The % share of Agriculture in total employment is continuously decreasing
We need new solution!!!
Total Employment 41 million persons
Agricultural
Employment
11 million persons
Female 2.7M
persons
Male 8.3M
persons
% of agriculture
from total
employment
27%
Agricultural wage
rates per day
( in nominal terms)
P 276.03
24%
26%
28%
30%
32%
2014 2015 2016
% of Agriculture in Total
Employment
16. Philippines Agriculture Industry Summary
2. Ilocos Region *Data from Philippine Statistics Authority
16
CONFIDENTIAL
Agricultural Production Performance
-Ilocos Region's economy increased by 8.4% in 2016
-However Agriculture, Forestry and Fishing sector recorded a decrease of 1.8% in 2016
Production Growth Rate in Agriculture in Ilocos Region, 2016
The Crop sector is the 59% of entire Agricultural production in Ilocos Region and it is decreasing
Crop production is the main power motor to support Ilocos Region economy but it is decreasing
GKG can be a perfect solution!!!
Sector Growth Rate
Agriculture -2.03
Crops -2.37
Livestock 1.98
Fisheries -2,38
17. Ⅲ. GKG Contract-Farming Business in Philippines
1. Structure Outline
GERMADE
Owns exclusive right to sell GKG(Giant King Grass) for Korea and Japan market
Owns exclusive right to harvest GKG in Philippines
Business
Outline
Establish GKG Harvest Farm in Ilocos Region more than 2000ha
By harvesting 6 times annually, expecting 200,000t of GKG available per year
Ship through oversea transportation(20t/container)
Deliver directly to secured customer from receiving port
17
CONFIDENTIAL
Profit
Projection
for
Philippines
Expecting $25 USD dollars profit from 1 ton
Expecting $2500 USD dollars profit from 1ha per year
Expecting $ 5 Million USD dollars profit from 2000ha per year
18. GKG Contract-Farming Business in Philippines
Sample Harvesting
18
CONFIDENTIAL
Completed test harvest of GKG in Philippines near Clark region
Well planted and well grown up
19. GKG Sample Tasting Test in Korea
Sample
Intake
Result
Completed and cleared for Korean Government customs and quarantine
Sample Farm : farms of “HANWOO GONGGAM” cattle union leader and member
(“HANWOO GONGGAM” union total members: 6,583 farm owners/460,810 cattle)
Sample period : 3 weeks (2017. 10. 25 ~ 2017. 11. 14)
Sample quantity : 6.16 ton
Result : well ate and digested without any problem like diarrhea
GKG Contract-Farming Business in Philippines
19
CONFIDENTIAL
20. Ⅲ. GKG Animal Feed
Business Plan
5. Buyers list and Promotion Status
Union Name Leader
# of
Farm
owners
# of
cattle
area
한우공감 최굮식 6,583 460,810 경북 김천 Co-operating
축산1번가 쇼핑몰 최굮식 2,582 180,740 경북 김천 Co-operating
한우기술공감 이종근 6,045 423,150 홍천 최초 한우 밴드
한우포유 최진호 2,576 180,320 전북 전주 한우 밴드
청춘한우 김용희 386 27,020 전남 함평 한우 밴드
한우자유공감 강일구 463 32,410 충남 예산 지역 특화 밴드
한우in섬진강조합 공성수 568 39,760 전남 곡성 조사료업체
한우공감사랑 신재순 335 23,450 전북 전주 조사료 전문가
한우의 미래 주경득 747 52,290 경기 안성 한우 밴드
소앤소-김재경원장 김재경 1,493 104,510 경기 강화
한우매니 이성종 388 27,160 경기 김포 한우 젖소 접목
전국한우협회 김홍길 339 23,730 서울 서초 지역 지부장
한우사랑방 장선식 243 17,010 전북 완주
한국조사료협회 임영철 314 21,980 세종 조사료협회
사)한국조사료연구
원
김종영 1,202 84,140 강원 원주 조사료 유통
풀사랑(초지, 조사료) 정종성 244 17,080 전북 완주
낙농공감 이성종 1,771 301,070 경기 김포 낙농 전문업체
Total 27,080 2,152,800
Secured “Letter of Intent” for 70,000t per year(23
million USD dollars) from Korean Cattle Union
“HANWOO GONGGAM
Currently actively promoting GKG Animal Feed in
17 different cattle farm unions(left chart)
-co-operating 2 of 17 unions by ourselves
Korean National Cattle Association is also
interested
20
CONFIDENTIAL
21. GKG Contract-Farming Business in Philippines
MOU Ceremony – Ilocos Sur Province Ryan V. Singson Governor
21
CONFIDENTIAL