STX Group announced on Wednesday that it had formed a business partnership with Nonghyup Feed Co. in Portland, Oregon, to import U.S. corn for about one year starting November 2012.

The partnership contract states that STX will be responsible for shipping about 700,000 tons of U.S. corn to Korea for livestock feed. The corn will be processed and distributed by Nonghyup Feed, which holds about an 18 percent share of the livestock feed market here.

Among rising concerns regarding agflation ― a combination of “agriculture” and “inflation” referring to a general inflation caused by rise in agricultural products ― the partnership will ensure a stable supply of imported grain feed, STX Group said.

“The stable supply of livestock feed will also slow down the price change of meat and dairy products, which is likely to rise along with the price of livestock feed hikes,” a group spokesman said.

The group stressed that corn was a product whose prices fluctuate widely depending on the supply status.

The shipping rate will be decided every time the carrier leaves the port as prices are sensitive, the group said, but the estimated sum of annual shipping rate is about $200 million.

By Chung Joo-won (joowonc@heraldcorp.com)