Lifestyle

“Potatoes to the South, Cocoa to Central and South America”… Food Companies Redraw Their Raw Material Sourcing Maps

Reducing the Share of High-Altitude Potatoes in Gangwon… Expanding to Chungcheong, Gyeongsang, and Jeolla CJ CheilJedang Corp. Develops ‘Green Rose,’ a Heat-Tolerant Cabbage Variety LOTTE WELLFOOD Expands Cocoa Sourcing to Central and South America and Asia Responding to ‘Climate Inflation’ Through Contract Farming, Stockpiling, and Diversifying Production Areas

Kim Ji-woo
2026-08-05 15:46:19
[Edaily Reporter Kim Ji-woo ] The conventional wisdom—that potatoes come from Gangwon Province, napa cabbage from high-altitude regions, and cocoa from West Africa—is being challenged. As global warming and abnormal weather patterns lead to recurring heat waves and torrential rains, making it difficult to secure a stable supply of raw materials from traditional production areas, food companies are redrawing their “raw material map” by expanding cultivation regions and developing new varieties.

Young farmers harvesting “Summi” potatoes through Nongshim’s “Youth Summi” program, which supports young people returning to farming. (Photo courtesy of Nongshim)

According to the food industry on the 5th, Nongshim is shifting the focus of its potato supply from the highlands of Gangwon Province to the Chungcheong, Gyeongsang, and Jeolla regions. This is because the southern regions, which are at lower latitudes, have an earlier harvest season than high-altitude areas; most potatoes can be harvested from late June to early July—before the rainy season—making it easier to ensure the starch content required for potato chips. Accordingly, Nongshim is increasing the proportion of potatoes sourced from regions where harvesting can occur before the rainy season and is proactively monitoring the growth conditions of cultivation sites nationwide. If a supply shortage is anticipated, the company secures alternative supply sources in advance.

For napa cabbage, the company is going a step further than simply shifting production areas by changing the variety itself. CJ CheilJedang Corp has developed “Green Rose,” a heat-tolerant cabbage variety that can be grown even in low-lying areas during the summer. This is because existing summer cabbage varieties were heavily reliant on cultivation in cool, high-altitude regions, but as temperatures have risen, it has become difficult to guarantee stable production even in those areas. As a result, the area under contract cultivation this year has increased by approximately 15% compared to last year.

A panoramic view of CJ CheilJedang Corp.’s “Green Rose” pilot cultivation site located in Goesan County, North Chungcheong Province. (Photo: CJ CheilJedang Corp.)

CJ CheilJedang Corp. is also conducting research on regional varieties and cultivation methods to address global climate change. In Vietnam, the company is identifying suitable varieties and cultivation methods through research on cultivation during both the rainy and dry seasons, while in the United States, it is conducting preliminary screening of cabbage genetic resources to adapt to environmental changes.

A CJ CheilJedang Corp. official stated, “Going forward, we plan to expand variety promotion and farmer participation by operating demonstration trial farms in various regions, and we will continue to enhance our seed production system to ensure a stable seed supply.”

The rice used in instant rice products is also evolving to adapt to climate change. CJ CheilJedang Corp. developed “Donghaeng,” a disease-resistant, high-yielding rice variety for processing, and produced approximately 10,000 metric tons of it last year. This year, the company plans to increase production to about 12,000 metric tons, primarily in Asan City. When harvest yields and quality from contract farms decline due to abnormal weather, CJ CheilJedang Corp. increases purchases from non-contracted production areas to make up for the shortfall.

OTOKI has also begun securing raw materials by expanding its sourcing regions. In particular, the company is considering securing multiple production regions while simultaneously applying seeds suited to the climate and soil conditions of each region.

Daesang is expanding its sourcing regions while simultaneously filling its warehouses. Since the quality of napa cabbage varies significantly depending on the growing season and region, the company is purchasing high-quality supplies in advance to build up reserves. A Daesang official stated, “We are expanding our annual napa cabbage stockpiles to proactively respond to recent abnormal weather and market volatility,” adding, “We plan to further refine our stockpiling strategy to promote efficient supply and demand management.”

The landscape of overseas raw material procurement is also changing. LOTTE WELLFOOD is diversifying its cocoa sources—which had previously relied heavily on Ghana—to include Venezuela, Côte d’Ivoire, and Ecuador. Starting this year, the company also plans to source cocoa from Papua New Guinea. This shift is driven by the impact of cocoa prices surging to over $12,000 per metric ton in 2024—4 to 6 times the usual level—due to a combination of abnormal weather and disease in West Africa, a major cocoa-producing region. The company has determined that it can no longer afford a system where poor harvests in a single region disrupt the entire cost structure of chocolate production.

An industry official stated, “In the past, crop failures were temporary problems limited to specific regions, but now heat waves, droughts, and torrential rains are recurring across multiple growing regions,” adding, “We must manage multiple sourcing regions, maintain stockpiles, utilize climate-adapted varieties, and improve crop yield forecasting in tandem to ensure a stable supply of raw materials.”

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