The purpose of this paper is to forcast the situations of the Korean feed industry in the year 2000, and to suggest alternative ways to increase the utilization of natural resources in the Future. As the per capita income continues to grow in Korea, the demand for animal protein food has increased a great deal. During the past ten years, the consumption of animal production has increased by about 3 times. As a result, the feed industry recently became a very important economic sector in Korea. And in the year 2000, the production of formular feed in Korea will increase by about 2 times as long as the consumption of livestock products will increase. However animal feed supply from domestic sources is far less than adequate because of the limited land area and poor infrastructure for feed grain production. Korea`s feed grains supply currentry relies very heavily on import. As of 1985 the total amount of feed ingredient imported recorded about 5,000 thousand me tric tons which worth U.S. 689 million dollars. And, in the year 2000, the production of formular feed in Korea is expected to increase by about 2 times as long as the growth of Korean economy will be continue. In the same way, the demand of feed grain will increase by over 2 times owing to growth of Korean feed industry in year 2000. In preparation for this expected increase in the demand of feed grain, methods of effective utilization of domestic feed resources are suggested. The summary of the suggested methods is as follows. In the long run, it would be appropriate for Korea to utilize domestic marginal resoures to the fullest extent, for example, single cropped land and mountain slopes to develop the feed grain cultivation as much as possible. The land that can be used for feed crop production must be intensively cultivated, and the productivity should be maximized. Research and development in the feed industry is necessary for enhancing the degree of self-sufficiency of feed grain by removing technical and economic obstacles. Furthermore, the government need to introduce such a linksystem of imported feedstuff and domestic production as $quot;Varying Levy System$quot; to provide incentive for agricultural producer.