January 8, 2009
Australian beef losing grip of Korean market
Australia may be losing its Korean beef market share as its December beef exports to South Korea fell 44 percent on-year.
Australia shipped 9,412 tonnes swt to South Korea in December, down 32 percent from November. Exports of frozen grass fed product suffered the most, dropping 41 percent to 6,290 tonnes swt.
Australia's beef exports to South Korea in 2008 fell 15 percent on-year to 127,207 tonnes swt. Exports were hurt by several factors, including the global financial crisis, the depreciation of the Korean won against the US dollar, and the return of US beef.
South Korea's beef importers purchased large volumes of US beef, and the product had been accepted into the country's retail chains, despite initial public protests by South Koreans. The strong currency fluctuations and high stock levels also left beef importers with little purchasing power.
Industry sources expect credit situation in South Korea to improve in the first quarter of 2009, as stocks are cleared. South Korean importers are also expected to buy more cautiously.
