Australia beef exports to South Korea dip in 2009

Australian beef and veal exports to South Korea totalled 115,482 tonnes swt in 2009, down 9% on 2008.

The fall in volume was mainly registered in the first half of the year due to high stocks and lack of credit among South Korean buyers.

During the second half of 2009, volumes increased 4% compared with the same period in 2008 as an early economic recovery led to improved beef demand in retail and stock clearance.

A noticeable change in the market was consumers' shift from grainfed to chilled grassfed products, as this segment experienced continuous expansion throughout the year.

Chilled grassfed beef exports grew 34%, while chilled grain, frozen grass and frozen grain volumes fell by 12%, 13% and 16%, respectively. It was a difficult year for the high-end and family restaurant foodservice sector in South Korea with reduced consumer spending on eating out that resulted in lower demand for high value cuts.

The top five Australian cuts destined for the Korean market remained unchanged when compared with 2008, with chuck roll at 22%, blade at 15%, short ribs at 12%, brisket at 9% and manufacturing 8% making up 67% of total exports.