January 18, 2010

Beef prices in South Korea increase ahead of Lunar Year

As Lunar Year celebrations approach, South Korea's wholesale prices for popular imported beef cuts have increased.

Prices for Australian short rib and chuck roll are 5% higher than two weeks ago, while equivalent US product lifted 2% over the same period as demand soars.

During Lunar Year, beef gift sets are popular giveaways to relatives and friends and contain beef cuts such as short rib and/or chuck rolls. In preparation for this peak demand period, Australian beef exports increased towards the end of 2009. There also was a price rise across the supply chain and increasing marketing activities at retail in South Korea.

In December last year, Australia exported 12,324 tonnes swt of beef to South Korea - the highest monthly volume since November 2008. Since then, tight Australian supply and sufficient stocks of some beef items in Korea has resulted in a slow start to trade, with only 1,812 tonnes swt shipped to South Korea from January 1-11.

It is anticipated that tight supplies in the first quarter of 2010 will continue to impact the beef trade with South Korea.