February 16, 2006

South Korea likely to lift ban on US skeletal muscle beef

South Korea is on track to lift its ban on deboned skeletal muscle meat from US cattle under 30 months of age as soon as the end of March 2006, according to USDA's latest report on Korean livestock and products released Feb 13.

USDA said Korea and the US may further discuss the lifting of bans on other cuts such as bone-in ribs, a very popular cut in Korea.

On Jan 23, 2006, the Korean government announced a plan to help Hanwoo cattle farmers alleviate their concerns about the reopening of the Korean market to US beef. The aim of the plan is to enhance the quality of Hanwoo beef so that it can compete against US beef.

According to USDA, the announcement in January 2006 that US beef imports will resume caused a sell-off of lower quality Hanwoo beef cattle. This is because lower-quality Hanwoo beef, which has surged in demand during the US beef ban, will be less in demand when the ban on US beef is lifted.

Meanwhile, the swine industry in Korea enjoyed historically high swine prices in 2005. This was because there was a decline in swine inventory and increased pork consumption.

Due to the appreciation of the Korean currency against the US dollar, 2005 pork imports reached a record high of 349,000 tonnes. However, imports are predicted to decline in 2006 as domestic pork supply increases.

For the full USDA report, click here.