February 25, 2008

Australian beef gains more ground in Korean market on stock shortage

Australian beef prices in Korea increased this week due to the low stocks in the market as there has been slow output in Queensland and competing demand from Japan and US for some cuts.

Prices for New Zealand and US beef also hiked due to the overall shortage in Korea's market.

Consumption of beef by restaurants and small-to-medium size retailers has been very sluggish this week.

Australian beef exporters said there have been good inquiries from Korean buyers to replenish the short supply, specifically on chilled product.

However, full production has not resumed for many companies with limited volumes to offer.

Furthermore, the inter-governmental talks on the resumption of US beef exports to Korea have reported little progress.