February 28, 2006

Beef prices in South Korea expected to fall

This year, falling beef demand in South Korea has caused a decline in retail prices, which has in turn affected wholesale market prices.

Boneless beef sales generally pick up in March with the start of the school year; however, the anticipated re-entry of US beef at the end of March is expected to impact prices further.

Short rib and boneless beef prices fell again this week, in response to the expected US re-entry, as rib meat volumes from the US may result in a fall in demand for Australian ribs.

Short rib wholesale prices dropped by 1,800 won/kg (US$1.86/kg) this week, to 12,000 won/kg (US$12.40/kg), the lowest level for the past 10 months.