March 4, 2004

Australian Beef Exports To Korea Fall In February

Australian beef export volumes to Korea during February fell 14% compared to February 2003.  While grassfed beef exports fell only 2%, there has been a significant reduction in the volume of grainfed product going into Korea.  High demand for grainfed beef in the Japanese market has seen product diverted away from Korea, leading to grainfed beef falling 72% compared to the same month last year, from 1,043 tonnes to 296 tonnes for the month.

Not surprisingly, February exports to Korea increased by 46% compared to January, to 5,211 tonnes. January is traditionally a quiet month for beef purchasing in Korea following the large beef purchases that were made in December in preparation for Korean Lunar New Year.

In the calendar year to February, exports fell by 14% compared to 2003, from 10,202 tonnes to 8,792 tonnes. Chilled beef exports have defied this trend and have continued to grow in 2004, up by 5% on 2003 levels to 893 tonnes.

With signs of some recovery in consumption in the Korean market and the approaching wedding and school lunch season, demand for product should increase from the end of March - although, this may not be reflected in increased export volumes until April. However, exports could be constrained by a similar increase in demand in the Japanese market.