March 7, 2011

Australian beef exports face steady demand from South Korea

Most of the Australian beef exporters reported that demand from South Korean beef importers was rather stable last week.

In spite of the demand, it was mentioned that Korean business conditions continued to be tough, with the strong Australian dollar, high cattle prices and easing seasonal demand in Korea following the Lunar Year celebrations.

In response to the strong Australian export volumes to Korea in February (15,299 tonnes), average prices for Australian beef cuts in the Korean wholesale market decreased last week. However, in contrast to the same time last year, prices remain historically high.

Statistics Korea reported that the country's inflation reach a 27-month high in February, increasing 4.5% on the same month last year due to rising food prices and Middle Eastern turmoil pushing up energy costs.