March 29, 2004

Korea Recovering From Mad Cow, Bird Flu

The poultry and beef industries in Korea are beginning to show signs of recovery following the double outbreaks of mad cow disease and bird flu.

Chicken prices have recently begun to normalize with the increase in supply, retailers say. Meanwhile, beef sales have begun to expand, with fear of mad cow disease declining.

Retailers said yesterday that the average producer price of chicken was 1,600 won ($1) per kilogram (2.2 pounds), down from 2,100 won at the start of this month. Prices plunged in January as demand for chicken tumbled on reports of the spread of bird flu. Then the prices soared until early this month, as the disease and its associated fears abated while the number of chicks declined.

Retailers said the poultry farms had expanded their supply since mid-March, pulling prices down.

Meanwhile, the discount store Lotte Mart said yesterday that its sales of domestic beef are at 80 to 90 percent of where they were before a case of mad cow disease was discovered in the United States in December. That discovery cut the store's domestic beef sales in half. Sales of imported beef are 60 percent of what they were before the U.S. case was discovered, the discount store said.