March 30, 2007

Australian beef prices fell sharply in South Korea before FTA
 

Prices of Australian beef have significantly dropped in South Korea as importers prepare for a free trade agreement (FTA) with the United States.

Australia has controlled the Korean beef market since it banned US beef products in 2004 on mad cow disease concerns.

Malcolm Foster from the Australian Lot Feeders Association says prices could drop even further as an agreement between US and Korea is expected to be sealed this week.

Foster said the US' demands of reducing Korea's current import tariff from 40 percent to zero will have an adverse impact on Australian beef products.