April 5, 2010

Korea and Japan raise demand for Australian beef

Australian beef saw increasing demand in Korean and Japanese markets from March-May as retail spending improved in Korea while Japan is heading for a seasonal holiday.

Prices for imported beef cuts in the Korean wholesale market remained steady this week as tight supply remains an issue. As Australian beef exports to Korea are increasing, an improvement in Korean stock levels is also expected.

Australian beef exports to Korea from March 1-29 totalled 10,074 tonnes swt, with chilled beef cuts accounting for 32% compared with 25% on-year. The improvement in Australian chilled beef exports has been fuelled by solid retail demand in Korea as consumer traffic and spending is on the rise in both department stores and large discount stores.

Beef export trading with Japan this week was subdued compared with the last couple of weeks, as most buyers have already secured the products required before the beginning of the Golden Week holiday (April 29-May 5).

Japanese wholesale market reported firm interest in Australian frozen beef, particularly barbecue items, while trimming items continued to be in good demand.

Japanese schools and businesses commence a new term from April 1, and beef demand starts to pick up from now to Golden Week as consumers celebrate a fresh start and the arrival of spring.