April 16, 2009

South Korea has reclaimed its position as the third top buying market for US beef after lifting a five-year ban put in place following the first case of mad cow disease in the US in 2003.

 

Industry sources expect sales to South Korea to continue rising in coming months amid some stability in the currency markets and as the grilling season begins.

 

Livestock and Meat Information Centre analyst Jim Robb said Korea is consistently buying from the US, which is one of the main reason US beef exports for January and February were slightly above a year ago.

 

Robb added that most of the other markets were somewhat weaker, as expected in this economic environment.

 

According to the US Meat Export Federation (USMEF), South Korea imported 13,100 tonnes of US beef including organs such as the heart and kidney in the first two months of the year.

 

South Korea, along with Vietnam, increased imports even as the top two US beef buyers, Mexico and Canada, respectively, slowed purchases due to weakened currencies.

 

Shipments to South Korea were a major part in keeping exports a net positive in the first two months of this year.

 

USMEF economist said that if US did not have access to the Korean market, exports in the country would be below year-ago levels.

 

Overall, total US beef exports increased 2 percent in volume to 132,612 tonnes in the first two months of the year, but Mexico imports declined by 22 percent in volume and Canada by 14 percent. Imports to Vietnam jumped 101 percent.

 

However, the rise in sales of US beef has displaced some sales from Australia.

 

Meat & Livestock Australia chief analyst Peter Weeks said his organisation had expected Australia's share of the South Korea beef market would fall back to 35-40 percent from a peak of 77 percent reached in 2006 as US exports picked up.

 

But consumer resistance to US beef meant that Australia was likely to maintain a higher market share.

 

US overtook New Zealand as the No. 2 exporter this year to South Korea while Australia remains No. 1.

 

Consumption of imported beef is rising in South Korea, and sales are expected to increase.

 

Park Chang-kyu, head of US beef importer A-Meat said that sales of US beef have been steadily rising at around 20 percent every month and imports are likely to increase sharply from next month as the foreign exchange market is stabilizing and demand is also set to increase sharply during cookout season.

 

However, South Korea might not be able to hold on to its No. 3 position this year. USMEF economist said that the Federation is projecting 80,000 tonnes of US beef exports this year to South Korea, putting it behind Mexico, Canada and Japan.