April 16, 2012

Australian beef exporters reported a continuation of the slow trading conditions with Korea as the former exported 39% less beef to Korea in the first quarter of 2012 compared to the same period in 2011.

The Korea Rural Economic Institute (KREI) said it expects domestic beef slaughter from March to May to increase 13.8% on-year, following a 32% on-year rise in January. The price for a Hanwoo carcass in the Korean wholesale market from January to the second week of April this year has remained relatively steady compared to the same period last year, when Korea battled foot-and-mouth disease outbreaks. However, prices in 2012 are 18% lower on the same time in 2010.

Hanwoo carcass prices increased marginally early in 2012, largely due to on-going promotions in Korea's retail discounters, but were unable to maintain the higher levels as overall meat demand eased. Korean news sources noted that Korean meat consumption has been unable to keep pace with available supplies so far in 2012, influenced by economic uncertainty and high overall consumer prices - even though rising beef, pork and chicken production has resulted in lower prices.