Korean beef demand on the rise despite FMD outbreak

Korea has imported 3,728 tonnes of beef from Australia during April 1-12 this year, indicating a solid start for this month's volumes on rising domestic demand.

One week before the foot-and-mouth disease outbreak in Ganghwa, Korean prices for cattle and pig carcasses dropped slightly, but picked up since then, despite the infectious disease.

Analysts say that it is unlikely that the FMD in Korea will significantly impact consumer beef demand in retail or food service.

The retail industry is closely watching the developments of the outbreak as experts have predicted the disease will likely spread further. Major large discount stores are closely tracking the livestock availability of their distributors and have indicated that they may even start securing stock, according to reports.

In addition to strong domestic prices, the overall value of imported beef remains firm, while short rib prices increased from all overseas suppliers.

Due to recent low inventory, there may be insufficient rib supply to satisfy demand, according to analysts.