April 23, 2007

Increasing Korean imports contribute to weak trade

Beef imports of South Korea remained high in March, accentuating an oversupply in the market and a slump on prices.

Figures from the Korean International Trade Association show that imports in March were up 10 percent on the previous year, at 19,125 tonnes, accumulating the total for the March quarter to 60,363 tonnes or 32 percent higher than last year. But the statistics was still a third lower than the record in 2003 before the ban on US beef.

Imports of Australian beef in March were 13,808 tonnes or 72 percent on market share, up 14 percent on the previous year. Chilled beef increased by 26 percent while frozen beef was also up 11 percent, bringing total imports from Australia for the quarter to 45,566 tonnes, posting an increase of 41 percent.

Imports from New Zealand, the only other significant supplier, were also up 6 percent for March and 16 percent for the March quarter

High imports have caused an unprecedented build up in beef stocks in the Korean market amid slow demand. The decline in wholesale and import prices have also been attributed to the continuing uncertainty over the timing and extent of US re-entry to the market. While most information attributed to Korean government sources suggests a re-entry around October, many in the trade remains concerned that it could be much earlier.