April 28, 2004

Korean Beef Market Reels From Mad Cow Impact
 

In 2003, the U.S. occupied a 77 percent share of Korean frozen beef market, and a 71 percent share of the fresh/chilled market.  Ninety percent of beef imports from the U.S. were frozen products amounting to $728 million in 2003, up 32 percent by value from the previous year.  Imports of fresh/chilled beef from the U.S. were $85 million in 2003, up 120 percent by value. 

As of December 27, 2003, the Korean Government placed a ban on BSE-associated commodities such as ruminants and ruminant products from the United States.  However, items such as raw hides, milk and milk products, semen and tallow are permitted.

Edible offal is considered a delicacy in Korea, especially items like pork feet, intestines, livers, oxtails, and tongue.  Korea is willing to pay top dollar for these products.  Imports were $74 million in 2003, up 12 percent by value.

Poultry imports were $35 million in 2003, a decrease of 37 percent from the previous year.  Korean consumers preferred Thai chicken because they could provide cleaner de-boned meat products.  U.S. chicken became more popular when Hi Path Avian Influenza (HPAI) broke out in Thailand. However, after the outbreak of HPAI in Texas, uncooked poultry products from the U.S. were banned. 

The local poultry industry has also been hit with HPAI, causing a dramatic decline in local consumption of poultry. The Korean government and the local industry made a concerted effort to increase consumption by addressing consumer¡¯s food safety concerns.