May 1, 2004

Korea Beef Imports Down In March

Korean beef imports totaled 14,282 tons for the month of March - 48% below March 2003, but 62% above February 2004.  The fall on last year is due to the absence of US beef in the Korean market (US imports accounted for 69% of total beef imports in Korea in 2003), higher beef prices and the adverse reaction Koreans have had to beef since the announcement of BSE in the US in December last year.  Although consumption has partly recovered since its falls in January, it is yet to reach pre-BSE levels. 

Australian chilled beef imports continued to rise, up 3% on March 2003 to 614 tons for the month.  The rise in chilled products has steadily grown since the introduction of regulations allowing the freezing down of chilled beef in 2002.  Frozen Australian beef imports were down by 12% on the previous March, with frozen US product, which entered Korea prior to the import ban, still available. 

High prices being paid for both chilled and frozen product are reflected in the increased value of imports from Australia.  The average tonnage value of chilled Australian imported beef increased by 37% from March 2003 to US$6,726/tonne in March 2004, while the average tonnage value of frozen product imported from Australia increased by 39% to US$2,921/tonne for the month.

While total Korean imports are expected to remain below last year's levels, imports of Australian beef are expected to strengthen, as product enters the country in anticipation of the wedding and holiday season in May.