May 3, 2010

Korea reports no major market impact from FMD

While the spread of the foot-and-mouth disease continues to make headlines in Korea, as another farm in Gangwhado was found infected with the virus on April 28, there has been no appreciable impact from FMD on Hanwoo cattle rates as yet, with prices remaining 21% higher than last year.

Most prices of imported beef cuts in the Korean wholesale market also remained steady this week. The price of US short rib lifted for the fourth consecutive week - due to a market shortage, as Korean imports of this item has fallen 11% year-to-date compared with 2009, according  to National Veterinary Research and Quarantine Service (NVRQS).

However, the Korean meat industry fears that the increase in culling livestock, trade constraints and possible changes in consumer behaviour could impact the foodservice sector. In May, Korea's restaurant traffic and sales usually lift compared with quiet months between Lunar Year (February) and April. Some Korean retailers in affected FMD regions have reported decreasing sales of beef and pork, while demand for chicken has improved, according to reports.

Australian beef exports within the period of April 1-27 totalled a healthy 9,148 tonnes swt, compared with 8,543 tonnes swt in April 2009, with chilled products making up 27%, up 1% on-year.