May 18, 2004

Korean Beef Prices To Decline By 10%
 

Beef prices in Korea will be lowered by some 10 percent in order to tide over the sluggish consumption triggered by an outbreak of mad cow disease in the United States.

The Korea Federation of Meat Purveyors said on Tuesday it plans to ask its 31,000 member shops to lower prices.

The members accounted for 66 percent of the total 47,000 meat shops across the country.

The body unveiled the plan to break through the slowdown in beef consumption as meat retailers have maintained sales prices despite a drop in prices at production sites due to the bovine disease.

"To end the vicious cycle of sluggish consumption, we've decided to lower beef's retail prices," said Han Su-hyeon, a managing director of the federation. "We've already notified chapter offices of the decision and most shops will follow the decision."

A 500-kilogram ox sold for 2.88 million won on Monday, down 28.7 percent from 4 million won in late 2003, while the price for a 500-kilogram cow dropped 20.3 percent to 4 million won this month from 5 million won in late 2003.

However, retail prices have remained almost unchanged at 15,000 won per 500 grams from December 2003, when mad cow disease was detected in the United States.