June 5, 2008

Australia beef exports to South Korea surge with US ban
   

Australian beef exports to South Korea in May soared 18 percent on-year to 10,400 tonnes after Seoul re-imposed bans on US beef from cattle over 30 months of age.

Australia, which captured three-quarters of the South Korean import market after Seoul banned US beef in 2003, exported 148,930 tonnes of beef in 2007.

South Korean importers had been running down their stocks in anticipation of a flood of US beef but they returned to the market in May as it looks likely that the ban would remain, said Peter Weeks, chief market analyst of Meat & Livestock Australia.

Weeks told Reuters that there would be no US beef imports until the beef agreement between Seoul and Washington is re-negotiated and that could take months.

South Korea will soon be buying large amounts of beef for its festival periods and Weeks expects Australian beef to be their top choice.

South Korea is the third-largest market for Australian beef exports, worth AU$4.2 billion (US$4 billion) a year.