July 7, 2006

South Korean beef cattle herd increases 11.5 percent on-year
 

According to the Korean Ministry of Agriculture, the Hanwoo and beef cattle herd in Korea in June 2006 reached 1.96 million head, an increase of 11.5 percent over last year.

The liberalisation of the Korean beef market in 2001 and the Asian financial crisis of 1998 saw reduced herd numbers.

The herd has been growing since then along with prices. In January 2001, the first month of a liberalised beef market, when the quota system was changed to a tariff based import system, the price for a female Hanwoo cow was 2.99 million won (US$3,154).

The price rose 50 percent within a year, to 4.47 million won (US$4,715) and then further to 5.01 million won (US$5270) in November 2003.

The discovery of mad cow disease in the US caused prices to stumble as consumers avoided beef due to health concerns.

As farmers held stock back from market waiting for prices to improve, calving and herd size increased.

The recovery in prices started in mid-2004 and continued through to October 2005 and encouraged further building up of herd sizes.

Hanwoo and beef cattle numbers are likely to continue to rise into the September quarter, towards 2 million head, according to the Korean Rural Economic Institute.