July 21, 2008

Domestic and imported beef prices in South Korea have dropped significant due to the return of US beef and a decline in overall beef consumption. 

Prices of domestic beef nose-dived from KRW 13,214 (US$13) to KRW 11,690 (US$11.5) per kg in one week, down 17 percent in 2007.

The return of US beef has made sales of Korean beef miserable, while local importers said that summer also contributes to low beef sales as consumers prefer chicken and pork during the hot season.

Wholesale prices of Australian beef have also dropped - frozen Australian chuck roll dropped by KRW 100 to KRW 6,000 per kg while short ribs decreased KRW 500 to KRW 10,500 per kg.

A total of 2,526 tonnes of US beef and 3,646 tonnes of Australian beef passed Korean quarantine from July 1-10, according to South Korean authorities.

In addition, South Korea's law on Beef Tracking System is expected to implement on December 22, 2008, applying to about 2 million head of domestic cattle. The system will computerise DNA information of beef cattle to manage the beef processing business from farm to fork. The tracking system is expected to help in restoring consumer confidence in beef, preventing country-of-origin labelling fraud and increasing business transparency.